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Gold Mining Stock Prices Could Double From Here

Gold Mining Stock Prices Could Double From Here

May 20 2019

 

The commodities markets are cyclical, and we are about to enter a bull phase in which mining stocks become much more valuable relative to the broad market, said Rob McEwen, chairman of McEwen Mining.McEwen said that currently, several factors play a key role in determining the direction of gold prices, most important of which is the U.S. dollar.Claim your $500 to trade Forex and CFD's“One of the prime determinants right now is the strength of the U.S. dollar. If confidence in the dollar were to wane, then you’d start seeing all commodity prices starting to move up more,” McEwen told Kitco News on the sidelines of the Hard Assets Conference in Jekyll Island.

 

On the cyclical nature of mining stocks, McEwen said that historically, timing points to a bull market that we have yet to see play out.“In the last 77 years there’s been eight bear markets in gold equities and the last one we were in was the deepest and longest of all the bear markets in the last 77 years. In the same period there’s been six bull markets and the average gain is 540%; we’re in the seventh bull market right now, we’re only up 170% from the beginning of 2016, so there’s probably a double, if not a triple from here,” he said.For contrarian investors, McEwen added, now would be a good time to enter the market that he sees as having “low downside and much greater upside than the broad market.”

 

Source: https://www.kitco.com/