Gold and silver prices may be correcting this week, but for mining heavyweight Ross Beaty the outlook for both precious metals remains bright.
Speaking to the Investing News Network, he laid out the factors he sees driving both gold and silver, describing himself as “bullish for the foreseeable future.”
In terms of gold, Beaty said that the debasement of paper currencies and the outlook for inflation are the bottom line. While COVID-19 is certainly playing a role right now in moving gold, he said that what it’s done is add fuel to a fire that already existed before the disease came along.
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“Everybody who knows anything about gold knows that it’s a store of value, it has been for 5,000 years. And that role is today as relevant as its’s ever been in 5,000 years,” he said.
Looking at silver, Beaty noted that while it’s moved by many of the same factors as gold, it also has an industrial side. With that in mind, he laid out two potential price scenarios for the white metal.
“If industrial demand for silver remains strong this fall, you’re going to see silver outperform gold again, (and I think) they’re both going to outperform, say, copper and other metals because the fundamentals for both industrial production growth and the purchase of silver as money, as a precious metal — they’re both on bullish trends,” said Beaty, who is chairman of Pan American Silver (TSX:PAAS,NASDAQ:PAAS) and Equinox Gold (TSX:EQX,NYSEAMERICAN:EQX).
“If, on the other hand, industrial production goes down or demand goes down, you’re going to see silver underperform gold, but still probably outperform the base metals.”
Sharing his thoughts on what investors may want to do during the current circumstances, Beaty said his biggest advice is not to sell too soon. While he suggested that those who are nervous may want to take some money off the table, he doesn’t think the current run in gold and silver is anywhere near its end.
“I don’t think the fundamental reasons for gold and silver doing well are going to be at an end any time soon. I really do think we’re going to have these continuing strong markets for some foreseeable period in the future,” he explained.
Watch the interview above for more from Beaty on gold, silver and where they are at right now.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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