Nick Santiago: Gold Price Drop to Create “1999 Buying Moment”
The new year has been fairly positive for gold so far, but what’s in store for the yellow metal?
Nick Santiago, president, CEO and chief market strategist at InTheMoneyStocks.com, said that while gold could rise a little in the short term, he’s expecting a “pretty substantial decline” in the next year or so.
“But here’s the good news for anybody out there that is a gold bug,” he told the Investing News Network.
“When gold gets down to around US$1,500 an ounce on the futures, maybe US$1,450, I think that is going to be like a 1999 gold-buying moment, and that’s what I’m waiting for. When it does get down to that level, that low, I’m going to really go heavy into gold again,” added Santiago, who first started buying gold in 2003.
When asked how high he thinks the precious metal could go in the further-out future, Santiago said he thinks it could move “a lot higher than the recent all-time highs,” but noted that he doesn’t like to make calls that look too far ahead. He takes a charts-based approach and prefers to recalculate as new levels are achieved.
Looking over to silver, Santiago said it has a shot at making it to US$26 per ounce in the short term, but that’s likely where it will hit resistance and start to decline.
“My major pullback level for silver is going to be around US$18,” he said. “When silver gets to US$18, I would back up the truck and load it up with silver — that’s when silver will have its golden moment.”
Watch the interview above for more from Santiago, including his thoughts on the overall markets.
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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.