Gold and silver are being held back right now, Don Durrett of GoldStockData.com told the Investing News Network, but he believes a final selloff on Wall Street will clear the path for the precious metals prices to shine.
“What we’re waiting for is the headwinds of the market to basically clear,” he explained. “And what I mean by that is we need to have the stock market sell off in order for there to be no headwind for gold to finally be able to move higher.”
When that capitulation happens, the stock market will no longer be a hindrance. “Once it gets out of the way, then basically people aren’t going to be putting their money into stocks, and they’re going to be leery of bonds as well,” Durrett said.
His breakout numbers are US$2,080 per ounce for gold and US$30 per ounce for silver, but both could move lower in the short term — Durrett said gold could fall to the US$1,800 to US$1,850 level during the capitulation event he described. However, if the yellow metal can hold at US$1,800, it should be able to get all the way up to US$2,300 this year.
When asked how he’s preparing for higher gold and silver prices, Durrett referenced his book, saying that he takes a “pyramid” approach to investing — in other words, he believes it’s important to build a strong base before branching out. He places physical gold, exchange-traded funds and mutual funds at the bottom of the pyramid, while risky explorers are at the top.
Durrett owns about 150 gold and silver stocks, and said in general he won’t be looking to sell until gold and silver prices run to the levels he’s expecting — that’s because he doesn’t expect the metals to make this type of move multiple times.
“For me it’s a waiting game — I’m just waiting. And I call it a once-in-a-lifetime trade,” he said.
Watch the interview above for more of Durrett’s thoughts on gold, silver and more.
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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.