Gold and silver are being held at the moment, GoldStockData.com’s Don Durrett told Investing News Network, but he thinks a final sell-off on Wall Street will clear the way for precious metal prices to shine.
“What we’re waiting for is for the market headwinds to basically clear up,” he explained. “And what I mean by that is we need the stock market to sell off so there’s no headwind so that gold can finally go higher.”
When that capitulation occurs, the stock market will no longer be an obstacle. “Once it gets out of the way, people basically aren’t going to invest their money in stocks, and they’re also going to be wary of bonds,” Durrett said.
His breakout numbers are $2,080 an ounce for gold and $30 an ounce for silver, but both could go down in the short term: Durrett said gold could drop to the $1,800 to $1,850 level during the capitulation that even he described . However, if the yellow metal can hold at $1,800, it should be able to go as high as $2,300 this year.
When asked how he is preparing for higher gold and silver prices, Durrett referred to his book, saying he takes a “pyramid” approach to investing; In other words, he believes it’s important to build a strong foundation 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 shares, and said he generally won’t be looking to sell until gold and silver prices reach the levels he expects; that’s because he doesn’t expect metals to make this kind 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 to learn more about Durrett’s thoughts on gold, silver and more.
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Securities Disclosure: I, Charlotte McLeod, do not have any direct investment interest in any of the companies mentioned in this article.
Editorial disclosure: Investing News Network does not guarantee the accuracy or completeness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the views 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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