Gold and silver have history on their side

Jeff Clarke: Keep at it – gold and silver have history on their sideyoutu.be

After a strong performance earlier in the year, the price of gold has fallen, leaving investors wanting more.

But for Jeff Clark, metals and mining analyst at TheGoldAdvisor.com, the current price level represents a buying opportunity.

“We’re in a down cycle right now. Three guesses for what’s next – an up cycle,” he said. “We just don’t know the timing of it — when it’s going to happen, how big it’s going to be, what price it’s going to start at. But you need to be ready now.”

A turnaround from the US Federal Reserve could be a catalyst for gold’s move as well silverand Clark said that could happen relatively quickly — since the 1950s, the average time between the Fed’s last rate hike and the Fed’s first rate cut has been just five months.

“That tells us they’re probably going to raise rates one or two more times, or whatever,” he explained to the Investing News Network. “But a few months after that, they’ll probably actually have to turn around and start cutting rates again. This will be very bullish for many assets, but especially for gold and silver and mining stocks.”

Clark focuses on exploration-stage companies and said he looks primarily at people, politics and ownership. In addition, it takes into account factors such as the number of shares, cash levels and whether the CEO has a history of creating shareholder value. He also likes to ask management how much of their own money they have invested in their stocks.

Overall, his message to investors was that today’s lower prices should be viewed as a buying opportunity.

“It’s a second chance, that’s how I look at it,” he explained. “Any stocks you missed before, any stocks you bought that may be too weak to recover from all of this, maybe other stocks you want to own more of, this is your second chance.”

Watch the interview above to hear more from Clark about gold, silver and his approach to investing. You can too Click here to read our review of the New Orleans Investment Conference and here for our full YouTube event playlist.

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Securities Disclosure: I, Charlotte McLeod, have no direct investment in any company mentioned in this article.

Editorial Information: 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 Investing News Network and do not constitute investment advice. All readers are encouraged to do their own checking.