The bottom is in for gold creating an “incredible buying opportunity” in mining shares as well as in gold and silver, Bob Moriarty of 321gold.com tells CEO.ca in a recent podcast.
He points to work by James Flanagan, Gann Global Financial, noting the rather explosive rise in the XAU and HUI. The XAU is about 30% since mid-January and that mirrors the beginnings of past run-ups in the price of gold.
Moriarty sees it happening again. But not without a bit of turbulence.
“When you have a big rise it’s perfectly normal to have a correction,” Moriarty says. He sees the market giving back about two thirds of it recent gains in the coming month but then flying back up.
“A month from now there will be an incredible buying opportunity. And prices for shares, for gold, for silver will be much higher in the six to a year range.”
Moriarty says he has been buying for months now.
“You don’t have to be good at math to realize the worst is behind you,” he says.
He notes the dismal performance of mining and junior shares down so much in the past few years. He also points to bottom signs such as the anemic traction juniors get on news and multiple examples of juniors trading at extreme discounts to cash.
Among juniors he’s has picked up is Walker River Resources (WRR-V, not a paid sponsor of his) that recently announced drilling narrow, very high-grade gold in Nevada. He’s sticking with it for now, waiting to see further results, he says.
Full interview above.
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