Gerardo Del Real: It's a Fiat Race to the Bottom, and I'm Confident About Gold
The gold price has experienced a correction since reaching a new all-time high over the summer, but Gerardo Del Real of Digest Publishing believes a positive future lies ahead.
Speaking to the Investing News Network, he said this is simply how bull markets operate — a straight path upward is not a sustainable option.
“We saw the initial rush of capital into the space once gold broke that US$2,000 level, and psychologically I think everyone just expected and hoped for a continuation of that ascension in price,” he said.
“That’s not the way that bull markets work — there’s always a pullback. And so I actually think this pullback is healthy,” he explained.
Looking at potential near-term catalysts for gold, Del Real encouraged investors to take a step back when it comes to the quickly approaching US presidential election. Why? In his opinion, more stimulus is almost guaranteed no matter who wins, and that is bullish for gold.
And it’s not just the US where money printing is happening — it’s a global issue. “It’s kind of a fiat race to the bottom, which makes me incredibly confident about the gold space and the gold price,” he said.
“I see this pullback as a healthy opportunity for people that felt like they missed that initial run-up to maybe start doing some homework and some due diligence and get in and take advantage of the recent pullback. Because I don’t think it’ll last for more than another four to six weeks.”
Aside from gold, Del Real sees opportunity in copper due to the “electrification of everything,” and said that he’s most interested in identifying gold, copper and copper-gold juniors that have near-term catalysts and don’t need rising metals prices to succeed.
“This is the kind of cycle where you really don’t get into it for double- or even triple-digit gains. If you play it well enough and you have sustainability, you can walk out of this two or three, four years down the road with many, many four-digit gains,” he said. “Just be cautious taking profits too soon, because this is the kind of cycle that can create that generational wealth.”
Watch the interview above for more from Del Real, including three stocks he’s interested in right now.