“We should always have in 2021 a decrease US greenback, steady charges and a better gold worth,” stated Alain Corbani of Finance SA.
2020 is almost at an finish, and though gold seems to be set to finish the interval beneath its summertime excessive, Alain Corbani believes traders ought to be proud of the yr as an entire.
“Each gold investor or portfolio supervisor working a precious metal fund ought to be very pleased and more than happy with the outcomes of this yr,” he instructed the Investing Information Community.
“The yr 2020 just isn’t over but, however based mostly on the newest numbers, gold and gold equities have outperformed the S&P 500 (INDEXSP:.INX), the EURO STOXX 50 (INDEXSTOXX:SX5E) or STOXX Europe 600 (INDEXSTOXX:SXXP). Based mostly on these metrics when it comes to whole return on funding, the winner this yr was the holder of gold and gold mines.”
Wanting ahead to 2021, Corbani, who’s head of mining at Finance SA, believes gold will proceed to run.
He went into element in regards to the circumstances he believes will take it there, but in addition broke it down just by saying, “We should always have in 2021 a decrease US greenback, steady charges and a better gold worth.”
Other than the gold worth, Corbani additionally spoke about how gold shares carried out in 2020, noting that he’s seen a well-known sample taking part in out among the many juniors, intermediates and seniors.
“All the time the seniors do higher within the first a part of the cycle, it’s all the time the case,” he defined. “After which often there’s a baton that’s being transmitted to the extra intermediate corporations, and finally you must see small corporations outperforming intermediates and naturally the seniors.”
He touched on mergers and acquisitions within the gold area as effectively, saying he anticipates extra of this exercise in 2021. Corbani famous that whereas 2020 has introduced a whole lot of mergers of equals, in 2021 the market might start to be prepared for tie ups with premiums.
Watch the video above for extra from Corbani on gold in 2021.
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Securities Disclosure: I, Charlotte McLeod, maintain no direct funding curiosity in any firm talked about on this article.
Editorial Disclosure: The Investing Information Community doesn’t assure the accuracy or thoroughness of the data reported within the interviews it conducts. The opinions expressed in these interviews don’t mirror the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.