The Shift in the Macro Picture
The macro picture is shifting and that means a higher gold price, according to Brien Lundin, editor of the Gold Newsletter. Lundin believes that we are transitioning from a rate-hiking cycle to a rate-cutting cycle, which will provide significant tailwinds for gold. He suggests that reaching the $2,100 per ounce level will signal a sustained trend and attract more investment into the market.
The Western Investor’s Potential Impact
While gold has performed well in recent years, Lundin notes that the Western investor has not yet fully participated in the market. However, once they start buying, he anticipates that their increased demand, along with the trend of ETF buying, will drive the price of gold even higher.
The Bullish Outlook on Copper
In addition to gold, Lundin is also optimistic about copper. He points out that there are no substitutes for copper in the battery metals matrix and that it takes a significant amount of time and capital to bring a copper deposit into production. With a lack of exploration spending over the past decade, Lundin predicts a supply crunch in the copper market. He believes that junior mining companies can play a role in alleviating the supply deficit by developing known deposits.
The Role of Hard Assets in the U.S. Election Year
Lundin discusses the upcoming U.S. election year and its potential impact on the economy. Regardless of the winner, he expects high debt levels and the need for lower interest rate policies, which will favor hard assets like gold. Lundin’s New Orleans Investment Conference, which is celebrating its 50th year, will feature special guests.