In a conversation with the Investing News Network, Ryan McIntyre, managing partner at Sprott (TSX:SII,NYSE:SII), shared his thoughts on gold as the yellow metal trades near all-time highs.
He noted that gold hasn't looked back after starting to rally at the beginning of March, and said there's a missing piece of demand that could send the price higher: investment in gold exchange-traded funds (ETFs).
"Probably one of the most unusual parts of this gold rally over the past month and a half is that you've actually continued to see a decline in gold holdings by global ETFs," McIntyre said. "I think it's a very unique circumstance, and one that I think we're probably going to see reverse and probably add to what are already pretty good gains on the gold price."
While gold's performance has been historically strong, gold stocks have lagged behind, frustrating investors. Commenting that this scenario is unusual, McIntyre said that for him the gold stocks represent a "tactical opportunity."
"To me now is a great time to be in the gold equities in particular and take advantage of both the gold price and the low sentiment in the gold-mining space itself. To me it's probably a great spot to be on the investment side," he said.
When asked about silver, McIntyre said while its volatility can make investing difficult, it's important to be patient.
"What I've observed over time with any commodity is that you can have these deficits for a little while, and then literally one day people wake up for one reason or another and all of a sudden you get the move and the price starts running away pretty quickly on you. So to me you always want to be positioned, even though you can't explain what exactly might happen. You really want to be positioned ahead of that, and to me it's kind of the perfect setup for silver now."
Watch the interview above for more of McIntyre's thoughts on gold and silver.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.