“We think the whole mining sector is attractive right now,” he said. “Although we’re seeing gold prices come down off recent highs [the precious metal has dropped over $60 from Friday’s close], at $1,660, or $1,650 an ounce, these gold companies can make decent money.”
On Thursday, spot gold was hovering around $1,660. HSBC is forecasting a rise in price to $1,850 an ounce, not based on gold’s value as a safe-haven asset, but for its performance against other currencies.
“We have been seeing devaluation of currencies versus gold,” he said. “It seems to be the anti-dollar play.”
Additional News: Gold’s Price Drop Prompts Demand RevivalAdditional Views: Unique Ways to Own Gold
CNBC Data Pages:
Patrick Chidley does not personally own shares in ABX, EGO, or GOLD. HSBC, however, he has managed a public offering of securities for ABX within the past 12 months, and is a non-U.S. market maker (matches buyers and sellers) in securities issued by ABX “and/or in securities in respect of this company.” As of Jan. 31, EGO and GOLD were clients of HSBC.