The gold price has seen ups and downs since the US election.
The yellow metal took a hit directly after Donald Trump’s victory, falling to the US$2,550 per ounce level. But then it staged a quick recovery, passing US$2,700. It’s now pulled back again, currently at around US$2,650.
In his view, a fall to US$2,500 wouldn’t be surprising in that scenario.
‘But I would say to anyone — certainly if they’re not invested in gold — don’t wait for that. The key is that the reasons to buy gold have not changed, and we still need gold for a lot of reasons,’ Day said.
‘Gold is not a political metal. Gold to me is the anti-fiat metal, if you want,’ he explained.
‘And obviously a strong dollar — strong against other currencies — is negative for gold. But you can have a strong dollar and still be losing purchasing power. The dollar’s lost 22 percent of its purchasing power in the last four years — that’s by the government’s own numbers. So that in itself tells you … you need it. You need gold,’ Day added.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.