“We should have in 2021 a lower US dollar, stable rates and a higher gold price,” said Alain Corbani of Finance SA.
2020 is nearly at an end, and although gold looks set to end the period beneath its summertime high, Alain Corbani believes investors should be happy with the year as a whole.
“Every gold investor or portfolio manager running a precious metal fund should be very happy and very pleased with the results of this year,” he told the Investing News Network.
“The year 2020 is not over yet, but based on the latest 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 on those metrics in terms of total return on investment, the winner this year was the holder of gold and gold mines.”
Looking forward to 2021, Corbani, who is head of mining at Finance SA, believes gold will continue to run.
He went into detail about the circumstances he believes will take it there, but also broke it down simply by saying, “We should have in 2021 a lower US dollar, stable rates and a higher gold price.”
Aside from the gold price, Corbani also spoke about how gold stocks performed in 2020, noting that he’s seen a familiar pattern playing out among the juniors, intermediates and seniors.
“Always the seniors do better in the first part of the cycle, it’s always the case,” he explained. “And then usually there is a baton that is being transmitted to the more intermediate companies, and ultimately you should see small companies outperforming intermediates and of course the seniors.”
He touched on mergers and acquisitions in the gold space as well, saying he anticipates more of this activity in 2021. Corbani noted that while 2020 has brought a lot of mergers of equals, in 2021 the market may begin to be ready for tie ups with premiums.
Watch the video above for more from Corbani on gold in 2021.
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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.