In the current economic and geopolitical climate, gold prices achieving the $3,000 level within the next year is “not crazy,” according to John Hathaway, Senior Portfolio Manager of Sprott Asset Management, who also explained in a recent interview the profound impact that a 15-20% increase in the precious metal’s price would have on mining stocks.
Hathaway pointed out that mining stocks are trailing behind in an equity market that is highly concentrated in a few tech stocks. Investors are “positioned in a very few stocks that explain the movement of the S&P, and it’s a very crowded trade,” Hathaway said. “I think if that crowded trade starts to unwind, people will look around and say ‘Well, what else is there?’ And they will discover the opportunities in precious metals mining stocks.”
