Q: Hi 5i
With the current run up in the gold and silver markets , what is your outlook for this sector going forward and the potential impact of upcoming fed meeting. Are lower interest rates a positive or negative for gold/silver.
Would you be comfortable continuing to hold a company such as AYA with expectation of further gains and time frame, how far out would you be looking.
I am always wary of sudden surges in share prices and thus reacting by selling to early.
thx
With the current run up in the gold and silver markets , what is your outlook for this sector going forward and the potential impact of upcoming fed meeting. Are lower interest rates a positive or negative for gold/silver.
Would you be comfortable continuing to hold a company such as AYA with expectation of further gains and time frame, how far out would you be looking.
I am always wary of sudden surges in share prices and thus reacting by selling to early.
thx
5i Research Answer:
Lower rates, and currency debasement, are very good for gold. We continue to see Central Bank buying (except Canada!) and investors are seeing that gold is a better store of value than crypto. The sector will be volatile, but considering the outlook we would see it as one of the 'easier' market calls for 2026. AYA is already producing, has a very strong balance sheet, and EPS is expected to rise 64% next year (consensus). This makes it 'not cheap' at 34X earnings, but we would be quite comfortable holding it. Its size adds a bit of risk, but new intercepts last week were quite impressive.