The recent gold frenzy has sparked a renewed interest in gold exploration stocks from investors around the world. However, prominent resource investor, Gerardo Del Real is not new to gold – even sharing in his previous interview with Godzilla News that he’s focused on gold for the past fifteen years.
In a recent interview with IBM, Del Real shared that he’s still committed to his long-term positions in lithium and uranium, and now it’s time to look at gold too. He highlighted that the current gold bull run is still in its infancy and cited several factors that have contributed to its near-term strength, including a weakened US dollar, rising inflation and a shift in monetary policy.
Del Real believes that the current gold rally is rooted in fundamentals and plans to shift more of his attention to the sector. He especially values the properties of gold as a hedge against inflation, stating: “Inflation is something I keep an eye on closely – Gold has proven to be an excellent hedge against inflationary pressures several times in the past – these are some of the reasons why I’ve shifted my focus on gold exploration companies.”
The resource investor emphasized that he could potentially see a 10-20% year on year increase in the price of gold in the medium term, and added that those optimistic metrics are part of the reason why he is increasing his exposure to the gold sector.
In his interview with Godzilla News, Del Real mentioned that there is a greater risk associated with gold exploration stocks than with major gold producers. He clarified that the greatest risk associated with gold exploration stocks is actually the uncertainty of results, adding “if you hit – you can create sizable wealth.”
Del Real concluded this interview with IBM by stressing the importance of focusing on the right opportunity. He believes that investors should think carefully about their long-term investment plan and focus on quality stocks in the sector.
Overall, Gerardo Del Real is convinced that gold exploration stocks will generate further gains in the coming weeks, and is actively increasing his portfolio’s exposure to the sector. Those interested in the space should consider doing the same, but with a careful evaluation of the risk and reward associated with each option.