John Roque, managing director of WJB Capital Group, says gold's rally isn't over, and he's expecting even more gains for the record-setting metal.
Roque visited "Breakout" just as gold was climbing past $1,500 an ounce for the first time. On Tuesday, gold hit an all-time high of $1,500.50, but pulled back a bit afterward and closed at $1,495.10.
Asked if gold is a little too frequently discussed, a classic trading sign of a top, Roque doesn't hesitate to come to its defense. "Gold is not a crowded trade at all," he says. "Everybody else thinks gold is a crowded trade… . I don't think it is."
The analyst, who at that point in the interview struck this gold ETF-long as just about the savviest investor extant, has a $1,550 price target on gold, and he thinks it could work even higher from there. Gold has been a big winner in recent years, advancing steadily as more investors bought up the metal as protection against inflation and geopolitical uncertainty, and it still hasn't reached its inflation-adjusted peak.
As for silver, which has emerged as the go-to name in the precious metals space, Roque says it's "very extended." Save the emails defending silver -- Roque isn't suggesting dumping the metal here, only that new money may be better served by waiting for a pullback before jumping in headlong. (Here are my thoughts on trading silver.)
In the less sexy but more economically predictive base metals, Roque doesn't see the same type of excitement. But he also doesn't see particularly ominous signs of a coming economic meltdown. Looking at Hong Kong, Brazil and India, he sees some softness in the latter two, but continued strength in China. That being the case, a pause in the surprising (to some) strength in copper isn't suggesting a crash is coming in the immediate future.
Roque is as sharp as they come -- an observation in no way colored by his bullish take on gold. Watch the video and tell us what you think, either in the comments below or at <a href="mailto:email@example.com">firstname.lastname@example.org</a>.
Disclosures: Macke is long GLD.
- precious metals
- base metals
- Hong Kong