Higher Gold, Dollar: The New Normal - Marin Katusa

With gold prices rallying over 24% this year and the U.S. dollar, which usually trades inversely to the metal, also up, research analyst Marin Katusa says he expects this to be the “new normal.” “I’m very bullish on gold, I’ve been for years. I think it’s a great place to be with the negative interest rates going on globally,” he told Kitco News at this year’s Freedom Fest in Las Vegas. However, the Katusa Research founder also expects upside for the U.S. dollar, even though it is often seen as gold’s rival asset. “I think we’re in a new normal of higher gold and dollar prices,” he explained. Katusa also runs a junior mining gold fund with famed investor Doug Casey, and says it is important to make the right picks in the sector right now. With higher metals prices, miners are not being too careful in positioning themselves properly for a downturn. “Every dog in the market is getting a bid right now so I’d be very careful and try to go to quality because if the market does pull back, which I don’t know it may or may not, you want to be in the best quartile of people and projects,” he said. “You have to be very careful understanding the political aspects in this market because in a negative interest rates world the governments is going to try to figure out how to subsidize more of their social programs and I think that’s going to be a growing trend.”