Move Away From The Dollar, Mining Stocks May See ‘Super Bubble’ – Doug Casey

(Kitco News) - Although gold and other commodities are still looking for a bottom, mining stocks may have already found it, Doug Casey, founder of Casey research, told Kitco News in an interview with Daniela Cambone.

“Mining is a horrible business, it always has been, and it’s getting worse in many ways,” Casey said. “But the stocks are so cheap right now that you have to buy them.”

Casey remains bullish on gold despite the recent price volatility in the marketplace. The yellow metal has struggled to hold gains as the U.S. dollar index increased by roughly 2.8% just last month.

However, this USD strength does not concern Casey. Rather, he is closely looking at how many dollars the U.S. Federal Reserve is actually pumping into the market instead.

“If the [Fed] continues to create billion or trillions of dollars, they’re going to create more bubbles,” he said. “And there’s going to be a bubble in commodities and probably a super bubble in the companies that mine and explore for those commodities.”

Casey added that it is unpredictable to say where the U.S. currency is headed.

“But, I’ll say this; I would take advantage of the dollar’s strength to move out of it and into other things, in particular, gold.”

By Sarah Benali of Kitco News sbenali@kitco.com