TORONTO (Kitco News) - Gold prices are still on the rise, up over 19% year to date, with some investors now questioning whether or not they have missed their chance to get in on the action.
However, according to one veteran gold investor, the 'real move' in gold is yet to come.
'If this rally falters a little bit, some people will say it's over and miss the real move, which I believe is to come,' Rick Rule, president & CEO of Sprott U.S. Holdings, told Kitco News at the Prospectors & Developers Association of Canada in Toronto on Sunday.
'What we need to understand right now is that institutional investors have to be in the gold space because it's the only sector that's working,' he said.
Gold prices have been on the rise since the start of the year and managed to hit a 13-month high over $1,280 an ounce last week. The metal has come off slightly Monday, with April Comex gold futures last down $3.40 at $1,267.20 an ounce.
Despite the longer-term optimism, Rule said he expects gold prices to retreat from here. 'I don't think in the near term this rally is sustainable; my suspicion is that gold will pull back before it goes forward,' he said.
Rule argued that the recent rally in gold prices as well as in mining stocks was overdue simply because both, especially the latter, were in oversold territory. However, it may now be a smart time to cash in, especially in the junior-mining sector, he noted.