WJB Capital Is Bullish On Gold (NEM)

John Roque of WJB Capital said on CNBC's Fast Money that gold is going higher, and every pullback is a great buying opportunity. He compared the performance of gold relative to S&P 500, and identified that gold is in its fourth cycle. In the prior cycles, when gold peaked relative to S&P 500, the ratio went as high as 6X. Right now this ratio is 1.4X and John Roque thinks that gold still has a long way to go relative to the stocks. John Roque thinks that the best trade would be to go long on gold, and if you want a hedge you can short S&P 500 against it. The reason for buying gold is a currency crisis that we are witnessing in Europe, but John Roque is also expecting a US dollar crisis which will lead to new highs in gold. Tim Seymour added that mining stocks look exhausted, and he asked Mr. Roque if he is expecting a pullback. John Roque said that he is looking at Newmont Mining Corporation NEM, and thinks that it would be good to buy this stock on the pullback, somewhere near the 50 day moving average or 10% off of Newmont's (NEM) recent high.