Louis James: If You See Fear in the Future, ‘You Have to be Bullish on Gold’

At Cambridge House International’s 2015 Vancouver Resource Investment Conference, Resource Investing News had the chance to catch up with Louis James, senior editor of the Casey International Speculator and chief metals and mining investment strategist at Casey Research. He had just given a talk on companies whose share price doesn’t reflect their value, and was able to elaborate on it a little.

When asked about how investors can identify such companies, James gave an interesting answer, noting, “it’s not so hard to identify them. The hard part is believing in them. The famous saying is you buy best when there’s blood in the streets … but blood in the streets — that’s not fun. People are scared … they see the red in their portfolios and it makes it hard to act. It’s not hard to look at a balance sheet, it’s not hard to see what the book value of something is … it just takes guts.”

He also touched briefly on some of the junior companies he likes, noting, “my favorites right now are the big, high-grade stories. They have the best of all worlds.” Those companies include Pretium Resources (TSX:PVG,NYSE:PVG), Dalradian Resources (TSX:DNA), Continental Gold (TSX:CNL) and Rubicon Minerals (TSX:RMX,NYSEMKT:RBY).

In closing, he left Resource Investing News with a few words on gold. “I think of gold as a fear barometer. You’ve got to ask yourself, ‘does the global market look safer now than it did a year ago? Where do I think it’s going?’ If you honestly believe that Obama has saved us all, and the economy’s going to be great … Europe is going to get its act together and everything’s going to be fine, maybe gold’s not for you. But if you’re concerned about these things … then you have to be bullish on gold.”

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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