John Kaiser: Diamonds Have a Positive Price Trend

Resource Investing News caught up with John Kaiser of Kaiser Research at Cambridge House International’s 2015 Vancouver Resource Investment Conference. Kaiser spoke about the troubles plaguing Canadian juniors — also part of his talk at the conference — and answered a few questions about diamonds.

To start, he said that something called the “client relationship model” is contributing to regulatory overkill and choking off access to capital for juniors. Without a retail audience, the junior space may be unable to “drill those holes to deliver those discoveries that we need to keep this sector alive during this cyclical downturn.”

“That needs to change and only retail investors are capable of doing that,” he said.

On the diamond side of things, Kaiser was more positive. “[Diamonds] have a positive price trend,” he said, “because diamonds, unlike gold, [don’t] really accumulate … they’re not there sitting in vaults waiting to be sold to the next closest bidder.” He also mentioned that diamond mines around the world are being depleted and that there haven’t been any major discoveries over the past decade to take their place.

That said, it’s been tough for diamond juniors to drum up financing for exploration. He noted that companies such as Kennady Diamonds (TSXV:KDI), Mountain Province Diamonds (NASDAQ:MDM) Stornoway Diamond (TSX:SWY) and Shore Gold (TSX:SGF) have been successful in that regard, but added that more funding is needed for grassroots operations. Kaiser also pointed to Peregrine Diamonds (TSX:PGD) — in which he owns shares — as one of his top diamond picks.

Securities Disclosure: I, Teresa Matich, 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.

Related reading: 

10 Junior Stock Picks from John Kaiser

The Problem with Accredited Investor Restrictions