“I think dollar down, gold up,” Cook said in an interview at the sidelines of the Sprott Natural Resource Symposium.
The gold price is on the rise, but Brent Cook, co-editor of Exploration Insights, wants investors to remember that they still need to do their due diligence on exploration stocks.
“I think what we saw a couple years ago — we haven’t seen it that much this year — but a company would put out a good drill hole, and the stock would double or triple or quadruple. And you’d see it ramped up in the chat rooms, the bulletin boards would be talking about it and everybody would be excited about it,” he said when asked about common mistakes.
“But they didn’t do the due diligence to recognize what that drill hole really represented, whether it was a twin hole, whether it was smeared grade, whether the structure they were drilling was really small.”
Cook didn’t offer a prediction on how high the gold price may go (or when), but he did point out that confidence in the US dollar and the US as a whole is declining globally, which he sees pushing money into other currencies as well as gold.
“So I think dollar down, gold up,” he said.
While Cook believes that it’s still early days in terms of money returning to the gold space, he did note that there’s been some action recently, including significant investments from Eric Sprott.
“Obviously what he’s thinking is the gold price is going way higher — ‘it doesn’t matter that much what I own, I just want to own a lot of things that have gold in the ground somewhere, regardless of economics,”’ commented Cook.
Major and mid-tier miners are also putting money into the space by funding exploration programs for smaller companies, he said. In Cook’s opinion, that’s an indication that majors aren’t seeing success in internal exploration and feel they need to invest elsewhere.
Watch the video above for more from Cook, including commentary on his worst investment so far this year and a stock whose performance has surprised to the upside.
Cook’s interview took place at the Sprott Natural Resource Symposium, and our full playlist for the event can be found on YouTube. You can also click here to watch our interview with Joe Mazumdar, Cook’s co-editor at Exploration Insights.
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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.