Brien Lundin, Gold Newsletter editor and president and CEO of Jefferson Financial, shares his thoughts on the junior mining space.
The gold price has started the year above the US$1,200-per-ounce mark and many investors are wondering when the next big move will happen.
At this year’s Vancouver Resources Investment Conference (VRIC), the Investing News Network caught up with Brien Lundin, Gold Newsletter editor and president and CEO of Jefferson Financial, to get more insight on the precious metal.
Speaking about the main trends in the mining sector in 2018, Lundin said that despite the run in prices at the start of 2018, it wasn’t a good year for the space.
“What we need in the junior mining space is a consistent uptrend in gold; [a gold bull market] brings excitement back to the whole resource sector,” he added.
But the question right now for the expert is whether we are going to have another year like 2018 or a year like 2016. That year, gold’s rally continued through the summer, junior miners responded well and there was a lot of money made by investors.
“I think we are at a crucial point — gold is approaching a golden cross, there are a number of indicators right now that show it has to go either way, [but] it has to go above US$1,300 to get some upside momentum,” he added.
Lundin also shared his thoughts on the recently announced deal between Newmont Mining (NYSE:NEM) and Goldcorp (TSX:G,NYSE:GG), which he believes will eventually bring some new opportunities for people at the more speculative end of the market.
“I think it’s great for the gold space because what is going to happen as a result of that and the Barrick Gold (TSX:ABX,NYSE:GOLD)/Randgold Resources deal is there is going to be a lot of good assets that are going to be let loose,” he said.
“It is also going to rejuvenate the junior market and the higher end of the junior market as well. You are going to see some capital being raised, and I think that just alone will attract more interest back into the sector,” Lundin added.
In closing, Lundin shared his top stock in the junior mining space for the rest of the year. The expert also shared his best piece of advice for investors in 2019.
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Securities Disclosure: I, Priscila Barrera, 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 contributed article. 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.