Gold Newsletter editor Brien Lundin says juniors with large, identified gold and silver resources will be the first to react to the rally in metals prices.
Gold Newsletter editor Brien Lundin sees the gold price potentially weakening in the very short term, but over the next three to four months he expects the yellow metal to benefit from a weak US dollar.
Speaking at the recent Vancouver Resource Investment Conference, Lundin said, “I think that if you want to know where gold’s going, you have to look at the US dollar. And I think there’s an argument to be made, both technically and fundamentally, that we’re going to have about another three to four months of dollar weakness, and therefore we’ll have about another three to four months of gold strength.”
When asked how investors should set themselves up under those circumstances, Lundin suggested looking at junior mining stocks, which “have yet to respond to the rally in metals.” He added, “you need to look for junior companies that have large resources — large, identified gold and silver resources. They have yet to really respond to this, and they’ll be the first movers.”
Watch the video above to learn Lundin’s thoughts on other commodities, including energy and base metals. While it’s early days yet, he believes “we’re going to have an upward bias for this year, especially in the first half.” The transcript for this interview will be added shortly.
Don’t forget to follow us @INN_Resource for real-time news updates!
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.