Ian Ball of Abitibi Royalties and Rob Phillips of the Nasdaq discuss where gold and the capital markets are at right now.
With gold holding above US$1,900 per ounce, the Investing News Network checked back in with Ian Ball, president and CEO of Abitibi Royalties (TSXV:RZZ,OTC-Nasdaq Intl:ATBYF).
Earlier this year, Ball suggested that a fair price for gold would be US$1,750 on the low side and around US$2,450 on the high side. Updating his prediction, he said that he would raise the upper limit.
“I think that the range generally is still quite applicable. On the downside, that US$1,750 seems to be fairly solid. Gold had a hard time getting above US$1,740, US$1,750 — it had consolidated there for a number of months back in the spring. So I still think that’s the downside window,” he said.
“When you look at the upper end of the spectrum, you could probably move that up a little bit, from US$2,400 perhaps up to US$2,500, US$2,600. And the reason why I would say that is there always seems to be a strong correlation between the gold price and the US debt.”
Also part of the conversation was Rob Phillips, managing director, Nasdaq Global Corporate Client Group, who said he’s encouraged by the activity he sees going on in the capital markets.
“What we’re seeing are liquid and robust markets. It’s our job to be, if you will, neutral connectors between buyers and sellers and to do it in an efficient way and to enhance and facilitate the price discovery,” he explained during the talk. “We’re encouraged by what we’re seeing in terms of participation across the breadth of the capital markets.”
Abitibi Royalties and the Nasdaq are connected through the Nasdaq International Designation Program, which allows companies that have an over-the-counter listing to access the visibility offered by the Nasdaq without the burden of a full listing on the exchange.
For more from Ball and Phillips on gold and the capital markets, watch the full interview above.
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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.