The gold price is heading ever closer to US$1,500 per ounce, but is its momentum sustainable? James Kwantes believes that it is.
The gold price is heading ever closer to US$1,500 per ounce, but is its momentum sustainable?
James Kwantes, editor and publisher of Resource Opportunities, believes that it is.
“My feeling is that this is the real deal,” he said at the Sprott Natural Resource Symposium. “We’ve seen silver make a pretty big move in the last couple weeks, and I think that’s coming for gold — I think gold will also do that … over the next year, let’s say.”
Kwantes offered two reasons he believes that’s the case, with the first being share price momentum for gold exploration companies that have made discoveries.
“Exploration plays that are hitting discoveries, high-grade gold, their stocks are responding, which didn’t happen through the long bear market,” he explained.
Second, Kwantes said that royalty and streaming plays tend to move first, and the market is now beginning to see that happen. “Sandstorm Gold (TSX:SSL,NYSEAMERICAN:SAND), for example, is almost a double since December,” he noted.
He thinks that the best way to play the market right now is by focusing on juniors with the potential to make discoveries. One example he pointed to was Group Ten Metals (TSXV:PGE,OTCQB:PGEZF). “A discovery there could move the share price,” he said.
Watch the interview above for more from Kwantes, including his thoughts on when more institutional money may start to enter the gold space, as well as a play he’s watching that’s outside the resource sector. Our full playlist for the Sprott event can be found on YouTube.
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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.