Jayant Bhandari shares his thoughts on the US-China trade war, including how it’s led to a disconnect between the gold price and some stocks.
The trade war between the US and China continues unabated, and for Jayant Bhandari, analyst at Anarcho Capital, there’s no clear end in sight right now.
Speaking at the Precious Metals Summit in Beaver Creek, Colorado, he said that while he continues to believe that China has a bright future, the country’s leader has been too heavy handed in dealing with its conflict with the US, drawing out the trade war longer than he initially expected.
Now, said Bhandari, China is in a difficult situation and will have a hard time moving forward or back. “Unfortunately it will not be easy to sort this mess out,” he said.
Gold is one commodity that has reaped the benefits of the trade war.
“China has been the growth engine of the world for the last 30 years … China has been the growth engine from the manufacturing point of view, and China is suffering and it will continue to suffer,” said Bhandari.
“As a result, there is a huge amount of negativity in society, economically and in terms of feeling of wellbeing among the people. Which means that gold has increasingly become a place to be in in these uncertain days.”
While some gold companies have followed the physical metal‘s upward trajectory, Bhandari said that hasn’t been true for all gold stocks. “What hasn’t done very well is some of the very good companies in the early stage of development. And these companies have either stagnated since the beginning of this year, or they might even have fallen,” he explained.
“I think that has created a disconnect between the gold price and the gold development-stage companies, and those people who can identify good companies run by good management in the gold space — companies that haven’t really performed while gold has performed — actually have a great opportunity to invest in those stocks.”
Listen to the full interview above to learn what gold company Bhandari is looking at right now, and what factor he believes could throw the gold price off track. Our full playlist for the Precious Metals Summit 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.