John Kaiser of Kaiser Research told INN he believes there are signs that the market is starting to take the move in gold seriously.
The gold price has been on the rise since the start of the year, briefly breaking the US$1,600 per ounce mark and trading above US$1,500 for most of January.
Speaking about the junior mining space at the Vancouver Resource Investment Conference (VRIC), John Kaiser said he believes there are signs that the market is starting to take the move in gold seriously.
“We are in a very low-inflation environment, the US dollar has been strong … we have the deficit in the US climbing, climbing, climbing … but there’s something different going on,” Kaiser, who runs Kaiser Research, said on the sidelines of the show. “I think we are in a period of increased rising uncertainty similar to the (19)70s about what is America’s ongoing role in the world.”
Kaiser added that he thinks the market is in the midst of a repricing that will ultimately take gold to the US$2,000 to US$3,000 range.
Prices have been impacted by a number of factors, including increasing geopolitical tensions and the US-China trade deal, but Kaiser shared his thoughts on other catalysts that might be on the horizon as well.
From his perspective, anxiety about debt will be good for gold. On the upcoming US election, Kaiser said, “Trump is building the deficit to record levels — (if he wins) he is going to keep doing that.”
“The price of palladium is probably not sustainable at these levels, but if it settles back to US$1,500 (per ounce) that’s huge,” he said. “We are starting to see the juniors that have these platinum-palladium deposits … they are starting to get attention in the markets.”
Kaiser also shared his ideas on how to bring the “post-boomer” audience back to the mining space.
“The biggest challenge is to get the younger people to start taking this junior resource space seriously,” he said. “(I think) one step that can be taken is to allow people to invest in private placements without being a millionaire … the juniors absolutely need money coming from different sources.”
Watch the video above for more of Kaiser’s thoughts on junior mining, stocks to watch and investing in this season. You can also click here to see our full VRIC playlist on YouTube.
Don’t forget to follow us @INN_Resource for real-time updates!
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 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.