Interview conducted by Charlotte McLeod; article text by Priscila Barrera. 

Speaking with the Investing News Network at the Prospectors & Developers Association of Canada (PDAC) convention in Toronto, Dr. Kal Kotecha of Junior Gold Report said that despite COVID-19 coronavirus fears, gold sentiment is still very strong.

“I predicted in 2020, 2021 we would have an economic downturn … (and) it is going to get a lot worse before it gets a lot better,” he said on the sidelines of the show. “Unfortunately, when there’s a lot of calamity, gold goes up — so I believe gold is going to rise.”

He also talked about the performance of junior mining stocks in the current market.

“What we have to realize is that out of 100 junior mining stocks maybe 10 are worth it … if we (also) look at good finances, good management teams, good properties, maybe three are worth investing in,” he said. “I believe gold will rise, (but) the junior mining market will not rise that high at this point.”

He added that even though the market has sharply declined, there’s a lot more calamity to come.

“Junior mining stocks will go where the stock markets go, but there will be some shining stars out there which people can invest in,” he said.

For Dr. Kotecha, the rise in the gold price tends to have more of a psychological impact than an actual impact on junior mining stocks.

Listen to the interview above for more of Dr. Kotecha’s thoughts on junior mining stocks, gold and how he is playing the market right now. You can also click here for our full PDAC playlist.

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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.