Louis James: The Gold Price, Trump and Turning Bullish on Cobalt

Resource investors know there’s money to be made on exploration-stage companies — choose the right stock, and you could see your investment pay incredible dividends. But what if there was another way to make big gains by investing in mining stocks? And what if it was almost guaranteed to succeed?
That’s the idea Louis James explores in his latest research. James is editor of the International Speculator at Casey Research, and at last week’s Sprott Natural Resource Symposium he took the time to explain what he calls the “Golden Runway.”
“Everybody knows about the 10 baggers in [the] discovery phase,” he told the Investing News Network. “But what I realized suddenly last year was that nobody had ever quantified what the ramp up from the ‘boring’ engineering phase to production was.”
He and his team have now done that, and for James the results were startling. Once a company makes the decision to build a mine, it has “a very high probability of success at building the mine. And if you do that the gains are enormous — they’re on the order of a double for the entire sample size.”
James also touched on the gold market and shed some light on the impact Donald Trump has had on the US mining space since being elected president.
“Trump’s EPA is visibly different from Obama’s EPA, and that EPA has, for example, come to the table as a more honest and fair player with Northern Dynasty Minerals (TSX:NDM,NYSEMKT:NAK),” said James. He added, “there are a lot of actual decisions — not just campaign promises — that are visibly pro-resource sector.”
Watch the interview above for more of James’ thoughts on gold and Trump, plus a look at why he’s turned bullish on cobalt. The transcript for this interview will be added shortly.
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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.