Alain Corbani spoke with INN, revealing the changes he thinks the mining sector needs and where precious metals prices may be going.
The Investing News Network (INN) spoke with Alain Corbani, head of commodities at Finance SA, at this year’s Prospectors & Developers Association of Canada (PDAC) convention.
Corbani told INN the one ingredient that is missing to trigger a large upswing in the gold price and why he believes that silver won’t start making moves upwards until the increase in gold prices become “validated.” He also shared his predictions on both gold and silver prices for this year and why the mining sector is in need of some “new faces” to start a new chapter of profitability within the space.
“[We] have a perfect environment for a higher gold price now — the only missing ingredient in that equation that would trigger gold to a higher level is the US currency,” he said.
“I think that the investors to see a slightly declining US currency to suddenly feel more appetite for the sector and in gold particularly.”
Corbani also touched on the fact that while gold has been steadily climbing to get out from under the low prices it saw during the second-half of 2018, silver has remained relatively stagnant. He believes that since silver generally follows the movements of the yellow metal, gold has simply not moved enough to positively affect the white metal.
“[I]t’s very disappointing to see silver at these levels,” he noted. Adding, “now the movement in gold hasn’t been validated by the majority of the investors in essence I think that people are waiting for validation of the uptrend in the gold price to start buying silver … so basically I think to summarize it and be very very simplistic we would need gold above US$1,360 [to affect silver].”
Corbani also believes that the mining industry as a whole “needs something new.”
“I think that we need a new guard — we need new faces [and] we need a new approach.”
Elaborating, Corbani told INN, “we need to see the new faces take the lead and honestly, again there are very few of them but not enough, so we need a new generation of entrepreneur more inclined to focus on the fundamentals [and] less on the promotion.”
Finally, the commodities expert revealed his 2019 price predictions for both the yellow and white metals.
“We need to see gold breaking the US$1,350 [per ounce mark] and it will. It should break the US$1,350 [per ounce mark] this year silver will follow through. [I]f I have to make an estimate [gold will go] above US$1,360 [per ounce], maybe US$1,400 [per ounce] at the end of this year and silver hopefully we’ll get back above the US$18 [or] US$19 [per] ounce [level],” he commented.
Watch the interview above for more from Corbani. You can also click here to view our full PDAC 2019 interview playlist on YouTube.
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Securities Disclosure: I, Nicole Rashotte, 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.