With gold closer to US$1,800 per ounce than US$1,900, is the
major repricing
that John Kaiser of Kaiser Research
has previously predicted
still in the cards?
Speaking to the Investing News Network, Kaiser said he remains bullish on the yellow metal, and is surprised that the market is treating the US$1,800 to US$1,900 level as unexciting.
“I don’t think it has really sunk into the market that gold at this level is really important for deposits that are not yet developed, and it lowers the bar for exploration, what counts as a discovery,” he said.
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“This has not really kicked in yet, and I think sometime later this year this will happen.”
When asked what types of juniors investors may want to look at right now, Kaiser said that it’s important to look at companies with the ability to do work now and produce results in the second quarter.
He noted that after last year’s financing boom there are juniors that still have money in their treasuries, and he believes there could be another wave of financings this year.
“There’s a nervousness amongst the
resource
juniors that’s holding things back a bit right now, but I’m optimistic that once we navigate past that into the second half of this year — and we have evidence that the vaccine is working, the pandemic is behind us — we will (perhaps) have another huge … summer funding boom like we did last year,” said Kaiser.
He also discussed how environmental, social and governance developments connect to supply security for
critical metals
, and touched on the
mid-January news
that Rio Tinto (ASX:
RIO
,LSE:RIO,NYSE:RIO) plans to produce
scandium
oxide in Quebec.
“The Rio Tinto development is a game changer for the scandium sector,” said Kaiser, explaining that it could lead to an incremental increase in scandium production, which in turn could help ignite the sector.
Watch the video above for more from Kaiser on gold, junior mining and more.
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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.
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