John Kaiser: Massive Repricing to Take Gold as High as US$3,000

TL;DR

Market sentiment towards the exploration sector is seeing a flicker of hope due to a stronger gold price, but there is still skepticism regarding its sustainability. There are concerns about China's rising power, trade wars, and the use of the US dollar. John Kaiser believes that gold prices will rise, potentially reaching $2,000, and this will have implications for investment strategies and the mining industry.

Transcript

Priscilla Rada with the investing News Network and here with me today is John Kaiser of Kaiser Research John thank you so much for being with us today it's a pleasure Priscilla all right so we're here at Sprott once again we're in Vancouver what have you seen in terms of sentiment toward the exploration sector this year compared to last year well t... Read More

Key Insights

• 🤞 A stronger gold price is giving hope to the exploration sector, although skepticism about its sustainability remains.
• 😒 Concerns about China's rising power, trade wars, and the use of the US dollar are impacting market sentiment.
• 😮 Gold prices are expected to rise, potentially reaching $2,000, leading to changes in investment strategies and gains in the mining industry.
• 😀 The battery metals sector, including cobalt and vanadium, is facing challenges, while copper remains relatively stable.
• 🏅 Financing activity in the sector has been limited, although Eric Sprott's private placements suggest confidence in a gold uptrend.
• 😮 The entire political spectrum is starting to focus on gold, potentially leading to increased buying and a rise in its price.

Questions & Answers

Q: How has sentiment towards the exploration sector changed this year compared to last year?

This year, there has been a flicker of hope in the exploration sector due to a stronger gold price, but skepticism remains about its sustainability. In contrast, last year, there was no sense of this hope.

Q: How do gold prices impact investment strategies?

Gold prices have a significant impact on investment strategies. With a rise in gold prices, the leverage for optionality plays increases, leading to potential gains for investors. Additionally, the discovery exploration juniors will have a lower bar for what counts as a meaningful discovery, attracting more investment.

Q: Are there any commodities that John Kaiser does not like in 2019?

John Kaiser is relatively cool on the battery metals, such as cobalt and vanadium, due to their rough performance. He also mentions that the mining industry's expansion in lithium supply has led to a decline in lithium prices. Copper, on the other hand, seems to be more stable.

Q: What is the current state of financing in the sector?

Financing activity in 2019 has been muted, with relatively low amounts of money raised by TSX Venture listed resource juniors. However, Eric Sprott has made private placements worth around $139 million, indicating his belief in a sustainable gold run.

Summary & Key Takeaways

• Market sentiment towards the exploration sector has improved due to a stronger gold price, but there is still skepticism about its sustainability.

• China's rising power, trade wars, and the use of the US dollar are causes for concern.

• John Kaiser believes that gold prices will rise, potentially reaching $2,000, leading to investment strategy changes and potential gains in the mining industry.