John Kaiser: Still Bullish on Gold, Juniors to Consider Right Now

TL;DR

The repricing of gold is still expected to happen, with factors such as inflation and debt increasing the argument for owning gold. Resource juniors have seen a funding boom due to higher gold and other commodity prices, but there is concern about a potential market bubble.

Transcript

i'm charlotte macleod with the investing news network and here today with me is john kaiser of kaiser research thank you so much for being here online with me today great to have you back charlotte thank you for having me back on investing news network of course and we have a lot to cover today but i think where we will start is with gold we actual... Read More

Key Insights

• 🏅 The shift towards a Biden administration and efforts to repair relationships with allies have reduced the extreme uncertainty that supported gold prices. However, the growing debt and inflation concerns continue to increase the argument for owning gold.
• 💗 There is a possibility of a "roaring 20s" type decade with massive expansion and growing economies, which would further bolster the case for gold as an insurance policy.
• 🇨🇳 The tension between the US and China is unlikely to change under the Biden administration, with China's aggressive stance and focus on dominating the world.
• ✋ The supply security narrative and the importance of ESG principles are driving a shift towards domestic sources and higher environmental standards for manufacturing.
• 🥺 Scandium is an emerging metal with potential applications in lightweighting and the electric vehicle sector. The intervention of Rio Tinto and Scandium International in the market could lead to a significant increase in supply.

Questions & Answers

Q: Is gold still on track for repricing?

Yes, factors such as inflation and the increasing argument for gold as an inflation hedge support the expectation of gold repricing into the $2,000 to $3,000 range.

Q: Why are gold producers down despite the increase in gold prices?

It is puzzling why the market is not reacting more positively to gold prices of $1,800 to $1,900. The importance of gold for undeveloped deposits and its impact on exploration has not fully been recognized yet.

Q: How are resource juniors affected by higher gold and commodity prices?

Resource juniors experienced a funding boom as gold and other commodity prices rose. However, there is concern about a potential market bubble and a cautious approach due to the uncertainty in the market.

Q: How does ESG affect the resource sector?

The shift towards ESG principles, including higher environmental and social standards, is becoming important for resource juniors. It is seen as a way to ensure security of supply and reduce dependency on low-cost jurisdictions like China.

Summary & Key Takeaways

• Gold's repricing into the $2,000 to $3,000 range could still happen due to inflation and the argument for gold as an inflation hedge.

• Resource juniors experienced a funding boom as gold and other commodity prices rose, but there is concern about a market bubble.

• The connection between ESG (Environmental, Social, and Governance) and security of supply is becoming more important, with a shift towards domestic sources and higher environmental standards for manufacturing.