https://www.youtube.com/watch?v=bD4Idgw1TXcJohn Kaiser: Gold Nonetheless Due for Repricing; What Will Kickstart Junior Minersyoutu.be
The gold value was on the rise in after-hours buying and selling on Wednesday (February 23), leaping quickly to only above US$1,940 per ounce as battle between Russia and Ukraine intensified.
Talking final Friday (February 18), when the yellow steel was buying and selling between about US$1,890 and US$1,895, John Kaiser of Kaiser Analysis mentioned the battle between the 2 nations is essential for gold.
“The most important driver is now what’s nonetheless occurring with Russia,” he mentioned, pointing to excessive inflation and waning curiosity in bitcoin as different supportive parts for the yellow steel.
Kaiser has been calling for a repricing of gold for a while, and though 2021 did not convey the efficiency many had hoped for, he thinks the turbulence forward will finally push gold to the US$2,000 to US$3,000 vary.
He additionally sees a vibrant future for junior miners, notably these related to the clear power transition. He famous that this shift, coupled with potential international provide disruptions, is creating robust alternatives.
“Rapidly we’ve a provide shock created by geopolitical battle, layered on high of anticipated demand development,” Kaiser mentioned. “Wanting a colossal international melancholy, base metals costs are going to go even larger.”
Because it turns into clear that extra mines are wanted, he anticipates that nations will begin on the lookout for key commodities in their very own backyards, probably rethinking beforehand ignored techniques to point out their feasibility.
“It doesn’t take a lot cash to inject a variety of life into the useful resource juniors,” mentioned Kaiser. “As soon as this transition occurs and (folks) notice we have to develop extra provide — the world’s not coming to an finish, COVID is now within the rearview mirror and never coming at us like some form of practice — that is going to actually kickstart this sector.”
Watch the interview above for extra from Kaiser on gold and the junior mining sector.
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Securities Disclosure: I, Charlotte McLeod, maintain no direct funding curiosity in any firm talked about on this article.
Editorial Disclosure: The Investing Information Community doesn’t assure the accuracy or thoroughness of the data reported within the interviews it conducts. The opinions expressed in these interviews don’t mirror the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.
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