Peter Spina: Political and Market Uncertainty Is Driving The Rush For Gold
Peter explains the recent market action and how gold stocks have historically lead the spot price. There is considerable support near $1100, and long term resistance at $1275. This level may well translate into resistance to the upside, once through it though, expect $1475 to $1500. He is seeing growing Wall Street and Chinese speculation in the market, there seems to be a general rush for gold.
The markets in recent years have been rough for a lot of mining companies, however many have managed to hold on. Mr. Spina discusses the need to be cautious with many companies as there may not be much behind them and what to watch for. There is considerable under investment in miners and thus limited capital for exploration and resource discoveries. He thinks exploration companies with lots of prospects are going to draw considerable interest in the coming cycle by investors.
Peter discusses the ongoing political and economic challenges in the United States and the European Union and how gold is looking quite promising in contrast. Trump is likely going to push for a weak dollar policy and increased deficit spending. There is also a discussion about the risk of capital controls and how diversifying your assets outside of your home country is highly recommended.
Peter discusses the recent Goldcorp investment announcement of one hundred million dollars, how it is a smart move for them to replenish reserves. He highlights several promising Junior mining picks in Canada, Chile and the United States including Northern Vertex Mining, (TSX-V:NEE). Mining in the United States under Trump has recently become a lot more interesting, as a declining US dollar could improve production costs.
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