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

Priscila Barrera - August 13th, 2019

https://youtu.be/4d-c-g3DZws

The Investing News Network sat down with John Kaiser of Kaiser Research to talk all things gold, and how to invest during this season.

At this year’s Sprott Natural Resource Symposium in Vancouver, the Investing News Network sat down with John Kaiser of Kaiser Research to talk about the surge in gold prices and investing during the current season.

“In the last few years, China’s leadership has gone toward more of a totalitarian model … so the chance of China becoming like the western world has diminished,” he said. “Trump has picked up on this, and he has accelerated the showdown because it is clear that China wants to eclipse America.”

For Kaiser, all that means there’s going to be a period of uncertainty coming, with gold prices receiving support as a consequence.

“I think we are in the early stages of seeing a massive repricing of gold into the US$2,000 to US$3,000 per ounce range,” he said.

“The public won’t come in until they see gold really challenge the US$2,000 mark.”

Kaiser also shared his thoughts on how investors can maximize profits in this price environment. “With discovery exploration the point is to find something that works at the metal price that we have,” he said.

Overall, the current gold uptrend has two implications, according to Kaiser. “For juniors, it lowers the bar for what counts as a meaningful discovery that deserves more money to come in,” he said.

“For the optionality plays, once gold is in an uptrend, the leverage is extraordinary.”

The expert also shared his thoughts on what he expects the next trend in the sector to be, which commodities he doesn’t like in 2019 and factors to watch out for during the second half of the year.

Watch the video above to find out more about Kaiser’s thoughts on the resource sector.

Our full playlist for the Sprott event can be found on YouTube.

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.