“Eventually physical gold markets overcome paper ones":Peter Grandich8 Nov, 2013
The junior resource market still has too much overhang and needs not only higher metals but for those mentally and financially beaten up to throw in the towel,” says Peter Grandich, founder of Grandich Publications, LLC. and Grandich.com, in an interview with SmallCapPower.com. He mentions four junior resource companies that he still holds in his portfolio.
Q: What’s your outlook for the small cap and junior resource markets?
A:The junior resource market still has too much overhang and needs not only higher metals but for those mentally and financially beaten up to throw in the towel. Much of that is likely to occur between now and year-end.
Q: What small cap/junior resource stocks do you like currently and why?
A:My portfolio (what’s left of it-lol) is among just four companies:
Alderon Iron Ore Corp. (TSX: ADV) (CSE: ADV)
Geologix Explorations Inc. (TSX: GIX) (CSE: GIX)
Sunridge Gold Corp. (TSXV: SGC) (CSV: SGC)
Teranga Gold Corp. (TSX: TGZ) (CSE: TGZ)
Q: What do you think are the most important factors when choosing a small
cap or junior resource stock?
A:Now, more than ever, a proven management team that has lived through times like this and has raised money when others couldn’t.
Q: The price of gold has fallen significantly since hitting US$1900 a
couple of years ago. Why do you think there’s been such a pullback and
do you think the gold bull market is over?
A:Nothing goes up forever and gold had gone up for a dozen years straight. There also has been a major effort to hammer the paper market at the worse possible times to be a seller in order to cause large-scale physical sales. Ironically, the opposite has occurred and eventually physical markets overcome paper ones.
Q: Which commodity or commodities do you think will outperform over the
next 12 months and why?
A:Base metals are okay but I continue to believe metal holdings start with gold and silver. Despite what the gold haters and the media who love to give them coverage, there are ample reasons to own gold and silver.
Q: What are your thoughts on the current investing environment for oil
and natural gas?
A:Sorry no strong view
Q: Peter, I understand you are about to make a major change in your career
by becoming a market and economic commentator for
moneytalks.net. Could you tell us a bit more about that?
A:Yes, thank you for the opportunity to do so. My first love has always been commenting on markets and economies in general and this will be my primary duties as a commentator there. Michael Campbell is a rare breed among financial commentators in all of North America and the opportunity to work close with him was impossible to pass up.
Q: Are you optimistic about the economic future of the United States?
A:Sorry to say no. America has been robbing Peter to pay Paul and Peter is tapped out. Not only can’t we pay back the principle of what we owe but at the rate we’re going we soon won’t be able to pay all the interest. It’s not whether the ‘you know what’ hits the fan but when.
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