In this interview with The Gold Report, Mancini advises investors to go for the best of the best: gold miners with cash flow, great balance sheets, low costs and good management. And he also highlights several companies that are unloved now but will become so when the gold price rises.
Andrew Kaip, managing director of mining equity research at BMO Capital Markets, says the stark reality is that the precious metals sector is only part way through a down cycle and that structural issues will result in a fresh phase of consolidation.
Florian Siegfried, head of precious metals and mining investments with Zurich-based AgaNola, says there are small signs—fewer equities participating in the recent rally, greater spreads in the high-yield market—that the sentiment toward gold is changing.
These are scary times for precious metal investors. Resource equities are in the tank and, adding insult to injury, the gold price took a precipitous fall just days before summer, notoriously one of the slowest seasons for precious metals.
Four months ago I warned my readers that the uranium price could breakout because of the rise of terrorism and radical extremism in West Africa. This past week there was a suicide car bombing on a French uranium mine in Niger.
Fears over where the dollar is headed – especially with continued money printing from the central bank – has pushed safety-seekers into investing in silver and gold. The idea of using gold and silver as an alternative currency has spread as the metals have grown more valuable.