Gold StockAnalyst (GSA) is the market's most respected and successful source of insight and guidance for gold stock investors. The title of GSA's flagship newsletter — GSA Top10 — also sums up its unique investment approach that has an amazing — and verified track — record. Future results cannot be guaranteed, but we promise the GSA Top10 is unlike any stock research you've ever seen.
GSA has been founded by John Doody, an Economics Professor for almost two decades. Doody became interested in gold due to an innate distrust of politicians and concern over their habit of debasing the currency via inflationary economic policies. Other than the Top10 list, John Doody also publishes a full coverage GSA_PRO list covering a universe of about 60 gold miners and developers (near producers). Pure exploration is out of scope. Since 2012, there equally is a Top5 silver miners list (only 5 since there are fewer to choose from).
Which ideas do GSA Top-10 mining managers want to share with the audience? Kitco sent Daniela Cambone for some interviews, which I gladly share.
So let's start off with the interview of the event organizer and GSA founder & chief editor John Doody.
Only The Fed Could Kill Gold Now"The current gold bull market began in August, 2018, and all signs point to even higher prices.
I don’t see the storm clouds on the horizon. The thing that could kill gold is the Fed, and even though the Fed was raising interest rates at the end of 2018, gold was still up and it finished higher than it was at the low in August,” Doody told Kitco News on the sidelines of the Gold Stock Analyst Investor day.
Royalty companies often are the back bone of a precious metal investment portfolio. The long term track record of Franco Nevada places it on top of its peers.
Here's How Franco-Nevada's President Sees Gold Right Now
Gold is three years into a bull run and "exciting" times are to come, said Paul Brink, president & COO of Franco-Nevada.
"I think it's a very exciting time, the last five years, what we've been finding is rate raises in the U.S. and a strong U.S. dollar, and we're at the point of inflection," Brink told Kitco News on the sidelines of the Gold Stock Analyst conference.
John Doody doesn't like to invest in explorers. However he makes an exception for a near term producer having done its homework on the largest unmined copper-gold reserve in North America.
Majors Are Running Out Of Mine Life, Says This Veteran MinerWhile the senior producers are busy buying each other, investors are diverted away from the fact that these large miners are running out of mine life and need to start buying fresh deposits, said Rudi Fronk, chairman & CEO of Seabridge Gold.
“The elephant in the room that nobody talks about, even with these mergers that are going on, is that the mine life that the big gold companies have left is about 10 years. They need to find new projects and now they’re starting to look for those opportunities,” Fronk told Kitco News on the sidelines of the Gold Stock Analyst Investor Day.
You will look in vain for any mining majors on this investors day. They aren't on the list. However here are a few junior or emerging miners that are.
Why This CEO Doesn’t Want A Repeat Of 2011 For Gold
While many gold investors would be happy to see a euphoric rally in gold similar to the 2011 scenario, Christian Milau, CEO of Equinox Gold, would prefer to see a steady rise in gold prices.
“A gradual increase is nice. If [gold] goes up significantly overnight, say $100, everyone wakes up and goes gold’s alive again and is exciting to invest in. If it gradually increases then I think people forget and don’t notice, and that allows us to go and maybe buy a couple of assets, to finance them, when others can’t,”
Sabina CEO: We’re Seeing “The Beginnings Of A Bull Market In Commodities”
Fundamentals in terms of pricing saw gold, in every currency, outperform equities benchmarks in 2018, pointing to the beginning of a new bull cycle, said Bruce McLeod, CEO of Sabina Gold & Silver.
“We’ve seen gold and gold equities even outperforming the S&P in 2018. So, we’re seeing the beginnings of what generally are the start of a bull market these commodities,”
The Biggest Challenges Facing Miners, According To One CEO
Miners face a number of issues that aren’t solely financial, said Peter Tagliamonte, CEO of Belo Sun Mining.
“I think in general, in the world right now, permitting social license is very important,” Tagliamonte told Kitco News on the sidelines of the Gold Stock Analyst Investor Day. “I think mining projects, in general, around the world have to pay more attention to social license, environmental issues, but ultimately I think if you’re persistent, you do good engineering, and you present your projects well, it will all be able to progress as planned.”
We finish the series of talks with an interview of Adrian Day, large mining investor and CEO of Adrian Day Asset Management.
These Are Must-Watch Factors For Gold, Says Adrian Day
The Federal Reserve’s monetary policies are still the most important drivers of gold prices,according to Adrian Day. “To me, one of the most important things, frankly, is the way the Federal Reserve has acted recently. When they saw the stock market volatility at the end of the last quarter, they blinked, and ‘blink’ is a polite way of putting it. I think they capitulated. And that is very, very positive for gold,”