Intervju med Michael Fowler som är senior mining analyst på Loewen om guldsektorn. Rätt bra och balanserad intervju som tar upp guldbolagens underpresterande mot guldpriset, var han ser guldet framöver, vilka bolag han tycker man ska fokusera på och risken som finns i sektorn.
The Gold Sector Is On Sale
"Michael Fowler, senior mining analyst with Loewen, Ondaatje, McCutcheon, sees small- and mid-cap junior producers and developers as the "sweet spot" in the gold equities space. In this exclusive Gold Report interview, he also shares his views on the irresponsibility of the "new paradigm" of large-scale financings now in vogue."
"MF: While gold will be difficult in the short term, my thesis on gold is very bullish. The whole world is involved in increasing both the money supply and liquidity. Interest rates are very low and it seems as though the Federal Reserve will not increase them for the time being. Countries around the world are engaging in almost competitive devaluation of their currencies. For the longer term, this is very good for gold.
TGR: When do you expect that uptick to occur, perhaps when the next battle over raising the U.S. debt ceiling starts?
MF: That would help, I suppose. When the U.S. presidential election gets closer, there will be more fuel for gold. For the next month or so, gold will have a problem but after that, it will turn around.
TGR: Your varied coverage in the gold space generally consists of small producers and near-term developers. Are they the sweet spot in the gold space in terms of risk versus reward?
MF: Yes, in particular the junior producers. Eventually, the developers and explorers will catch investors' interest. We focus on this area because: number one, we see ourselves delivering service to our clients; number two, we believe the returns in the smaller cap names will outperform the larger caps.
I think the whole of the gold sector is on sale at the moment, although you have to be selective in where you invest."