Jim Sinclair and Dan Norcini
(June 18, 2011)
I find it interesting that Jim Sinclair is joining Norcini on the weekly metal wrap-up. This will be the 3rd time in 2 weeks he been on kingworldnews. In the past he would go for 1-2 months between appearances.
- Jim believes hedge funds have been pushing down mining shares and will be forced to cover soon.
- eventually the fundamentals will reassert themselves
- Dan believes the mining shares are significantly undervalued
- Miners are being depressed to such a level that there will be significant consolidation which will happen quickly
- be believes hedge funds will get to greedy and take a hit on the rebound
- mindset needs to move from deflationary to inflationary and a drop in the dollar will lead to a mania in the miners as they jump to their true value
- the majors that are watching the drop in juniors to attractive prices need to be careful of China who is also watching but has a different intent. That being to increase their gold reserves. When China takes over a gold miner none of the gold will hit the open market, it will go straight to China
- Norcini notes that the XAU is at levels of 2008 when gold was $700/oz, for a value investor this should be considered very attractive given we’ve seen a doubling in gold.
- Eric King compares the current state in gold with oil in the past
- Sinclair notes if you could buy a gold miner and access gold at $1000/oz when the spot market is $1500/oz do you think the shares will remain at these prices?
- Sinclair says don’t let go of the mining shares
- Norcini notes, do you want to sell the miners where their gold reserves are valued significantly below the market prices?
See full interview here.