The Metals Report: Christopher, you believe that the market will recover in 2013. Why?
Chris Ecclestone: We'll have a different type of recovery than we've had in the past, when everything was driven by the financial industry and house price inflation. The U.S. keeps driving along the edge of the cliff like Thelma and Louise, but never actually going over.
I get the feeling that there will inevitably have to be a recuperation. The ducks are in the row now for an industrial recuperation probably a construction-led one. I'm not talking about a rip-roaring recovery, but there is such a delicate balance in base metals between supply and demand that it doesn't take much recovery to vacuum up lingering stocks and tip the markets back into a deficit situation again.
TMR: The Dow Jones Industrial Average is a couple of hundred points away from its all-time high. Do you get the sense that retail investor sentiment has changed? Continue reading "Chris Ecclestone: Gold Will Fall, Time to Switch to Specialty Metals?" →
The Gold Report: The Hallgarten website says, "Over the years, the team has successfully picked trends using our macroeconomic underpinnings to guide investors through the treacherous waters of the markets." Could you give us a couple of trends that retail investors could take advantage of?
Chris Ecclestone: The chief trend I see is a change in the nature of this gold market recovery. Production is going to be king. In 2009, cash was king after the economic crash. Now it's production. If a company doesn't have a preliminary economic assessment (PEA), it is going to wallow for a fair while. The main focus is going to be if these companies can become real miners or if they are just going to be forever out there with their project generator models.
"Production is going to be king."
There are a lot more companies on the "For Sale" side then there are companies out there to buy them. A lot of them are going to be left standing alone at the wall. The only companies that are going to get the attention of majors are those that are along the continuum between PEA and production. Continue reading "Chris Ecclestone Picks Latin American Gold Plays" →