Rob McEwen: “It Feels Like We’re Entering The Second Half Of This Gold Cycle”
July 11, 2013
I had the great opportunity yesterday to reconnect with legendary
founder and former CEO of GoldCorp, Rob McEwen.
It was a fascinating conversation, as Rob explained that the
financing markets are “effectively closed” for mining company
concerns, with the fundamentals strengthening for gold—creating
an environment for mining stocks in which 50% moves coming out
of this bottom will be quite normal.
When asked how challenging this market has been for gold mining
operators Rob said, “The access to equity and debt markets…
became effectively closed to near-term producers and exploration
companies, and for that matter, for most of the market
[including] producers it’s closed.
This isn’t the place investors [have indicated they] want to be,
they’d rather be in the broad market [while] gold prices are
still falling.”
In comparing today’s market to previous resource bear markets,
Rob recounted that, “There have been a number of corrections
that I’ve experienced in my career.
They all come very suddenly, and they vary in severity.
[But with] this one, you start to remember that government-
induced ‘hurdles’ get thrown into the mix every once in a while,
[and] you tend to forget about those while you’re running
along.”
Rob also noted that the volatility in gold has been exacerbated
by the advent of gold ETFs, as, “In the hands of the very few
you have large holdings of bullion, and large holdings of
shares, much larger than we’ve seen before, and when the market
swings, there’s a lot more pressure on those holdings, and those
funds have to sell.
[So] I think they’ve had a big impact.”
Despite the heavy selling in gold, Rob added that it doesn’t
disguise the fact that, [color=red]“Debt levels around the world by
governments are continuing to increase, [with] the trillions of
dollars that have been pumped into the system, having a small
impact on reducing unemployment levels.”[/color]
Moving on to the gold shares, when asked if this is a good time
be buying, Rob said, “This is a time to be looking at
opportunities…the senior gold stocks, they’ve been beaten up
badly, [so] it’s not a bad time to enter…[When] you look to the
intermediate and junior producers, and then the exploration
companies—[they] are crawling along the ground right now in
terms of price.”
Such an environment will offer selective investors, “A 50% move
in some stocks going from $.10 cents to $.15 cents,” in the
initial rebound Rob indicated, “So [there's] a low cost of
entry, good relative value, [and] we seem to be near the bottom
of this correction.”
As a final comment to investors Rob noted that, “I think there’s
more to be made on the upside than lost on the downside right
now…it feels like we’re entering the second half of this [gold]
cycle.”
—
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=89839256
God Bless
July 11, 2013
I had the great opportunity yesterday to reconnect with legendary
founder and former CEO of GoldCorp, Rob McEwen.
It was a fascinating conversation, as Rob explained that the
financing markets are “effectively closed” for mining company
concerns, with the fundamentals strengthening for gold—creating
an environment for mining stocks in which 50% moves coming out
of this bottom will be quite normal.
When asked how challenging this market has been for gold mining
operators Rob said, “The access to equity and debt markets…
became effectively closed to near-term producers and exploration
companies, and for that matter, for most of the market
[including] producers it’s closed.
This isn’t the place investors [have indicated they] want to be,
they’d rather be in the broad market [while] gold prices are
still falling.”
In comparing today’s market to previous resource bear markets,
Rob recounted that, “There have been a number of corrections
that I’ve experienced in my career.
They all come very suddenly, and they vary in severity.
[But with] this one, you start to remember that government-
induced ‘hurdles’ get thrown into the mix every once in a while,
[and] you tend to forget about those while you’re running
along.”
Rob also noted that the volatility in gold has been exacerbated
by the advent of gold ETFs, as, “In the hands of the very few
you have large holdings of bullion, and large holdings of
shares, much larger than we’ve seen before, and when the market
swings, there’s a lot more pressure on those holdings, and those
funds have to sell.
[So] I think they’ve had a big impact.”
Despite the heavy selling in gold, Rob added that it doesn’t
disguise the fact that, [color=red]“Debt levels around the world by
governments are continuing to increase, [with] the trillions of
dollars that have been pumped into the system, having a small
impact on reducing unemployment levels.”[/color]
Moving on to the gold shares, when asked if this is a good time
be buying, Rob said, “This is a time to be looking at
opportunities…the senior gold stocks, they’ve been beaten up
badly, [so] it’s not a bad time to enter…[When] you look to the
intermediate and junior producers, and then the exploration
companies—[they] are crawling along the ground right now in
terms of price.”
Such an environment will offer selective investors, “A 50% move
in some stocks going from $.10 cents to $.15 cents,” in the
initial rebound Rob indicated, “So [there's] a low cost of
entry, good relative value, [and] we seem to be near the bottom
of this correction.”
As a final comment to investors Rob noted that, “I think there’s
more to be made on the upside than lost on the downside right
now…it feels like we’re entering the second half of this [gold]
cycle.”
—
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=89839256
God Bless
My opinions are my own and and DD I post should be confirmed as unbiased
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
