When the New York markets run out of steam, the gold market gets hot. HRA Editor Eric Coffin has been watching the companies with the best assets, waiting for just this moment. In this interview with The Gold Report, he shares the names of the best in the gold, silver, copper and uranium spaces and tells you where you can go to talk to the CEOs.
The Gold Report: You singled out negative bond rates and a downward New York stock market as two of the factors that would make gold look more attractive in 2016. What are the other forces pushing gold to the $1,200 an ounce ($1,200/oz) level?
Eric Coffin: I think we’re simply getting to the end of the gold bear market. We may just be running out of sellers. I think all of the hot money—and even the warm money—is pretty much out of it. Most of the funds were completely out by late 2015. That’s part of the reason why I suspect that even though the major markets in New York are likely to fall at least 20% from the highs this year, I don’t expect a repeat of 2008 and the wholesale selling in gold stocks. Back then, gold and gold stocks bottomed four months before New York did but that came after selling that ended a multiyear bull market. Everybody and their dog owned gold stocks heading into 2008. At the start of 2016 “nobody” owned them. I don’t think we have a similar situation where a fall in New York means gold stocks get thrown out like the baby with the bath water. I think this time around you’ll actually see more buying than selling because most traders are still very underweight gold stocks and gold itself, for that matter.
“