321gold.com Publisher Bob Moriarty spoke with SmallCapPower.com recently, and shared his opinion on this year’s Prospectors and Developers Association of Canada (PDAC) Convention in Toronto, gold and gold stocks, as well as his favourite gold junior.
When asked what he thinks people will be talking about at the 2015 PDAC Convention, Mr. Moriarty replied wryly, “trying to keep the doors open,” referring to the fact that many of these resource juniors have had to issue more company stock just to pay salaries and office expenses.
Of all natural resource sub-sectors, Mr. Moriarty is most enthusiastic on gold.
“China is slowing down, and the base metals in general are due for a natural correction. Petroleum looks good 6 months from now but if you look at the crisis with Greece and the euro, gold is the most stable currency and it’s the best place to be,” he said.
Despite the fact that gold has fizzled of late after a strong start to 2015, Mr. Moriarty believes this is a perfectly normal correction.
“People range from being too bullish to too bearish. They were too bearish in November and we had a major bottom; it got too bullish in January so we’re having a correction. Now it’s getting bearish again so I think by mid-March, end of March, we are going to (see gold) going back up,” he added.
Mr. Moriarty also thinks gold stocks have already turned around.
“I mean if you look at the XAU (index of 16 of the largest U.S. listed precious metal mining companies) over gold, even though gold is back near its low the XAU (gold stocks) has been holding very well. I’m not at all concerned –I think the bear market is over,” he said.
His favourite gold junior at this time is Novo Resources Corp. (CSE: NVO): “They got a Witwatersrand-type gold system in Western Australia, and there will be a lot of news coming out in the next three months.” (See Jay Taylor’s insight on the company as well).
