Gold prices were down slightly Friday but remain above $1,230 after a solid week for the precious metal. In an interview from yesterday, Kitco News host, Danielle Cambone sits down with industry legend, Rob McEwen.
What Stage of the Gold Bull Market in Equities
One of her first questions is: at what point in the cycle are we at concerning mid-tier and junior gold companies?
Rob McEwen, chairman of McEwen Mining, explains,
“I’d say we are a third of the way along in a bull market that started at the beginning of 2016. And, we’ve got another 3, 4, 5 years to go. And in that time, there is a chance of seeing gold equities go up 3 to 4 times from where they are today.”
Despite McEwen believing gold stocks to still be in a bull market, the VanEck Vectors Junior Gold Miners (GDXJ) ETF is down huge in 2018. Falling from a high above $36 to a recent low of $25.91; however, the GDXJ has climbed back to above $28 per share.
Rob McEwen on the Gold Mining Sector
Rob McEwen believes the large-cap miners have dissuaded investors from entering the mining sector space with their lackluster performance and shrinking production profiles.
McEwen told Kitco News on the sidelines of the Silver & Gold Summit in San Francisco explains “The majors haven’t done any favors to the sector. They’ve gone out, and they’ve sold off production, so their growth curves have a negative slope to them. They got rid of their exploration, and they’re shrinking. They’ve got bad results.”
Finally, McEwen reiterates that junior miners and mid-tiers are currently in a bull market that has three to five years to go.
Rob McEwen is without question an industry leader. Paying himself just $1 annually, he continues to invest in his own company, increasing his stake in McEwen Mining to $160 million.
