Not Bullish on Gold – Paul Van Eeden – Kitco News

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Paul Van Eeden shares his thoughts on current gold prices and his strategies to overcome what he perceives is the start of a bearish commodities market. He believes gold prices are overvalued and, based on his calculations – comparing inflation rates to gold and the US dollar – the fair value should be between $900-950 an ounce. Van Eeden mentions that he is focused on investing in junior exploration companies, rather than physical bullion and large mining companies. Juniors are currently selling at low prices because they are unable to raise capital and investors have become more risk averse. Thus, Van Eeden advises viewers to look for juniors with good management as that will separate the winners from the losers. He does not expect a market turnaround within the next 18 months to 3 years. In the meantime, his goal is to build a portfolio of high quality junior exploration companies for the next 3-5 years and liquidate for the following 5-10 years.

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