Peter Grandich is Cautiously Optimistic About the Juniors in 2013.
Resources Wire editor Kevin Michael Grace interviewed Peter Grandich October 24, 2012. In this second part of that interview, Grandich focuses on the prospects for junior-resource companies.
RW: The last time we spoke, you were quite gloomy about the juniors. Since then we’ve seen a rally. Are you less gloomy than you were?
PG: I don’t know if I was gloomy; it was more being realistic. We had suffered the worst bear market in quite some time in the junior resource market. There is no question that they’ve risen off the bottom, but I thought that those who were forecasting dramatic rises from that point were sadly mistaken.
Financing is still very difficult, and nothing in that area will change until at least early next year. I fully concur that the worst is behind us, but we’re not about to have nirvana any time soon. The juniors really made more of an overall sideways move. I don’t expect that the whole market to move up substantially and hold those gains until gold makes its move above $1,900.
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This following interview focuses on gold and the debt crisis:
Gold And The Debt Crisis
Peter Grandich Sees $2,000 Gold in 2013
RW: Let me start with market suppression. We’ve heard mainstream sources talking about the suppression of gold. And John Williams of Shadow Stats has also had some mainstream attention. Are you encouraged by this?
PG: I think the unemployment number was the biggest surprise. The talk wasn’t from the normal “conspiracy” groups but from Jack Welch, who used to run GE. While it brought attention to the possibility of manipulation, I don’t think it did anything to tone it down or stop it. Those who are doing it will continue to do so until such time as we see a smoking gun.
RW: On your blog, you called Comex “Crimenex.”
RW: Do you think gold suppression is sustainable? If so, for how long?
PG: I differ a little bit from the more day-to-day people in that I don’t believe it happens as often as they believe it does. But I don’t think there is a big difference between me and the others in that there has certainly been a reason to deter gold from rising as fast as it might have otherwise. If and when the manipulation is done, it’s obviously done in the paper market, which we know as Comex. I feel for those like GATA who say this is happening on a daily basis, as they continue to demonstrate a bigger and better circumstantial case.
Still, most of the mainstream media ignore them. I feel their frustration because when they do see something in the media about it, it’s from the parties on the opposite side who say there is no such thing, you’re stupid, a kook or tinfoil-hat person. Yet the other side has been so wrong on the price movement of gold. It always seems that those of us who have been right for the bulk of the decade are those who always have to respond to any decline in the gold price. But those who have been so wrong about the gold price never seem to have to answer for their mistakes.
RW: The people who hate gold are always talking about a bubble, and the bubble is always bursting or about to burst. Isn’t it a commonplace that in bubbles you have massive over-investment? Isn’t it true that there are still relatively few people invested in gold?
PG: Yeah. I’ve called it the biggest stealth bull market in my nearly 30 years in business. I never could have imagined it when I started working in the financial community. That something can rise in such percentage terms and not only see a lack of support but also no real participation across the board by average investors.
Bubbles are like the NASDAQ stocks in the 1990s and real estate a few years ago when the vast majority of people were in it, and their expectations were for it to only go higher. Nothing can be further from the truth in the gold market, and that’s why the bubble talk is really just BS and a façade they try to create.
The fundamental arguments they’ve made for gold to fall hundreds of dollars haven’t worked out. So they try to say that the only reason we got up here is that there are masses of people buying and hysteria accumulating. I respond that if everybody was buying it, all these people wouldn’t be profiting from their ads telling people sell their gold, send it through the mail, etc. I think that’s more the BS from what I and others have coined the Permabear camp.
....read page 2 & 3 HERE