Roth Capital Partners' Joe Reagor Interviewed by The Gold Report
Picking gold and silver equities in a stagnant price environment is a stock picker's game that requires a particular thesis -- and a fair portion of patience, says Joe Reagor, an analyst with ROTH Capital Partners. In this interview with The Gold Report, Reagor outlines types of companies he prefers and pairs those with names that patient investors could parlay into promising profits.
Included in this interview is: Pretium Resources Inc. (TSX: PVG)(NYSE: PVG).
The Gold Report : In a report from RBC Capital Markets in late January, the firm said gold could reach as high as $1,200/ounce ($1,200/oz) in the short term but remains in an overall downward trend. Does ROTH Capital Partners share that view?
Joe Reagor: A lot of people are reacting to a bounce in the gold price here in early February and need to set a number, but they still believe the factors that have held gold down over the last few years remain intact. Our view is a bit different. Gold at $1,100/oz is not a sustainable long-term scenario. The costs of production are still relatively high, and they're only going to get higher as companies mine higher grades to lower costs. Miners did this in the late 1990s, and that's why gold moved higher for 12 straight years in the 2000s before we had a healthy pullback. We think we're heading toward the end of the 1990s time frame again, where the fundamentals will drive the gold price higher.
TGR: Please explain those fundamentals.
JR: Gold can't go much lower without costs having to adjust lower. The strength of the U.S. dollar helps non-U.S. producers somewhat, but in general, the fundamentals suggest…
Continue reading this interview: Joe Reagor's Equity Picks for Patient Pickers
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Investors rely on The Gold Report to share investment ideas for the precious, base and critical metals sector. Our exclusive interviews with leading industry experts and analysts provide a clear picture of the causes of macro-economic shifts and the strategies that help you capitalize on developing trends.
Pretium Resources Inc. is a sponsor of Streetwise Reports. Joe Reagor had final approval of the content of the interview and is wholly responsible for the validity of the statements. Opinions expressed are the opinions of Mr. Reagor and not of The Gold Report or its officers. The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.