Episode Details

Gold has hit several all-time highs this year, but the metal has further to go, said Simon Marcotte, president and CEO of Northern Superior Resources. 

Last week Marcotte spoke to Kitco Mining. 

Marcotte attributes the recent rise in gold prices to central bank buying and increased demand from Asia, particularly due to the weakening yen. He predicts that as real rates decline, gold will gain further momentum, leading to increased equity valuations in the sector.

"I don't even think this is the first inning," said Marcotte. "We're going to see gold do well. Gold is going up right now because central banks are buying...and also there's been a lot of the Asian demand for gold. [The yen] is deflating very rapidly. I don't want to say it's collapsing, but it's breaking down. The central bank of Japan is having a hard time maintaining its currency. 

"Real rates starts going down, and that's where the equity price will play catch up. [The] real estate market is not going to be able to sustain higher rates, therefore real rates go down and gold goes up."

Marcotte also talked about the recent surge in M&A activity in the mining sector, driven by increased profitability and the need for larger companies to replenish reserves. Marcotte sees this trend as indicative of a new commodity cycle and a positive outlook for the industry.

Northern Superior Resources (TSX-V: SUP) is a Quebec-focused company with the goal of consolidating the Chibougamau gold camp. The company has a land package of about 62,000 hectares. The company also spun off a new business, ONGold Resources that is focused on the TPK property in Ontario. 

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.