Financial Sense Newshour Still Downbeat

In this week's Financial Sense Newshour podcast, what little commentary by the hosts on gold was cautionary. Starting right after the 48 minute mark in the third hour [.mp3 file] was a brief interview of Brent Cook, proprietor of Exploration Insights. When the topic of a gold bubble was brought up, Cook said that he was in agreement with George Soros: he believes that gold is entering a bubble.

His own impression of the blooming takeover of juniors by majors is a little less sangine than my own (far less informed) one. He said that the prices paid didn't make those fields much of a bargain, and that the huge fields in mining-friendly districts are basically gone. The juniors that look takeover-worthy have deposits that are harder to mine, and it's unlikely that a major would snap them up. An up-and-coming producer that wants to vault into the majors might take a chance on them.


To sum up, Cook believes there's already a bit of froth in the juniors - particularly in the advanced-stage exploration and development stocks. No wonder he believes that gold's either entering or already in a bubble.