The Catharsis in the Gold Industry Is Healthy
Frank notes that the currency play among the Euro, the Yen and the Dollar is having an impact on commodity pricing given the current stronger dollar. He believes the currencies will re-adjust and in six months the picture will likely be different as U.S. exports slow. They discuss the fracking boom in the U.S., and how that may benefit the Asian economy through lower energy costs. Frank gives his overview of the gold market, and notes the royalty companies are the place to be in these times of weak gold prices. He also believes the catharsis in the gold industry is healthy, and will eventually weed out excessive debt and inefficient allocation of capital. A stronger industry will emerge, but many weaker companies will not survive.
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