How to benefit from the gold price drop? - Brent Cook, the mining expert

The 2015 was tough for the gold mining industry – with the price drop, mine closure, cost cutting, and insecurity about future, as the consequence. Nevertheless, prudent people can and should benefit from this situation.

Brent Cook, the famous geologist and editor, forecasts the opening of new deposits, and the success of small companies, as well as gives a good example of a prudent gold buying – the demand for this precious metal remains high!

At the end of 2015 a correspondent of the Kitko news portal interviewed Brent Cook, a recognized geologist and the publisher of “Exploration Insights”. What did the gold mining guru told to the audience?

First, in 2015, numerous gold mines were closed due to large loss – those had generally been exploited by larger companies. In this connections, Cook opts for smaller companies that are more resistant to crisis situations.

Second, to the interviewer's question of what would come out of the price fall below $1000 an ounce, Cook answered with the following: “I don't think it's going to be for long”. He explained that there is a problem of gold shortage in the world: the existing gold deposits are not able to satisfy the need of gold of the population.

The law of supply and demand states that the less the supply the more the demand, and it has a direct impact on the price growth.

Finally, Cook mentioned the most successful gold mining CEO – to his mind – who acted reasonably in this situation. This is Sean Rosen, the CEO of Osisko Gold Royalties. He is said to have systematically bought unprofitable gold mining projects to earn great income when the prices will go up again, shared Cook.

Conclusion: gold is a product demanded for, which brings its owner benefit in the mid term and the long term.

Read other articles on the Global InterGold news portal to take right decisions when buying gold: How to determine the authenticity and quality of gold?