Tom Meredith on the gold market and West Red Lake Gold’s drill results
“We trade based on the value of ounces in the ground. Right now, our market value is about $10 an ounce in the ground and in strong market north of a $100 an ounce in the ground. So, you will see a significant appreciation in our share price when capital flows into the sector.” States Tom Meredith, Executive Chairman of West Red Lake Gold Mines Inc. (CSE: RLG | OTCQB: RLGMF), in an interview with InvestorIntel’s Tracy Weslosky.
Tracy Weslosky: The Australians are buzzing about their gold bull market right now. What is happening in Canada? When should we start following suit in North America?
Tom Meredith: I believe it is really the function of the interest rate market. Better known as the bond market. When central banks stop raising rates and actually start pulling rates down, then that will draw money into gold because the bond market which is the biggest capital pool out there considers gold to be a triple A zero coupon bond. When interest rates go down, bonds go up. Which means gold will go up and that will draw money into the sector.
Tracy Weslosky: Any anticipation when the interest rates are going to drop?
Tom Meredith: Watch the Fed. They want to try and put another rate hike. Time will tell whether they will be able to do that or whether they will start dropping rates. We will know better this year.
Tracy Weslosky: The inevitable conclusion would be its time now to buy gold stocks
Tom Meredith: It’s time to be watching them closely because the time is coming fairly soon I think.
Tracy Weslosky: Can you tell me a bit more why they should select West Red Lake Gold versus many of your competitors?
Tom Meredith: We trade based on the value of ounces in the ground. Right now, our market value is about $10 an ounce in the ground and in strong market north of a $100 an ounce in the ground. So, you will see a significant appreciation in our share price when capital flows into the sector…to access the complete interview, click here
Disclaimer: West Red Lake Gold Mines Inc. is an advertorial member of InvestorIntel Corp.