Noting that little information is currently available, he recommended avoiding speculation until more details have been released. However, he did remind investors of the risks attached to single-asset companies.
“There is a risk obviously in great big single-asset plays when something critical fails,” King said.
He also discussed his outlook for the gold price and gold miners as they prepare to release Q2 results.
In his view, if these companies see big jumps in profit, they may start to attract attention from Wall Street.
“I do think that ‘Big Wall Street,’ so to speak, will absolutely have to rebalance some of that cash towards the hard assets, and in particular gold (and) silver producers,” he commented.
Watch the interview above for more from King on the outlook for gold and gold stocks, as well as his thoughts on the petrodollar and which companies he’s watching in Yukon and BC’s Golden Triangle.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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