I joined Andy Duncan on Smart Metals Radio, hosted by the Hard Assets Alliance, to discuss the Asian appetite for gold, the junior mining sector, and the strategic differences between India and China.

In this discussion, we discussed why Indian gold demand was stagnating despite the country’s deep cultural attachment to gold, why Indian restrictions on gold imports were unlikely to curb demand, and why Chinese buyers were becoming increasingly important in the physical gold market. We also discussed junior gold miners, the difficulty of predicting gold prices, and why I prefer carefully selected junior mining companies over producing gold miners.

Watch the full discussion below:

Key Takeaways

• Junior mining companies can offer better value than producing miners, but only when chosen very selectively.
• Indian gold demand was under pressure because the Indian economy was stagnating and savings were falling.
• Indian restrictions on gold imports were unlikely to reduce demand; they were more likely to encourage smuggling and corruption.
• Chinese buyers were increasingly interested in gold as a way to protect wealth from government risk and currency debasement.
• India and China should not be treated as one generic “Asian gold market”; they are very different societies and investment environments.
• I remained cautious about making gold-price predictions, even while recognizing the long-term monetary case for gold.
• My own preference was for junior mining stocks, some physical gold and silver, and international diversification.