(Kitco News) - Holders of mining equities have still not seen a big pay off, and that's partly due to cryptocurrencies, said Peter Grandich, founder of PeterGrandich.com.
Grandich spoke to Kitco Mining on Tuesday at THE Mining Investment Event of the North in Quebec City.
Year to date, gold has hit several all-time highs, and silver is up about 33%. Grandich attributed the run up to "tremendous physical buying" from Asia.
"It's unlike anything I've ever seen in the 40 years," said Grandich. "[It] overcame the paper market, which has a tendency to be more bearish than bullish over time."
Despite the high metal prices, mining equities have been muted. Grandich said interest in cryptocurrencies has come at the expense of precious metal shares.
"Crypto is eating junior resources’ lunch," said Grandich. "[When] everybody saw this great increase in physical market [buying], they weren't seeing it correspond to the mining shares."
Grandich also discussed gold versus copper, BRICS momentum and the U.S. economy during the election year.
Coverage of the THE Mining Investment Event of the North is sponsored by EMX Royalty.
