From Collin Kettell: Fund manager Matt Geiger thinks we were in a consolidation period of this precious metals bull market for the past year. He doesn’t see much downside from here, however.
It’s been a relatively healthy period for investors to get into the metals market. Gold is more likely to reach 1400 than to see 1200 again. There is a lot of activity and multi-year highs occurring in the base metals. Battery metals are also showing growth. The best contrarian metals with a longer time frame are uranium and agricultural.
Currently, they have full exposure to metals; mostly base, precious and energy related. They expect some spectacular gains and well positioned.
Gold is very attractive and likely to out-perform while silver is gold on steroids. Mr. Geiger likes silver since it is consumed in many industrial uses such as photovoltaics and chemical processing. The gold silver ratio is about as high as it gets at nearly eighty to one. We are well above historic norms.
Historically one could see value now in platinum and palladium however we are avoiding them due to looming electric car demand. If the switch to electric vehicles takes off, there will be less of a need for catalytic converters, and thus platinum metal demand could fall.
Matt discusses the three different investment areas that his fund is interested in. They are high-quality private placements, junior royalty companies, and prospect generators. He names several companies that he is interested in and what he looks for in these investments.
The SPDR Gold Trust ETF (NYSE:GLD) closed at $126.06 on Friday, up $0.24 (+0.19%). Year-to-date, GLD has gained 15.01%, versus a 11.90% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Palisade Research.