In this interview with analyst Per Wimmer, Collin Kettell discusses the current opportunities in the precious metals space.
Per is invested in the natural resource space and has seen both the good and bad times. He has worked with many entrepreneurs in the mining space. Wimmer says, “From an investment point of view you have to do your homework. Investigate the stories and the management teams.” He became interested in the mining sector before the last supercycle when he discovered that it was a no-brainer from a supply-demand perspective.
For him, gold is an important asset class in its own right. It’s useful as an inflation and a hedge when things turn bad. You can get exposure to this sector through the juniors, or you can use ETF’s. The bottom of the mining market was probably 18 months ago. He expects gold to trade between 1150 and 1350 for the next few months.
They are exploring the energy focused metals like cobalt, graphite, nickel, and lithium are of great interest to his company. The extensive worldwide printing of money is beneficial to precious metals as a hedge. The cautions that the resource sector can be volatile.
He finds the resource metals like nickel, copper, zinc, and tin compelling from a demand perspective. His company invests globally, although they avoid some countries. They are particularly interested in Chile, Africa, North America, and Spain.
He discusses the commodity sector plays of phosphate and potash. He explains why he thinks Gensource Potash is an excellent agricultural play since they have much lower cap-ex and are positioned to do well.
The SPDR Gold Trust ETF (GLD) fell $0.49 (0.40%) in premarket trading Monday. Year-to-date, GLD has gained 10.95%, versus a 16.09% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Palisade Research.