The short term may be uncertain, but Brian Leni of Junior Stock Review remains confident in precious metals long term.
“My baseline thesis is to buy companies that are selling for less than they’re worth, and typically with that you’re looking at commodities that are out of favor,” Leni told the Investing News Network.
“With gold, even though it dropped back to US$1,600 (per ounce), to me I think it still held up relatively well to that rising interest rate environment. And if you look at it from a value perspective, that is where you can buy the best value in the resource sector, bar none — especially in the developers, which is sort of a sweet spot for me,” he added.
Leni also discussed copper and nickel, explaining that while a recession would be harmful for these metals, they stand to benefit from the trend toward electrification, especially as countries around the world lock down domestic supply.
“I absolutely believe that a recession would be a good thing for investors that are looking to deploy money, because it is going to trickle itself down into the producers, the developers and the explorers,” he said.
He advised investors to consider buying in tranches instead of trying to establish positions all at once, and suggested looking at companies in the US and Canada that are near the preliminary economic assessment stage.
“Domestic supply is going to matter, and it’s going to matter even more with these sanctions and whatever’s happening with east and west as we diverge,” Leni said. “And those domestic sources are few and far between, so I think there is a real opportunity there, in particular in nickel — and I should say copper too.”
Watch the interview above for more from Leni on the resource sector. You can also click here for the Investing News Network’s full Vancouver Resource Investment Conference playlist on YouTube.
Don’t forget to follow us @INN_Resource for real-time updates!
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.
From Your Site Articles
Related Articles Around the Web
Image and article originally from investingnews.com. Read the original article here.