Precious metalsHi Travis,
I enjoy your writing so much and am so grateful for your candid opinion.
What’s your take on Silver & gold, keeping in view the inflation/ hyperinflation? Also with EV & solar boom, silver consumption should be sky rocketing.
Also with so much talk about clean energy, where do you think Uranium is headed, which by far produces the least carbon emission?
Will wait to get your feedback.
Happy weekend!
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All good questions. The only rare earths I am significantly invested in are LAC and LIT, because lithium. Have a small starter position in BTG.
LIT and LAC have skyrocketed in the last 18 months! How this correlates to covid could be just a fluke but, the rise is more correlated with many governments dictating action on climate change.
I decided to cash out on LAC, my stake hit a 46% increase thanks to the latest bump vs my buy in price about 4 months ago. It may run further, but nobody went broke taking profits. 46% in 4 months is plenty acceptable for me vs gambling on what the inept gov’t actions may be. I did invest because of the push to more lithium batteries overall, not specifically gov’t initiatives.
about BTG, I read a blog on John Paulson’s move to gold as a “crisis hedge” if inflation continues. Gold-related stocks have fallen over the last few months but seems it hit a valley and starting to climb.
I like having anywhere from 5-10% of my assets in precious metals, either through equities (mostly royalty and streaming companies) or the metal itself. Silver is unpredictable but seeing increasing industrial demand, gold is essentially a disaster hedge that tends to do well after (not during) a market crash, and should provide some protection from hyperinflation but isn’t a very direct inflation hedge in the short term. I buy a little bit every now and then, on a pretty consistent basis.
As to where the prices go in the next year? My guess would be “up”, but that’s just a guess. I’ve been terrible at predicting commodity prices for 15 years now, and that will probably continue.
Travis, regarding Silver and junior companies…. have you heard about Apollo Silver (TSX-V: APGO & US: APGOF)… they seem to have a solid experienced team with previous successful projects, at least some of them, located in a proven land in terms of productivity with political stabilityโฆ
No, but I donโt spend much time looking for little explorers.
Juniors I guess are in high risk/ high reward domain. With silver demand continuing to increase, there might me consolidation in the sector and some of the juniors might get bought out at hefty premiums.
I am bullish on Gold, Silver & Uranium, despite the fact that the short sellers try to steer us in different directions including EVs & crypto. Inflation, USD weakness & low internet rates should all play their part and help the precious metals soar to new highs.