With sentiment down, base metals values in a ditch and the potential for economic stimulus, there’s a big opportunity for investors to get ahead, as per Brian Leni of Junior Stock Review.
Speaking with the Investing News Network at the Prospectors & Developers Association of Canada (PDAC) conference in Toronto, Leni said that conditions appeared to be ripening for big returns in base metals given the current sentiment around the COVID-19 coronavirus scare.
“If there was a large stimulus package that was announced along with low interest rates, the general consensus is pretty positive, not only for precious metals but base metals too,” he said.
Leni explained that stimulus packages usually mean infrastructure projects and demand for metals (like copper and iron), and the juniors in the base metals sector are going for a bargain.
“Those companies are selling at pennies on the dollar, and generally speaking, the general investor is overlooking them because the case for precious metals is so strong. Justified, but there’s opportunity for people who maybe have a more complete look at the market and a more long-term outlook.”
Speaking of precious metals, Leni said that “the case for precious metals has never been stronger than we’re seeing today” given the uncertainty around the world. That means lots of opportunities.
Leni also offered his thoughts on how sentiment was at PDAC, commenting on the number of empty booths that were a direct result of the coronavirus.
“Besides a few open booth locations, I’m actually pretty impressed with the showing,” he said. Attendance was at 23,144 in 2020, down 11 percent on 2019.
“(The gaps) are obviously more opportunity for everybody else to get attention.”
Listen to the interview above for Leni’s thoughts on precious metals, base metals, the coronavirus and why the gold price took a dip on February 28. You can also click here for our full PDAC playlist.
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Securities Disclosure: I, Scott Tibballs, 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.
