VIDEO - Brent Cook: Gold Poised to Perform Well Long Term

There is a value opportunity in junior stocks if you do your due diligence and know what to look for, according to Brent Cook, founder and senior adviser of Exploration Insights.

Currently the sector is being battered due to market volatility, which has impacted share prices.

“It’s tougher for junior miners, because with the low liquidity in those stocks, they tend not to attract a lot of attention when things are very volatile,” said Cook.

“You know most of these projects are going to fail, but if you can identify the fatal flaw ahead of the crowd you can still make some money,” was the advice he offered to investors.

Hedging for a downturn was also a topic Cook touched on during his interview at the Prospectors and Developers of Canada Association of Canada (PDAC) convention in Toronto. The senior adviser sees precious metals as the smart investment during the market upheaval, with gold faring better amid the uncertainty.

He explained that geopolitical events like the presidential election and the Federal Reserve lowering interest rates are all beneficial for the yellow metal.

“Everything I see tells me the price of gold is going to do well over the next six months to three years, so if you’re into precious metals I think it looks pretty darn good,” he said.

Speaking of precious metals, Cook also touched on palladium, a metal that has had a meteoric rise, climbing almost 90 percent from January 2019 to today. He remarked that he is watching the junior palladium space in North America, but had yet to find a stock that met the high criteria Exploration Insights uses.

“There’s not that many (palladium juniors),” said Cook. “There’s smaller companies with plays, but we haven’t seen one we feel is good enough to buy.”

To hear more from Cook about the lasting impact of the COVID-19 coronavirus and his thoughts on buying majors over minors, watch the video above. You can also click here for our full PDAC playlist.

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Securities Disclosure: I, Georgia Williams, 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.