Offering tips on how to play the rising precious metals market, Byron King suggested thinking beyond physical options.
Offering investors tips on how to take advantage of the rising precious metals market, Byron King, editor of Whiskey & Gunpowder at Agora Financial, suggested thinking outside the box.
Speaking on the sidelines of the 45th annual New Orleans Investment Conference in early November, King said a good place for investors to start would be physical metal.
“You begin with the physical-type metals. If you don’t have some, get some,” he said. “If you don’t want to bother looking at the stock prices every day, there are some good exchange-traded funds (ETFs) out there that are low-cost, good value, long-term returns.”
He pointed out that ETFs are known to do well when the sectors they track are on an upswing, making it an opportune time to look at precious metals ETFs.
Royalties companies also benefit from sector tailwinds and are a place in which investors may want to get involved, again to broaden risk and get larger exposure.
Of course, large gold companies like Barrick Gold (TSX:ABX,NYSE:GOLD) and Newmont Goldcorp (TSX:NGT,NYSE:NEM) are prone to do well in a growing market, as King noted, but it’s important to be careful with stocks.
“(The) stock market is way overpriced. Stocks have exceeded the profitability of the underlying company.”
In terms of overall market sentiment, King said that despite concern that an economic crisis may be in the cards, investors are for the most part generally positive.
“(Sentiment) is all over the map, but it is generally on the positive side of all over the map,” he said. “A lot of people are very cautious about very specific things, in the sense that it is a stock picker’s market. You have to be very careful of which stock you pick.”
Listen to the interview above for more from King on palladium’s surprising performance and how investors should approach the vanadium and rare earths sectors. You can also click here for our full New Orleans Investment Conference playlist on YouTube.
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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.