As governments keep printing money, that money will flow into commodities, says Doug Casey. He believes select junior miners will benefit.
As governments around the world continue to print money, commodities are the place to be.
That’s according to Doug Casey of Casey Research and InternationalMan.com. Speaking at the Sprott Natural Resource Symposium in Vancouver, Casey suggested that within the commodities sector, investors should look at mining stocks, especially juniors.
“All these governments apparently believe in something called Modern Monetary Theory, which is going to put Keynesian economics on steroids — they’re going to be creating tons of money or currency in the years to come to keep the current system going,” he said.
“A lot of it’s going to flow into commodities, number one. In particular, these crappy little mining stocks — there’s 2,000 of them that are always on an Easter egg hunt around the world looking for various metals. There’s going to be an explosion in these things — it’s happened a half a dozen times since gold was freed up in 1971, and it’s about to happen again.”
Of course, that doesn’t mean any resource junior will do. Casey emphasized that, of the 2,000 companies he referred to, most are not worth pursuing. “(However,) there are about 100 of them that have good management, good properties that are going to capitalize from the coming boom in commodities.”
Casey said that, to separate the wheat from the chaff, investors need to do their homework and gain some knowledge of the mining industry. “Don’t buy these stocks on a tip or a tout — try to get yourself an education. It’s worth it because the potential profits are so great at this point,” he explained.
Aside from commodities, Casey didn’t mention any other major areas of opportunity, although in his talk at the Sprott event he did express optimism about where developments in science and technology may take the world in the years to come.
“Just stay alive, don’t go bankrupt and you’ll be swept along with the great incoming tide, which will raise all ships — assuming that the Greater Depression, which we’re about to embark upon as well, doesn’t create too much chaos in the world,” he said.
In terms of markets to avoid, stocks, real estate and cannabis all made Casey’s list, although he did suggest that cryptocurrencies, an area in which he has made money, may get a second wind.
Watch the video above for more from Casey on investing and the future of commodities. Our full playlist for the Sprott event can be found on YouTube.
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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.