The market has been volatile lately, but Joe Mazumdar sees a value opportunity for investors with a little risk appetite and patience.
With all the recent market activity, Joe Mazumdar of Exploration Insights sees a value opportunity for investors with a little risk appetite and patience.
Speaking with the Investing News Network at the Prospectors and Developers Association of Canada (PDAC) convention, he discussed the current trajectory the precious metals industry is on, saying he sees the sector taking a V-shaped recovery path.
In terms of how investors should be reacting, Mazumdar said, “I would probably look at precious metals stuff that you really like, but you thought was too expensive.”
Over the longer term, his advice was to think of some of the areas where a future supply deficit may be an issue.
“There are still supply issues with respect to copper and some other commodities that you might consider,” he said. “You have to know that there’s projects out there now to feed the pipeline for 2025.”
In the current market, Mazumdar thinks investors should go for producers and focus on output to weather the current economic storm.
“You know, part of your portfolio should be directed towards gold, and silver for even more beta,” explained Mazumdar. “But I would suggest right now maybe more on the producer side, and less so on the exploration side.”
As markets continue to react to the spreading COVID-19 coronavirus, Mazumdar sees volatility making gold’s safe haven nature more appealing.
Ultimately, he sees the yellow metal’s fundamentals being impacted by other factors in the long haul.
“The real long-term demand for gold is driven by the amount of negative-yielding debt out there, and that’s really the argument for the medium to long term.”
Don’t forget to follow us @INN_Resource for real-time updates!
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.