Mercenary Geologist Mickey Fulp also discusses factors that affect the gold price and why it looks like the metal’s time has come again.
Sentiment is strengthening in the resource sector, but, according to Mercenary Geologist Mickey Fulp, that doesn’t mean market participants should change their strategy.
“No matter what kind of market you have, you still do the same things,” he said at the recent Vancouver Resource Investment Conference.
“You become more cautious in bear markets, but by the same token, the bear markets present the buying opportunity. So whether the market’s booming or busting, you should always do the same thing.”
For Fulp, that means completing thorough due diligence before buying into any company, including looking at management and share structure. Projects should also be evaluated for geologic potential and whether they are in a safe jurisdiction, among other considerations.
In addition, he said, “More and more in today’s markets, companies have to have the ability to raise capital without severe dilution. Otherwise you’re punishing your core group of shareholders who have been with the company a long time.”
Speaking about gold, which has enjoyed some gains already in 2020, Fulp was positive, saying that while it’s taken awhile, it appears the yellow metal’s time has come again.
“It will collapse, we know that,” said Fulp, who has urged caution before about palladium’s rapid price rise. “A lot of people don’t understand the market still hasn’t gone parabolic, it’s gone exponential. It’s unsustainable.”
Watch the interview above for more of Fulp’s thoughts on gold, palladium and the resource space in general. You can also click here to see our full VRIC playlist 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.