VIDEO - Mickey Fulp: Gold Mega Deals “Certainly Aren’t Good for Investors”

Precious Metals

Mercenary Geologist Mickey Fulp shares his thoughts on the Newmont Mining/Goldcorp tie up, the trade war and metals to watch in 2019.

Last week’s deal between Newmont Mining (NYSE:NEM) and Goldcorp (TSX:G,NYSE:GG) has generated a lot of commentary from market watchers, and not all of it is positive.

Coming down on the negative side at the recent Vancouver Resource Investment Conference, Mercenary Geologist Mickey Fulp commented that mega deals like this “certainly aren’t good for investors.”

“I don’t understand it,” he said. “You’ve taken two underperforming large gold majors and you’ve made a bigger company and you expect that to overperform now? I don’t quite understand it.”

Looking at the precious metals complex as a whole, Fulp said it’s “totally discombobulated — out of whack on the relative values of the metals.” He pointed in particular to palladium, whose price rise he believes is not sustainable. “I would submit that I would not want to be buying palladium right now, but I’m very much buying platinum.”

Nevertheless, Fulp is positive on the resource space, saying that “the world is really posed for next bull market in commodities.” However, he said, the trade war between the US and China is dampening prospects, particularly for industrial and base metals.

“You’re seeing [China] starting to soften their negotiations, their tactics, their demands. If that happens then especially the industrial metals space is going to take off because supply/demand fundamentals for most metals are very good,” he explained.

Watch the interview above for thoughts from Fulp on mergers and acquisitions, metals to watch this year and stocks he likes. You can also click here to view our full playlist from the conference 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.

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