Sprott CEO Peter Grosskopf shares his thoughts on the gold price, commodities to watch and best and worst investments in 2019.
2019 is proving to be a more buoyant and positive environment for investors, according to the CEO of Sprott (TSX:SII,OTC Pink:SPOXF), Peter Grosskopf.
Speaking with the Investing News Network (INN) at the Sprott Natural Resource Symposium in Vancouver, Grosskopf said that investors who have stuck through the tough times of the last few years are now “cautiously looking at new opportunities” in the market.
He also talked about the gold price, merger and acquisition trends and shared Sprott’s best and worst investments in 2019.
On the gold price, he said that investors are moving to hedge their money in the precious metal, a move that is acting to drive prices up.
“I think there’s a growing awareness by other fund managers, but also the general markets, that this negative yielding debt that we’ve seen globally is, for very strange reasons, required now. And in that kind of market, there’s more risk than general markets are pricing in, and I think investors are moving to gold as a hedge for that,” said Grosskopf.
He also predicted that, with technical resistance broken for the gold price, it will be even higher by the end of this year.
In other commodities, he said there is scope for battery metals to have a bounce in value after significant corrections.
In terms of investment success, Grosskopf said that for Sprott, Kirkland Lake Gold (TSX:KL) is proving to be the best investment in 2019 (and 2017 and 2018), but that the company will need to find something new soon as three years of positive returns is a good run.
He was a little more coy on worst investments, saying that, while Sprott’s investments in Australian companies have yielded many positive returns, in 2019 some of them have “stumbled,” making them the worst performers this year.
For more from Grosskopft, watch the interview above. INN’s full playlist for the Sprott event can be found on YouTube.
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Securities Disclosure: I, Scott Tibballs, 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.