The Investing News Network sat down with Randy Smallwood, president and CEO of Wheaton Precious Metals (TSX:WPM,NYSE:WPM), at this year’s Prospectors & Developers Association of Canada (PDAC) convention.
He said 2019 is shaping up to be another successful year for the miner, and offered his perspective on why he’s bullish on gold long term. Smallwood also explained why he thinks that palladium is “the most precious of the precious metals.”
“Long term we are very bullish … we see it as being a very nice liquid store of value that will provide good avenues for investment for a long time going forward,” he said.
Smallwood added that he sees the yellow metal’s price being higher than it is now before the year ends, stating, “it’s pretty easy to find all sorts of positive factors for investing into gold.”
Switching gears to the silver market, he said that Wheaton initially began as a company that focused on silver, and has an understanding of the white metal’s fundamentals. He noted, “silver always lags gold, but when it moves it will outperform.”
He commented, “silver itself has gone from US$13 to US$16 [per ounce], and that percentage gain is much more than what we have seen in gold over the last couple of months.”
Smallwood said he is even more bullish on silver than he is on gold because there are “better fundamentals behind silver.”
In his opinion, the fundamentals also support palladium.
Wheaton made its first investment in palladium in June of last year, and Smallwood believes that the metal will be beneficial to the company for a very long time.
“Palladium has gone for a beautiful run … palladium was trading just over US$900 [per ounce] when we invested … so far it’s up over US$1,500 and it’s getting close to US$1,600.” He continued, “the demand fundamentals behind it are sound [and] strong.”
Finally, Smallwood spoke about the robust year Wheaton just came off of, attributing that success to its “high-quality assets.”
“We’ve always focused on investing into high-quality assets, and we judge quality by the margins. One of the reasons we invest into high-quality assets is because it’s also the first place that our partners invest into because that’s where they make their most profit.”
Watch the interview above for more from Smallwood. You can also click here to view our full PDAC 2019 interview playlist on YouTube.
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Securities Disclosure: I, Nicole Rashotte, 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.
