Ross Beaty: Conditions Bullish for All Metals, Juniors Could Have "Explosive" Rally

How to handle resource market volatility

As VRIC host Jay Martin reminded the room, this year’s conference was packed with newcomers to the mining investment space. With that in mind, his discussion with Beaty began with advice on how to deal with market volatility.

“The one thing investors sort of forget is that it’s cyclical,” Beaty said, referring to the waves of high performance in stocks followed by downturns in the market, which he said investors should keep in mind when looking for actionable strategies.

According to Beaty, moments of chaos tend to represent good buying opportunities.

“When everybody’s crying in the street, and there’s fear and there’s hate for this sector, that’s the time to be buying — and really that’s what I’ve built my career around,” he said.

The expert stressed how important it is for investors to not be too caught up in the moment, whether good or bad.

“To me that’s one of the biggest trends that investors have to remember in this industry: Things don’t stay good forever and things don’t stay bad forever,” Beaty said.

Current market conditions offer good buying opportunity

While discussing the progress of the resource space, Beaty did not mince words, calling 2022 an “absolutely godawful year,” both for metals and companies working in the mining sector.

The expert pondered why there was such a disparity between the market's positive fundamentals and its performance.

“Last year and even now it’s a great time to be buying equities, because we are through a bear market, and I think we’re going into a really fabulous bull market where we could have an explosive rally in the juniors … this could be a historic time,” he said.

The expert stressed that he still thinks mining equities are bewilderingly undervalued.

“In all of my career, I don’t think there’s been a more interesting time than right now for mining and mining metals,” he said.

“There are synchronous bullish conditions for virtually all metals — not every single metal, but almost all metals — today … Just about every single metal in the periodic table is in a good place right now where people want them, demand is increasing … so you have this wonderful, wonderful time today when almost all metals are in a bullish trend,” Beaty added.

As a follow up, he said metals stocks struggled in 2022 with only a “little bit of money flowing.” However, he is confident that a great rally will be coming soon. “I just think it’s a coil spring right now,” he said.

Watch the Investing News Network's VRIC interview with Beaty above.

Beaty was equally bullish in a conversation with the Investing News Network at VRIC.

"It could really be a fun market this year for equity investors in these juniors that have been so beaten up, that have delivered such terrible returns in the last few years to the poor suffering investors who got into them," he said.