- AustraliaNorth AmericaWorld
How Much Do Young Investors Care About Mining?
Mining investor demographics typically skew older, but is that changing as more young investors become familiar with the industry?
Young people have increasingly been dipping their toes into investing, attracted by fun but turbulent trends.
As this new class of investors with a fresh perspective looks for ways to allocate cash, some experts believe the mining industry may become more appealing for those looking for more stable markets after being hit by volatility elsewhere.
During the latest Prospectors & Developers Association of Canada (PDAC) convention, the Investing News Network (INN) caught up with various voices in mining to get their thoughts on whether young investors are really interested in the sector.
Meme stocks, trendy sectors the first stop for young investors
During a talk at PDAC, Jackie Przybylowski, metals and mining analyst at BMO Capital Markets, said the resource industry needs to recognize the opportunity attached to attracting younger people to the business.
In her view, the recent trend toward ESG means that younger, socially conscious investors can feel more confident in the space.
In his own PDAC presentation, Lobo Tiggre, editor and founder of IndependentSpeculator.com, remarked on how meme stocks introduced some young people to investing. He was referring to the phenomenon of particular stocks gaining prominence online — in some cases, investors have banded together to push these stocks in a particular direction.
"Very interesting," the expert said while musing on of what kind of long-term impact these investors could have.
COVID-19 was also important in introducing young people to investing — many got their start in the early months of the pandemic as they had more time than ever to examine potential bets.
Research from Halifax Share Dealing, an online broker based in Britain, reaffirms this idea.
“We saw record numbers of trades on our platform throughout lockdown as people turned to the stock market for financial planning for the future,” Manuel Pardavila-Gonzalez, the firm's managing director, said.
At the same time, investment tools have never been more accessible for investors of any financial status. Many banks have produced trading apps, as have third-party companies trying to nudge young people to join the investment community.
In a 2022 research paper, the BC Securities Commission said young people are “increasingly taking on more risk,” with their investments. The report also indicates that young investors are less trusting of advice from established professionals, and instead often seek information via online platforms like Reddit and TikTok.
Only 23 percent of these younger investors work with a financial advisor, versus 40 percent of Canadians overall.
What do young investors think about mining?
Frank Gagnon, investor relations manager at NOVAGOLD Resources (TSX:NG,NYSEAMERICAN:NG), told INN he has seen a younger class of investor beginning to warm up to mining after initially being interested in areas like crypto.
“There’s definitely an interest from the youth investing demographic to come into mining,” he said.
Sean Kingsley, director of communications for Enduro Metals (TSXV:ENDR,OTCQB:ENDMF), told INN that young people are starting to invest because they see how essential it is to build capital and their own net worth.
“We got them into the investment world through marijuana (and) crypto,” he said.
Trends like crypto and cannabis, alongside the meme stock craze, may have acted as the starting point for many young investors, but now they appear ready to look at more traditional arenas like mining.
A uranium executive told INN young investors can match up their interests with the world's need for energy sources.
“I think younger people have always had an interest in mining investments,” said Siobhan Lancaster, CEO of 92 Energy (ASX:92E). “It’s a fascinating industry, you can really see big, broad trends in the world and apply them into your own investment theses."
Theo Yameogo, mining and metals leader at EY Americas and Canada, agreed, telling INN he sees younger investors appreciating the need for new energy sources to help fight against the effects of severe climate change.
“This is going to be quite an interesting dynamic going forward,” he said. “Because mining always felt that it was a misunderstood sector for the value it was bringing to society.”
Yameogo said lithium in particular has attracted a new set of eyes. “Battery metals are the new child in the family,” he said. “And that deserves a lot of love, you can see it.”
However, the market expert warned that investors shouldn't expect this sector to provide immediate gains — there will be growing pains as the storyline for battery metals goes forward.
It remains to be seen how aggressively young investors will pursue mining opportunities and to what extent their presence will affect the sector. For now, it’s clear the resource industry itself is recognizing the potential of attracting newer faces.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, 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.
Bryan is a Senior Editor with INN. After graduating from the Langara journalism program he did some freelance reporting with community newspapers in British Columbia. He initially wrote about the life science space for INN and now spends his time covering the marijuana market, from Canadian LPs to US-based companies, and the impact of this sector on investors.
Learn about our editorial policies.