Brien Lundin, Editor of The Gold Newsletter and our host at the New Orleans Investment Conference, joins us to discuss the rally we’ve seen in the precious metals sector the last few weeks, based on receiving a safe haven bid due to concerns in the banking sector, and then in reaction to the Fed’s FOMC meeting as they are getting near the end of their tightening cycle. We review how investor expectations using the Fed funds futures have made a huge turn from anticipating higher rates for longer, to now expecting a pause soon and potential cuts to rates as soon as this summer.
Next we review that gold has been getting more coverage and references in main-stream financial media, and while that raises concerns with contrarian investors, we make the point that we will need to see this kind of awareness grow if generalist investors are to become at least partially allocated to the gold, silver, and the PM mining stocks.
We wrap up discussing the mining stocks, where there are still highly discounted valuations and bargains to be found in companies that have derisked and defined resources in place. When asked if there was a better setup at present in the precious metals or battery metals, Brien feels there is more immediate upside rerating potential in the PM stocks, compared to the more overbought lithium sector, but notes that there are copper stocks with good gold and silver exposure in their deposits, that allow investors to diversify across multiple commodities.
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