Ross Beaty: Favorite (and Least Favorite) Commodities Right Now

With countries around the world on various levels of lockdown due to COVID-19, web-based events continue to offer investors a chance to connect with industry leaders.

On Wednesday (April 8), Grit Capital hosted a Masters of Mining webinar featuring major names in the resource space. Among the participants was Ross Beaty, who has a reputation for running a slew of successful mining companies and financially backing many more.

In a brief talk, Beaty covered the commodities he likes and doesn’t like in the current environment, sharing his views on where there is potential for profit. Read on to learn his thoughts.

What Ross Beaty likes…

Beaty spent his webinar slot talking mainly about the commodities he’s bullish on at the moment, with the top two being precious metals gold and silver.

Unsurprisingly, those metals are directly reflected in the companies Beaty is behind right now: established producer Pan American Silver (TSX:PAAS,NASDAQ:PAAS) and rapidly growing miner Equinox Gold (TSX:EQX,NYSEAMERICAN:EQX). He also has exposure via multiple other investments.

“I see just fabulous fundamentals for gold and silver, really as good as I’ve seen in my career, my 45 year career,” said Beaty. He believes a secular bull market in gold and silver began in 2016 and is now in its fifth inning — the top of the fifth inning, to be exact.

“Gold has had a pretty good run from US$1,050 (per ounce) to US$1,650 or so today, but I can see it going well over US$2,000. It could be quite an explosive up rally as the cycle gets into its later stages.”

Worldwide stimulus is the main fundamental factor that Beaty sees buoying gold and silver.

“Every time governments try to print money and stimulate economies, which is what’s happening globally right now, gold is a beneficiary, gold goes up. And so I’m very optimistic that the price of gold will continue to rise, as well as silver,” said Beaty.

He did note that silver’s duality as both a precious and industrial metal means that its outlook is mixed.

“If we have a synchronized economic recovery, plus a good market for gold, you’re going to see silver probably outperform gold,” he said.

“But if we have a modest market for industrial metals, the industrial economy globally, but still (have) … pressures on all kinds of governments to stimulate their economies, you’re going to see higher and higher gold pries, and (gold) would probably outperform silver in that scenario.”

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