Willem Middelkoop, founder of the Commodity Discovery Fund, shared his thoughts on the junior sector heading into 2024, saying that it could be a year of recovery after 2023’s frustrations.
The Commodity Discovery Fund is focused on companies making discoveries, and Middelkoop emphasized the importance of being selective, especially during tough markets. His goal is to find companies that will be taken over.
“It’s very simple. When you focus on the top 100, the best discoveries worldwide, they will always be taken out by a major. So that’s your exit strategy,” he said on the sidelines of the Vancouver Resource Investment Conference (VRIC).
When asked about the disconnect between gold and gold stocks, Middelkoop said it doesn’t surprise him.
“It’s a huge disconnect — I think the undervaluation of gold-related equities compared to gold has never been larger. This is typical for the end of a bear market, where the physical metal is starting to move and the equities still have to catch up,” said Middelkoop, who is also the author of the book “The Big Reset.” He added, “That’s why we predict there will be a very strong rally once the market understands that gold is in a new bull market.”
He believes investors need to see gold pass US$2,100 per ounce, and said while it’s hard to pinpoint exactly when that will happen, it will be sometime this year as factors like geopolitical tensions and de-dollarization pile up.
Aside from gold, Middelkoop is bullish on silver, uranium and battery metals like lithium in the year ahead. Watch the interview above for more of his thoughts on those commodities, as well as the overall junior sector.
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Securities Disclosure: I, Charlotte McLeod, 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.
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