One of the largest intergenerational wealth transfers in history is coming in the next two decades, with an estimated US$84 trillion globally expected to be passed down from Baby Boomers to Millennials.
Compared to their older counterparts, Millennials and Gen Z have a higher risk tolerance, as is reflected in their love of tech stocks and cryptocurrencies. Millennials and Gen Z are also keen on aligning their investments with their values when it comes to the environment and sustainability — a fact that can make them uneasy about mining stocks.
Overcoming these negative sentiments is essential if the mining industry is to position itself to capture that US$84 trillion wealth transfer. But how? That was the main question posed at one panel at this year’s Prospectors & Developers Association of Canada (PDAC) convention, which the Investing News Network had the opportunity to attend.
Led by Anthony Vaccaro, president of the Northern Miner Group, the panelists were Matthew Geiger, managing partner at MJG Capital Fund; Luc ten Have, founder of GoldDiscovery.com; and Nicholas Tartaglia and Dan Kozel, co-founders of NewGen Mindset. Here’s what they had to say about getting Millennials interested in the mining sector.
Young investors wary of mining stocks
In addition to the sustainability challenges associated with mining, the industry’s volatility over the past decade hasn’t helped younger investors’ perception of resource sector stocks.
Geiger said in recent years the mining sector has experienced short periods of “nirvana” for precious metals, battery metals and, more recently, uranium. “But as a whole, there’s been a lot of money lost in the sector, and a lot of value destruction in the past 12 years,” he said, acknowledging that given those circumstances it’s unrealistic to expect young investors to be excited about the space. “These are reactionary investors, they are not contrarian at the end of the day,” Geiger added. “But the industry can still prepare for the influx and not give up on this generation of investors.”
Appealing to Bitcoin investors
Kozel advised precious metals companies to look at how successful Bitcoin companies have been in attracting young investors. “There is a common theme here at play. And that common theme is the fact that if you own gold and silver, you probably don’t trust the fiat system,” he explained. “And guess what? Those same investors are buying Bitcoin for that exact reason.” Kozel added that he owns both Bitcoin and precious metals.
Crypto-mining technology itself involves a large amount of energy and metals, which Kozel said the mining industry can use to further connect with this young investor class.
Social media engagement
What else should the mining industry to do win over Millennial and Gen Z investors?
The consensus among the panelists was that mining companies should establish a stronger social media presence and take advantage of platforms such as YouTube, Instagram, TikTok and X (formerly Twitter).
“Gen Z isn’t coming to these conferences,” said ten Have. “The only way for them to get introduced is through those social media channels. I think the only way to reach them is through a coordinated social media campaign.”
Geiger agreed, saying it’s inexcusable to not be on social media today. “It’s not hard to do content at least on a weekly basis,” he said, recommending that companies tweet news releases with additional context, or share educational videos about the metal they are focusing on or the jurisdiction they are operating in.
Kozel spoke about the need for clearly communicated information about complex topics like 43-101 reports and drill results, sharing his experience as a young investor who had to learn about these topics. He sees an opportunity for companies that can take that information and simplify it for Millennial and Gen Z investors.
His NewGen Mindset co-founder Tartaglia said one of the problems is that there is very little information on mining in school and in the media. “There’s really a gap in the marketplace to inform and educate the next generation,” he noted.
Tartaglia also said that to learn more about mining companies he typically visits YouTube to see management interviews. With that in mind, he suggested field vlogs as a way for companies to highlight their value proposition.
“The younger generation wants a story,” he emphasized.
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Securities Disclosure: I, Melissa Pistilli, 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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