Matt Geiger: Fund Manager Says Silver to Outshine Gold In A Major Way
Matt thinks we were in a consolidation period of this bull market for the past year. He doesn’t see much downside from here. It’s been a relatively healthy period for investors to get into the market. We are more likely to reach 1400 than to see 1200 again. There is a lot of activity and multi-year highs occurring in the base metals. Battery metals are also showing growth. The best contrarian metals with a longer time frame are uranium and agricultural.
Currently, they have full exposure to metals; mostly base, precious and energy related. They expect some spectacular gains and well positioned.
Gold is very attractive and likely to out-perform while silver is gold on steroids. Mr. Geiger likes silver since it is consumed in many industrial uses such as photovoltaics and chemical processing. The gold silver ratio is about as high as it gets at nearly eighty to one. We are well above historic norms.
Historically one could see value now in platinum and palladium however we are avoiding them due to looming electric car demand. If the switch to electric vehicles takes off, there will be less of a need for catalytic converters, and thus platinum metal demand could fall.
Matt discusses the three different investment areas that his fund is interested in. They are high-quality private placements, junior royalty companies, and prospect generators. He names several companies that he is interested in and what he looks for in these investments.
Talking Points From This Week’s Episode
• We are in a consolidation phase of this bull market.
• Gold is likely to see $1400 before too long and silver should outperform.
• Platinum/Palladium demand could fall further as a result of the increase in electric vehicles.
• The political climate in Guatemala may result in Tahoe Resources Escobal silver mine closing for two years.
Mr. Geiger is Managing Partner at MJG Capital which is a limited partnership specializing in long-term natural resource investments. They adhere to bottom-up security analysis and maintain a long-only portfolio of resource equities. The partnership adheres to a bottom-up security analysis within the context of four ongoing macro economic themes: global food scarcity, global fuel/energy scarcity, regional water scarcity, and the emerging world’s infrastructure build out. Their holdings include explorers, developer and producers of energy, industrial, precious and agricultural minerals and metals.