Don't Just Look At Gold; Opportunities In Zinc, Copper, Lithium Says Brent Cook
(Kitco News)- While gold could do reasonably well in 2018, one famedanalyst is recommending that investors shouldn’t be focused on just oneprecious metal.
On the sidelines of the VancouverResource Investment Conference, Brent Cook, creator of Exploration Insights,told Kitco News’ Daniela Cambone that along with gold and silver he seesopportunities in copper, zinc and lithium.
“What we’re really looking for is high-margin, early-stagediscoveries in any metal that a company can make money on, that a major companywill buy,” he said. “So, I don’t care if it’s lithium, zinc, copper, gold, it’smore about the upside potential.”
He said that he likes lithium and zinc because of dwindlingsupply and growing global demand. However, he added that there’s specificcriteria for investing in a company, mainly that they have a viable resourcethat is a potential takeover target for a major producer.
For 2018, Cook said that his top zinc pick is TinkaResources, which is developing its silver-lead-zinc project in Central Peru.His top lithium play is Advantage Lithium, which is developing its Cauchari inArgentina. Finally as a junior exploration play, the team at ExplorationInsights likes Evrim Resources (EVM.V), developing gold and silver projectsthroughout Mexico.
Many analysts have described 2017 as the start of a newbullish commodity cycle, with base metals seeing significant upside momentumthrough the year. KitcoMetals shows spot zinc prices at their highest level in more than fiveyears, last trading at $1.519 per pound. At the same time, copperis trading near a multi-year high at $3.185 per pound.
Many analysts continue to see strong potential for basemetals in an environment of synchronized global growth. Analysts are bullish onlithium, as a growing electric vehicle market increases the demand forbatteries.
Turning back to gold, Cook said that he thinks the yellowmetal could do well in 2018, as the market has already withstood headwinds fromhigher equity markets and rising interest rates. He added that geopoliticaluncertainty could be positive for gold and described the current U.S. politicalsystem as “broken.”
By Kitco NewsFor Kitco News
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