Eric Fry: Why Base Metals Are Set to Shine

TL;DR

The resource market is experiencing optimism in some areas, particularly in base metals like copper and nickel, due to the electric vehicle and green energy revolution. Precious metals like gold and silver may not perform as well.

Transcript

Priscilla beretta with the investing news network and here with me today is Eric Wright of the Oxford Club thank you so much for joining us today so my first question for you is there's a lot of optimism in the resource base do you think investors can still make big gains in their reserves market this year well I don't know if this on a lot of opti... Read More

Key Insights

• 🛀 The resource market is experiencing varying levels of optimism, with some sectors showing potential for growth while others underperform.
• 💚 Base metals like lithium, cobalt, copper, and nickel are expected to perform well due to the increasing demand from the electric vehicle and green energy revolution.
• 🤘 Precious metals like gold and silver may not experience significant growth in the near future, and investors should consider alternatives such as platinum group metals.
• 🤘 Geopolitical concerns, particularly surrounding the Trump administration, can impact precious metals and the strength of the US dollar.

Questions & Answers

Q: Can investors still make big gains in the resource market this year?

While there is optimism in some sectors of the resource market, such as base metals, other areas like energy have not performed well. Therefore, investors need to focus on specific sectors and commodities with potential for growth.

Q: How can investors profit from the upcoming commodity supercycle?

Investors should consider positioning themselves in base metals like lithium, cobalt, copper, and nickel due to the increasing demand from the electric vehicle and green energy revolution. These metals are expected to experience growth in the coming years.

Q: What is the outlook for copper and nickel in 2017?

Copper is expected to perform well, with a potential double in prices from the current level. The electric vehicle revolution will drive the demand for copper, while supply is not expected to increase significantly. Nickel, although not as bullish as copper, still shows growing demand and could outperform most other commodities.

Q: Are precious metals a good investment for 2017?

Precious metals, such as gold and silver, may not lead the cycle in the resource market this year. Their prices are expected to lag due to lackluster demand. However, investors interested in precious metals can consider focusing on platinum group metals like palladium or platinum, which have a strong industrial demand component.

Summary & Key Takeaways

• The resource market is showing optimism in certain sectors, with base metals like lithium, cobalt, copper, and zinc expected to perform well.

• The electric vehicle revolution and green energy demand will drive the demand for base metals like copper, leading to a potential increase in prices.

• Precious metals like gold and silver may not experience significant growth in 2017 due to lackluster demand.