Willem Middelkoop: Exploration Crisis is a Perfect Storm for Investors | Summary and Q&A

TL;DR

Underinvestment in exploration has led to production deficits and shortages in certain metals, presenting potential opportunities for investors.

Key Insights

• ❓ The commodity market is in crisis due to underinvestment in exploration.
• 🤘 Shortages and production deficits exist in metals like silver and palladium.
• 🤘 Increased demand from the electric vehicle industry will strain the supply of metals like copper and nickel.
• ✋ Higher metal prices may be the solution to funding exploration projects in the future.
• 🤘 Opportunities for investors exist in companies focused on metal discoveries, such as NextGen Energy and Great Bear Resources.
• 💄 Nickel discoveries are rare, making companies like SolGold Resources in Ivory Coast potentially valuable.
• 👶 The need for a new anchor in the international monetary system, as countries like China and Russia accumulate physical gold.

Transcript

I'm Charlotte McLeod with the investing news network and here today with me is will a middle coupe founder of the commodity discovery fund thanks so much for being here thanks for the invite yes and we're here we're here of Mines and money London it's the third day of the show I wanted to ask if you can start by giving me just a brief overview of y... Read More

Questions & Answers

Q: What has led to the current crisis in the commodity market?

The underinvestment in exploration since the 2008 financial crisis has resulted in production deficits and shortages in various metals.

Q: Are there any specific metals facing shortages?

Silver has been in production deficit since the 1950s, but due to above-ground stocks, there is no physical shortage. Palladium is experiencing a physical shortage, leading to a significant price increase.

Q: Will there be enough investment to fund exploration projects?

The crisis has made it difficult to secure funding from retail investors. Higher metal prices due to shortages can potentially solve the problem, but in the short term, there may not be enough money available.

Q: How can investors take advantage of the upcoming commodity market scenario?

The current market depression and low valuations present a perfect opportunity for commodity investors. Investing in companies focused on metal discoveries, such as NextGen Energy and Great Bear Resources, may yield favorable returns.

Summary & Key Takeaways

• The commodity market is currently facing a crisis due to underinvestment in exploration since the 2008 financial crisis.

• Silver has been in production deficit since the 1950s, while palladium is experiencing a physical shortage for the first time.

• Base metals like copper, zinc, and nickel are also expected to face supply stress due to increased demand from electric vehicles.