by Gerardo Del Real
Outsider Club
The past several years in the resource space have inflicted a level of pain not for the faint of heart.
Rick Rule, from Sprott Inc. is one of the most successful contrarian investors in the resource space. He recently stated that in his 40-year career he has never seen a period where worldwide demand for capital goods and commodities has been as weak as it is now.
Though we believe that the base metals — especially copper — will have their day, we don’t believe that time is now, save for a few exceptions.
The precious metals space, however, has seen some activity and money is starting to come off the sidelines for the better names. We suspect the recent run-up will temper off post-PDAC and we suspect the next two quarters will provide excellent entry points into some of the highest quality assets.