“Platinum Could Easily Rise 50% to 100% in 12-18 months” says Portfolio Manager Sam Broom
May 27, 2024
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Geologically trained portfolio manager Sam Broom predicts a 50-100% rise in platinum value. He discusses increased interest from generalist institutions in mining stocks, timing entry points in a bull market, rare earth companies, potash, and challenges US investors face in funding Canadian miners.
Platinum's potential 50-100% increase in 12-18 months due to a possible breakout from a two-decade bear market trend.
Mining sector attracting new investors, both retail and institutional, reflecting positive market sentiment and potential shift in dynamics.
Deep dives
Platinum on the Verge of a Breakout in Bear Market
Platinum's near two-decade bear market could see a significant shift, with potential for a 50-100% increase in the next 12-18 months if it breaks out of the downtrend. Observations indicate testing of a critical trend line, signaling a promising outlook. The commodity's historical downtrend raises anticipation for a substantial upside potential, drawing attention to its possible growth amid ongoing market shifts.
Increasing Interest from New Investors in Mining Sector
Recent upswings in the mining sector have attracted new investors, marking an influx of interest. Both retail and institutional investors are showing heightened engagement, reflecting a positive sentiment towards the sector. Observations point to growing participation, particularly from new entrants, signaling a potential shift in market dynamics and investment trends.
Investor Psychology and Market Volatility
Amidst market volatility, new investors are navigating the mining sector with varying reactions. While some express concerns over recent market fluctuations, seasoned investors view volatility as inherent to the sector. The influx of interest from both retail and institutional players signals evolving investor sentiments and approaches towards mining investments amid changing market conditions.
Navigating Investment Opportunities in Mining Stocks
Mining investors face complexities in assessing investment opportunities amidst market shifts. Strategies for timing and choosing entry points in precious metals equities highlight the importance of understanding market dynamics and company fundamentals. Factors such as technical analysis, company quality, and market positioning play pivotal roles in investment decisions, shaping investor outcomes in the volatile mining sector.
“Platinum could easily rise 50% to 100% in 12-18 months,” says portfolio manager Sam Broom in this MSE episode. He is also bullish on certain rare earth companies and has his eye on potash as a contrarian play.
Sam Broom is a geologically trained portfolio manager with Sprott Global. In this interview, he provides commentary on where he sees value in the resource sector and how he is advising his clients. Generalist institutions are becoming interested in mining stocks, he shares. Sam also compares the ASX mining market to the TSX and explains why less US dollars are flowing into small Canadian miners.
0:00 Introduction
0:52 Generalist institutions interest in mining stocks
5:33 Mining sector becoming momentum play
7:55 Timing entry points in a bull market
11:53 Only get 1-2 good investment opportunities every 2-3yrs?
15:32 Bullish certain rare earth companies
17:16 Bullish platinum
21:20 Bullish potash
22:23 Less USA investment dollars funding Canadian jr miners
26:13 Mine restart plays
29:55 ASX vs TSX
37:38 What Sam offers HNWs
Sam’s email: SBroom@sprottglobal.com
Sam’s bio: https://www.sprottusa.com/our-firm/our-team/sam-broom/#
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Mining Stock Education (MSE) offers informational content based on available data but it does not constitute investment, tax, or legal advice. It may not be appropriate for all situations or objectives. Readers and listeners should seek professional advice, make independent investigations and assessments before investing. MSE does not guarantee the accuracy or completeness of its content and should not be solely relied upon for investment decisions. MSE and its owner may hold financial interests in the companies discussed and can trade such securities without notice. MSE is biased towards its advertising sponsors which make this platform possible. MSE is not liable for representations, warranties, or omissions in its content. By accessing MSE content, users agree that MSE and its affiliates bear no liability related to the information provided or the investment decisions you make. Full disclaimer: https://www.miningstockeducation.com/disclaimer/
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