What's next for Hard Assets and Metal Prices?

0

Rate this Article: (Be the First!)   Thanks for your rating!

A Reflection on Hard Assets

At a recent Hard Assets Conference in New York many attendees were wondering about the future of precious metals as a hedge against uncertainty. The future of fundamental metals, like copper – needed to build infrastructure in countries like China, India, Brazil and Vietnam – was also debated.

Differences of opinion about the near future were wide.  Some wanted to wait and see what the next few months hold before committing more money to the markets. Others were very bullish, seeing a real buying opportunity as prices on the TSX Venture exchange hit nine year lows, even though metal prices today are 400 to 500 per cent higher.

Investors we talked to used their time at the conference to look for value, while remaining cautious. When markets are flying high, crowds of exuberant investors flock to events like this, and you can get overwhelmed with little time to talk to people one-on-one.

Was this year any different?

Those we spoke to were looking deeper into mining opportunities. While the conference mood was sober, thoughtful and clear-minded, we were encouraged by the high-calibre of the people who had an appetite for near-term producers like VMS Ventures.

We predict that the biggest trend ahead for hard assets is the holding and watching pattern of most investors. People want to see if the summer is going to be the time to buy in front of a fall rally in the markets. 

Mining IQ thanks VMS Ventures for their industry insights.

About the Author: John Roozendaal, B.Sc. Geol. President and Director, VMS Ventures
John Roozendaal is the founding director of VMS Ventures Inc. (VMS-TSX.V) He has been involved with the mineral exploration industry for 18 years, focusing on precious, base and specialty metals projects in North America.  John is the President of VMS Ventures Inc. and Harvest Gold Corporation (HVG-TSX.V)