First a question, then an idea-
Has anything changed with your investment thesis with Andean American? Recent PR makes it sound like community agreements for Invicta are progressing. Why does the market not yet recognize the potential here?
A possible trend unfolding: as the consumer population explodes in parts of the developing world, consumer waste will grow exponentially. In waste management terms, “recovery” is recapturing the material or energy value of the item at its highest point. In a general sense, “recovery” of this energy value will become essential and very profitable. For example, fossil fuels are an ingredient in a wide array of consumer products that are disposed of after a single use. This energy value will be increasingly recaptured in a variety of ways. Still developing this thesis and how it might be played, interested in your thoughts.
On Andean, I think the market is scared about what happens if Humala wins the election. On your second point, I think you are likely onto something, but I know nothing about the topic. For most of the world, energy still means coal and there isn’t much that’s competitive with coal from a pricing perspective.
After reading your answer to your subscriber about lithium, I was curious if you had an opinion on rare earths.
Rare earths in general are not very rare. I think that most people investing in the producers will be very disappointing. With the exception of one or two of the rare earth metals, I see a stunningly huge glut coming in a few years. Remember, the market just isn’t very big and a lot of big projects have been greenlighted.
DO YOU THINK GLD WILL SOME DAY ACT LIKE SLV?
OTHER THAN PHYSICAL GOLD AND COINS, WHAT % WOULD YOU PUT IN GLD AND WHICH STOCKS?
I think the move in gold will be even wilder than silver. It will be panic driven. I cannot give advice on what % to allocate to different things. Let’s just say that my position is ‘chunky’ and I still feel under-exposed.
First, thanks for the website. Secondly, are you lightningup on Andean given what the potential election results might mean? I am tempted to dump my shares given the issues.
I think the pressure on governments to nationalize mines as Silver approachs $100-$200 will be great.
I’ve sold some shares just because the position grew too big. I’m quite scared about the election results. As we get closer to the election, we will know more about the odds of Humala winning. I don’t think he will be able to do that much to the mining companies however.
I would like to know if you have any advice on where to lean more about currencies; perhaps you can recommend some books, etc. You seem to be well versed in the currency markets. How do you think about a particular currency? What kind of fundamentals do you consider?
Also, do you use any services for obtaining organized lists of financial statements from non-US listed companies? For example, I use 10Kwizard for US. Anything like that for companies listed in other countries?
I cannot think of a good book on currencies. It all comes down to relative purchasing power parity in a country. Does it seem cheap or expensive when you are there? Then the other consideration is if you trust the guys in charge of the place. For instance, it’s pretty cheap in the US, but I don’t trust the guys in charge of it so I don’t want to own much USD. Meanwhile, Mongolia is just as cheap, but I really like the guys in charge, so I have a lot of MNT exposure. You can use that sort of perspective on every country.
As per overseas financial data, I use bloomberg.