Tavi Costa: Gold, silver, copper won’t disappear – strategies for juniorsyoutu.be
What should investors focus on amid high inflation concerns?
Speaking to Investing News Network, Tavi Costa, partner and portfolio manager at Crescat Capital, said his firm takes a long view of inflation assets and does not have expensive financial assets like large-cap stocks.
“Obvious plays usually don’t work,” he explained. “Obvious games are software that technologies, crypto are all things that have fallen significantly this year. And I think that there is more to these issues.”
In his opinion, commodities are the segment of the market that should work for various reasons. According to Costa, these are deglobalization, labor market trends, infrastructure development work and many other factors.
He explained that producers and developers appeal to a wider range of investors because they are easier to value, while companies in the exploration stage require some knowledge of geology to understand.
“Because of that, and because of the lack of people who can really navigate this space, there’s a lot of inefficiency here,” Costa said. “So we think it’s time to allocate capital here, knowing that most of the big companies will also face a supply cliff; they deplete their reserves and do not replenish those reserves over time. So they’re going to have to actually buy at some point — either buy or do their own research.”
He stressed the importance of spotting macro trends in time, such as the one he believes is creating commodities.
“No one is really focusing on silver, (but) silver is not going anywhere, gold is not going anywhere, copper is not going anywhere. All this will be with us for many years, decades and centuries,” said Costa. “I think value investors and macro investors need to buy cheap things that can do well.”
Watch the interview above to hear more from Costa about macro trends and juniors resource space. You can too Click here to read our review of the New Orleans Investment Conference and here for our full YouTube event playlist.
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Securities Disclosure: I, Charlotte McLeod, have no direct investment in any company mentioned in this article.
Editorial Information: Investing News Network does not guarantee the accuracy or completeness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the views of Investing News Network and do not constitute investment advice. All readers are encouraged to do their own checking.
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