With the gold price below US$1,900 per ounce, sentiment in the sector has taken a hit. But Brian Leni, founder of Junior Stock Review, sees major opportunities in precious metals as well as energy — and he’s looking to deploy cash.
He sees developers as the sweet spot in the precious metals industry, and has been cleaning up his portfolio as he prepares to deploy cash. ‘I think it’s one of the best opportunities I’ve seen since I’ve been an investor in the sector,’ he said.
Looking over to energy, Leni emphasized that it’s the basis for everyday life — that means all types will be needed, especially oil. He sees prices perhaps going back down to US$65 or US$75 per barrel, but in his view that’s likely the bottom.
‘I’ve put some money into oil — it’s probably the bigger portion of my portfolio at the moment, and I’ve been right,’ he said. ‘And I think … that probably goes a little bit further and creates a cost of living that could go up for everybody.’
When asked about special considerations when investing in oil stocks compared to mining stocks, Leni said the big difference is that an oil explorer can go from discovery to production on basically the same day. That’s in contrast to miners, which may take 10 to 15 years to bring an asset online. That of course doesn’t mean there’s no risk involved with oil stocks, but he sees ‘extraordinary opportunities’ in oil companies with a good production base and prospects for expansion.
Watch the interview above for more from Leni on precious metals and energy. He also speaks about Field Notes, a new YouTube series that follows him as he makes company site visits around the world.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.