Don’t fight the Fed, buy commodities instead

Soon after COVID-19 lockdowns were announced, central banks injected trillions of dollars of money supply into economies. This, combined with huge rescue packages from governments, lit a fire under financial assets, quickly sending them back towards (and even beyond) previous highs. One sector set to benefit from this money printing is precious metals, according to Ben Cleary, Portfolio Manager of the Tribeca Global Natural Resources Fund.

“The last real bull move for gold was following the GFC in the US, where there was around $3 trillion globally in stimulus. We’ve already had almost five times that amount in the last three months.”

In this episode of The Rules of Investing Podcast, we also discuss a better alternative than lithium for getting exposure to the battery boom, and one little-known sector that could deliver big returns in the coming years.

Time stamps

• 2:12 - The elevator pitch
  
• 3:31 - What drew Ben to the commodities world?
• 4:36 - Dealing with the cyclicality of the sector
• 8:15 - What is a Commodities Trading Adviser (CTA)?
• 9:34 - How Ben identifies new investment opportunities
• 12:13 - Precious metals - why is he's looking to double the Fund’s weighting
• 14:44 - Is there an opportunity in silver?
• 17:10 - The main factor driving gold prices
• 19:57 - Ben’s preferred play on gold
• 23:25 - Some of the exploration projects on his radar
• 24:49 - Why he's not sold on lithium
• 28:18 - A few names for a nickel pure-play
• 30:19 - The uranium bull thesis
• 41:15 - The best way to invest in this theme
• 42:43 - Ben answers our three favourite questions.

Note: This podcast was recorded on 2nd June 2020.