During a fireside chat at the Vancouver Resource Investment Conference (VRIC), Grant Williams, author at Things That Make You Go Hmmm, discussed the accelerated rate at which markets and the world are changing.
“I think the world is changing, literally by the day now. (The) speed is picking up pace, and we all need to be aware of that,’ he told moderator Jesse Day, host of Commodity Culture, at the event.
“We’ve had this incredible half a century, really, of real stability and rising markets — bond markets, equity markets, everything except commodities, pretty much. But we’ve had this incredibly stable time, and it feels to all of us like things are becoming more unstable … what we’re seeing now is a real acceleration,’ Williams continued.
He went on to note that the current economic instability is the culmination of long-term cycles that are beyond the control of political leaders. Williams added that policymakers have missed the chance to address fiscal and debt issues, and as these challenges become mainstream, public awareness and tension will grow.
Preparation and understanding will be key for navigating this unpredictable era.
— Resource Investing (@INN_Resource) January 19, 2025
Where do the opportunities lie?
Although the picture may be bleak, Williams was quick to point to where investors may take advantage.
“It’s important to understand there is always opportunity. That no matter how bad things are, there is always opportunity,’ he emphasized. To best take advantage of what the current market has to offer, Williams emphasized to VRIC attendees that it is okay to have two investment strategies at work.
“It’s okay to have two different goals. It’s okay to say, ‘For the bulk of my assets I want to protect my purchasing power, but with 10 percent of it, I want to swing through the fences,’’ he explained.
“’I want to find some junior mining companies that I think could go up 10x.’ It’s perfectly fine to think that way and try and hold those two things at the same time, as long as you’re disciplined about it.”
He went on to add that there are “tremendous opportunities in the resource space.”
Due diligence is likely to be the factor that allows one investor’s portfolio to outshine another.
Speaking about the more than 145 mining and resource companies showcased at VRIC, Williams noted that some “perform incredibly well, while others do not.’
“That could be down to the strike of a politician’s plan confiscating assets (like) we saw in Mali last week. It could be a mine collapse,’ he said in reference to Barrick Gold’s (TSX:ABX,NYSE:GOLD) recent issues. (It) could be all kinds of things that have stopped these companies from performing well, but having the right management in place and understanding their goals and understanding their experience and their competencies, for me is the first place I start.’
A strong, well-versed management is often the ultimate barometer of the viability of a project.
“If I don’t like the management, I don’t care how good the asset looks, or how good the drilling results are, I’m not (putting) money with people that I don’t trust,” he said.
Bullish on gold and uranium in 2025
The conversation then turned to the commodities sector and which metals and minerals are poised to rise.
Williams acknowledged the strong performance gold exhibited in 2024, starting the year at US$2,050 per ounce and adding 28 percent to close the year at US$2,625 — and registering fresh all-time highs along the way.
‘I think we’re on the cusp of a very strong bull market, I really do believe that,” Williams told the crowd, noting that he has been bullish on gold for two decades, but this time feels different.
“I’ve expected fireworks. I’ve expected kind of a steady appreciation. I’ve expected things to go sideways. It hasn’t really bothered me whether it’s going to be a raging bull market. When I feel like we’re approaching that point, I’ll put more money to work. I feel like we’re at one of those moments now,” he added.
Looking to energy, Williams noted the opportunity in the uranium market.
The energy metal, which has seen a resurgence in interest over the last five years, has added 186 percent to its value since 2020, rising from US$25 per pound to US$71.66 by the end of 2024.
“The setup for the uranium market is terrific,” said Williams. He outlined dynamics in the energy market, including the new Trump administration in the US and changing attitudes toward ESG as growth catalysts for the space.
He also referenced Germany, which chose to shutter its nuclear reactors following the Fukushima disaster. After closing its last nuclear reactor in 2023, the country’s economy went into “freefall” because its energy costs grew exorbitantly.
“They’re relying on Russian gas,” he said. “They’re relying on French nuclear technology to import electricity. It’s crazy.”
As one of the few issues to garner bipartisan support, Williams sees tailwinds ahead for the uranium sector.
“Nuclear is going to be something that once people get over the fear they have of Chernobyl, and Three Mile Island and all these nuclear catastrophes that happen throughout time — people are going to realize that it is the cleanest, the safest and greenest energy you can have. And nuclear, I think, has a big future,” he said.
Stay tuned for more coverage of VRIC, including video interviews with many of the experts who attended.
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
