1 October we become SureStone CapitalSame team, same ABN. Our website and email addresses move to surestone.com.au.
Preparing video
Key points:
Gold market in focus with rising prices offering investment opportunities in larger, liquid producers like Genesis and CapricornRare earths gain attention due to China dominating the market, highlighting Lynas (ASX:LYC) and Meteoric's (ASX:MEI) roles in alternative supply chainsLithium market struggles with low prices affecting Pilbara Minerals despite its strong reputation
David Franklyn from Argonaut Funds Management observes that gold is currently in favour, driven by comments from the US and rising gold prices. Australian gold miners like Genesis (ASX:GMD) and Capricorn (ASX:CMM) may benefit due to good production growth and liquidity. He suggests focusing on larger producers for safer investments.
David notes growing interest in rare earths, highlighting companies like Lynas (ASX:LYC) and Meteoric (ASX:MEI). The rare earth market faces challenges due to China's dominance in production and processing, leading to a global scramble to build alternative supply chains. Lynas stands out as the largest producer outside China, but pricing recovery is necessary for valuation justification.
Lastly, David discusses lithium, specifically mentioning Pilbara Minerals. Despite being a top performer, Pilbara (ASX:PLS) faces challenges as lithium prices remain low, impacting profitability. With sufficient current supply, prices are not expected to rise soon, partly due to global trade issues affecting EV demand.
