Episode Details

Junior resource companies are starved for attention and undervalued, according to institutional advisor Jayant Bhandari. 

Last week Bhandari spoke to Kitco Mining. 

Gold has hit several all-time highs in 2024. Despite roaring metal prices, upside for the resource stocks has been limited. As of August 14, the VanEck Junior Gold Miners index is up 20% year to date while physical gold is up 17%. Bhandari said the market fixates on just the large gold miners. 

"Junior mining companies are not followed by big investors," said Bhandari. "Mining companies tend to stay away from junior mining companies until the very last days, which means that junior mining companies continue to struggle with their valuation. They're just not [enough] people valuing those companies."

Bhandari said that gives him an advantage. 

"I want to operate in a market where competition is limited, where not many people are chasing the same stuff that I'm chasing." 

Regarding macroeconomic concerns and China, Bhandari is bullish. China is a vital market for all metals, but the country has posted months of disappointing economic data. Bhandari highlighted China's consistent growth and positive developments in consumer services, manufacturing, and infrastructure. 

While acknowledging the political conflict with the West, he believes China is better positioned to handle deglobalization due to its strong manufacturing base.

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.