Tom welcomes back returning guest co-fund manager Keith Watson of NCIM in London. He is responsible for their CQS Natural Resources Growth and Income plc, Geiger Counter, and Golden Prospect Precious Metals funds. They look for companies with successful management teams, with good projects and that have attractive valuations. He feels the broader commodity sector is at an extreme discount compared to general equity markets. They focus on safer jurisdictions but are willing to consider projects in other countries, particularly those with excellent government policies.
Keith discusses there various funds and the advantages of each one. They were happy to have maintained the weightings in gold assets before and during the crisis. They are currently evaluating increasing their weightings for silver in their funds. Electronics demand for 5G electronics may increase the demand for silver. He is also optimistic about copper from continued need for electrification.