Brief Summary
Nick Hodge from Digest Publishing shares his insights on the current bull market for metals, the potential of silver, and strategic profit-taking. He highlights the significance of battery passports, FAST-41 stocks, and critical minerals, emphasizing the importance of domestic production and government support. He also identifies copper and uranium as potential top-performing assets by 2026, discussing ways to gain exposure through ETFs and individual companies.
- Bull market for metals with increased attendance and a younger crowd.
- Silver is yet to reach its full potential.
- Battery passports and mineral recycling are gaining importance.
- Government support for critical minerals is driving investment opportunities.
- Copper and uranium are highlighted as potential top-performing assets by 2026.
Intro
Charlotte Mloud from investingnews.com interviews Nick Hodgej, publisher at Digest Publishing, at the New Orleans Investment Conference. They discuss the current sentiment in the metals market, noting a buoyant atmosphere due to the ongoing bull market for precious, industrial, and energy metals. Attendance is up, with a younger crowd entering the precious metals sector, potentially influenced by experiences in the crypto market.
Gold cycle at midpoint
Nick Hodge places the current gold market in the middle of a bull cycle, supported by strong fundamentals such as continued Asian and central bank buying, and increasing US debt. He avoids predicting the cycle's end but notes that underlying factors remain strong. He suggests that the fact that silver hasn't yet had its expected surge is a good indicator that the bull market has further to run.
Silver hasn't had its day
Hodge points out that silver, known for its volatility, typically catches up during precious metals bull markets. He believes silver has higher potential due to its industrial applications, contingent on the economy's continued support. While expecting silver to base out, he notes key support levels for gold at $4,000, potentially dropping to $3,600, and for silver around $46.
Taking profits, redeploying
Nick Hodge discusses strategic profit-taking, mentioning that his firm reduced its gold and precious metals equities from 40% to 30% in October. The profits were redeployed into a broad-based ETF focused on industrial and base metals, including steel, metallurgical coal, copper, and nickel. He believes energy metals, particularly uranium, still have potential, influenced by resource nationalism and tariff disputes.
"Battery passport" stock
Hodge reiterates his interest in the "battery passport" concept, highlighting Minehub, a company tracking the components of batteries and their emissions profiles. Minehub also works with iron ore, copper, and aluminum, partnering with major companies like Cadelco. They have partnered with Abacks, which has launched a new physicalbacked commodity exchange. Abacks has invested up to 19.9% in Minehub, whose shares are up 300% since last year. He emphasizes the importance of transparent data in the mining industry to facilitate lending and reduce opacity.
FAST-41 stocks
Nick Hodge discusses the FAST-41 permitting process, designed to fast-track projects, noting that his firm has invested in companies that have already received this designation. He mentions government investments in companies like MP Materials and Lithium Americas, as well as executive actions on projects like the Amler Road. He advises investors to check the FAST-41 permitting website and inquire with company management about pursuing this track.
Next key critical mineral
Hodge explains that critical metals are not new but have been overlooked in North America due to outsourced production. He advises reviewing the US government's critical metals list, which recently added copper. He highlights the importance of understanding the nuances within rare earths, such as heavy versus light rare earths, and focusing on companies producing the heavy rare earths needed for defense applications. He also stresses the importance of metallurgy and minology when evaluating potential investments.
Best asset of 2026
Nick Hodge considers copper and uranium as potential top-performing assets by 2026. He notes the supply-demand imbalance for copper, driven by grid buildout and the growth of AI and data centers. He also mentions the impact of potential tariffs on copper. For exposure, he suggests copper ETFs for macro portfolios and investing in copper explorers and developers in North America for speculative portfolios.
Outro
Nick Hodge concludes by emphasizing the potential for critical metals and the ongoing need for investment to reduce reliance on Chinese processing. He notes the US government's seriousness in addressing this issue, evidenced by capital deployment and discussions from officials like the Treasury Secretary.
