McMurtry Investment Report and Model Portfolios™

Favourable Outlook for both gold and copper

December 22, 2023

Yesterday the former CEO of Franco-Nevada, Pierre Lassonde,  was being interviewed on BNN. He was being questioned about his outlook for both gold and copper.

In regards to gold specifically, he stated emphatically that gold  acts as the antithesis of the US dollar. Taking into account the probability of both inflation and interest rates peaking in the US, the US dollar is expected to decline globally from its lofty levels in 2024 against the world’s major currencies. A declining US dollar globally is very positive for gold prices.

Secondly, his outlook for copper next year was also very favourable. Taking into account that First Quantum’s Cobre Panama copper mine has been recently shut down by the Panamanian government, the supply / demand balance for copper has turned from an anticipated surplus next year to a deficit. This Cobre mine is the 5th largest copper mine in the world and was producing 1-1.5% of the world’s total copper production annually.  The current government of Panama is in total chaos and an election is not expected for at least four months. In the meantime, no copper production will come from this mine.

 

Leave a comment

Your email address will not be published. Required fields are marked *