Randy Smallwood: Reasons to Own Gold Stacking Up, Silver Still a Favorite
Gold has cooled down after spiking on the back of the Russia/Ukraine war, but it’s still well up from where it started the year, changing hands at about US$1,917 per ounce as of Tuesday (March 15) afternoon.
Speaking to the Investing News Network, Randy Smallwood, president and CEO of Wheaton Precious Metals (TSX:WPM,NYSE:WPM), pointed out that in a broad sense the metal has been on the rise for the last 20 years.
“If anything, the reasons (to own gold) are compounding even more so, or are stronger, than they have been in times past,” he said, noting that while the conflict is driving the metal, there are many other factors at play.
Those include inflation, which is in focus this week in particular with the US Federal Reserve expected to hike rates after a meeting that wraps up on Wednesday (March 16).
“(Gold is) a strong, stable source and measure of value, and in times like this that stability is an important aspect,” Smallwood explained. “So everyone should have a bit of gold in their portfolio.”
That said, silver remains a favorite for a variety of reasons, including its high-tech applications and declining supply. “We reached peak silver probably four or five years ago, and it’s just getting tougher and tougher to find it,” he said.
Smallwood also spoke about Wheaton’s 2021 results, which were released at the end of last week. When asked what he would highlight for investors, he pointed to the fact that the company exceeded guidance, recording attributable production of 752,958 gold equivalent ounces, despite challenges at Vale’s (NYSE:VALE) Salobo mine.
“When your largest asset misses as big as Salobo did over the course of the year, and yet you still make your guidance, it really reinforces the strength of the portfolio,” he said.
Watch the interview above for more from Smallwood on Wheaton’s guidance over the next decade, as well as his advice for evaluating streaming companies.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.