John Feneck has made a name for himself in the world of finance, specifically within the precious metals sector. Currently serving as the Consultant and President of Feneck Consulting, he boasts more than 28 years of experience in the investment industry. This level of expertise allows him to accurately predict market trends and identify key investment opportunities. An analysis of a recent interview with John Feneck provides unique insights into his perspective on the gold market following a tremendous year and reveals nine stocks that are currently on his radar.
Considering the unprecedented year that 2020 has been, gold and precious metals have been performing admirably. In fact, Feneck goes as far as to say that gold is coming off a “tremendous” year. The pandemic-induced market instability prompted many investors to turn towards the stability of precious metals. Why? Because gold, historically, is considered a safe-haven asset during periods of economic turmoil. This fear-driven investment is what accounted for a significant portion of gold’s impressive performance throughout the year.
As per Feneck, central banks around the world embracing zero or negative interest rates have also been an influential factor boosting gold investments. With lower interest rates, the opportunity cost of holding gold, a non-interest-bearing asset, is diminished. This translates into increased demand for gold, consequently buoying its price.
However, Feneck warns investors to be cautious about investing in gold at present. Gold should be viewed as insurance rather than an investment, he remarks. Despite the potentially favorable market conditions, he proposes to limit one’s gold-related portfolio to not more than 10% of overall investments.
Switching gears, Feneck threw light on nine stocks that are on his radar. These stocks represent varying industries, geographical areas, and market caps, underscoring the depth of his investment knowledge and his diversified investment strategy.
Firstly, Feneck points to Pretium Resources and Freeport-McMoRan. The former is a Canadian gold producer that has shown strength even in the face of lower gold prices. The latter, an American mining company, is a powerhouse in the production of gold and copper.
Next, he highlights Evolution Mining, an Australian gold mining company known for its strong dividends. New Gold Inc., another Canadian company, also draws Feneck’s attention due to its potential for future growth.
He also spotlighted Silvercrest Metals, a lower market cap stock, with high grades of silver. It showcases immense promise, especially with silver predicted to rise in 2021. Coeur Mining, a silver and gold mining company, is referenced for its well-run operations and consistent profits.
Ikwezi Mining, a South African coal mining company, is noted for its potential to appreciate if coal prices surge. Meanwhile, Feneck also keeps a close eye on Calibre Mining, an emerging gold producer in Nicaragua, and Jaguar Mining, a gold mining company in Brazil, poised for growth.
John Feneck’s expertise offers a vital map for investors navigating the uncertain landscape of the current market. His insights into the gold market and the trends he anticipates for various stocks provide a valuable lens through which investors can make informed and strategic decisions.
