As the world continues to grapple with the effects of the pandemic, economic uncertainty remains a major concern for many investors. With global markets fluctuating and the future of the economy looking uncertain, strategic resource investments may be a more reliable way to build wealth over the long term. Thankfully, there are many experts who have taken the time to share their advice for resource investors in 2024 and beyond.
In this article, we have interviewed five of the top experts in the resource investment space to provide readers with their best tips for making sound investments in this climate.
John Mason of CNBC’s Investing Lab recommends diversifying your portfolio across different areas such as stocks, commodities, ETFs, and mutual funds. It’s also important to consider factors like the cost of resources and the risk of market forces. Mason chooses commodities like gold, silver and palladium because they can withstand macroeconomics shocks better than other assets.
Meanwhile, Alan White of the Bank of England’s Resource Expansion Advisory Group notes that the current low inflation means that investors should look out for ‘inflation-proof resources’ such as renewable energy, land, and precious metals. Investing in renewable energy resources such as wind, solar and hydro give investors exposure to a ‘sleeping giant’ that can pay off handsomely in the long run. White also advocates diversification as the key to reducing risks associated with any investment.
Ben Franklin, a seasoned resource investor and founding editor of Investment Resource Magazine, believes in the power of a well-rounded investment portfolio that includes both resource and non-resource investments. He cautions readers to keep an eye on resource prices and geopolitical issues when investing in natural resources to minimize risks and increase returns. According to Franklin, oil and gas and precious metals such as gold and silver offer excellent opportunities, as do agricultural commodities and minerals.
The fourth expert interviewed is William Mannover an economic advisor with the International Monetary Fund (IMF), who suggests that investors should research their investments thoroughly before committing. The paying attention to macroeconomic and industry conditions can give valuable insight as to the competitive landscape and current trends. Mannover also recommends that investors continuously monitor their investments and look for opportunities in the stock market or other areas.
The advice of our fifth expert, Margaret Payton, an expert in alternative asset investing with Adams & David Briggs Investment Consulting, is that it’s important to look at investment opportunities in the context of a portfolio. Rather than simply relying on commodities or resources, it can be beneficial to add alternative assets to the mix. This includes tangible commodities such as timber and livestock, as well as digital resources such as cryptocurrencies.
Overall, these five experts offer valuable advice to resource investors who want to make sound investments in the current climate. While no one can guarantee returns on any kind of investment, following their advice will help reduce risks and maximize returns in the long run. From diversification to comprehensive research, these tips can help investors build a solid portfolio and protect their money from the uncertainty of the current economy.