Benjamin Cox Interviewed by INN: Zombie Apocalypse or Market Bottom?
Synopsis from Mike Rodger of INN. Video reproduced below with his permission. The original post can be found here.
At the recent Vancouver Resource Investment Conference, Resource Investing News had the chance to speak with Benjamin Cox, managing director of Oreninc. Oreninc is a boutique merchant bank that provides research for companies, institutions and investors in the junior commodities space.
In the video below, Cox explains that there are two fundamentally different types of investors in the resource exploration and development space: precious metals investors and base metals investors. Cox says the two are looking for different catalysts to drive investment demand. Precious metals investors are hoping for a zombie apocalypse, or perhaps just hyperinflation, which Cox argues are almost equally likely given government’s ability to manipulate currencies. Base metals investors, on the other hand, are waiting for market capitulation to signal the best time to re-enter the market.
Additionally, when asked about Bitcoin he comments, “if I had to pick the currencies that are going to work, I would be focusing much more on rhodium, platinum, palladium, copper. Fundamental things that people use that both work for a coming zombie apocalypse or hyperinflation, and for an economic recovery where we will actually consume them.”
Comments
Could you elaborate on why you see Copper as a currency? Isn't copper too expensive to transport and trade to be a true currency? Unlike fiat currencies, rhodium, platinum, palladium, silver and gold?
I think there will be a large run up in copper prices and copper mining company stocks; especially junior copper miners. This said, there seem to be a lot of on the shelf copper resources that are economical to develop at $4 and $5 per pound copper. Even if the overhang of economically extract-able and transportable copper ore is not as extensive as the even larger overhang of cheap iron ore.