Byron King: Plenty of Picks in Beaten-up Gold Sector, Energy Also Compelling

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Now more than three months in, the war between Russia and Ukraine continues to impact global markets, leaving investors wondering where they can find safety.

Speaking to the Investing News Network, Byron King said he sees opportunities in the gold and energy sectors. King writes the Lifetime Income Report for St. Paul Research, which is part of Agora,

“The gold sector, the precious metals sector, has been badly beaten up by the market. I think there are plenty of nice pickings out there,” he said during the interview.

“I don’t know that you want to go out there and spend everything, put every dime you have into an array of stocks tomorrow or the next day,” he clarified. “No, you just want to buy selectively.”

King didn’t share specific names, but said he follows many small Canadian juniors working in areas such as Canada’s Yukon and the US states of Montana and Nevada, along with Mexico and some parts of South America.

“There is no substitute for good geology — meaning mineralized rocks, if not ore in the ground, if not a reserve estimate and management that knows what to do with it,” he said when explaining what to look for in a stock.

In terms of energy, King said the industry has lacked investment for decades, making the supply situation precarious. Russia’s invasion of Ukraine has highlighted these issues, but they existed long before it began.

He said investors could consider the “usual litany” of basic oil and gas names, as well as oil services companies such as Schlumberger (NYSE:SLB), Haliburton Company (NYSE:HAL) and Baker Hughes (NASDAQ:BKR).

King also mentioned that offshore drillers aren’t “overly bid up” and could be an opportunity for those who really want to bottom fish. “The Biden administration just hates them,” he said. “But at some point things might get bad enough that the Biden administration is going to have to flip on that.”

Watch the interview above for more from King on gold, energy and the impact of the war.

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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.