Caution urged on Pilbara gold, lithium

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Tom ZaunmayrPilbara News
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Investing in the Pilbara’s burgeoning gold and lithium industries is a good opp-ortunity, but one that should be undertaken with a “healthy” degree of respect, according to CommSec’s chief economist.

Speaking during a visit to Karratha last month, Craig James said that while both industries represented great opportunities for investors, both were also treading into uncharted territory.

“There are lots of nuances in these industries,” he said.

“Only a few years a go we were talking about hydrogen-powered vehicles, we are not hearing so much about that.

“(Will lithium) be the energy taking over vehicles of all descriptions, or will it be something else?”

Mr James said the interest in Pilbara gold and lithium was not dissimilar to that of the US tech revolution at the turn of the century.

“Certainly Apple, Microsoft did (win) but other comp-anies didn’t do as well,” he said.

“It is a case where not everyone will win as a result of this and there is not a significant track record of revenue and profit to work on like a bank, retailer or the like.”

Mr James said Australia should have a greater focus on harnessing solar energy.

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