The Next Great Commodities Boom Is Just Getting Started. Here's How To Play It | Tavi Costa

**Tavi Costa** (0:00)
So I think there's a clear mismatch of supply and demand here that is not appreciated in the price yet of most of these metals and the mining companies. And we're early here. So, to me, it's the time to be looking for these opportunities more and more, and institutional capital will follow along, in my view.

**Adam Taggart** (0:29)
Welcome to Thoughtful Money. I'm its founder and your host, Adam Taggart. Today's guest has been predicting an oncoming boom in the commodity complex for a while now, and increasingly, it's starting to look like that the boom is arriving. If so, how high will it go? And how long will it last? And where may the best opportunities lie for investors? For answers, we turned to macro and commodities expert Tavi Costa, formerly of Crescat Capital, but now newly running his own show at Azuria Capital. Tavi, thanks so much for joining us today.

**Tavi Costa** (1:01)
Adam, thanks for having me. Looking forward to this conversation.

**Adam Taggart** (1:04)
Me too. I've been looking forward to getting you back on for a while, Tavi, given how a lot of the things that you've been predicting now seem to actually be happening in real time. We're going to dive into all that just very quickly, and I'll give you a chance to say anything more about this near the end of the discussion. But congratulations on starting your own operation there at Azuria.

**Tavi Costa** (1:24)
Yes, I'm really looking forward to starting something of my own, and really working on some of the principles of investing that I have built and believe over the years. And if anything, this has been an incredible exercise of thinking about, I think when you, as you know well, Adam, I think when you start a new business is always about thinking about what you do best, and then sort of building from there your expertise, and creating an edge on whatever it is for each one of us. And so, that was for me. You know, I've never been, never seen myself as a trader or as a person who really understands the markets in the near term.
I think I'm as good as anybody in the audience when it comes to that. But what's been very helpful for me over the years has been just really thinking about long term ideas and really trying to build a strategy that is as asymmetric and as the most value I can create in those strategies over time. I think there's a few of them. Mining, to me, has always been the, you know, over the last few years, something I've been focused on. I think we're still early in that. So that's going to be our first vehicle. We're going to invest in the mining space, mostly focused initially in all parts of the industry. Not just exploration, not just development and bringing companies into production, but also structuring deals that are similar to what we've done in the past with St. Christobal, which I think is true generational wealth, opportunities that you create when you structure the right deals. And so that'll be a big part of it. And as we built Azurea over time, I think that will be important to have other thematic ideas. And one of them that comes to mind would be probably Latin America, given my background and also my beliefs of the structural shifts happening politically and economically in that region. And lastly, energy. I mean, energy to me is becoming increasingly a relevant part of my own portfolio, but also something that I view as a major or we should say a compelling thesis that is starting to unfold in my view and would have a lot of opportunities to. So that's in short, that's sort of what I'm working on. And I'm extremely excited to be building this and hoping to be onboarding folks in the next few weeks.

**Adam Taggart** (4:00)
Well, that's great. And I just got to say, you have all the ingredients for success here. I'm going to mention the details of St. Cristobal in just a second. But you're already so respected in the industry for the work you do in identifying trends. You're one of the best chartists known out there. And we're going to walk through some of your charts in this discussion. But to have kind of reached this stage by your mid 30s, very impressive. And you're right at the right time to be going out on your own here, Tavi. And I predict great things are going to happen for you. And just to give folks, and Tavi, feel free if you want me to edit this out when I edit it. But you are already a very proficient deal maker in that St. Cristobal mind that you talked about. The deal you put together, I mean, you get a few of those grand slams in life, but that's an amazing performance.