Wed. Dec 8th, 2021

Rick Rule expects a recovery in the price of gold sooner rather than later, and believes there is only one key factor holding back uranium.

The price of gold remains the all-time high of last summer, but for veteran investor and speculator Rick Rule, the current unrest in space is an opportunity, not a cause for dismay.

Previously, he thought gold and gold stocks had advanced, and considered current levels as a sale, but not necessarily a sale that would last a long time.

“I think now the recovery in the price of gold is happening sooner rather than later,” he told Investing News Network (INN). “I always like to say that I like things that are inevitable, but that may not be imminent. I’m beginning to think that an upward movement in the price of gold is also imminent as a result of the expansion of the negative margin to the United States Treasury at Ten “.

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Rule, who recently withdrew from Sprott (TSX: SII, NYSE: SII), also talked about inflation, which is a growing concern among investors. He noted that gold and “well-regarded gold stocks” are an important element of the portfolio during times of inflation, but also suggested other outlets for market participants, such as unfavorable commodities. , where producers generate a strong real cash flow.

“I encourage your Canadian electorate to look at Canadian medium-sized oil and gas companies,” he said, pointing to entities that are generating strong free cash flow and can redistribute it.

Aside from these topics, Rule shared his thoughts on uranium, a market that hasn’t seen much movement in recent years, although there has been widespread talk about its positive fundamentals.

Rule last spoke to INN about uranium in January 2020 and said the industry is still waiting for the same catalyst it mentioned then: the Japanese reboot. “Everything else is in place,” he said.

For this reason and others, it remains bullish on uranium, especially now the Sprott Physical Uranium Trust (TSX: U.UN) has been released and may begin to absorb excess supply. Still, Rule warned that the juniors have advanced and are no longer the bargain they were before. He suggested looking at the producers, saying their favorites are Kazatomprom (LSE: CAP), China Nuclear General (SZSE: 003816) and Cameco (TSX: CCO, NYSE: CCJ).

Watch the interview above for more information on the gold, uranium and resource sector standard.

Don’t forget to follow us @Recurs_INN for real-time updates.

Disclosure of Values: I, Charlotte McLeod, have no direct involvement in any of the companies mentioned in this article.

Editorial dissemination: The investment news network does not guarantee the accuracy or completeness of the information communicated in the interviews it conducts. The views expressed in these interviews do not reflect the views of the Investment News Network and do not constitute investment advice. All readers are encouraged to do their own due diligence.

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