Speaking at the New Orleans Investment Conference, Gerardo Del Real of Digest Publishing shared why he remains positive on lithium and uranium, and also explained why he thinks gold’s time to shine is coming.
‘This is the bottom for a lot of these commodities,’ he said. ‘We have a lithium bull market that’s about to reheat, we have a uranium bull market that’s shooting (and) we have a gold bull market that’s about to restart. Silver will catch up eventually like it always does. Copper might be a year, a year and a half away, but that’s coming.’
Looking first at lithium, Del Real said that although prices have pulled back substantially this year he sees the consolidation as healthy. In his view, now is the time for those who missed the commodity’s first run to get exposure.
The story is different for uranium, which continues to move steadily higher after years of depressed prices.
‘I think in this case all of the stars are lined up,’ said Del Real. ‘I think we have a scenario where uranium can overshoot — I’d say to US$200 (per pound) in the next 18 to 24 months.’ However, stocks should do well even at more sustainable levels — he’s most interested in companies with good share structure, talented management and real assets.
When it comes to gold, Del Real said it’s encouraging to see the metal doing well against a strong US dollar.
‘It’s really time to get in there and look at these beaten-down producers, developers and explorers and pick the crème de la crème — whatever your favorite jurisdiction is, whatever your favorite management team is — and start adding exposure,’ he said. ‘I think we’re on the verge of a breakout in the gold price that’s going to lead to new all-time highs.’
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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