Nick Hodge: The uranium backdrop is never more bullish; Gold, silver in marginYoutube
Gold and silver will eventually have their day in the sun, but Daily Profit Cycle editor Nick Hodge doesn’t think that’s in the cards until the current economic environment improves.
“There will be a time for gold and silver…but it’s not now, and it hasn’t been for a year because of the strength of the dollar and the strength of bond yields,” did he declare. the Invest News network.
Hodge noted that instead of precious metals, the real hedge against inflation in the current cycle has been the US dollar. However, that’s not what many market participants want to hear, especially those on social media forums like Reddit.
“(People on Reddit) often tell you that the death of the dollar is here, and the dollar is worthless – but you know, the dollar is the strongest in 20 years, and it turned out to be one safest havens in the current climate.”
On uranium, Hodge noted that the fundamentals have never looked better and there are opportunities for those who take the time to be selective. One of the companies he has studied is the large sector company Cameco (TSX:CCO,NYSE:CCJ), which recently teamed up with Brookfield Renewable Partners (TSX:BEP.UN,NYSE: BEP) to acquire Westinghouse Electric Company.
“Cameco would be the one I would look to buy. We were there in the monthly letter a while ago and then we sold the last uranium production. And it got pretty cheap because they had to sell a lot of stock to finance (the Westinghouse) deal … there are opportunities in these broad sales – babies are thrown out with the bathwater,” he said.
Discussing the future of M&A activity in the uranium sector, Hodge said there is a possibility that the partnership between Cameco and Brookfield will announce new agreements with larger energy businesses and even public services.
“What we’re looking at now is for the price of uranium to come back up. You’re going to see a moment in the next two to three years, I’m pretty sure, of +US$100 (per pound) of uranium, otherwise +$150 uranium, like you did in 2007,” he said.
Exactly when is difficult to pinpoint, but Hodge believes that when inflation subsides and the economy begins to grow again, commodities — including uranium — will take off.
Watch the interview above to learn more about Hodge on gold, silver and uranium. You can also Click here to read our recap of the New Orleans Investment Conference and here for our full event playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, have no direct investment interests in any of the companies mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or completeness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the views of Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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