The mining industry is often described as cyclical, but what stage are we at right now? Rick Rule of Sprott US Holdings believes that in baseball parlance we’re in “the third inning of a nine-inning ball game.”
Speaking at the recent Vancouver Resource Investment Conference, he explained, “[we’re at] what I like to call the sweet spot — you’re up off the bottom, investors are beginning to have some courage. Money’s coming back in the market, but the valuations still aren’t excessive.” He added, “I suspect 2018 will be a very, very good year for your listeners.”
Overall, he sees the resource space surprising to the upside in 2018. “I think the juniors will enjoy it, but I think they’ll be driven by the majors. My belief is that market segments move as a consequence of exceeding expectations, and the expectations for the mining industry are so low that they can’t help but be exceeded, at the same time that the industry itself has made some interesting reforms.”
Rule touched on gold before turning to uranium, commenting, “I think this is the year that uranium turns.” He explained, “the determinate as to whether 2018 is the year that uranium really moves will be made by the pace of Japanese reactor restarts.” Even so, he emphasized that even if the uranium market doesn’t turn around this year, it’s “a when market — there’s no doubt it’s going to happen.”
For investors, the key is to “not worry so much about uranium as worry about your own reaction to the market and determine whether you do or do not … have the mental discipline to stand volatility.”
Watch the video above for more insight from Rule on gold, uranium and Sprott’s soon-to-be-launched redeemable, gold-backed crypto token. The transcript for this interview will be added shortly.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.