Gerardo Del Real of Digest Publishing spoke about where the uranium market may be headed and why he remains optimistic about gold.
This year’s change in fortune for uranium has been a long time coming, and Gerardo Del Real believes the bull cycle for the commodity is just getting started.
“A lot of the companies that Nick (Hodge) and I recommended — they’re up 10 fold in the past three or four months from their 52 week lows. So there’s a lot of investors and speculators that feel like they’ve missed that run,” he told the Investing News Network in an interview.
“(But) for those of you that are watching or are reading, it’s very, very early stages. We are nowhere near where this uranium bull cycle is headed,” continued Del Real, who is co-owner of Digest Publishing.
Looking forward to the future, he believes its possible that uranium will hit new all-time highs in the next 12 to 18 months, perhaps even reaching the US$200 per pound level.
“I think the very few quality names that exist — because there’s not a lot of them out there — are going to absorb so much capital that valuations and rationale are going to go completely out the window,” Del Real said. He encouraged investors and speculators to consider companies with assets in good jurisdictions and management with experience in uranium.
He also spoke about gold, where the story is not quite as positive. After last summer’s all-time high, the yellow metal has left many market participants frustrated and wanting more.
But Del Real sees a profitable side to this situation — he noted that the macro setup is still right for gold, and said he’s taking the opportunity to continue adding undervalued companies to his portfolio.
“Yes, the gold price has been frustrating for a lot of the seasoned speculators that say inflation is here, because it’s not transitory … budgets are out of control, those aren’t sustainable,” he said. “Everything is materializing exactly the way that we all thought that it would — (so) where are the new all-time highs, and where is that excitement in the gold space? That is the opportunity,” he explained.
Watch the video above for more from Del Real on uranium and gold.
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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.