Top Stories This Week: Gold Bounces Back, Rick Rule on “Hated” Sectors with Potential

We’ve finally reached the last month of what’s been a very interesting year, and for gold it’s brought a bit of a price turnaround.

After starting the week below US$1,800 per ounce, the yellow metal has recovered and was at about US$1,840 at the time of this writing.

Market watchers have pointed to a weaker US dollar as one reason for the bounceback, with another being the potential for a US coronavirus stimulus package. Seasonal buying may also be a factor.

Speaking to INN this week, the ever-popular Rick Rule of Sprott (TSX:SII,NYSE:SII) described gold’s fall below US$1,800 as “a cyclical decline in a secular bull market” — in other words, there’s been no change in the case for gold, and this is likely a temporary pause in the yellow metal’s overall upward trend. 

“While the gold price in the near term is disconcerting to speculators, if speculators familiarize themselves with the performance of gold longer term in bull markets, I think they become much less concerned” — Rick Rule, Sprott

Aside from gold, Rick shared his thoughts on uranium. He’s frequently described it as a “when” market, not an “if” market, but has emphasized that the “when” may not come for awhile.

In fact, at the beginning of the year, Rick encouraged market participants to stay away from uranium if they aren’t able to be patient. He’s feeling better about the market now than at the start of 2020, but said prices still may not move much in 2021.

Where else is Rick looking right now? When asked if there are any other “hated” sectors he has his eye on, he mentioned oil and gas, saying demand simply is not going away. 

With Rick’s comments in mind, we asked our Twitter followers this week if they feel comfortable entering a market that’s currently down and out, but has future potential. In what was one of our most one-sided polls yet, an overwhelming 94 percent of respondents said they are fine with that.  

We’ll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

I want to close out this week’s update with a note on INN’s upcoming outlook content. At the end of every year, our reporters reach out to experts in the many markets we cover, from gold to lithium to cannabis and more. In December, we compile this information to give our audience a look at the year ahead.

I’m excited to share this content with you, and from now until the end of the month, I’ll be highlighting a couple of outlooks every week that I think you shouldn’t miss. 

We started off on the tech side, so this week I’d encourage you to take a look at our outlooks for the blockchain and gaming markets — the first is a sector that’s continuing to establish legitimacy, and the second is an industry that’s seen a major boost this year due to COVID-19. 

Stay tuned for more as we get further into December.

Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there’s someone you’d like to see us interview, please send an email to cmcleod@investingnews.com.

And don’t forget to follow us @INN_Resource for real-time 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.