Nick Hodge: Uranium Setup Never Stronger; Gold, Copper, Lithium Thoughts
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"Things are getting very bullish for uranium. I think it's a very high-quality long-term buy," said Nick Hodge of Daily Profit Cycle.
Positive catalysts for uranium continue to build, and according to Nick Hodge the setup looks better than ever.
"The fundamentals for uranium have never been stronger," he told the Investing News Network, citing factors such as nuclear reactor restarts in Japan, buying from utilities and purchasing from new entities like the US government.
"You're in a very precarious supply/demand situation where mines are going to produce something like 110 million to 120 million pounds of uranium this year, and we need like 190 million pounds," said Hodge, noting that there used to be ways to make up any shortfalls via secondary market supply. Now, however, the situation has changed.
"That doesn't exist anymore, so things are getting very bullish for uranium. I think it's a very high-quality long-term buy," he said.
Even so, some investors have been discouraged by the commodity's sideways movement.
For Hodge, who is the editor at Daily Profit Cycle, this type of trading is natural in a bull market. "That's what bull markets do, it's consolidating higher, which is a good thing," he said. "And it shakes people out, which is also a good thing."
He also spoke about gold and copper, which he sees as longer-term plays, and lithium, a sector that remains hot.
When it comes to the yellow metal, Hodge shared a connection he sees developing. "Gold ... is taking its cues not from the dollar anymore, but from bond yields, and that's very bullish, especially if we do get the recession and bear market … because you can see a capital rotation where people are finally convinced that the S&P 500 (INDEXSP:.INX) is in a bear market and they need to allocate to something that's going up, which could be gold — it could finally get its fear tailwind," he said.
Watch the interview above for more from Hodge on uranium, gold, copper and lithium. You can also click here for the Investing News Network's full Vancouver Resource Investment Conference playlist on YouTube.
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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.
