Peter Grandich: Bullish on Gold, Uranium and Copper, How to Play These Sectors

While he's wary of general equities, Peter Grandich of Peter Grandich & Co. is bullish on gold, uranium and copper.

Speaking to the Investing News Network, he said there are two main reasons for his positive outlook on the yellow metal.

"(The) first of the two is the fact that the paper market, which used to be dominated in London and New York — they call it the COMEX, I call it the 'Crimex' — that has shifted to the far east," Grandich said. While there are still bears who try to take advantage of downside pressure, he believes this isn't happening at the level it was 10 or 20 years ago.

"But the big bullish factor is the unbelievable amount of purchasing done by central banks," he added. "When central banks are big, big buyers, it's kind of like the old saying, 'Don't fight the Fed' — well, don't fight the central banks when it comes to gold."

Looking over to uranium and copper, Grandich sees both commodities as part of the energy transition.

While he remains positive on the outlook for uranium given the world's electrification needs, he said he's now expecting a much slower rise in prices than a lot of people are talking about. "I think it's more of a turtle race," he said.

Grandich also urged investors not to get too caught up in online conversations about uranium, noting that hearing about the sector every day or even every hour on social medial can be a recipe for disappointment. "I think people have become too shortsighted on the uranium play because of so much talk and so much prediction," Grandich explained.

In terms of copper, he sees high demand, limited future supply and low investment combining to push prices up, even in the event of a recession, which he doesn't think would dampen the outlook for the base metal.

Watch the interview above for more from Grandich on gold, uranium and copper, as well as his thoughts on the looming retirement crisis he sees coming in the US and the health of the junior resource sector.

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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.