Peter Grandich: Gold's Most Bullish Drivers, Uranium and Copper Factors to Watch
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"Either they rang the bell and I didn't hear it and it's all over, or (the junior sector) is as compelling as it's ever been in 40 years. And I'm hoping it's the latter," said Peter Grandich of Peter Grandich & Co.
Gold's fundamentals remain strong, and according to Peter Grandich of Peter Grandich & Co., central bank buying and de-dollarization are two key trends that are set to drive the yellow metal higher moving forward.
Grandich previously described central bank buying as a "big bullish factor" for gold, and while it remains important, he said de-dollarization has become a close second as the world becomes less global and shifts into zones.
"This is not idle chat — this isn't rumor, it's fact," he said. "It's developing, it's moving faster now than most believed it could, and I suspect that it will continue in that manner. That is another very long-term bullish factor for gold."
Uranium and copper are two other commodities Grandich is optimistic about, and he shared his thoughts on those markets as well. Speaking about uranium, he said the fundamental argument for the commodity has never been better; however, he reminded investors that even though prices have been on the move, a more measured rise is better.
"Slow but steady, the turtle wins the race. Right now all things look good," Grandich said.
When it comes to copper, he noted that recession concerns and lower oil prices are pressing on the sector. The electrification story still supports a bright future for the red metal, although Grandich pointed out that the shift toward green energy is likely to happen slower than some people expect. That means fossil fuels shouldn't be discounted quite yet.
In terms of the juniors, Grandich acknowledged that they continue to face a slew of challenges, including constraints on marketing and competition from other more trendy industries like cryptocurrencies.
"I think it's going to take metals making new highs — gold getting above its new high, being there, being on regular financial news — to bring some people back," he said, adding that he's surprised the juniors haven't moved yet. "If you would have had this interview six months ago, I would have told you there's no way the junior market was going lower, but it has ... (so) either they rang the bell and I didn't hear it and it's all over, or it is as compelling as it's ever been in 40 years. And I'm hoping it's the latter."
Watch the interview above for more from Grandich on gold, uranium and copper, as well as his thoughts on the overall market.
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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.
