Categories: General Market Commentary
Topics: General Market Commentary

Uranium perking up

This is your Resource Stock Digest editor Gerardo Del Real here with some Monday coffee talking points.

What am I watching this week?

Uranium is perking up, and we should start getting new uranium-purchase budgets of major US utilities next week, which I'm really looking forward to. There’s been some big production cuts. And I believe the budgets will be significantly larger, and I think that will be a main indicator of what's to come and, as well, what might kick off the next leg up in the uranium space.

It’s no coincidence that the week has started out with uranium equities gapping higher. Specifically, Cameco gapping much, much higher at the open. So it should be an interesting week in the uranium space with lots of bargains out there.

I remain staunchly bullish on gold but I do believe we’re due for a slight pullback with the metal being a bit overbought. It would not surprise me to see a pullback into the high US$2,500s. And look, if US$2,500 - US$2,600 is going to be the new floor, well, we’re going to have a phenomenal run here for the next several years.

Silver is back below US$31… so we’ll be looking to see if it can finally break out above the US$32/oz level and hold it.

Company specific wise, I am looking forward to seeing Hannan Metals (TSX-V: HAN)(OTC: HANNF) release their IP results on multiple projects, which should be due anytime this week or next.

Those are projects with massive gold-copper / copper-gold scale… so very interested in getting those IP results.  

A lot to like in the commodity space right now, and lots of ways to make money.

Have a great week, everyone.

Let's get it,

Gerardo Del Real
Editor, Resource Stock Digest