Gerardo Del Real
Oct. 7, 2021
The coming move in the gold space will be similar to the move just starting in the uranium space — though it may be months away.
The caveat is that the uranium moves tend to be more violent and volatile as there simply aren’t many quality speculations in the uranium space to rationally absorb the capital that’s coming into the sector.
It’s why subscribers received multiple updates this past month. It’s very easy to get this market wrong because it doesn’t behave rationally.
I’ve seen multiple “experts'' do an about-face and convert to uranium bulls days after writing there was no fundamental reason to expect a uranium bull market.
I’ve also seen more than one “expert” advise this recent surge is temporary and a head fake. That’s a great way to leave a lot of money on the table.
The largest consumer of uranium pounds — the utilities — are completely asleep at the wheel and I expect to see several attempts to enter into uranium mining off-takes.
Keep an eye on Europe and Germany as skyrocketing gas prices have the potential to change sentiment back in favor of nuclear energy. Even more so if they can’t get gas at all!
Rick Rule has a great line about uranium prices having to go up or the lights going out.
I’d bet a combination of skyrocketing prices and the lights going out will move politicians to do the obvious: build more nuclear plants.
The price of European natural gas futures traded in the Netherlands has risen more than 450% over the last year, to stand at a record high of 60.63 euros ($71.39) per megawatt-hour, according to Bloomberg data.
Same for UK gas prices, which have also soared to a record high.
Same for German and French electricity prices.
Winter is coming.
The puck is headed towards much higher commodity prices and a drastic rerating of commodity stocks.
Hold all your uranium stocks.
If you don’t have exposure yet… you can use my guidance to get positioned now. Understand that this uranium bull market has a good 12-18 months left to run… and run it will.
Gold and the gold juniors are presenting us the opportunity of a lifetime to add, double down, average down, etc on quality positions.
Get that done.
Let's get it!
Gerardo Del Real
Editor, Resource Stock Digest