With gold breaking support, and the bond market yield curve is starting to flatten more and more every week it seems, I will be focusing less on the gold stocks for any new money I put to work. I believe these stocks are cheap, and i believe they will get cheaper. I personally have a big enough position in gold mining company's to not need to add any more money to that sector unless stocks go down A LOT. The price of gold is making me a bit uneasy, due to the fact is a recession comes and it causes a huge crash in the stock market, I believe at first it will take gold down with it until the fed reacts. I still feel very positive about the silver market, but my silver picks have all rose except for the one junior which i said will be late to the party in rising because producers benefit first. So the sector that all my new cash will be invested in will be the uranium market. I am heavily invest in this sector, and I am about to rise my stakes in it. This sector is like a winning lottery ticket and the draw will be held 2-5 years in the future. Hold on to your ticket, don't lose it. Production for 2018 for uranium is going to be around 130 million pounds I believe, which is down quite a bit from last year while demand about 180 million pounds which has been rising! This is a growth sector working to excess supply and these stocks in this sector will explode upward in value assuming they can survive this period of time which is very difficult for a lot of people. As 2020 approaches, I believe a lot of the long term contracts will come off forcing people to stop production even further and this is when the price will move. It could move up in 2019 or even this year but when there is no production and uranium is selling for less than 25 dollars, it will have a quick spike up 10-20 dollars easily. Uranium stocks will do excellent during this time and I plan on profiting. One reason I am going to be investing more money into this sector is due to other sectors may fall but the supply and demand on uranium look so good that even a recession wont kill the fundamentals for it. It may cause stocks to go down if the system loses its liquidity but in the end, I can see the big picture.
Happy investing everyone, Lets all go make some money!
Which stocks do you recommend? I bought Cameco some months ago because I am also bullish for this sector and because I think we are near „peak renewables“.
I don't own cameco, simply for the fact that i like higher risk so i get greater return but that is a good company to own. I told my friend to buy is last year in the 11-12 range Canadian and he is happy now. I personally own uranium energy corp and skyharbour resources. I also like fission uranium but don't own any but may change that.
another supply cut happened :D