Nick Hodge, publisher at Digest Publishing, shared his latest thoughts on gold, silver, copper and uranium.
Speaking first about the yellow metal, he said he sees it maintaining its bullish edge. ‘Gold is starting to check technical milestones. It’s checking technical boxes that tell broader, more generalist investors that gold is emerging from a bear market, and it starts to beget or attract capital simply because it’s going up,’ Hodge explained.
While silver is currently lagging behind gold, it’s starting to move based on a shift in perspective.
‘What’s happened is that silver is being treated now as more of a precious metal than an industrial metal,’ Hodge explained during the interview. ‘Before it was trading sideways to down with copper, and now that gold has caught a bid, silver is doing what it’s typically done in the past — it’s being treated more as a precious metal.’
Looking over to copper, he said while its supply/demand fundamentals have been strong for some time, prices are now moving because a recession hasn’t materialized in the US. Meanwhile, other countries are coming out of recessions.
One way Hodge is playing copper is with the iShares Copper and Metals Mining ETF (NASDAQ:ICOP).
In closing, he touched on uranium, saying he remains bullish as the commodity consolidates after a quick run.
‘Commodities move in cycles … and I think that it’s going to be a cascading or a wave effect,’ he said. ‘We talked about how investors are bored with uranium right now because they’re more intrigued with gold and copper. Well you’re going to see that copper will do its thing for a little bit and then it’ll spill over into silver and platinum-group metals and then back into uranium. I think that with higher inflation for longer and then with relatively stagnant growth it’s a good environment for commodities across the board to move higher. And they’re just going to do so in independent cycles.’
Watch the interview above for more of Hodge’s thoughts on gold, silver, copper and uranium.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.