Uranium in Stealth Bull Market, Plus Gold, Oil/Gas and Fertilizer Updates

The gold price has pulled back from the highs it saw earlier this year, but it continues to serve its purpose.

That’s according to Rick Rule, proprietor at Rule Investment Media. Speaking to the Investing News Network, he said the yellow metal has performed as he expected so far in 2023, preserving his purchasing power and providing stability.

“What gold is for me is liquidity, a store of value and insurance. So I’m very comfortable with the performance of my gold holdings, and I’m adding to them on a fairly regular basis,” he said, referring specifically to gold bullion.

Rule also shared his thoughts on uranium, saying that although sentiment is “lousy,” the setup remains positive.

“I think we’re in a stealth uranium bull market again. I think in 2023 what you’re seeing is a small increase in the spot market, but you’re seeing a big increase in volumes … taking place in the term market, in the contract market,” he said.

Sector major Cameco (TSX:CCO,NYSE:CCJ) has performed well this year and is currently up more than 35 percent year-to-date, but smaller companies haven’t fared as well. When asked when they’ll start to move, Rule shared a catalyst he’s watching.

“What I think you’re going to begin to see is not just the Camecos of the world, but rather the second-tier uranium companies beginning to sign five to seven year term market contracts at prices that are high enough to allow them to establish new production or put mothballed production into place,” he explained during the conversation.

“I think that is when the industry really, truly beings to rebound. That is where the equity prices rebound.”

Aside from gold and uranium, Rule touched on the oil and gas sector and the fertilizer industry. Although he encouraged caution when it comes to the Canadian natural gas market, saying that the country’s Justin Trudeau-led government is stymieing its prosperity, he said Canadian oil and gas stocks continue to offer “absolutely superb value.”

When it comes to fertilizer stocks, he agreed that they are out of favor, but quipped that the Earth has 8 billion people who need to eat. “Without the inputs, as an example, of Nutrien (TSX:NTR,NYSE:NTR) … we can’t feed 8 billion people,” he said.

Watch the interview for more from Rule on those and other topics. You can also click here to learn more about the Rule Symposium — it will take place in Boca Raton, Florida, from July 23 to 27, but a livestream option is also available.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

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