“The gold market could be in the fourth or fifth round of a nine-round game,” said Peter Grandich of Peter Grandich & Company.
The first two months of the year have been tough for gold. After rising to about $ 1,950 per ounce in January, the yellow metal has developed downward, starting in March at about $ 1,735.
Peter Grandich from Peter Grandich & Company said that while the gold correction since last summer’s record high has gone further than he expected, it is not necessarily cause for concern.
He explained that gold has faced a number of headwinds since then, including profit-taking and bitcoin enthusiasm. It has hurt the feeling in space, but he expects an improvement.
“The gold market may be in the fourth or fifth round of a nine-round game, and I think we are pretty close to the end of the correction. I would say that the risk is 100 dollars less and the reward is 500 to 1000 dollars higher, Grandich commented to Investing News Network.
Apart from gold, Grandich looks at metals related to the electrification theme.
He noted that he has become increasingly interested in uranium – while recently taking some gains in space, Grandich was clear that he did so with the intention of building up his cash position, not because he is unsure of the product’s future.
“In 2021, we have seen a real breakout in a lot of uranium (stocks), but I actually took some gains in recent days. Not because I think the driving is over, but because I wanted to build money – I’m really the most petrified in 37 years … in and around this financial world. I’m definitely scared of the stock market, the general stock market. I wanted to raise some money, so I took some profits in uranium stocks, he says.
Grandich also believes that copper will play an important role in the electrification story and said that he favors the red metal over other more typical battery metals like lithium and cobalt due to supply-side problems.
“The argument for copper is that it has been such a neglect to look for it, and the deposits out there are high CAPEX, high costs (and) in parts of the world that are not the best places to work anymore,” he said. “There will be a real need to spend a lot of money, and it’s not something you can just start tomorrow and have it available in a few days, a few weeks or a few months. It will take several years, and I think that is what the market is reacting to now. ”
See the interview above for more from Grandich on gold, uranium and copper.
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Securities Disclosure: I, Charlotte McLeod, have no direct investment interest in any of the companies mentioned in this article.
Editorial disclosure: Investing News Network does not guarantee the accuracy or accuracy of the information reported in the interviews. The views expressed in these interviews do not reflect the views of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.