Mining Expert Talks Future Trends of 2024’s Hottest Commodities – Gold, Silver, and Uranium

Commodities' best quarter since 2016 is tough act to follow-大宗商品今年第一季度表现为2016年以来最佳
Published on: Jun 19, 2024
Author: Caroline Kong

Mining investment mogul Rick Rule, founder of Rule Investment Media, shared his latest thoughts on the gold, silver and uranium markets recently.

First talking about gold, he notes that foreign central banks have been the main buyers of gold so far. And retail investors are only interested in gold when they are worried about maintaining their purchasing power. That hasn’t happened yet, and probably won’t happen for some time.

He explains that the US economy started to show the first signs of inflation in 1967, but it took five years until the second half of 1972 to start to see a significant uptick in inflation, which eventually reached a high at the end of 1974. The situation is the same now, although consumers are aware that inflation is occurring, its severity and impact on personal lives is not apparent for five years, leading investors to ignore the severity of inflation.

Rule believes that once investors start to realize this, there will be an influx of retail buyers besides the central banks, and at that point we could see a real performance in gold prices.

As for silver, typically, silver follows gold and then outperforms it later in the market. But Rule expects that the silver market may need to see more rallies in gold next before it takes off. He points out that silver’s 2021 hot market was an anomaly, when the key driver of silver prices was American retail investors on Reddit forums. But the chances of that happening again are slim to none.

Rule also briefly talked about uranium, another commodity that has been a big hit this year, saying that uranium prices are taking a breather, and that one of the key trends to watch now is the term market, which will help to lower the cost of capital for the sector.

The real pricing structure is determined by the term market, which will increasingly be reflected in the 5 year, 10 year, 15 year and 20-year products, he added. This will have a profound and positive impact on those few uranium miners with projects available for development.

Uranium prices have risen by 233 per cent over the past five years and, after a slight decline this year, have still risen more than three times as much as gold and copper.

Gold Mining Silver Uranium