Are we finally seeing some bullish news for uranium coming out of Japan? Uranium Insider says the news doesn’t really matter for uranium investors.
In this week’s “Resource Heads”, I was joined by Lobo Tiggre to talk about macroeconomics, the Uranium Insider to talk about where uranium is headed and why, Dr. Quinton Hennigh to tell me more about the new gold discoveries in Finland, and by Nick Rodway to talk about Core Assets Corp.
What happened in commodities this week?
Commodities had another brutal week, while the dollar “flourished”
- Copper -8.18%
- Gold -2.22%
- Silver -2.70%
- Uranium -5.46%
- DXY +1.02%
What moved commodities this week?
Gold & Silver
The main moves in the precious metals space are now caused by inflation fears, expectations, and (but mostly not) reality.
The US CPI YOY print came in at a multi-decade high of 9.1% this week. Higher than what the mainstream expected and at absolutely no surprise to anyone with more than two brain cells. Meaning, it did surprise me, but probably not you.
The higher CPI print caused fears across the board that the FED might end up raising interest rates by 100 (or more) basis points later this month, instead of the 75 they promised last month.
Lobo Tiggre told me that the FED has zero chance at managing a “soft landing” and that the discussion is no longer about whether they’ll be able to bring up interest rates without pushing the US into a recession, the debate is now about how bad the recession will be.
Lobo also told me that the same reasons the FED’s policy is not solving the problem are what’s making him bullish on commodities. Tiggre thinks that we’ll see stagflation, which he expects to “reignite” the fire under commodities.
“I think a reflationary boom is much more likely, than the next big economic turn being an actual depression”.
– Lobo TiggreCopper
Fears for a bigger recession moved copper lower, though China doesn’t appear to care too much and imported 15% more copper in June than it did May, even though they printed the lowest GDP growth (Q2) since the 2020 lows, as Covid-lockdowns are hurting the economy.
It is fair to say that oil, coal, natural gas, and iron imports fell MoM in China, whereas aluminum exports grew.
Uranium
Although there is no decoupling happening in the uranium equities, the fundamentals are continuing to strengthen in the face of weakening broad market fundamentals.
This week we heard from Japan, whose prime minister plans on having up to nine nuclear power plants operational by this winter, as he is concerned about the country’s energy situation.
Uranium insider told me that he does not think the news means anything for the uranium equities. However, this is bullish news for uranium over the long run, as another (roughly) 20 reactors are expected to come online by 2030, and their prime minister is showing us that he’s not afraid to accelerate those restarts.
Justin did tell me that he is very happy with the pullback in uranium equities prices, as the stocks are now trading at what he calls “pre-bull-market valuations”. He thinks that sellers are going to get exhausted soon, and that the “smart money” has already started buying.
Economic Calendar for Next Week
Monday
- not much
Tuesday
- EU CPI (YOY) (June)
- Previous: 8.6%
- Expected: 8.6%
- US Building Permits (June)
- Previous: 1.695M
- Expected: 1.650M
Wednesday
- UK CPI (YOY) (June)
- Previous: 9.1%
- Expected: 9.2%
- US Existing Home Sales
- Previous: 5.41M
- Expected: 5.38M
- Bank of Japan Outlook & Press Conference
Thursday
- ECB Interest Rate Decision & Press Conference
Friday
- UK Core Sales
- Previous: -0.5%
- Expected: -0.4%
- Germany Manufacturing PMI (YOY) (June)
- Previous: 52
- Expected: 51
- Canada Core Retail Sales
- Previous: 1.3%
- Expected: 0.6%
Warning
Antonio Atanasov is not an investment advisor. Antonio Atanasov owns shares of companies mentioned in this publication. Some of the companies mentioned in this video and/or publication are paying customers of Resource Talks. More specifically, Core Assets and FireFox are paying customers. The information provided in this publication – and all other publications by Resource Talks – is impersonal in nature and meant for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple licensed, experienced, and qualified investment advisors. Get numerous opinions before taking your own decision in the end. The minimum risk on any investment mentioned in this publication is 100% loss of capital.
Shortly: you will lose all of your money and possibly most of your brain cells if you listen to talking heads on the internet. Especially if they have orange hair and no experience (me).
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Timestamps
00:00 Weekly performance
03:00 Lobo Tiggre on inflation, interest rates, and the future of commodities
30:40 Uranium insider on “when will uranium decouple”?
01:00:00 Gold exploration in Finland
01:15:00 Core Assets Corp CEO Talks