Mickey Fulp: Gold Mega Deals "Certainly Aren't Good for Investors"

TL;DR

Mercenary geologist predicts a positive year for metals, especially in the industrial metal and uranium sectors, while cautioning against investing in overpriced metals like palladium.

Transcript

I'm Charlotte McLeod with the investing news network and here today with me is mercenary geologist he felt so much as always for joining me thanks for having me once again Charlie for the end of 2018 we talked about how does that us have done that year and you said it was quite negative it's a brand new year but will it be negative again this year ... Read More

Key Insights

• 🤘 Trade tariff talks between China and the US are crucial for the growth of the industrial metal sector.
• 🤘 Gold markets experienced a downturn in 2018 but have shown record returns in January, indicating potential strong metal demand.
• 🇺🇸 Uranium is expected to continue its climb due to supply deficits and potential outcomes from section 232 movement in the United States.
• 🤘 Palladium is considered overpriced and unsustainable, while base metals have strong supply-demand fundamentals and growth potential.
• 🙈 Gold, although not a good investment historically, is seen as a safe haven and can be acquired for wealth accumulation.
• 🥺 Large gold mining majors merging may not be beneficial for investors and could lead to underperformance.
• 🔬 Investing in undervalued and unloved junior mining companies can potentially yield significant returns within a year.
• 🤘 The mercenary geologist remains optimistic about certain metals but advises caution and thorough analysis before investing.

Questions & Answers

Q: Will metals have a negative year like in 2018?

Not expected, as macroeconomic reasons that negatively affected metals in 2018, such as tensions and trade tariffs talks, are showing signs of softening, which could lead to positive growth in the industrial metal sector.

Q: What is the outlook for uranium and palladium in 2019?

Uranium is expected to have a continued steady climb due to supply deficits, potential section 232 movement outcomes, and uranium long-term contracts. On the other hand, palladium is considered overpriced and its current bubble not sustainable.

Q: How can investors differentiate between metals with potential and ones that are stagnant?

Metals like palladium, which are currently overpriced and have unsustainable supply deficits, should be avoided. Investors should focus on base metals with strong supply-demand fundamentals and potential growth after trade tariff talks reach a favorable resolution.

Q: Is gold a good investment?

Gold is not considered a good investment historically as it does not consistently generate profits. However, gold is often seen as a safe haven and can be acquired to accumulate wealth or as a speculative asset.

Summary & Key Takeaways

• The industrial metals sector is poised for growth due to potential breakthroughs in trade tariffs talks between China and the US.

• Gold markets experienced a downturn in the last quarter of 2018 but have rebounded in January, suggesting strong metal demand.

• Uranium is expected to continue its steady climb due to supply deficits and potential positive outcomes from section 232 movement in the United States.