Nick Hodge – Macroeconomic And Geopolitical Uncertainties, Yet Opportunities Remain in Gold, Silver, Copper, and Uranium Resource Stocks
Nick Hodge, Co-Owner of Digest Publishing and editor of Foundational Profits and Hodge Family Office, joins us for a longer-format discussion on and the macro and micro themes that are disrupting the general equities markets and economic outlook. Despite the volatility in the markets, he still sees opportunities in gold, silver, copper, and uranium stocks.
We start off with the market uncertainty from tariffs, contracting GDP, and a slowdown in the rate of change for growth. These macro factors have roiled markets, with some sectors near disinflation, which has the VIX and volatility elevated and investors seeking out the safety of value sectors like utilities, REITs, and gold. In fact, gold has really stayed strong despite the general US equities correcting down, and in particular the mid-tier gold producers have done better than the larger producers, which may be setup for a catchup trade. The topic of M&A comes up and Nick expects to see more mid-tiers combine, similar to what we saw with the Equinox and Calibre merger.
With regards to other metals Nick is also bullish on both silver and copper for fundamental reasons as well as recent pricing strength momentum, and he has been active in putting capital to work in Kingsmen Resources Ltd. (TSXV: KNG) (OTCQB: KNGRF), Gunnison Copper Corp. (TSX: GCU) (OTCQB: GCUMF), Arizona Sonoran Copper Company (TSX:ASCU) (OTCQX:ASCUF) and Quartz Mountain Resources Ltd. (TSXV:QZM)(OTC PINK:QZMRF). We consider that domestic companies may get a premium in light of the tariffs on many metals, and the potential for regulation to be eased in the US.
We wrap up with getting his outlook on the prolonged corrective move in uranium equities down to levels where buying into the weakness is once again an attractive value proposition. Nick mentions how pullbacks in US producers like Energy Fuels Inc. (NYSE American: UUUU)( TSX: EFR), enCore Energy Corp. (NASDAQ: EU) (TSXV: EU), and Uranium Energy Corp (NYSE American: UEC) have come back to attractive accumulation points, and that he has also been adding to his position in the Canadian developer Denison Mines Corp. (TSX: DML) (NYSE American: DNN).
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