News Bites
Going all-in on gold; Peter Grandich makes the case to 'back up the truck' now
(Kitco News) - The gold prices is headed back to $2,000 an ounce once it breaches key resistance levels, said Peter Grandich, founder of Peter Grandich & Company.
"The most beautiful technical chart I've ever seen on any market was shown. There's a wonderful cup and handle formation now on gold going back 10 years and it coincided with an absolute all-time bottom in relative strength, which suggests to me that nobody was bullish, market was extremely oversold, and the greatest technical pattern you could ever have was a cup and handle formation," Grandich told David Lin, anchor for Kitco News.
On uranium, Grandich said that there is still a tremendous amount of upside potential.
"The long-term contracts that most utilities bank on…they like to lock in contracts for several years. We know from a few key producers, and to me, the single best, the bellwether of bellwethers and my largest holding, Cameco, we know that they keep telling us that a lot of those long-term contracts are coming to an end this year and next. So, until those people come back in, and the public sees that they are now committed to new long-term contracts and then realize how little production there is, that's when the stock price will skyrocket," he said.
