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Going all-in on gold; Peter Grandich makes the case to 'back up the truck' now

Kitco News

(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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.