Joshua Hall: Uranium Series Part Ten: Uranium and Vanadium Demand Will Only Keep Growing
Joshua discusses why like many resource investors he is bullish on uranium. He is beginning to see a lot of money preparing to go into the sector. The price is likely to return to the $40 to $50 level as large producers have reduced their production to get a higher price.
Mr. Hall explains his macro view of the resource market. China bottomed out in 2014 and investors need to observe them carefully as they are one of the most important factors in the markets today.
He is also bullish on zinc, copper, and nickel. All three are now in deficit with near five-year lows in inventory supply. The most interesting one is zinc since the market has the wrong story.
Joshua remains bullish on the U.S. stock market, but if it does roll over, he doesn’t feel that much damage would be done to mining equities. You can still do well-buying resource equities even if the economy weakens.
He is optimistic about the price of vanadium and believes that it will stay at this price level for the next couple of years. He discusses why vanadium demand is likely to persist and why companies are unlikely to produce additional supply. The vanadium market is likely to grow in size over the long-term.
Time Stamp Reference:
01:13 – Joshua’s uranium perspective.
02:00 – Price levels and cutbacks.
03:30 – Focused on the Canadian Athabasca Basin.
05:30 – Overview of the resource sector and China.
06:40 – Double bottom before a major move.
07:00 – Three base metals that are good opportunities.
11:00 – Underlying fundamentals with China.
11:20 – Bullish on U.S. stock market.
12:50 – Vanadium outlook and predictions.
Talking Points From This Week’s Episode:
• Bullish on the uranium sector.
• China’s economy and demand for resources.
• He likes zinc, copper, and nickel.
• Vanadium market why it may grow.
Joshua Hall ChFC is an independent Registered Investment Advisor. Before starting True Vine Investments in 2010, he worked for JP Morgan Asset Management for ten years. For the past several years he has been the Vice President and On-boarding Manager for the Global Liquidity business. You will also find his mining commentary on Seeking Alpha.
He has a Bachelor’s of Science Degree in Finance from Susquehanna University. He is married and has three children. He lives in Williamsport, Pennsylvania.