Gerardo Del Real,
Editor
Sept. 25, 2024
Gold is at record highs, silver is poised to break out, copper is headed to record highs, and uranium has some of the best supply/demand fundamentals I’ve ever seen.
Even lithium is seeing supply come offline as the current price is simply unsustainable.
Chinese electric vehicle battery maker CATL has suspended production at a major operation in China.
The Financial Review reported that UBS analyst Sky Han said CATL had suspended its lepidolite operation in Jiangxi following a meeting recently where she cited “channel checks” with several contacts.
The broker estimated that the closure could cut about 8%, or 5,000 to 6,000 metric tonnes, of China’s monthly carbonate production.
“After making a loss for two months in the lithium business and continuous downside risk on lithium price, we finally see normal supply response from a marginal-cost producer,” Ms. Han wrote in a note to clients.
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Hard to make that up on volume.
I’ve been waiting for September the entire year for several reasons. The summer winds down, markets pick back up, and we get to see who’s serious about adding value.
Add to that a record gold price, site visits, conference season, etc., and you get the perfect storm for a very busy and productive end of the year.
Gold, which now sits comfortably well above the $2,650/oz level, looks poised for higher prices.
Heck, even Goldman Sachs (who I don’t typically agree with) has joined the gold party with a $2,700 price target by the end of 2025.
That likely means two things:
1.) We’re likely to get a healthy pullback sooner rather than later.
2.) Gold will trade at a much higher price than the $2,700 target set by Goldman.
Everything I’ve been telling you about why gold would trade higher was cited by Goldman in its report.
Rate cuts, central bank purchases, and geopolitical volatility will continue to dominate the gold narrative. And yet, there are still some spectacular opportunities in the space as only the top producers and select non-producing companies are outperforming the gold price.
The Junior Resource Monthly portfolio has several triple-digit – and a quadruple-digit winner – in it. Yet, the fun is only just getting started!
The lithium and uranium equities are an absolute bargain right now.
One year from now, many will look back at the current prices and wonder why they didn’t load up.
Things are about to accelerate, and I hope you’re able to come along for the ride.
Let's get it,
Gerardo Del Real
Editor, Daily Profit Cycle