Doug discusses the last commodity peak back in 2011 which is already seven years ago. This bear market is quite long, and most commodities are down at least 50 percent not factoring in inflation of the dollar.
The junior markets are quite illiquid, and that makes it difficult to obtain sizable positions in them. Private placements are useful because you buy shares directly from the company. However, it takes awhile to be able to sell the stocks. Even if you lose money on the first trade, you will still have the option to buy using your warrant for two to five years.
You want to buy when others are timid. You want to be careful when everyone else is being bold. Right now no one wants to hear about the junior resource sector so now is the ideal time to get in.
Uranium may be Doug’s favorite commodity. He has been involved with uranium and related companies for a long time. The price of uranium today is as low as it was in 1998 since the dollar is worth a lot less today. He is expecting very big returns. One of the companies he likes is Blue Sky who are doing uranium development in Argentina, and that country is open for business.
Doug feels that Trump is doing a reasonable job although he lacks a philosophical core. He doesn’t read books, and he doesn’t think historically. On the plus side the liberals, the beltway, the media, and academia all hate him. Overall he has acted pretty well, and it is good that he understands business.
The Global X Uranium ETF (URA) was unchanged in premarket trading Friday. Year-to-date, URA has declined -6.91%, versus a 4.87% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Palisade Research.