While the prices of gold and silver are reaching death-defying heights, uranium stocks are waiting in the wings. In this exclusive interview with The Gold Report, Sid Rajeev, head of research for Fundamental Research Corp. in Vancouver, exposes the reasons why now-stagnant uranium plays have more upside than gold or silver. He and his research associate Vincent Weber uncover some plays that allow investors to take advantage of all three.
The Gold Report: Sid, in your interview with The Gold Report in February you said gold could creep back down to around $750 an ounce by 2012 if there is a strong economic recovery in the U.S. Has anything in the last eight months changed your mind?
Sid Rajeev: We have made some revisions to our forecast, but our overall outlook on the market and gold has not changed. We were expecting a gradual recovery in the U.S.; however, the recovery has been much slower than expected. The housing and labor markets continue to be weak. We have been seeing a lot of mixed results in the past six months. These factors have created a lot of uncertainties in the market. Gold most often is the answer for uncertainty, which is why gold prices are at such high levels.
Even though the recovery has been slow, we believe that the U.S. is in a much better position than it was last year. Unemployment levels have dropped. It's now close to 9.6% versus more than 10% last year at this time. The stock market is a leading indicator—the TSX Venture Exchange is up 29% year over year. These are signs of improvement. (more)
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