Metals Monday: How Resilience Leads to Profit

Commodity Callout

There was a good amount of consolidation in the market, and gold showed resilience by needing only a week to regain lost ground.

Metal Price Update

Gold — There was some unpredictability in gold last week, but it also showed resilience. It started the week around $5030 per ounce, fell as low as $4920 at one point, and then climbed back up to end the week close to where it started. This is why we say the idea that gold has crashed and is falling out of favor simply isn’t true. If you don’t own any now, you need to make it part of your portfolio.

Silver — Silver didn’t fare as well. It started the week around $82.50 per ounce and fell as far as $74.50. It did regain some of that to end the week around $77 but it was still down from the start of the week. Even so, it’s an investment you want to keep on hand, because its fundamentals are still strong.

Copper — Copper continued to consolidate. It started the week just shy of $6 per pound, got up to $6.05 and ended around $5.80. Demand from electrification and data centers means that copper demand won’t be going anywhere anytime soon.

Lithium Carbonate — Lithium prices slowly inched back up. They started the week at around $19,500 per metric ton and ended around $20,800. There are still plenty of reasons why lithium should be part of any resource portfolio and its price resilience is evidence of that.

Uranium — Uranium prices moved up slightly, ending the week at $89.50 per pound after starting just over $86. The market continues to wake up to the reality that there is no clean energy future without nuclear power, and uranium is benefiting from that. 

Company Callout

As copper consolidates and the case for its growing importance becomes more apparent, one company to consider for your portfolio is Kutcho Copper (TSX-V: KC)(OTC: KCCFF). Its asset, located in British Columbia, consists of 46 mineral exploration claims covering an area of around 17,060 hectares. It already has infrastructure in place and the project hosts over 1 billion pounds of copper equivalent in Measured and Indicated resources.

All of that to say, the project is district-scale and the company’s small market cap of around $69 million has a chance to climb much higher as more traders recognize copper’s potential.

It recently hit new all-time highs, so that realization might slowly be setting in. If you want to add copper to your portfolio via Kutcho, you can learn all about the company, including buy-price guidance, in the latest issue of Underground Alpha by clicking here.

Keep your eyes open,

Ryan Stancil

Ryan Stancil
Editor, Resource Stock Digest