Uranium and gold topped the best-performing commodities in metals during 2023 and that rally could extend itself through 2024. As such, investors may want to add exposure to their portfolios for further diversification in an uncertain election year.
A supply glut in metals like lithium paired with less demand for electric vehicles (EVs) could result in a pathway for uranium and gold to continue their outperformance. More acceptance of nuclear power use gives the former additional upside for future growth.
“As demand for EV and base metals is expected to slow along with global growth in 2024, two very different metals are likely to stand out from the commodity pack: gold and uranium,” a Mining.com article noted.
In the meantime, demand for gold should continue, especially if rate cuts can keep the dollar retreating. If that’s the case, gold should maintain its upward trajectory.
“The gold market is poised to make history in 2024,” an FX Street article noted, “It enters the New Year within striking distance of new all-time highs.”
Uranium and Gold ETFs in Play
If uranium and gold continue to exhibit upside, Sprott has four funds worth considering. One offers a pure play, while the other three provide an alternate method of exposure to price increases via miners.
For uranium, consider the Sprott Uranium Miners ETF (URNM ). The fund tracks the North Shore Global Uranium Mining Index. It invests in global firms that mine, develop, and produce the metal. It also invests in those that hold the physical metal or royalties from it.
For even higher growth potential, investors can tap into small-cap opportunities via the Sprott Junior Uranium Miners ETF (URNJ ). The ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Junior Uranium Miners Index. That index tracks mid-, small- and micro-cap companies in the metal’s mining business.
For a pure play on gold, there’s the Sprott Physical Gold Trust (PHYS). The fund provides an enhanced physical bullion structure, and offers the ease of purchase and sale that comes with being traded on a stock market exchange. Shares are redeemable for the precious metal bullion if the investor wants the feel of a more tangible investment.
For upside in gold mining, consider the Sprott Gold Miners ETF (SGDM ). It seeks investment results that correspond generally to the performance of the Solactive Gold Miners Custom Factors Index. This index tracks the performance of larger-sized mining companies on Canadian and major U.S. exchanges.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.