Lobo Tiggre: Gold Catalyst to Watch, Why Uranium Could be 2022’s Star
The new year has arrived, and resource sector participants are keenly looking ahead to gold’s next move.
Speaking to the Investing News Network, Lobo Tiggre explained how he expects the US Federal Reserve’s plans to play out and how that could impact the yellow metal’s path.
While he’s not keen on making predictions, he said he thinks the walls are closing in on the Fed, and the central bank may soon be stuck between a rock and a hard place.
“I don’t see how we get through 2022 without that rock and the hard place coming together,” said Tiggre, who is the founder and CEO of IndependentSpeculator.com. “The Fed has to do something about high inflation or there will be pain. And if it does something about high inflation there will be pain.”
Even so, mainstream confidence in the Fed remains high, and Tiggre noted that the powers that be have done a good job of convincing market watchers that they’re in control.
He sees that starting to change as more investors decide they want to use gold to hedge against inflation. But what might spark a real shift in sentiment toward the Fed?
Tiggre said there needs to be a realization that the Fed is behind the curve and is not keeping up with what it’s said it will do. “When that skepticism becomes widespread, I think that is your catalytic moment,” he commented.
Switching over to uranium, Tiggre said that if the situation plays out as he anticipates, the commodity could be the star of 2022. He noted that 2021 brought the removal of cheap pounds from the market, while 2022 may bring utilities contracting, a crucial milestone the industry has been waiting for.
“I’m going to go out on a limb again here and say I think that happens this year — we’ll start seeing more of those long-term contracts set in place. And that’s what we’ve been looking for,” he said.
Of course, his positive uranium outlook comes with a caveat — a major nuclear incident would be problematic. But while that’s a possibility, it’s unlikely. “Despite the explosive risk in the sector, I’ve got to say I just love the uranium space. I think it’s the most compelling speculation in the resource sector for 2022,” Tiggre concluded.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.