Uranium and gold: What are the best ASX shares to buy for these minerals?

Here are 4 best stocks to consider if you want to cash in on the big themes of 2023.

| More on:
A miner stands in front oh an excavator at a mine site

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are two massive concerns for investors and the world in general this year: energy and recession.

While energy prices rocketed last year after the Russian invasion of Ukraine, that supply-demand imbalance is expected to continue in 2023.

"We think the outlook for energy stocks is attractive because there's just not a lot of supply coming in," Schroders portfolio manager Ray David told The Motley Fool earlier this year.

"No one really wants to invest in fossil fuels or LNG or gas without the high prices to justify the returns, because everyone's quite worried about renewables and the ESG factors."

As for a recession, this will be a reality in some parts of the world, even if Australia does not quite hit the definition. 

Regardless, consumers and businesses will be suffering alike after ten months of steep interest rate rises.

'We would be buying into dips'

Gold is a commodity often spruiked as a "safe haven" for tougher economic times.

But the gold price did rocket up about 20% between November and February as recession fears struck investors.

Shaw and Partners portfolio manager James Gerrish likes the gold sector with a medium to long term horizon.

"Short term further downside wouldn't surprise," Gerrish said in a Market Matters Q&A.

"We are overweight the sector hence will not be averaging into further weakness if it eventuates but we would be buying into dips if we held no position."

The main ASX stock involved with gold production that he would buy now is Northern Star Resources Ltd (ASX: NST), especially if it falls to around the $10 mark.

The share price closed Wednesday at $10.35.

"Similarly we like Evolution Mining Ltd (ASX: EVN) ~$2.70, but following its average result we would be more likely to opt for Northern Star."

Evolution shares finished Wednesday at $2.76.

Is an old solution the new solution?

As for the energy crisis, nuclear power generation is coming back into favour in many countries as a way to instantly bolster their home-grown supply.

This has seen a revival in investor interest for uranium producers.

"A lot of moving parts are involved when it comes to the uranium price but appetite is building as other energy costs rise as the world strives to move away from fossil fuels," said Gerrish in another Market Matters Q&A.

"We are bullish uranium moving forward although when [it] starts to really gain traction is hard to forecast due to the uncertain geo-political backdrop."

Gerrish named two ASX shares that he would buy to gain exposure to uranium.

"Paladin Energy Ltd (ASX: PDN) and Boss Energy Ltd (ASX: BOE), they are both volatile stocks which we like into dips."

Gerrish's team would be tempted to buy when Paladin sneaks under the 70 cent mark and Boss dips below $2.50.

They closed Wednesday at 66.5 cents and $2.36 respectively.

The Market Matters team already owns Paladin Energy in its emerging companies portfolio.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Cheerful businessman with a mining hat on the table sitting back with his arms behind his head while looking at his laptop's screen.
Resources Shares

Fortescue shares are galloping again as Twiggy stays confident in China's horsepower

It's business as usual for the miner despite Trump's promised 60% tariffs on Chinese imports.

Read more »

Miner standing at quarry looking upset
Resources Shares

This ASX All Ords mining stock sinks 13% after a rocky quarter

Investors continue unloading shares in the precious metals company.

Read more »

Miner looking at a tablet.
Resources Shares

Will ASIC make a dog's breakfast of Mineral Resources shares?

ASIC has now stuck the probe in to investigate.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Resources Shares

Should you buy Rio Tinto stock or Woodside stock today?

Which of these giants is best? Here's what Goldman thinks.

Read more »

Miner looking at a tablet.
Resources Shares

What does Trump's win mean for iron ore shares like Fortescue?

The controversy on tariffs has already started.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Own BHP shares? Directors of the mining giant have been busy with stock transactions

It can be worrying when directors sell.

Read more »

Buy, hold and sell ratings written on signs on a wooden pole.
Resources Shares

Are Lynas shares a buy, sell, or hold for 2025?

Much depends on the outlook for rare earths.

Read more »

a tired and sad looking bulldog sits at an office desk with a pen an paper on it and a cup of coffee with his head resting on the desk as he gives a mournful look to the camera.
Resources Shares

After crashing 50%, could this ASX All Ords stock rebound?

Such low starting valuations could help.

Read more »