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Here’s the case for base metals outperforming the precious metals

Cory
November 10, 2016

A special editorial for our friends over at Kitco (click here to visit the Kitco website). Chris Temple joins us to discuss the overall commodity complex in terms of which commodities will outperform. If we do see the infrastructure spending to come to light then the base metals and stocks should get a consistent buy.

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Discussion
53 Comments
    CFS
    Nov 10, 2016 10:41 AM

    In light of infrastructure building……..Here is my list of construction firms I’m watching:

    ORN Orion Group Holdings Inc
    MTZ Mastec Inc
    TPC Tutor Perini Corp
    PRIM Primoris Services Cp
    STRL Sterling Construction
    GVA Granite Construction Inc
    DY Dycom Industries
    EME Emcor Group
    GLDD Great Lakes Drg Dock
    CBI Chicago Bridge & Iron Company N.V.

    CFS
    Nov 10, 2016 10:51 AM

    The Baltic Dry Index is fairly flat and then out of nowhere look at DRYS today!

    CFS
    Nov 10, 2016 10:01 AM

    There are some people that appear to think Trump is going to act quickly……even before inauguration?

    http://stockcharts.com/h-sc/ui?s=PSCM

    b
    Nov 10, 2016 10:01 AM

    Great points Mr Temple.

    Nov 10, 2016 10:09 AM

    This chart doesn’t show today’s action yet but copper is extending it’s relentless move higher and is now about 2.55:

    http://stockcharts.com/h-sc/ui?s=%24COPPER&p=W&yr=2&mn=9&dy=22&id=p64767660520&a=453756421

    CFS
    Nov 10, 2016 10:10 AM

    Meanwhile in North Dakota we see more Obama obstruction against oil….
    (written by the democratic main stream biased media)

    BISMARCK, N.D. (AP) — The U.S. Army Corps of Engineers says it’s trying to defuse tensions between Dakota Access pipeline protesters and law enforcement in North Dakota, but the pipeline’s developer isn’t cooperating.

    The Corps asked Texas-based Energy Transfer Partners Wednesday to stop work in the area where protests against the $3.8 billion pipeline have resulted in more than 400 arrests.

    The Corps’ similar plea last week was rebuffed. ETP this week said crews were mobilizing equipment in preparation for tunneling under Lake Oahe.

    The 1,200-mile pipeline from North Dakota to Illinois is complete except for under that Missouri River reservoir, which has been delayed while the Corps reviews its permitting.

    Company spokeswoman Vicki Granado said in an email that work won’t be done until the company gets permission to be on Corps property.

    Nov 10, 2016 10:17 AM

    Gold is finally diverging significantly from T-bonds and that is very bullish for the whole gold sector. The process could take awhile but patience will be well rewarded.

    http://stockcharts.com/h-sc/ui?s=%24USB&p=D&yr=1&mn=0&dy=13&id=p04120379955&a=483075717

    Nov 10, 2016 10:40 AM

    Chris, what do you think of CBI and FCX in the near term and the long term and are they due for a pull back before rising again?

      Nov 10, 2016 10:26 AM

      Just wrote about one of them in my most recent issue. Generally, I do not give stock-specific recommendations on here; those are for members.

    Nov 10, 2016 10:02 AM

    It will be the Wild West again shortly as the Donald rolls back all those regulations and let’s the banks run free.

    This is what you call a rejigger – shake up the bones.

    Those on the right side will do fabulous, those on the wrong side, too bad.

    The DOW Gold ration is basically 15 to 1

    I expect that to go much higher as the Donald and the boys rearrange the furniture in the White House.

    CFS
    Nov 10, 2016 10:14 AM

    WASHINGTON (AP) — The Obama administration took action Thursday to boost the development of solar and wind energy on public lands.

    A final rule announced by the Interior Department would create a new leasing program on public lands and encourage development in areas where it would have fewer effects on the environment.

    The rule came a little more than two months before President-elect Donald Trump takes office, and a new Republican administration could reconsider it.

    The Interior Department said the rule would help develop cleaner domestic energy.

    “We are facilitating responsible renewable energy development in the right places, creating jobs and cutting carbon pollution for the benefit of all Americans,” said Interior Secretary Sally Jewell.

    President Barack Obama has called on the Interior Department to approve renewable energy projects that generate 20,000 megawatts of power on public land by 2020. The department said the rule’s competitive leasing provisions will apply to 700,000 acres of public lands in Arizona, California, Colorado, Nevada, New Mexico, and Utah.

    CFS
    Nov 10, 2016 10:17 AM

    Wyoming Study: Fracking Likely Not Behind Well Water Problem
    Associated Press – 11/10/2016
    CHEYENNE, Wyo. (AP) — A final report on foul-tasting well water in a rural Wyoming community has found that hydraulic fracturing probably didn’t cause the problem.

    The U.S. Environmental Protection Agency touched off a national backlash in 2011 when it said fracking likely was behind the groundwater problem in Pavillion.

    The controversy came as the process boosted oil and gas production and drove down costs for transportation and heating.

    The EPA never finalized its Pavillion report and instead handed the investigation over to Wyoming.

    After a two-year study, Wyoming officials said Thursday that bacteria might have tainted the wells in the Pavillion area.

    Nov 10, 2016 10:19 AM
    Nov 10, 2016 10:23 AM

    We have a bullish divergence between silver and gold. Take a look at each, relative to the 30 week MA:

    GLD:
    http://stockcharts.com/h-sc/ui?s=GLD&p=W&yr=3&mn=3&dy=22&id=p42533394736

    Nov 10, 2016 10:38 AM

    Silver has a play o lay because people heard we will fix our Infrastructure from the Donald, old news.

    When they clamp down silver gets crushed.

      Nov 10, 2016 10:11 PM

      Nope, Trump has nothing to do with it. Silver’s been spanking gold since February. It always outperforms gold in a bull market.

    Nov 10, 2016 10:44 AM

    It’s the 1980s again, be long stocks and enjoy it!

      Nov 10, 2016 10:12 PM

      Nope. Interest rates were falling throughout the eighties. Now, they will be rising.

    Nov 10, 2016 10:41 PM

    Wrong again Matthew

    Gold goes down in a rising rate environment
    Gold goes up in a rising rate environment

    In other words rates don’t matter.

    You obviously refuse to let the price be your guide.

    Look at the price action right now

    Don’t you think people know rates are rising?

    This is not your little secret

    The truth of the matter is stocks are going to do fantastic and people are repositioning their entire portfolios to get ahead of this.

    It’s so obvious only a died in the wool gold bug like yourself can’t see it

      Nov 10, 2016 10:54 PM

      James, do some fricken homework for a change. Gold and interest rates went up together through the 1970’s gold bull because real rates were negative. THAT is the kind of environment we are entering now but with the bonus that there is extraordinary and unpayable debt this time.

      You’ll see.

    Nov 10, 2016 10:25 PM

    What you will find is that stocks and bonds now offer the same yield and stocks will be the place to be in a rising rate environment.

    Bonds have been slaughtered the last two days. What did gold do?

    Rest my case

      Nov 10, 2016 10:39 PM

      TLT is down 13%+ YTD versus gold (6% since Monday’s open) and SPY is still down 10% vs gold year to date.

      You’re easily distracted by short term noise.

    Nov 10, 2016 10:41 PM

    Well, I was waiting for FCX to go back down into the 8 buck region – was hoping it would have come with a Trump victory. But the opposite has happened.

    I am now considering whether I chase or whether I wait for some kind of pull-back to 12 or perhaps 11ish.

      Nov 10, 2016 10:44 PM

      Also had CBI on my target list and was hoping for low 20s. Drat. Again, weighing up chasing or waiting for perhaps the gaps up to be filled.

    Nov 10, 2016 10:01 PM

    Not distracted at all by short term noise.

    Why don’t you listen to Rick, who, you defend so much?

    He said the Trump win was a paradigm shift.

    Paradigm shifts aren’t short term noise.

    You can’t have it both ways

      Nov 10, 2016 10:11 PM

      I defend Rick’s hidden pivot method (and his honesty) but strongly disagree with him when it comes to many of his personal opinions and that is one of them.

      I have not been one of the many calling for a stock market crash and, in fact, I commented here 3.5 years ago that the Dow could see 19,500. It was 13,000 or so at the time and Al and Jeff Deist were arguing that it was a bubble.

    Nov 10, 2016 10:05 PM

    Stanley Drunkenmiller dumped all his gold and Carl Icahn bought a billion $s worth of stock the night of the election.

    I guess these two billionaires are distracted by short term noise or aren’t as plugged in as you are regarding interest rates.

    b
    Nov 10, 2016 10:30 PM

    Seems to me gold goes up with uncertainty.
    With Putin and Trump being nice, things dont look as scary.

    b
    Nov 10, 2016 10:35 PM

    “EXPLODING Gold and Silver Prices is the LAST Thing They Want to See.”
    Sprott’s John Embry Joins Us to Deliver a William Wallacesque Message:
    We could take them out OVERNIGHT if everybody bought physical…

    This sounds reminiscent of Max Keisers $500 silver if you want it.

    Nov 10, 2016 10:47 PM

    Matthew, it always seems like the nut bags gravitate towards you, you expose them and defend you’re thinking, that makes them mad. You are for sure a lightning rod. LOL! DT

    Nov 10, 2016 10:30 PM

    Dick Tracy, I guess you are a Hillary supporter and democrat.

    After all you seem to be using their playbook.

    If you disagree with Matthew you are a bit bag.

    Sounds familiar..if you were a Trump supporter you were a deplorable.

    You are a Matthew Zombie.

      Nov 10, 2016 10:50 PM

      James, you are hilarious! DT

    Nov 10, 2016 10:47 PM

    For any one interested Rick Rule on bnn tomorrow at 1:00

    Nov 11, 2016 11:28 AM

    Great interview today with Mr T and Cory on the infrastructure spending and how the new administration may affect both Base Metals and Precious Metals. Thanks guys.