Brian Leni - Founder of Junior Stock Review – Mon 13 Jan, 2020

Gold Stock vs Silver Stock Investing

Brian Leni kicks off today by sharing his thoughts on investing in gold stocks vs silver stocks. We discuss everything from the gold/silver ratio, the way companies present equivalent ounces, and the supply metrics for each. Brian also shares some of the stocks he is watching for near term drivers.

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Comments:
  1. On January 13, 2020 at 10:44 am,
    Matthew says:

    The nearby speed line support (blue) on the following gold chart happens to be at the same level as the quarterly upper Bollinger Band…
    https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=1&mn=6&dy=0&id=p79572582629&a=687508565

  2. On January 13, 2020 at 10:49 am,
    Matthew says:
    • On January 13, 2020 at 10:53 am,
      RICHARD/DOC says:

      It’s not going to hold.

  3. On January 13, 2020 at 10:54 am,
    b says:

    https://youtu.be/Sl2D23eyCbc

    I know this is politics and not investing, I just had to laff.

    Trump is doing exactly the same thing as Smedly Butler wrote about in “War is a Racket”
    John Perkins makes the same points in “confessions of an Economic Hitman”.

    I simply think its funny some people on this site and else where refuse to see Trump follows the same agenda that has been in place for decades.
    And somehow he is some kind of savior.

    I find it interesting people get kaffuffled the same way over and over again.

    Back to our regular programming.

  4. On January 13, 2020 at 10:57 am,
    b says:

    Once this “correction” is finished, I guess we have the summer doldrums to look forward to.
    Selling in May wont leave much time for big gains.

    If Jordan is right, and we sell in May, that would give us 2 months?

    • On January 13, 2020 at 11:05 am,
      RICHARD/DOC says:

      b, you’re correct about Trump; he is no different then the dems as regards war. It is a racket that is supported by both parties; the only difference is when a war is undertaken they then act like they would have never supported it if they had the facts. It’s a sick game. Also, both medias will support war without questioning since they’re controlled by the same monied interests that control those in congress pushing for never ending wars.

    • On January 13, 2020 at 11:07 am,
      Matthew says:

      Selling in May was a bad idea in 2019 but it’s way too soon to know if that will be the case this year.

      • On January 13, 2020 at 11:34 am,
        b says:

        I only use “sell in may” as thats a standard expression.

        Historically tho summer is the best time to add shares and phyzz.
        I do think we are in a bull, but it looks to me that price increases will be very slow.

        Trading will be fun but people could simply buy a decent company, close their eyes and forget it too.
        Something for everyone.

        • On January 13, 2020 at 11:44 am,
          Matthew says:

          Yes, there is a definite seasonal tendency for the sector to weaken but I don’t like to assume that it will every year.

          • On January 13, 2020 at 2:23 pm,
            Charles says:

            Matthew – How does your fork look on AXU?

          • On January 13, 2020 at 2:33 pm,
            Matthew says:

            The closest fork support is just 3 cents away along with the 144 day EMA:
            https://stockcharts.com/h-sc/ui?s=AXU&p=D&yr=1&mn=2&dy=0&id=p53803988842&a=521441859

          • On January 13, 2020 at 2:39 pm,
            Charles says:

            Thanks. Would you call that a gap back in early December?

          • On January 13, 2020 at 2:47 pm,
            Charles says:

            The chart pattern looks very similar to what occurred last June/July time frame complete with small gap. If it goes the same way, it could be down in the morning and then start reversing. Just a thought…. maybe wishful thinking.

          • On January 13, 2020 at 2:47 pm,
            Matthew says:

            Yes. The 12/2 close was 1.78 and the lowest price since then happened today, 2 cents below the 12/9 low.

          • On January 13, 2020 at 2:50 pm,
            Matthew says:

            It might prove to be wishful thinking but a low tomorrow is very plausible for the miners in general.
            Another look at GDX:
            https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=0&mn=7&dy=0&id=p11674174453&a=703954469

          • On January 13, 2020 at 3:02 pm,
            Matthew says:

            I recently mentioned that the holiday moves are getting retraced in the same way that overnight moves in the metals usually get retraced in time for the open of U.S. trading and that is almost done. Here we have GDXJ almost filling the 12/24 gap and “building” what might be a very nice cup-and-handle continuation pattern in the process:
            https://stockcharts.com/h-sc/ui?s=GDXJ&p=D&yr=1&mn=5&dy=0&id=p15383379111&a=661500853

          • On January 13, 2020 at 3:04 pm,
            Matthew says:

            XAU vs DIA has also nearly completely retraced its holiday moves:
            https://stockcharts.com/h-sc/ui?s=%24XAU%3ADIA&p=W&yr=4&mn=5&dy=0&id=p87134575613&a=707626462

          • On January 13, 2020 at 7:03 pm,
            Charles says:

            Nice charts. Thanks.

    • On January 13, 2020 at 11:11 am,
      RICHARD/DOC says:

      Was he talking about the conventional markets?

      • On January 13, 2020 at 11:28 am,
        b says:

        “He” = me..b
        I only follow PMs. gold/silver.
        Well, I couldnt pass on the pot bubble but other than that not too darn much.

        We have this correction then the doldrums, that was my only point, 2020 doesnt seem to be shaping up the way PM bulls imagined it would.

        As for the politics, I found the Iranian people screaming at their leadership to be removed as they lie constantly, I found it funny, we cant trust a single word from our gov either.
        I like to think one day, people from all over will realize we are all in the same boat.

        • On January 13, 2020 at 12:19 pm,
          RICHARD/DOC says:

          I pretty much agree with Jordan’s assessment except I don’t know whether the “go away in May” pertains to the conventional markets or PMs. Once again, the bull market in the PMs is intact but there will be some well deserved pull backs to shake as many out as possible. It looks like we’re headed for a multiple week pause which is frankly healthy in the long pull. We’re engaged in a stair step advance. It’s going to take a lot higher PM price to get a lot of these explorers going. Some of the developmental and producing miners should hold up quite well. As mentioned before, I took profits in CDE and HL and now these stocks will be coming back again to buy back. They shouldn’t come back to their lows. It’s a fun market to be in.

  5. On January 13, 2020 at 11:45 am,
    David says:

    I hope the people are allowed to protest at the time they finally figure things out. If allow an authoritarian regime to take control, what good is public awareness?

    • On January 13, 2020 at 11:56 am,
      cfs says:

      Just how much better is a Democrat regime, which lies continuously and is determined to destroy the country through its Marxists agenda?

      • On January 13, 2020 at 12:03 pm,
        buzz says:

        Nancy P isn’t going to deliver impeachment papers. She’s going to deliver a pepperoni pizza on a DOMINOES platter

      • On January 13, 2020 at 12:46 pm,
        David says:

        What is wrong with a country that shares the concept of “supporting and defending the Constitution”. Why does that not apply anymore?

  6. On January 13, 2020 at 12:34 pm,
    cfs says:

    Osino Resources Drills 92m At 1.40 G/T And 37m At 2.58 G/T, Increases Strike By 50% At Twin Hills Central Discovery, Karibib Gold Project, Namibia

    Trading was halted this morning.
    ? More news coming ?

  7. On January 13, 2020 at 1:13 pm,
    CFS says:

    THE FOLLOWING IS PURE SPECULATION on my thoughts.
    I notice that while many Congress-critters, at the Federal level, have been speaking out against marijuana, they have also been buying significant investments in related companies.
    A logical conclusion might be, therefore, that Congress expects Federal legalization sometime in the future. With this knowledge they appear to be front-running the general public.
    Is that not what many of our corrupt politicians do much of the time anyway; taking advantage of their positions to enrich themselves?

  8. On January 13, 2020 at 2:18 pm,
    David says:

    CFS:
    You are absolutely right. Congress can legally front-run and inside trade. At some point they passed law protecting only Congress from being prosecution. Aren’t they quality leaders. That the same as Hank Paulson and others that have accepted Federal Government positions being able to divest their investments tax free to avoid the appearance of conflict of interest. Paulson was able to unload like 40 or 400 mil of Goldman stock tax free, work for about a year, scam the Federal Gov out of bailout money, and then quit and retire. Nothing but the best for our dedicated public servants who prefer being life time white collar criminals and temporary gov employees.

  9. On January 13, 2020 at 4:11 pm,
    RICHARD/DOC says:

    Gold down another 10 dollars after the close. Hopefully, this selloff will be over in less then 10 trading days. Silver holding up relatively well. Some good buying opportunities coming up in the next 10 trading days.

  10. On January 13, 2020 at 5:36 pm,
    Matthew says:

    SILJ did incredibly well between October 15 and December 9 rising 18% while silver fell almost 5% to finally put in a low. SILJ rose 39% between 10/15 and 12/26 while silver rose less than 4% giving SILJ a whopping 10 to 1 leverage. Understandably, that outperformance turned into significant under performance over two weeks ago but now that sentiment has been reset, I think it will return very soon.
    SILJ priced in SLV:
    https://stockcharts.com/h-sc/ui?s=SILJ%3ASLV&p=D&yr=1&mn=9&dy=0&id=p54195991615&a=713304606

  11. On January 13, 2020 at 6:16 pm,
    Matthew says:

    Gold is testing speed line support which is currently 1537ish…
    https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=1&mn=6&dy=0&id=p83731832777&a=687508565

  12. On January 14, 2020 at 5:05 am,
    OOTB Jerry says:

    This might be a repost……..
    Matthew, ….Again………thanks for your hard work in keeping everyone informed…..

    • On January 14, 2020 at 6:57 am,
      Matthew says:

      That’s a nice repost Jerry,
      You’re very welcome

    • On January 14, 2020 at 8:29 am,
      Charles says:

      I agree. All your charts are very much appreciated.

      • On January 14, 2020 at 8:31 am,
        Matthew says:

        Thanks Charles.

  13. On January 14, 2020 at 8:23 am,
    Matthew says:

    The put/call ratio recently hit a 5.5 year low which means that bears to bulls ratio also hit a 5.5 year low. This is dangerous for stock market bulls.
    https://stockcharts.com/h-sc/ui?s=%24CPCE&p=D&yr=3&mn=0&dy=0&id=p23070088907

    • On January 14, 2020 at 8:31 am,
      Charles says:

      Brixton sure is down big this morning.

      • On January 14, 2020 at 9:02 am,
        Matthew says:

        I didn’t buy more for about a week but I picked up quite a bit today!

        • On January 14, 2020 at 3:42 pm,
          blazesb says:

          Mathew, first of all many thanks for the consistent quality of your posts. I am a long time lurker here and pay careful attention. While I’m on board with Brixton’s ‘big’ picture–four promising properties–one aspect of last summer’s drilling at Thorn troubles me. Why did Gary Thompson drill only two holes next to hole #150? I can’t pretend to know what constitutes a standard distance for stepout holes and assume decisions–how deep to drill and where in relation to hole #150 in this case–are made for various reasons. I know only that i look at the Thorn map and it shows Gary Thompson found reasons to drill more holes (six at Camp Creek) at over 3 kilometers distance from #150 than he did (two) nearby.

          Do you have any thoughts about this?

          • On January 15, 2020 at 12:24 am,
            Matthew says:

            Blazesb, that seems like a good question and I also can’t pretend to know what factors guide the decision-making process. I could come up with possibilities but don’t think such guesswork would be useful. There’s probably a decent chance you’d get an answer if you contact the company about it.
            Maybe it’s a simple case of too many high priority targets and not enough drills or budget or men to operate the drills.
            Wish I could be of help.

  14. On January 14, 2020 at 9:27 am,
    Charles says:

    I just bought a bit more.

  15. On January 14, 2020 at 10:08 am,
    Matthew says:

    It is ultimately currency debasement that drives gold, not lost confidence as Armstrong claims. Goldman Sachs scores a point…

    “Gold is a hedge against debasement and what we saw in 2011 was debasement, printing too many dollars and the real rate goes down, down, down, which then pushes up the price of gold…. the potential to push gold back up into that $1,800-$1,900 range becomes pretty realistic” – Jeff Currie, Goldman Sachs Global Head of Commodities Research, Jan 11, 2020.
    http://www.321gold.com/editorials/thomson_s/thomson_s_011420.html

  16. On January 14, 2020 at 10:36 am,
    Matthew says:
  17. On January 14, 2020 at 10:39 am,
    Matthew says: