Here are the metals stocks that Sean is investing in
Sean Brodrick joins me today to focus on the resource sector and shares the type of stocks he is investing in. When an entire sector is moving up like the precious metals stocks it can be easy to get stuck in under performing stocks. That’s why it’s important to constantly review your portfolio and adjusting to balance out positions.
There is a contributor over at ceo.ca that brought up a good point about the influx of new day traders across the planet, trying to make money from home instead of going back to work (not that the jobs are there anyway):
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@Highheat – “In the future there will be no jobs only day traders.”
Haha! There have been spikes in new trading accounts being set up.
Welcome newcomers!
https://ascensionnyc.org/wpsystem/wp-content/uploads/2015/10/Welcome-Newcomers.png
It now takes at least five business days to set up a trading account with Questrade, and ten days with the banks. DT
I don’t believe it is nearly that long of a wait with Interactive Brokers, TD Ameritrade, Schwab, or Robinhood.
Some of this trend was well underway at year-end, but I’d like to see some stats on what it is like for 2020.
Start-up Robinhood tops 10 million accounts even as industry follows in free-trading footsteps
Dec 4, 2019
Online Brokers See Record Activity Through Volatility
Volatile markets, zero-fee trading and staying home has amplified trading.
By Theresa W. Carey – Updated May 14, 2020
“A volatile stock market, stay-at-home restrictions, and some spare time have added up to a trading boom for online brokers. Many of them are reporting record trading activity and new accounts, and many tell us that logins from mobile devices are up significantly–35-50%– over last year.”
“Retail investors, encouraged by commission-free equity trading, are closely monitoring everything that affects their portfolios.”
“E*TRADE, Fidelity, Schwab, Robinhood, and Interactive Brokers all reported either increased activity, new account signups, or both, as individual investors adjusted their portfolios or bought equities and options at a feverish pace.”
> Trading on Robinhood tripled in March of 2020 compared to March of 2019
> Fidelity clients logged in more frequently, up 56% from March 2019 to March 2020
> E*TRADE said its younger customers checked their accounts at a significantly higher pace than those over 50
https://www.investopedia.com/what-s-new-at-online-brokers-in-may-2020-4844876
S&P 500: Yes, There Will Be More Blood
May 18, 2020 – Victor Dergunov
The S&P 500 is currently at an inflection point, as the major average trades in a tight range of 2,775 – 2,950.
Fed Chair Powell said that the recovery will likely take “some time” and that the recovery process could drag on through 2021.
Fed “stimulus” may have prevented an all-out meltdown in equity markets but it’s not likely to improve consumer confidence/spending, or prevent corporate profits from declining precipitously.
Coronavirus is not going away any time soon, possibly ever, and the economy is confronted with unprecedented uncertainty.
There are some bright spots in the market, but the S&P 500 could decline to 2,500 or lower going into what’s likely to be an atrocious Q2 earnings season.
https://seekingalpha.com/article/4348519-s-and-p-500-yes-will-be-blood
There are those with more “hopium” for sale that the markets are going to use this pessimism to launch even higher, backstopped by the Fed, and prior to this crisis these kinds of calls have been correct, as buying the dip worked. I’m not so sure about that this time though. Still I’ll give anyone that has taken the time to make a well-reasoned case some consideration.
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More Than A Bear Market Rally
May 20, 2020 – Clif Droke
Many investors think a bear market in stocks still persists.
Central bank liquidity and other indicators argue against this opinion.
Investor skepticism is high enough to support higher stock prices.
made short term profit in USL this am . bought 2 penny gold stocks one up one down. bought Holly pipeline partners HEP up a few pennys always put in your limit sell orders. How aboutDR BOZOn with the blonde hair . would you let him write your next perscription ?? best of helath and wealth to you all rsh
Venezuela Files Claim To Force Bank of England to Hand Over Gold
May 19, 2020 – Reuters
“Venezuela’s central bank has made a legal claim to try to force the Bank of England to hand over €930 million ($1.02 billion) of gold so President Nicolas Maduro’s government can fund its coronavirus response, according to the document submitted in a London court.”
Colombia joins Argentina in banning all international flights
Colombian official: ‘We do not expect to resume international air travel or to reopen land borders’ before August 31.
3 hours ago
Taiwan President Tsai calls for stability in China relations
By Johnson Lai (05/20/2020)
“Taiwanese President Tsai Ing-wen called for stability in relations with China in her inaugural address Wednesday but said she would not accept Beijing’s political terms that would “downgrade Taiwan and undermine the cross-strait status quo.”
“Reelected by a landslide late last year, Tsai said relations with Beijing had reached a “historical turning point” and that “peace, parity, democracy, and dialogue” should form the basis for contacts between the sides as a means to prevent intensifying antagonisms and differences.”
On the brink of default, Argentina says there’s a ‘big chance’ its May 22 deadline will be extended
Wed, May 20, 2020 – Sam Meredith
New Car registrations in Europe Fall 76% in April as Coronavirus Lockdowns Hit Sales
May 19 2020 – Holly Ellyatt
https://www.cnbc.com/2020/05/19/european-new-car-sales-in-april-see-dramatic-decline.html
Brazil’s much-needed economic reforms are being blown off course by the coronavirus
May 15 2020 – Silvia Amaro
https://www.cnbc.com/2020/05/15/coronavirus-brazil-economic-reforms-are-being-blown-off-course.html
So yeah….. about that optimism and rebound in the markets….. maybe folks are being either naive or purposely ignoring the stark reality that is setting in on spaceship Earth.
People used to say about the markets that “It’s a jungle out there.”
Pretty soon the “jungle” will be nothing more than a “dried out briar patch.”
Oh yeah…. and one more thing….. Buy Gold. 😉
Can’t afford gold????…… buy silver!!!!!!!! Please. Pretty please. 😉
Christmas is coming, the geese are getting fat,
Please do put a penny in the old man’s hat.
If you haven’t got a penny, a ha’penny will do
If you haven’t got a ha’penny, then God bless you!
Silver Wealth Preservation, then Enhancement
SD Bullion – May 20, 2020 #VIDEO
https://www.youtube.com/watch?v=PBxVwns4ZZM&feature=youtu.be
Stashing some gold? Here’s why that could soon be illegal, according to one notable hedge-fund bear
May 20, 2020 – Shawn Langlois
“Odey said that when the economy recovers from the coronavirus pandemic, which he has likened to the Great Depression, central banks won’t be able to contain inflation.”
“History is filled with examples where rulers have, in moments of crisis, resorted to debasing the coinage,” said Odey, who has raised his gold position in his flagship Odey European fund all the way up to 39.9% as of the beginning of the month from 15.9% at the end of March.”
Gold confiscation – Could it happen again?
Date 4 Mar 2020 – JP Koning
“On April 5, 1933 a strange announcement appeared in U.S. newspapers. Thanks to , anyone living in the United States – citizen or foreigner – was required to turn in all gold bullion, gold coins, and gold certificates to the government before May 1, 1933. The same went for businesses and corporations.”
“This wasn’t an all-out confiscation of gold. Although people were obliged to bring their gold in, the government promised to pay the official price of $20.67 for each ounce submitted. However, violators could be imprisoned for up to ten years.”
https://www.bullionstar.com/blogs/jp-koning/gold-confiscation-could-it-happen-again/
Sprott backs Pure Gold with $10.7 million investment
Jackson Chen | May 20, 2020
“Pure Gold has all the attributes I look for in a company — location, grade, size and growth,” Sprott said in a statement.
“Pure Gold’s mine in Red Lake has over 7 km of strike with known high-grade shoots that have only been defined down to 1,200 metres compared to 2,500 metres in the neighbouring Red Lake mine complex,” he added.
https://www.mining.com/sprott-backs-pure-gold-with-10-7-million-investment/
(WGX.AX) Westgold confirms $45m placement.
May 20, 2020
“Westgold is pleased to advise that it has placed 20 million shares at $2.25 per share to raise a gross $45 million.”
“The proceeds will enable the acceleration of growth within the companies CMGP operations. These along with the Company’s transition to cash flow generation gives it ample cash to continue unlocking the value of its operations and growth within the region.”
We are seeing a number of larger financing deals lately. This is good for the sector, and shows there is still money available for the stories that have a path forward.
Here’s another Aussie gold producer dog, that just got a new lease on life:
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Blackham Resources (BLK.AX) (BKHRF)
CREDIT APPROVAL RECEIVED FOR THE FIRST TRANCHE OF THE PREPAID SWAP
Highlights
• Facility potentially up to A$61 million
• Initial pre-pay amount of A$21 million, secured by the Company’s assets, with the ability to upsize the facility by an additional A$40 million to support the Company’s growth plans
• Updated terms, structure and profiling of prepaid swap aligned to the Company’s revised timetable for the capital requirements of the of Stage 1 Sulphide Expansion
• As part of the arrangement, Mercuria will provide the Company with a secured gold hedging facility
“Blackham Resources Limited is pleased to announce that an updated, indicative term sheet between the company and Mercuria Energy Group (“Mercuria”) has been signed providingBlackham with A$21m in the form of a prepaid swap on gold with a supporting hedge facility, and an intention to a further A$40m, for a total of up to A$61m. ”
(AR) (ARNGF) Argonaut Gold Shareholders and (ALO) Alio Gold Securityholders Approve Merger to Create North American Diversified Intermediate Gold Producer
by @nasdaq on 20 May 2020
“The merger with Argonaut was approved by 99.39% of the votes cast by Alio shareholders and 99.47% of the votes cast by Alio shareholders”
“On closing of the transaction, Argonaut and Alio shareholders will own approximately 76% and 24% of the merged company, respectively, on an issued share basis. The merged company will continue as Argonaut Gold with the ticker symbol AR on the Toronto Stock Exchange (TSX).”
https://ceo.ca/@nasdaq/argonaut-gold-shareholders-and-alio-gold-securityholders
(AR) (ARNGF) Argonaut Gold – Corporate Presentation May 13, 2020
https://s22.q4cdn.com/115151820/files/doc_presentations/2020/05/AR-Q12020-FINAL-WEB.pdf
Here is an interesting chart from a technician over at ceo. Check out the green circles for where the breakout’s happen when charts got into overbought territories:
@kjm – https://www.kitco.com/commentaries/2020-05-20/images/Stewart_0520_2.png
(EXK) (EDR) Endeavour Silver Drilling Intersects New High-Grade Gold-Silver Mineralization in Melladito Vein at Bolanitos Mine, Guanajuato, Mexico
20 May 2020
Drilling highlights of 8 core holes include the following intersections:
> 24.3 grams per tonne (gpt) gold and 787 gpt silver over a 1.5 meter (m) true width in hole BN27 (3,217 gpt or 93.8 oz per ton (opT) silver equivalents (AgEq) at a 100:1 silver:gold ratio)
> 12.5 gpt gold and 50 gpt silver over a 1.1 m true width (1,300 gpt or 37.9 opT AgEq)
> 7.37 gpt gold and 170 gpt silver over a 2.7 m true width (907 gpt or 26.4 opT AgEq)
https://ceo.ca/@nasdaq/endeavour-silver-drilling-intersects-new-high-grade
Gold, Silver, Miners Teater On The Brink Of A Breakout
Chris Vermeulen – May 20, 2020
“With Monday’s big pop in the stock indexes, the big rally was based on vaccine news and bullish comments from the fed, convincing most traders and investors to be overly bullish this week.”
“I have reiterated over and over, big moves (and gaps) in the price in the stock indexes that occur from the news are generally given back within a few days. This is still what I feel is going to happen in the coming days, albeit the last hour on Tuesday may have started that retracement.”
“Gold also broke out and started a new bull market mid last year. We are also long gold in our Technical Investor portfolio as well. Gold has completed its initial move but is on the verge of popping to the $2000 market if we get just the right market conditions over the next couple of months.”
“If you take a closer look at the large-cap gold miners (GDX), they have already broken out and started to rally. This is a new bull market for this particular group of stocks. We got long this new bull market a few weeks ago in my Technical Investor Portfolio which focused on long term position with a much wider stop loss than swing trading positions.”
This truly is a crazy world. From what I can gather, all countries “esteemed” leaders are no more knowledgeable than their respective citizens in regards to how we work our way out of this mess. They hang off every word of their so called “medical” experts tell them but their own pride, arrogance and prima donna mindset continues to impede apparent common sense (or as I like to term it – uncommon sense). Essentially as Stiffler from American Pie would say: “Your like a blind man picking his favourite porno”. All the gear and no idea, we are just muddling through the dark and taking a random stab… Pure guess work!
At the end of the day I guess it just validates that no matter ones background and history, we all sit on the same level playing field in such times… Unless of course one has an alterior motive???
Meanwhile gold looks solid, silver looks weak, oil out of nowhere is robust, the general markets continue their up-trend from a drastic collapse, the dollar is not sure, bitcoin is irrelevent, economies are bracing for collapse, a vaccine is here tomorrow, a vaccine is here in 12 months… Ultimately who the fu*k knows what tomorrow brings? Maybe aliens make contact with man? This truly is a crazy world!
That about sums it up Ozibatla. That was my favorite post of the day!
Cheers Ex. Was just a general summisation of my perspective at the moment.
I wouldn’t say oil’s strength came out of nowhere; it came from dramatic record lows even if we disregard the storage issue that caused negative prices. Oil will never see that low again, in my opinion, but that doesn’t mean it is now big-picture bullish. Stocks, on the other hand, are in a bear market and will be for far longer than the vast majority expect.
Silver is weaker than gold today, but that’s it. Look how overbought it had become versus gold. Priced in gold, silver gained about 30% in the last two months and remains in charge on both the daily and (especially) the weekly charts…
https://stockcharts.com/h-sc/ui?s=SLV%3AGLD&p=D&yr=1&mn=0&dy=6&id=p80103429236&a=659297177
Yeah, Silver has been gaining on gold the last few weeks, and I believe Silver has more catching up to do.
As I said to Excelsior above Matthew, my post was more a general summisation of a wider perspective over a longer term. So when I said silver looks weak, I said so with a wider view. Yes in the last few weeks it has performed well and has good up-side potential. But the fact that it is still over 100 times cheaper than gold and remains wedged in the teens (its price range over the last 7 years) indicates it has much work to do.
In hindsight, oils relief rally was somewhat expected but when it briefly went below $10 per barrel a few weeks back I didnt hear anyone suggest that a climb to the mid 30s was imminent.
In regards to the general stock market, I am personally waiting for another crash. On the one hand I am surprised in how quick and the size of the rally we have seen. On the other, with the amount of liquidity injected into the global system by the central banks it has to be expected… Especially when one looks at how addicted these salivating markets have become towards cash. And yes I agree, stocks will remain bearish for sometime.
Notice the weekly MACD and other indicators for SLV:GLD. Also note the speed line resistance that stopped this move momentarily as well as the weekly gap just below.
Intermediate to long term, this looks like the best time in many years (decades?) to sell or even short gold and buy silver (my opinion, of course!)…
https://stockcharts.com/h-sc/ui?s=SLV%3AGLD&p=W&yr=4&mn=9&dy=0&id=p65635067386&a=725299655
I think Sean is right, there will be another sell-off when the second wave comes
Yeah, that makes sense. The other shoe is yet to drop.
Probably autumn. The second wave of the spanish flu started in October and was a magnitude worse than the first wave. During summer the virus nearly disappeared.
https://en.m.wikipedia.org/wiki/Spanish_flu#/media/File%3A1918_spanish_flu_waves.gif
Good interview Cory & Sean. Yes the business climate is changing, as is the consumer mindset, as referenced in your wing restaurant takeout story. Also 40 million Americans out of work is a pretty big change, and I read yesterday that 40% of those jobs have evaporated and are not coming back.
> What will all those people do now?
> Will their patterns of consumerism change? Think how many 2 income families just be came 1 income, or no income families living on unemployment.
> Are folks going to rush out to movie theaters, to get on airplanes, to cruise the islands, stay in hotels, eat out 4-5 times a weeks, or binge shop useless garbage at crowded shopping centers right away? Unlikely.
> The complacency and newfound euphoria once again in the general stock markets is divorced from economic reality and there are going to stores closing, consolidations of businesses, less choices, more delivery/pickup/dropship businesses, and less big events.
Even though this kind of several month lockdown on the vast majority of healty public was extreme and unnecessary, we have now entered a new economic order, and we have only begun to see the ripple effects show up.
When so many small business owners can’t reopen, losing their life savings, and they are forced to lay off even more people; then maybe the harsh reality will start to sink in. People will be downsizing their homes (putting pressure in the real estate markets), reducing consumer spending, reducing traveling, and the economy will contract.
Things are about to get very dicey, and in that instability, the Precious Metals, and real hard assets and resources, will start to have more value than bloated advertising tech companies, or overvalued service companies that are simply some form of dispatch service. In consideration of that new reality coming, then the companies that extract the raw materials out of the ground converted to something real like Copper wires, or steel cladding, or Nickel & Lithium in batteries, or monetary metals like Silver & Gold will do quite well.
Ever Upward!