Gold Stocks vs S&P and comments on investing in Uranium Stocks

Sean Brodrick joins me today to share a chart he posted that outlines the overall performance of gold stocks compared to the S&P and equal weight S&P – you can see this chart below. We also compare gold stocks to the underlying gold price. We then move to the uranium sector and the factors driving the move higher.


Comments:
  1. On July 15, 2020 at 1:33 pm,
    Excelsior says:

    Silver finally made it over last year’s peak of $19.75 today, closing up to $19.76 and then moving up to $19.83 in after hours trading!

    Next resistance at the 2016 high of $21.23. Does Silver have the juice to make it there on this move, or will it need to rest and consolidate first before charging higher?

    Regardless, technical progress was made on the chart today. I’d still like to see Silver close up above $19.75 on the weekly chart as well, to anchor the move higher.

    Cheers!

    https://www.tvovermind.com/wp-content/uploads/2017/04/great_gatsby.jpg

    • On July 15, 2020 at 9:02 pm,
      Excelsior says:

      Cory & Sean great interview touching on Gold & Silver miners as well as the Uranium miners. Sean was spot on regarding both sectors.

  2. On July 15, 2020 at 2:18 pm,
    cfs says:

    OFF TOPIC:

    Here is the reference paper on the new Moderna Covid-19 mnRNA Vaccine:
    https://www.nejm.org/doi/full/10.1056/NEJMoa2022483?query=featured_home

  3. On July 15, 2020 at 2:22 pm,
    Matthew says:
    • On July 15, 2020 at 2:35 pm,
      Dick Tracy says:

      Eric Sprott announces holdings in Freegold Ventures, If all is approved he will have almost 61 million shares and slightly more than 28 million warrants. Well done Eric, The Sprott effect should keep Freegold sizzling along until the drilling results come out. Rumor is the drilling results won’t be released until just before Freegold’s AGM, on September 15th. DT
      https://web.tmxmoney.com/article.php?newsid=8456087250276214&qm_symbol=FVL

      • On July 15, 2020 at 2:58 pm,
        Excelsior says:

        DT – you see Vizsal is getting more aggressive with their drilling?

        (VZLA) (VIZSF) Vizsla Adds Third Drill Rig and Increases Exploration Program at Panuco Silver Project, Mexico

        by @newswire on 15 Jul 2020

        https://ceo.ca/@newswire/vizsla-adds-third-drill-rig-and-increases-exploration

        • On July 15, 2020 at 3:01 pm,
          Excelsior says:

          That’s off the back of recent Sprott inflows of capital into VZLA.

          • On July 15, 2020 at 4:35 pm,
            Dick Tracy says:

            Hi Ex, VZLA was one of your stock picks over at ceo.ca, what other stocks did you select for the stock picking contest, I am curious. DT

          • On July 15, 2020 at 4:41 pm,
            Dick Tracy says:

            Ex, even if a company doesn’t need Eric’s money, I don’t think it would be too wise to turn him down, and by the way I’m glad he is financing all these juniors, or we could see a lot more Asian countries putting in bids at fire sale prices. DT

          • On July 15, 2020 at 4:53 pm,
            OOTB Jerry says:

            DT…..good thought,

          • On July 15, 2020 at 5:55 pm,
            Dick Tracy says:

            Hi Jerry, now is the time to be in the metals section, it may never be like this again in our lifetime. DT

          • On July 15, 2020 at 7:16 pm,
            OOTB Jerry says:

            DT……..I agree 100%…….that is why , I am here on a daily basis……

          • On July 15, 2020 at 8:33 pm,
            Excelsior says:

            Hi DT. Yes agreed, if Uncle Eric has funds to up his stake in a company, it is wise to accept. He is single-handedly back stopping about 60 companies.

            There are 2 different contests running over at ceo.ca run by my buddy @EvenPrime. There are about 1400 investors in each one.

            For the annual contest Jan-Dec 2020 my picks are IPT ImpactSilver, SCZ Santacruz Silver, and DV Dolly Varden.

            For the summer contest July – Sept my picks are VZLA Vizsla Resources, TV Trevali, PRG Precipitate Gold.

            We’ll see how it goes… it’s all for fun anyway, as the timelines are arbitrary & fixed, and in real life each stock is individually managed, and investors may buy or sell the stocks multiple times over those time frames, or in most cases people already initiated a position before the contests even started.

  4. On July 15, 2020 at 2:26 pm,
    Matthew says:

    It looks like the Canadian dollar will move above its June 10th high very soon…
    https://stockcharts.com/h-sc/ui?s=%24CDW&p=D&yr=1&mn=8&dy=0&id=p96486120314&a=569434196

    • On July 15, 2020 at 9:37 pm,
      buzz says:

      Any body looking at Outback Gold? MRDDF, Sprott has his fingers in there too

  5. On July 15, 2020 at 6:06 pm,
    Dick Tracy says:

    Cardinal gets competing take over offer from Nord Gold SE, at 66 cents per share. DT
    https://web.tmxmoney.com/article.php?newsid=4776454492961487&qm_symbol=CDV

    • On July 15, 2020 at 8:38 pm,
      Excelsior says:

      That is interesting DT. I wrote on here 2 different times about a month or 2 back that I felt Nordgold would make an offer to take over Cardinal Resources, and now here is their offer. It is interesting to see yet another bidding war in the gold sector during a takeover process.

      • On July 15, 2020 at 8:43 pm,
        Excelsior says:

        As mentioned yesterday there was also the news about Coenerstone Capital rejecting the takeover offer by SolGold in Ecuador.

        The M&A is heating up in the PM sector in 2020.

        • On July 15, 2020 at 10:41 pm,
          Excelsior says:

          Coenerstone = Cornerstone

  6. On July 15, 2020 at 10:41 pm,
    Excelsior says:

    Silver Price Update + Breakout in Progress

    iGold Advisor – Christopher Aaron – July 15, 2020 #VIDEO #TechnicalAnalysis

    https://youtu.be/8t2HcK3MAJg

  7. On July 16, 2020 at 2:14 am,
    Excelsior says:

    Eric Sprott Talks About A $110 Silver Price

    Arcadia Economics – July 13, 2020 #VIDEO

    “Eric Sprott is one of the most successful investors in the world, so it often can be quite profitable to listen to what he’s saying. And in a recent interview, he talked about why he saw a $110 #silver price as a realistic possibility.”

    “To be clear, he did not say that is guaranteed to happen tomorrow or next month. But I still think you would find his comments rather interesting…”

    https://youtu.be/Fi5d3PycKNY

  8. On July 16, 2020 at 5:38 am,
    Charles says:

    I hope he is right since I am overweight silver stocks.

    • On July 16, 2020 at 5:56 am,
      Excelsior says:

      Same here Charles. The rationale used was that in the last metals cycle Silver went up 10 fold from $5 to $50, so this time it could go from $11 to $110.

      Personally I’ll be thrilled with the action in Silver miners if the underlying metals price just gets into the mid $20’s. 🤑

      …and if Silver can get into the $30’s in 1-2 years then the moves in the miners will be mind-blowing 🤯🤯🤯

  9. On July 16, 2020 at 6:18 am,
    Excelsior says:

    (KTN) (KOOYF) Kootenay Reports High Grade Silver Intercepts Including 601 gpt Over 1.23 Meters Within 279 gpt Over 4.08 Meters & 753 gpt Over 0.95 Meters Within 620 gpt Over 2 Meters at Columba Project, Mexico

    by @newswire on 16 Jul 2020

    https://ceo.ca/@newswire/kootenay-reports-high-grade-silver-intercepts-including

    • On July 16, 2020 at 8:44 am,
      Wolfster says:

      Not liking the stocks trading after latest results released. ☹️

    • On July 16, 2020 at 8:48 am,
      Wolfster says:

      Don’t see my post that got the dreaded awaiting moderation so I’ll say again that I’m not liking how Kootenay is trading after release of results. ☹️

      • On July 16, 2020 at 9:13 am,
        Matthew says:

        Wolfster, the 180 million ounces of low grade silver will take care of everything when silver goes into the 20s while the potential at the high-grade Columba project is a nice bonus. For now, KTN is still digesting the double that happened in 2 weeks in May.

        Drill holes have to be good beyond the understanding of the average speculator to have a real and lasting impact. Most action that appears to be news-driven is technically preordained.
        Run-of-the-mill “good” news has no power to buck a trend. If the following news releases had happened in an uptrend, most would insist that they caused the uptrend:
        https://stockcharts.com/h-sc/ui?s=BBB.V&p=D&st=2015-11-03&en=2017-03-04&id=p48562715783&a=738479055

        • On July 16, 2020 at 9:23 am,
          Excelsior says:

          Yeah, I agree on Kootenay’s lower grade deposits having great optionality to rising silver prices and was writing that below when you were posting this above. KTN will get rerated much higher from here.

          As for those Brixton drill results, they were posted in a bear market, and good news often gets sold during corrective legs. They had spent the lion’s share of 2016 getting more focused on Langis/Hudson Bay and Silver, so rotating back to Thorn and Gold in 2017 and buying Atlin and Hog heaven without clarifying their plan, wasn’t winning them any points with investors at that time.

          • On July 16, 2020 at 9:30 am,
            Excelsior says:

            correction: not a “bear market,” but rather a “bearish consolidation” of the 2016 surge.

          • On July 16, 2020 at 9:33 am,
            Excelsior says:

            The drilling results at Hog Heaven have been solid thus far and has put a bit of life back in Brixton, in concert with the rising Silver & Gold prices, and they still have another round to announce from H.H., and then they shift back over to the drilling at Thorn for August-Sept. If those are good, or if they announce they finally have attracted a larger strategic partner on one of their projects, then that news will absolutely move the needle.

          • On July 16, 2020 at 9:39 am,
            Excelsior says:

            @nasdaq – Brixton Metals Drills 13.9m of 435 g/t Ag, 0.96 g/t Au in Hole #1 and 7.7m of 492 g/t Ag, 2.1 g/t Au in Hole #3 at its Hog Heaven Project $BBB $BBBXF #news/mining 10 from #newsroom, 14 Jul 2020, 07:00

            @triggerinside To me, the holes looks very solid, broadly mineralized from surface with very high grade sweetener zones. I like the three holes released so far!
            – 7 14 Jul 2020, 07:19

            @Nordico Great results! Looks promising
            -7 14 Jul 2020, 07:25

            @Pazzy Good results indeed!
            – 14 Jul 2020, 07:27

            @theJuniorExplorer nice results
            – 14 Jul 2020, 07:34

            @raptors87 Surprised that it going down on these good drill results 3 14 Jul 2020

            @RocksOn1111 These are good results! Let the sellers get out I wanted a bigger position anyways.
            – 14 Jul 2020, 09:26

            @Pazzy same – it is a good opportunity to add.
            – 14 July 2020, 10:37

            @drezinho – Shallower oxides with higher grade is good. Not perfectly distributed gold but not smeared either.
            – 14 Jul 2020, 11:23

            @drezinho Generally about 1gpt+ AuEq over long intervals.
            -14 Jul 2020, 11:25

            @eixlberger Nice results for open pit mine !! HH-1 from 1,83-153,92..152m 88gr. Ag incl. 59m a 6 Oz.Ag !!!
            HH-3 from 2,13-145,90 ….143m 77gr.Ag + Au!!
            bulk tonnage project!!
            drilling,drilling,drilling…..
            – 14 Jul 2020, 14:56

            @eixlberger HH-01 is 100m from HH-02 to the nort,
            HH-03 100m N-NW from HH-02….next hole HH-4 (ca.400-450m from HH-2) will show how far the mineralization is to the north,and hole HH-5 and HH-7 the mineralisation in the wide!
            – 14 Jul 2020, 15:27

            http://cdn.ceo.ca/1fgs499-Fig-1-July-7.jpg

          • On July 16, 2020 at 10:03 am,
            Matthew says:

            Like I said, most will insist that the news caused the uptrend.

            The 7/7 and 7/14 drill news came after BBB hit .275 which was clearly on its way due to the preceding impulse leg.
            https://stockcharts.com/h-sc/ui?s=BBB.V&p=W&yr=4&mn=11&dy=0&id=p82539958530&a=784535601

            The number one driver of these juniors by far is the underlying trend. That much is crystal clear.

          • On July 16, 2020 at 10:17 am,
            Excelsior says:

            They are complimentary factors, but the drill results are bringing in new buyers to the BBB story, and into many of the drill plays across the board. That is why there is buying showing up that translates to volume and closing prices on the charts in the first place. If they were putting out dusters in this rising metals prices environment, like other companies have done recently, then their share prices would have have tanked regardless of the preceding technical set up. That much is also clear.

          • On July 16, 2020 at 10:29 am,
            Matthew says:

            Re: “That is why there is buying showing up that translates to volume and closing prices on the charts in the first place.”
            — — —
            You “know” that the way you “know” that you are “one of the few here who looks at my charts.” In other words, you don’t.
            Have you ever studied the volume that comes with big moves and no news? You really should know by now that more investors buy because price is rising than any other reason.

            Re: “If they were putting out dusters in this rising metals prices environment, like other companies have done recently, then their share prices would have have tanked regardless of the preceding technical set up.”

            Sorry but that is absolute nonsense and my experience proves it. Why do you think I’ve engaged you on your assumptions in the first place?

          • On July 16, 2020 at 10:48 am,
            Excelsior says:

            Yes Matthew buying begets buying, and they have some resources at Hog Heaven that are getting rated higher with the rising metals prices, but they also put out holes from Langis/Hudson bay earlier this year, and in 2016, they didn’t have any significant ounces (and didn’t even own Hog Heaven until 2017) so what moved them higher was the news of acquiring Langis/Hudson Bay then, as it sure as hell wasn’t the work at Thorn that propelled them so much higher back then on that epic run (where they crushed many Silver companies with superior ounces in the ground that should have been rated up even higher based on your flawed logic). No it isn’t just about ounces in the ground getting rated higher when stocks go on moves like that from widely followed news.

            No Matthew, that statement is not nonsense, and my experience proves it as much as your experience. You aren’t the only one that’s had success investing in mining stocks, and the vast majority of resource investors in Jr drill plays are following the news, not just pouring over the technical charts.

            “If they were putting out dusters in this rising metals prices environment, like other companies have done recently, then their share prices would have have tanked regardless of the preceding technical set up.” Bingo!

            If they had put out shitty drill results, it would have swamped the technical set up, but we knew they weren’t going to as they were drilling into known historic mineralization to showcase to the marketplace what they have at Hog Heaven as per Gary’s own words. If they were truly doing blind greenfields discovery and hit drill holes like that then they’d have had moves more like what we’ve seen at Vizsla resources lately.

            Again, Vizsla is a great example of how the drill holes on June 24th and last week completely spiked the valuation up hundreds of percent, and it was on the drill news, and not predicted in the technicals no matter how much you’d blather on that they were. The drill news is what moved VZLA and then from here, now TA will take back over with those closing prices on the charts to recalibrate. This true of dozens of other drill plays that suddenly shoot up out of nowhere on the charts, due to epic drill holes, or crashes in companies share price out of nowhere when they put out bad drill holes. This is common sense, and you desire to constantly turn a blind eye to the newsflow in Jr miners is as startlingly myopic as it is wrong. Yes, the technical set up and charts matter, but so does substantive fundamental news.

          • On July 16, 2020 at 11:23 am,
            Matthew says:

            Re: “…the vast majority of resource investors in Jr drill plays are following the news, not just pouring over the technical charts.”

            You are correct and the fact that you thought that was worth pointing out jibes perfectly with your misunderstanding of how the market functions.

          • On July 16, 2020 at 11:52 am,
            Excelsior says:

            OK Matthew. So once again, you are the judge of how markets work, and yet I don’t understand where the demand is coming from in the market = drill news. What a hilarious and condescending opinion for you to hold, but it’s a free country and can think whatever you want.

            You don’t have all the answers or the only clear understanding of what makes a market Matthew. The closing prices on any chart merely reflect the prices of those investors that felt compelled to buy it (mostly for fundamental reasons). Especially in the Jr exploration plays, investors are piling into discovery stores for their newsflow and fundamental data, and that IS what is moving the markets. On more established producers, the quarterly operations reports, guidance, acquisitions, revenues & cashflows & balance sheet come into play by every analyst that follows them, but individual news stories have less weight in a larger company like that, so TA is more applicable. Some of the drill plays in contrast hardly have any volume at all until they hit paydirt, and then folks come flooding in.

            Again, look at what just played out in Vizsla last week. That was the freaking market and it was 100% based on drilling news, and a move that extreme was not predicted by any technical analysis, no matter how you may twist you mind to think so.

          • On July 16, 2020 at 12:36 pm,
            Matthew says:

            Back at you. Once again, you think all opinions are equally legitimate. They’re not.

            Have a good day.

          • On July 16, 2020 at 1:02 pm,
            Wolfster says:

            Well somewhere within all those posts I’ll slip in my thank you to the both of you for input. I wasn’t disappointed that it didn’t pop on the news I was just concerned with what to me looked like weakness but as the day wore on it looks more like .34 is the consolidation point perhaps. Time will tell

          • On July 16, 2020 at 7:15 pm,
            Matthew says:

            Wolfster, I think KTN is likely to see .50+ for the move that is starting now or very soon…
            https://stockcharts.com/h-sc/ui?s=KTN.V&p=D&yr=1&mn=2&dy=0&id=p94089804168&a=779067434

      • On July 16, 2020 at 9:18 am,
        Excelsior says:

        Yeah, KTN is trading flat on the day post results, and I would have expected a bit more of a pop, especially considering the higher Silver pricing lately, but they have more results coming in over the next few weeks, and sometimes it takes folks marinating on the results for a day or 2 before the volume comes in.

        While they are medium to higher grade results, they are very narrow intercepts, so if they can put together those grades at 2-4 times the length of the intercepts, then that may get the markets more interested.

        KTN still has their lower grade optionality projects as well, and if Silver does get back up into the low $20s again later this year and going into next year, then those projects will provide a lot of leverage to rising prices, so I’m hanging onto my Kootenay Silver position for long game.

  10. On July 16, 2020 at 6:26 am,
    Excelsior says:

    (TML) (TSRMF) Treasury Metals and (PTX) Platinex Inc. Complete Consolidation of Mining Properties in Shining Tree District, Ontario

    by @newswire on 16 Jul 2020

    “In consideration for acquiring the Mining Claims and the Royalties, Platinex issued to Treasury 12,500,000 common shares of Platinex and 5,000,000 non-transferable common share purchase warrants of Platinex.”

    Mr. Greg Ferron, Treasury Metals Inc.’s CEO, stated that, “The consolidation of the two Shining Tree properties provides multiple benefits to both parties and gives Treasury’s shareholders a toehold equity position in another exciting gold district in Ontario. We look forward to the exploration results and the significant wealth of knowledge Jim and his team have of this highly prospective exploration camp. The recent acquisition of the neighboring Juby gold deposit by Caldas Gold demonstrates the increased activity in the district.”

    https://ceo.ca/@newswire/treasury-metals-and-platinex-inc-complete-consolidation