Minimize

Welcome!

What the recent Fed statement means for precious metals and markets in the big picture

Cory
December 17, 2020

Dave Erfle, Founder of the Junior Miner Junky joins me to recap the Fed statement from yesterday and relate the comments made by Jerome Powell to the outlook for gold and silver. I take the other side of the coin and ask since everyone seems to be thinking the same thing does that mean the market and Fed will disappoint to the contrary.

Click here to visit Dave’s site and keep up to date on his newsletter.

Discussion
40 Comments
    Dec 17, 2020 17:22 AM

    David during this next run in metals do you see silver reaching $50, and Gdx reaching $50??
    Thanks

      Dec 17, 2020 17:07 PM

      Hello Paul,

      $50 GDX & $35 silver minimum and could possibly hit $50 before the next meaningful correction. Best of luck.

    Dec 17, 2020 17:24 AM

    Bitcon …..a can of fresh air…….lol
    https://www.zerohedge.com/crypto/one-bitcoin-skeptic-speaks-out-persuading-people-buy-fresh-air-can
    Somebody very clever suggested if you made anything scarce, no matter how intangible, then it has a value. Someone very smart called it Bitcoin and persuaded people to buy fresh air in a can.

      Dec 17, 2020 17:06 PM

      Yes, scarcity is one factor that drives asset prices like in rare coins (which are just small hunks of metal), baseball cards (which is cardboard with a face printed on it), rare art (which is nothing more than a canvas with paint smeared on it), rare cars (hunks of metal with rubber tires), and on and on…

      OOTB – I’m going all in on the can’s of fresh air. Great tip sir! 🙂

      >> Perri-Air (Spaceballs had it right decades ago)

      https://youtu.be/Lz0xULQIaSU

    Dec 17, 2020 17:25 AM

    Silver needs to break $49…….just to fill the cup……long term cycle chart should show that……cup and handle then starts…….just like gold did…..

    Dec 17, 2020 17:26 AM

    David one more question, when do you see stagflation or hyperinflation causing gold to really go parabolic, 2023to 2025??

      Dec 17, 2020 17:09 PM

      Very possible, yes. But hyperinflation is less likely.

    Dec 17, 2020 17:28 AM

    Cory: When everyone is thinking the same thing…….nobody’s thinking! So…..you may be right. I’m thinking that if the Dems take the Georgia Senate seats, we could see a temporary trading bump in PMs. That is if it doesn’t take them a week to count the vote.

      Dec 17, 2020 17:43 AM

      SD, they take Georgia & will be mucho more than a temporary bump!

    Dec 17, 2020 17:30 AM

    Politically…………2023 ….three years……humm…..I doubt the sheeple are going to be quite that long…..Unrest has started in California today……
    another 800,000 people hit the unemployment line…..humm….
    Zero rates on interest……humm.
    And the Fed is buying everything……

    Dec 17, 2020 17:00 AM

    Bumper crop day for juniors

      Dec 17, 2020 17:55 AM

      You can say that again. Holy smokes! My portfolio is screaming to all time highs, and the miners have continued to climb higher.

      Looks like the seasonal run out of tax loss selling in November to early December, and heading into the Q1 run (Jan/Feb/early March) is well under way once again.

      If I’d have been following the markets closer I’d have added more in November during that sell-down, but I did make a few trades as I was driving the RV across the country whenever I’d come back into phone range again. I also added to a few Gold & Silver stock positions the last 2 weeks that have continued to advance since then.

      It should also be noted that Uranium, Platinum/Palladium, and Lithium stocks have been on the move again the last 2-3 months and have really done quite well.

      Ever Upward!

        Dec 17, 2020 17:49 PM

        Thx Ex, I bought the selloff in Silver Tiger Metals which roared

          Dec 17, 2020 17:05 PM

          Nicely done. I added more Silver Tiger earlier this week and was happy to see the stock start to appreciate even the last few days. I’m encouraged at where Silver and the Silver miners may head in 2021 and 2022, so for most of my positions they are in hold abd accumulate mode. Cheers!

            Dec 17, 2020 17:56 PM

            Another Silver stock that has been on the move and grown into one of my largest positions lately is Santacruz Silver. I believe it is just starting to stretch it’s legs here, and the recent news on extending the mine lease at Zimapan was quite constructive to the longer term picture.

            _______________________________________________________________

            (SCZ) (SZSMF) Santacruz Silver Reaches Agreement to Extend Zimapan Mine Lease and Updates Status of Zimapan Mine Acquisition

            15 Dec 2020

            https://ceo.ca/@newsfile/santacruz-silver-reaches-agreement-to-extend-zimapan

            Dec 18, 2020 18:54 AM

            Ex, I’m glad you like Santacruz Silver Mining, that makes a few of us here and if we could get Eric Sprott on board it would be like The Marx Bros. in “A Day At The Races.” LOL! DT

            Dec 18, 2020 18:50 AM

            Yes DT, good plan on getting Eric Sprott on board. Santacruz is one of the few small Silver producers he isn’t involved with, but personally I see their market cap being able to grow more (on a percentage basis) than most of the more established producers, and have been a fan for some time. Last year when the metals started to really surge in 2019, Santacruz shot up 250-300% at one point, outperforming the rest of it’s producing peers, but I feel the real fireworks are in front of us for the next 2 years in 2021/2022 when they have all 3 of their mines firing on all cylinders, after having spent the last few years selling off non-core assets to reduce debt, improving the mining sequence, and optimizing the processing to bring down costs. It is a Silver stock I am very comfortable holding throughout the PM bull market for sure.

            Bring on the “Day at the Races…” haha!

    Dec 17, 2020 17:16 AM

    GSR is today 72.7 in the 2 on hour, est

    Dec 17, 2020 17:18 AM

    On December 17, 2020 at 6:34 am,
    OOTB Jerry says:
    GSR……………at 73……going into the 60’s soon…..
    Gold…….needs $33 .. to fill the cup “of Old”…$1923….
    backing and tracing game almost over…..Oh heck, just Fill Up the Cup…..lol

    Dec 17, 2020 17:15 PM

    Lin Wood (@LLinWood)

    In discussing @realDonaldTrump in phone conversation in 8/19, Justice John Roberts stated that he would make sure “the mother f#*ker would never be re-elected.”

    Roberts engaged in phone conversations with Justice Stephen Breyer discussing how to work to get Trump voted out.

    Twitter•Today at 1:25 PM https://twitter.com/LLinWood/status/1339637980927991808

    Dec 17, 2020 17:42 PM

    Metals/Miners Shifting Gears – Are You Ready for What’s Next? – Part I

    Chris Vermeulen – The Technical Traders – 12/17/2020

    https://www.thetechnicaltraders.com/metals-miners-shifting-gears-are-you-ready-for-whats-next-part-i/

      Dec 17, 2020 17:54 PM

      Very encouraging.

    Dec 17, 2020 17:07 PM

    (NVO) (NSRPF) Novo Receives Conditional Approval to Graduate to the Toronto Stock Exchange

    by @nasdaq on 17 Dec 2020

    https://ceo.ca/@nasdaq/novo-receives-conditional-approval-to-graduate-to-the

    b
    Dec 17, 2020 17:13 PM

    If Kirby is right, bitcoin really could go thru the roof.

    https://youtu.be/CuTynu24jss

    He is saying it is being used for international trade.

    Sounds logical, the americans have really been abusive. (to say the least)

    It works as a work around the sanctions.

      Dec 17, 2020 17:56 PM

      I can’t help but feel that JP Morgan has a plan we wouldn’t like.

      Dec 17, 2020 17:54 PM

      Largest U.S. cryptocurrency exchange Coinbase files for IPO as bitcoin soars past $23,000

      Dec 17 2020 – Pippa Stevens

      “Digital currency exchange Coinbase is going public as renewed investor interest in cryptocurrencies has pushed bitcoin to an all-time high.”

      “On Thursday the company announced that it has confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission. The form is expected to go into effect after the SEC completes its review process.”

      https://www.cnbc.com/2020/12/17/largest-us-cryptocurrency-exchange-coinbase-files-for-ipo-as-bitcoin-soars-past-23000.html

        Dec 17, 2020 17:59 PM

        Pomp Podcast #436: Dan Tapiero on Gold and Bitcoin

        Anthony Pompliano #AudioInterview

        “This is an episode of The Pomp Podcast with host Anthony “Pomp” Pompliano and guest, Dan Tapiero. Dan is one of the most well-known macro investors in the world with 25 years of experience investing across asset classes on Wall Street.”

        “In this conversation, Dan and Anthony discuss the gold thesis, the bitcoin thesis, the recent divergence, whether they will co-exist in the future, how to think of an ideal allocation to either, and stock-to-flow models.”

        https://youtu.be/UTR8HfdvbRc

          Dec 18, 2020 18:24 AM

          It is interesting to note that the US Dollar is now down plumbing 89.90.

          For those that were expecting a dollar milkshake rally in 2020, it isn’t looking to constructive for that thesis. Granted the Dollar bear trade is getting lopsided with everyone on that side of the trade, so a relief rally may be coming, but King Dollar has continued to be weak most of this year.

          The dollar weakness is spiking the punchbowl on commodities and energy.

          Look at Copper up to $3.63
          Zinc up to $1.30
          Most of the soft commodities Corn, Wheat, Sugar, Coffee, Soybeans, etc… have been heading up in Q4 of this rollercoaster year.

            Dec 18, 2020 18:23 AM

            Good note on the commodities…….my corn came back to life, this year, received a nice check from the farm…. 🙂

    Dec 17, 2020 17:20 PM

    Take a deep breath Cory. Breathe deeply and think positive thoughts. Hold you breath for 20 seconds, then exhale through your nose. Repeat 5 times.

    BDC
    Dec 18, 2020 18:40 AM

    Gold: https://postimg.cc/K4pzcvZx
    Broke 27.2%, nearly up to 38.2%.
    First leg of “three drives to the top”?

    Dec 18, 2020 18:01 AM

    Still alternating days. Yesterday’s gains are this morning losses. I guess the only thing that makes PMs go is stimulus. Let’s just ban all computers and see how Wall Street handles things.

      Dec 18, 2020 18:17 PM

      Todays take back within a few dollars of yesterdays positive day.
      Summation: Bah Humbug and the sleigh they rode in on!