Brien Lundin Commentary – Fri 2 Apr, 2021

What does the infrastructure bill mean for commodities?

Brien Lundin, Editor of the Gold Newsletter joins me on this Easter Friday to recap the infrastructure bill that was announced this week. We take the angle of how this bill could impact the future prices of commodities. Commodities have been running over the past few months so now we need to assess if more upside is possible. We also touch on the rebound in gold to start this month and quarter.

Click here to visit the Gold Newsletter website to learn more about what Brien is covering in the metals space.


Comments:
  1. On April 2, 2021 at 10:58 am,
    Dick Tracy says:

    Final list of 35 critical minerals deemed important for US national security.

    https://www.usgs.gov/news/interior-releases-2018-s-final-list-35-minerals-deemed-critical-us-national-security-and

  2. On April 2, 2021 at 11:32 am,
    Excelsior says:

    BMW Signs $335 Million Lithium Supply Deal

    Mining.com – April 1, 2021

    “Livent will supply lithium directly to BMW’s battery cell manufacturers beginning in 2022.”

    “BMW said March 30 the deal was part of its plans to accelerate its expansion of e-mobility in the coming years, which would increase the need for sustainable lithium supply for use in battery cells.”

    “By 2030, the automaker plans that at least half of its global sales will come from all-electric vehicles.”

    “BMW already has a €540 million ($636m) lithium supply deal with China’s Ganfeng Lithium, which was signed in December 2019 for the supply of sustainable lithium hydroxide from Australian hard-rock deposits.”

    https://www.mining.com/bmw-signs-335m-lithium-supply-deal/

  3. On April 2, 2021 at 12:02 pm,
    Charles says:

    An interesting take on the gold chart. Does anyone have any thoughts? The worst case scenario seems plausible although I could see the GDX and the miners trading sideways to down and outperforming gold as gold continues down more aggressively.

    https://www.gold-eagle.com/article/gold-price-forecast-where-will-gold-bottom

    • On April 2, 2021 at 12:18 pm,
      Excelsior says:

      Hi Charles. I like Christopher Aaron at iGold Advisors a great deal, and think he’s a savvy technician. I had posted a video where he outlines those 2 paths forward in the Gold price (bottoming soon with a new upleg to start) or the ‘terminating wedge” to the downside for the next few months, and posed a similar question to folks and offered some thoughts and nobody responded back.

      It seems like most technicians are in the bearish short-term camp of the terminating wedge to the downside over the next 3-6 months, but there are a few bulls that have noted we could have just seen a double bottom in the $1670’s, and be carving out a bottom to base from and then rally higher.

      If that latter is the case, then we should know in the next week or so whether we see higher prices start registering on the charts, or conversely it would be negated if the recent low at $1673 broke to the downside. We’ll know more by mid month.

      If the bottom is in then I’ve got plenty of positions on to benefit from a rally starting, but I’m more expecting to see the further downside pressure of Gold into the low $1600’s and Silver pulling down to $22 as many have covered over the last few weeks. If we so see that downside pressure in the PM sector for the next few months, then I’ll be looking to go bottom fishing in the quality names. If we don’t get any more downside pressure, then it would be much more enjoyable (and profitable) and the ride back up will be appreciated; but would catch many bulls and bears on the sidelines and chasing things higher. 😉

      • On April 2, 2021 at 12:35 pm,
        Charles says:

        Thanks Ex. Yes a definite crossroads. Royalty names in my portfolio seem to be firming, but nothing has really broken out yet so just sitting and watching and as such I have been fairly quiet. Hope you are well. I ready your article about capital teams and really liked it. Keep that stuff coming!

        • On April 2, 2021 at 1:04 pm,
          Excelsior says:

          Thanks Charles. Yes, I’ve been mostly holding steady myself, and did the lion’s share of my adding to companies in late Feb – mid March. If we get the dip down, I’ll add more, but we are just at an indecision point here until the sector signals a break one direction or the other. Wishing you good trading!

    • On April 2, 2021 at 12:48 pm,
      Matthew says:

      It plausible but not probable, in my opinion. I prefer to base such support lines on three significant lows but I still look at the two point approach.
      https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=4&mn=0&dy=0&id=p95814339142&a=932118912

      • On April 2, 2021 at 1:01 pm,
        Excelsior says:

        Good chart Matthew. Now it looks like that trendline has even a fourth point of contact where it pulled back recently.

        • On April 2, 2021 at 1:09 pm,
          Matthew says:

          I also think the steeper angle of my line makes more sense at this time for the ascent of this young bull market.
          I’m glad the wall of worry is so strong!

    • On April 2, 2021 at 1:01 pm,
      Matthew says:

      While gold came all the back to its low of one month ago, look what NEM did relative to its low of one month ago:
      https://stockcharts.com/h-sc/ui?s=NEM&p=D&yr=1&mn=0&dy=0&id=p55072175763&a=906910084

      • On April 2, 2021 at 1:04 pm,
        Matthew says:

        Even GDX:
        https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=1&mn=0&dy=0&id=p70507978584&a=827705343

        The miners are not telegraphing lower gold as they so often do.

        • On April 2, 2021 at 1:33 pm,
          Holy Grail says:

          AU👉BULL ▶️ I win

          BEAR ▶️I win buying more mining co’s at fire sales prices with both hands🆗

          ✓Win Win

        • On April 2, 2021 at 6:28 pm,
          confused says:

          Matt,
          that is an interesting chart as well as the others you posted here. Man this is tricky!!!
          Thanks for putting up the bullish case…..it seems most 80%++ are in the bear camp now and hopefully that will shock us all when the “reverse-consensus move” takes hold. Fingers crossed!

      • On April 2, 2021 at 1:06 pm,
        Matthew says:

        NEM:Gold is quite strong and broke out of its 42 week consolidation 3 weeks ago:
        https://stockcharts.com/h-sc/ui?s=NEM%3A%24GOLD&p=W&yr=4&mn=0&dy=0&id=p61331228705&a=932139424

        • On April 2, 2021 at 2:12 pm,
          Charles says:

          Nice chart Matthew!

  4. On April 2, 2021 at 3:29 pm,
    Wolfster says:
  5. On April 2, 2021 at 3:43 pm,
    Wolfster says:

    And while we are talking EV commodities when will people recognize uranium the only possible solution to the future power needs. Uranium is now over $30…..

    • On April 2, 2021 at 8:35 pm,
      Excelsior says:

      +30 Wolfster. Agreed about Uranium being an integral part of the energy mix of the future, in tandem with solar, wind, geothermal, and nat gas plants.

  6. On April 2, 2021 at 3:59 pm,
    Glenfidish says:

    I just hope when we do head down as me and doc have stated we get the same respect as other lol.. clear bias

    Glen

    • On April 2, 2021 at 4:40 pm,
      OOTB Jerry says:

      Hang in there Glen……all is good..

    • On April 2, 2021 at 4:48 pm,
      Matthew says:

      And if it takes off from here, what should people say about the fact that you implored them NOT to buy on the day of the low?
      In case you want make the claim (again) that my buying before the final low is the same, it isn’t. I share my opinions and my actions as well as possibilities, bullish and bearish, but never tell anyone to do anything.

      • On April 2, 2021 at 6:31 pm,
        Glenfidish says:

        Fair enough Matt.. You have way more followers and respect them me. So plenty is riding on your calls.

        I do respect you and I hope you respect me equally 🙂

      • On April 3, 2021 at 5:03 am,
        OOTB Jerry says:

        Hang in there both you guys………..You two are GREAT…..Main thing…….GOLD IS GOING UP in the FUTURE…..and that is almost a 99.0% guarantee…. of course we may not be around to see it…. 🙂

    • On April 3, 2021 at 7:15 am,
      David says:

      Because there is not agreement, in view of manipulation and lack of regulation, investors have to be prepared for everything. We are talking about the future. All opinions welcome and respected. Reality will be the key.

      • On April 4, 2021 at 7:15 pm,
        Dick Tracy says:

        Donald Trump went from Reality TV to The White House. Reality is like going over Niagara Falls in a wooden barrel and living. You said, all opinions welcome so I decided to oblige. DT

  7. On April 2, 2021 at 9:33 pm,
    Buzz says:

    I think gold is perking up because the market sniffs out problems with Obiden. Only 5 % of infrastructure bill slated to go toward infrastructure. Things that make you go hmmmm.