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What to make of this tough market for gold stocks

Erik Wetterling, Founder of The Hedgeless Horseman joins us to discuss his portfolio strategy for gold stocks. It’s a tough market right now for gold investors but you can also make the argument that stocks are cheap right now.

Click here to visit Erik’s site – The Hedgeless Horseman.

Discussion
79 Comments
    Jul 08, 2021 08:13 AM

    Eric is quite entertaining and a valued guest .

      Jul 08, 2021 08:50 PM

      +1

      It is great to have The Hedgeless Horseman coming on the show and sharing his insights with the KER crew.

      Jul 08, 2021 08:07 PM

      Glad to hear, thank you Marty!

      Best regards,
      Erik

    Jul 08, 2021 08:16 AM
      Jul 08, 2021 08:50 PM

      Saw that one at zerohedge,, and thought that was interesting……..

    Jul 08, 2021 08:22 AM

    Still 8.5% in cash. Stink bids in on NFGFF, NOVRF, GSVRF, SLVTF

      Jul 08, 2021 08:24 PM

      I added some more Guanajuato Silver today into the weakness, out of the ones you mentioned there.

        Jul 08, 2021 08:32 PM

        I’m actually thrilled to be getting positioned in GSVR at these levels, because I missed the big move higher when the company was called Vangold, and was worried it would just keep going up, up, and away….

        I actually want to add one more solid tranche in Guanajuato and if it would pull back another 15%-20% then I’d load the boat one more time.

          Jul 08, 2021 08:36 PM

          KUYA Kuya Silver is another one that has been beaten up lately, partially on the Peru jurisdiction, and partially in sympathy with other mining stocks, so I topped it up today as well. It’s in a somewhat similar stage as Vizsla in that it has the mill in place, but not quite as advanced at Guanajuato Silver moving towards production on Endeavour Silver’s old mine. Speaking of Endeavour Silver, I through a few funds at EXK today as well.

        Jul 08, 2021 08:35 PM

        Talked to the CEO – GSVRF for the 2nd time this morning., Good presentation on June 21.
        My ELRRF STINK BID – $2.75

      Jul 10, 2021 10:23 AM

      Love these interviews. He kept the streak going of saying shitty, shittiest, shat, or some other derivative of the word 🚽. LOL. Go ENDR!

    Jul 08, 2021 08:25 AM

    Today’s action does look like “price management” by someone. Either way, it came just in time to prevent the daily MACD buy signal for GDX (which could still happen if it strengthens into the close)…
    https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=0&mn=5&dy=11&id=p86101466748

    Jul 08, 2021 08:46 AM

    Volume is way below average in all my tiny caps which is a good sign considering how bearish sentiment has become. Yes, the day is not over but volume is very light and unlikely to approach the average. For example, BBB is at one-sixth its average while IPT is well under half.
    HMY has already passed its daily average but not by much. It could make a new low tomorrow without causing a problem as long as it closes at 3.58 or higher.
    https://stockcharts.com/h-sc/ui?s=HMY&p=D&yr=1&mn=1&dy=0&id=p30602196828&a=985516989

      b
      Jul 08, 2021 08:48 PM

      I think Glen predicted ipt to hit .50, looks to me he could be right.
      Its down again today.

        Jul 08, 2021 08:56 PM

        He said .46 – .48 but yes, it’s possible. When the buyers leave the weak (dumb) players to themselves, any price is possible (and we know it’s such players painting the tape based on the light volume).

          Jul 08, 2021 08:28 PM

          IPT closed at $.60 today, but I’ve been sitting on my hands waiting for something in the mid $.50s to add any more. If IPT gets down to Glen’s target at $.46-$.48 then I’ll add a bit more there as well, but would have to pull money from deep savings to do so.

          Jul 08, 2021 08:52 PM

          There you go again Matthew, making disparaging remarks about your fellow investors. Instead of bracketing the word (dumb), why not just eliminate it entirely?

          Jul 08, 2021 08:00 PM

          +1

          People just need not to sell they have to flip the switch sooner or later.

            Jul 08, 2021 08:02 PM

            +1 was meant at Matthew for weak hands selling. Folks I have said repeatedly hold the Fort don’t fall virgin to this makes shorting loop hole they have. When it turns you will see how fast they cover imo

            Can I say pyramid lol

            Jul 08, 2021 08:07 PM

            On a different note a friend investor of mine sent me a memo. China apparently passes a law regarding 50% solar panel by not sure when. Can anyone confirm this? I remember driving up North on a trip with the wife and kid. 2008 personally seeing some of the first power wind grids and seeing also few farms some of the first with solar panels in there green house. First things I said was every home/house will require solar in exchange for shingles.

            If this memo holds truth which I believe it does, silver which is required for solar panels is going to make $50 bucks look ridiculously cheap. But when is the question?

            Glen

        Jul 08, 2021 08:59 PM

        B

        Yes I did but make no mistake I want this shit over with. There taking it down but this has to stop sooner or later really starting to feel like Capitulation

        If it does get there or close and gold/silver hold I place it as a good chance we hold that double bottom.

        For most of words I turned computer off today one of those days.. red cab but not the finest 🙁

          Jul 08, 2021 08:06 PM

          I switched to red cranberry juice… .. LOL….. 🙂

            Jul 08, 2021 08:11 PM

            Jerry,

            Let me say this from all honesty, it’s by far the better choice, more tastier and way healthier more so if you want to cleanse a urinaryvteavt infection or gall bladder lol..

            Cranberry all day but only a farmers punch! Whig means organic and Easter else there is

            🙂

            Jul 09, 2021 09:31 AM

            Glen……. ditto….. agree ….

            Jul 16, 2021 16:32 PM

            Not only did you switch to red cranberry juice wanker, you also took the Fauci jab up the a*s*s.

    Jul 08, 2021 08:49 AM

    I bought more NULGF today while it is down.

      Jul 08, 2021 08:50 PM

      Remember, Quentin H or any other P.Geo gets it right maybe2- 5% of the time. If I weren’t for Tavi Costa and Kirkland Lake, Q.H. Is just another Geo standing next to a hole.

    Joe
    Jul 08, 2021 08:32 PM

    Geez, you can hear the fear and desperation in his voice.
    I guess that’s what happens when you’re fully deployed and watching everything sink like it’s stuck in quicksand.

      Jul 08, 2021 08:42 PM

      It’s a good thing no one makes a market for residential real estate. The masses would sh*t themselves every day because bid-ask spreads would be massive as bids would be massively under their expectations. Funny stuff to think about.

        Jul 08, 2021 08:00 PM

        You are 100% correct on that one……..

      Jul 08, 2021 08:07 PM

      Uhmm, I have seen >4 40% declines in my portfolio and I think the current retrace is like 10% so I think you are imagining that. 30% more from here and it will start to sting.

      /THH

        Jul 08, 2021 08:04 PM

        Don’t sweat it amigo. I didn’t hear desperation in your voice, but rather heard “hope.” 🙂

        Thanks for sharing your strategy with us today. Like you, I’m more diversified than ever and pretty much fully deployed. My portfolio is down about 19% off the June 1st all time high in it, so it stings a bit for sure, but I’ve been here or down much more many times only to catch the next wave to higher highs.

        Wishing you and everyone here at the KER good trading!

          Jul 08, 2021 08:02 PM

          I didn’t hear any desperation either and I’m certainly not desperate even after the KGC hit with that damm fire.

          Jul 09, 2021 09:13 AM

          Haha yes “hope” 😀

          Feels good to have a smart bloke as yourself do the same (buy and HODL when pessimism is rampant). We know what always follows this….

          GLTA
          /Erik

    Jul 08, 2021 08:52 PM

    3 Best Reasons to Buy Gold Right Now

    WealthWave: by Sean Brodrick | July 8, 2021

    https://wealth-wave.com/wealth-wave/3-best-reasons-to-buy-gold-right-now/

    Jul 08, 2021 08:46 PM

    can not tell about others, but i capitulated today. i like this bull market, many miners lost 50% in 11 month.

    Jul 08, 2021 08:05 PM

    The action of the PM stocks says the odds are not good for the PM prices going forward.

      Jul 08, 2021 08:50 PM

      This time reminds me of January 2020 when US base was attacked by Iranian missile, gold spiked but mining stocks were contained. Some gutsy naked shorting going on with mining shares right now. I have this eerie feeling that freight train is approaching.

    Jul 08, 2021 08:07 PM

    The uranium stocks are finally starting to break down again and will give those who sold at the top a chance to get back in again at nice lower prices.

      Jul 08, 2021 08:50 PM

      Doc,

      What does your statement regarding miners and precious metals tell you about the equities market? Do you personally not find it incredible that the Dow Jones which is on crack continues higher and the shorting position for over 11 months continues to be the miners when you can’t even compare volume and money in the two.

      My point is this. The two biggest drivers in the world of money is real state and equities/Dow Jones etc. The precious metals is minority compare to it on a brand scale. How can an imaginary market with 50% still on cerb or government money not working and business shutting down have equities going up and gold/miners shorted?

      What a fraud this has become!

      Sadly

        Jul 08, 2021 08:56 PM

        Glen,
        Nothing makes sense. The PM equities bounce last week was very week. I’m stopped out of my PM positions. Markets can turn on a dime but but I’d rather save my capital and mental capacity to enter later than lose 30-40 percent.

          Jul 08, 2021 08:58 PM

          weak**

    Jul 08, 2021 08:12 PM

    With the FED pulling some liquidity out of these markets through the reverse repo market and also M2 dropping, things could get real dicey for all markets. The DOW looks increasingly weak—-the FED talks about tapering their balance sheet but they might not get the chance if their intervention in the repo markets starts to do more damage then they anticipate.

      Jul 08, 2021 08:45 PM

      Sadly I have to agree with your DOC, I have a feeling everything is going to correct and mining equities will not be sparred either. I trimmed some of my PM positions. I do not like it at all.

        Jul 08, 2021 08:54 PM

        Me and doc have spoken about this for quite some time. I just like yo keep the peace in hear. I’ve been called everything in here you name it for being honest. And the fact is my scenario of a September bottom and break down of doh or bottom just May happen. People just don’t get it, it ain’t about if I’m a bull or bear it’s about thinking like the banksters and mm..

        I remain positive that a turn can come but unfortunately the path of least resistance seems down something we spoke about.

        I was told I don’t know how to read charts
        He is not with your time
        I have half a brain

        And the list goes on…my point is everyone’s voice deserves to be heard

        Glen

          Jul 08, 2021 08:07 PM

          What better way to lull the folk into thinking all is well, with the SM making Daily all time highs, interest rates at rock bottom, mortgages cheap, stimulus checks going out every month or 2 so that nobody has to work, IRAs and 401 Ks going through the roof, and money just about everywhere.

          Make sure that your puppets at COMEX keep a lid on Gold and Silver for several years and your cronies at the big Funds naked short the mining equities into oblivion. With the newly PhD Economist endorsed MMT, you can just print up Trillions, and you can do reverse repos at $800 BILLION every day for several months, and lo and behold, nothing happens!

            Jul 08, 2021 08:22 PM

            Although things seem extreme we both know and you won’t acknowledge that the short position will have to turn sorry it’s is that way. So time is essence and at some point when we turn I don’t expect you to be here pumping the bear agenda. I’m not shook I’m just sharing two different things. Your time is skeptical lol non the lease gold/silver will have its day buddy it’s historical

            Glen

          Jul 08, 2021 08:42 PM

          Glen, your thoughts on September may not be too far off. As I mentioned, if we close a couple of months below the 20 month MA of the monthly BBs we may move lower into September or just beyond. When the hit finally comes on the conventional markets it could get quite ugly for them.

            Jul 08, 2021 08:00 PM

            What’s amazing is that we may see in a vast majority of these PM stocks a double bottom formation with their March lows of 2020. They probably will double bottom above the March pricing but it certainly would be categorized as double bottoms. The good news is that often the longer the time frame of double bottoms the more impressive the next move higher is.

        Jul 08, 2021 08:56 PM

        He is not worth your time was Chris!

    Jul 08, 2021 08:56 PM

    Stateside Report Podcast – July 8, 2021

    In this 160th episode of the Stateside Report Podcast we take a look back at the week in gold, silver, the base metals and the stocks then discuss the press releases form the following companies including podcast sponsor Harvest Gold $HVG and others including New Found Gold $NFG, Deep South Resources $DSM, Independence Gold $IGO, Wallbridge Mining $WM, Sun Summit Minerals $SMN, Canstar Resources $ROX, Divergent Energy Services $DVG, Nevada Exploration $NGE, and Volcanic Gold Mines $VG.

    http://statesidereport.com/stateside-report-podcast-july-8-2021/

    Jul 08, 2021 08:22 PM

    IPT hit a pivot support today and then closed on the 600 day MA, a moving average it hadn’t touched in 14 months. It also hit its lowest daily RSI reading in 31 months.
    https://stockcharts.com/h-sc/ui?s=IPT.V&p=D&yr=1&mn=5&dy=0&id=p23237352576

      Jul 08, 2021 08:35 PM

      PM equities don’t make sense. RSI has been diverging for past 10 days

      https://ibb.co/crhBcPk

        Jul 08, 2021 08:39 PM

        I stayed with PM positions thinking COT is very bullish.

          Jul 08, 2021 08:07 PM

          The COT is just not very good for timing. It can keep on improving for who knows how long. Of course that improvement generally requires lower gold.

      Jul 08, 2021 08:04 PM

      Good IPT chart Matthew. It seems like a spot where it could find short-term support and bounce. I’m fine adding to IPT if it moves lower, but would much prefer it start moving back to the upside instead.

    cfs
    Jul 08, 2021 08:47 PM
    Jul 08, 2021 08:19 PM
    Jul 08, 2021 08:24 PM
    Jul 09, 2021 09:32 AM

    Now in capitulation phase of PM correction. Buying opportunity!! There is nothing new under the sun.