Erik Wetterling – War Premium Reversal Slams Gold Back Down, Yet Value Is Still To Be Found In The Wasteland Of Junior Miners
Erik Wetterling, Founder and Editor of the Hedgeless Horseman website, joins us to share his view the steep reversal in gold from overnight trading on Ukraine war premium and then pricing getting slammed throughout the US trading session. We reviewed the anticlimactic nature of trading today in the metals and related mining stocks, where even with the crazy geopolitical and macroeconomic backdrop, even good news in gold mining stocks is a non-event. Despite the higher gold and silver prices, that would have sounded quite appealing to investors just a few years ago, most of the junior stocks are still lagging and not confirming these moves higher in the metals.
Erik continues to see unrealized value in juniors across the board, but especially in those companies that are continuing to derisk projects and that are conducting meaningful work, but are not getting rewarded for it. Eloro Resources (TSX.V: ELO) is one company he highlighted as an example that just put out one of their better drill holes to date with little fanfare, after a year of putting out solid newsflow, and it has pulled back down with the rest of the sector.