Dave Kranzler – Sizing Up The Macro Environment In The Precious Metals And Mining Stocks

Dave Kranzler, Fund Manager and Publisher of the Mining Stock Journal and the Short Seller’s Journal, joins us to share his thoughts on recent turbulent commodities and precious metals markets on the back of the geopolitical tensions in Ukraine. We also discussed that nothing in the macroeconomic financial side of things has changed, and inflation has continued to keep ripping higher, and the Fed’s upcoming rate hikes are likely to be too little and too late to really tame down inflation.   Dave feels if there is resolution of this war tension, that there could be a brief corrective move in the sector as things are getting more stretched on the daily charts, but that this pullback would be a buying opportunity.  


Next we pivoted over into the gold and silver mining stocks, and drew some analogs to different periods in history as to how the miners were responding, and noted how undervalued most stocks are compared to the underlying metals prices, despite the very nice bounce in GDX and GDXJ over the last 2 months. Dave reminds investors that with silver recently starting to outperform gold, and with the larger cap major and mid-tier producers starting to outperform most other sectors, that this is a more bullish posture for the sector to take for the longer term, and expects the junior mining stocks to eventually get a bid and start catching up to the rest of the sector.

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    Mar 08, 2022 08:31 PM

    Copper vs silver fell to fork support today but it’s not going to hold (copper has much further to fall versus silver).

    Mar 08, 2022 08:34 PM

    The financial sector as represented by XLF has already crashed 24% versus gold since the year began and it’s just getting started.

    Mar 08, 2022 08:19 PM
      Mar 08, 2022 08:40 PM

      Bonzo had a successful dental trip today ( no problems) but before going he topped off his holdings in NFGC, ESKYF, LOMLF, and NKOSF. Should be an exciting drill season this year if Biden doesn’t start WWIII.

      Mar 08, 2022 08:47 PM

      Wow! Matthew great chart on Netflix versus GLD. As Dave Kranzler mentioned in the interview above, investors in the tech stocks have found out the hard way lately that parabolic moves higher don’t last forever and the tech valuations were absurd by the middle to end of last year. Netflix isn’t even the worst in that sector – look at the crazy moves down Roblox, Peleton, Squarespace, Paypal, Shopify, Teladoc, Palantir, the Ark Innovation ETF, etc… Mr Market is balancing out the overbought and the oversold and bringing things back into a more sane equilibrium.

        Mar 08, 2022 08:54 PM

        Yup, PYPL is down 73% versus GLD since July. That makes me happy, too!

          Mar 08, 2022 08:20 PM

          Agreed. During these wild times the better financial system for longer-term storage is Gold or even GLD for digital proxy, and not other digital payment and financial holding apps like Paypal or Squarespace.

          Some investors are finally having that big realization, and may be less dismissive of historical precedents and technical analysis moving forward. It’s very similar in some respects to the Dot Com implosion in 2000 that kicked off the decade long bull market in PMs from 2000-2008 + 2009-2011.

    Mar 08, 2022 08:44 PM

    Biden bans Russian oil, who does he think will now buy that oil, sometimes you can’t make this stuff up, it is just too weird. DT

      Mar 08, 2022 08:52 PM

      Anyone out there buying Canadian potash and fertilizer production co’s in light of Russian denying exports? If so, which one and why? Thanks.

      Mar 08, 2022 08:27 PM

      Agreed DT. This recent strategy with Russia has been mind-numbing and bass ackwards….

      These sanctions are only spiking commodities across the board and adding to the pressure on all global citizens, and hurting the NATO countries in a boomerang effect, along with Russia. Higher energy prices and metals prices and grains prices are only making Russia’s currency (commodities) even more valuable and they’ll find ways to cut deals with other countries to trade them for record profits… likely in gold.

      The price action we’ve seen lately in Nickel (which was halted today after the 70% move higher just yesterday after 2 weeks of big gains), and the explosion higher in the PGMs (especially Palladium) or in Wheat demonstrates the point perfectly.

      In addition, kicking Russia off the SWIFT banking network, just caused their central bank to step up and start buying more gold, when they already had backstopped their reserves with much more gold than many countries. (they sure didn’t run out to buy Shiba Inu coin or Dogecoin… haha!)

        Mar 08, 2022 08:25 PM

        Hi Ex, from my understanding the 12th of March, four days from today, is the day The Telco’s from The West disconnect Russia from Swift.

        Clif High say’s that’s the day The Petrodollar will collapse. It seems reasonable that it would happen on a Saturday. He said there will be a lot of market turbulence on Friday the 11th leading up to this event. DT

          Mar 08, 2022 08:14 PM

          Thanks for that heads up DT. Cliff High is a very interesting character and thinks outside the box (which is why he is despised by the main stream thought police).

          Personally, I don’t think anyone really know when the death of the Petrodollar will occur, and think setting a date on it like that leads to people throwing out the baby with the bathwater if a proposed key date comes and goes without incident.

          Really it is just more a matter of time where the world will demand a different system, and kicking Russia off the SWIFT system just hastens that time period. As Craig Hemke pointed out in his interview on the KE Report yesterday, guess which other country is watching all this play out – China. (not to mention a slew of other smaller countries that may be currently faced with sanctions or know that the US can threaten to kick them off the SWIFT system as well if they are in a sour mood). Again, this is why the reaction from the Russian central bank was to immediately start buying more Gold, and is likely another force propping up the precious metals prices that few are connecting with the recent price action. Central bank purchases have a lot heavier hand in the PM markets than some retail people buying coins as a safe haven, and I suspect a great deal of that Russian buying is behind the recent strength in the yellow metal and will not just immediately be selling anytime soon.

            Mar 08, 2022 08:17 PM

            Some have postulated that in light of recent geopolitical events from the Canadian truckers having their bank accounts frozen and stolen, to the tensions in Russia/Ukraine, to the US wanting to track every $600 transaction in people’s bank accounts that this would also underpin more interest in the cryptos.

            However, with the advent of new cryptocurrency regulations being enacted by both Canada and the US, many are less optimistic about that reality. This of course, leaves the precious metals as one of the last remaining “relics” of the legacy financial system that is still truly outside of the fiat system.

            Mar 08, 2022 08:18 PM

            Bye-Bye Bitcoin? ‘Rich Dad Poor Dad’ Author Sees US Seizing All Crypto After Biden’s Executive Order

            Samyuktha Sriram – 1hour ago

            “Robert Kiyosaki, the best-selling author of “Rich Dad Poor Dad,” has predicted that U.S. President Joe Biden’s executive order to regulate cryptocurrency will mark the downfall for the asset class.
            What Happened: In a tweet on Wednesday, Kiyosaki told his 1.8 million Twitter followers that he expects all cryptocurrencies to be seized and folded into “government crypto” following an executive order to regulate digital assets.”


    Mar 08, 2022 08:45 PM

    Great interview again. I subscribe to the Mining Stock Journal and enjoy Dave Kranzler’s thoughts. Thanks

      Mar 08, 2022 08:07 PM

      Much appreciated Lakedweller2, and thanks for listening.

      Yeah, it was great having Dave K. on the show again, and next time we’re going to dig into a few more of the mining stocks on his radar that he feels represent a compelling value. Stay tuned for more insights!

    Mar 09, 2022 09:17 AM

    Boy, do I remember the run up 2005- May 2006, I was in NY – Hard Asset Conf. that 1st week of May when DaBoyz took the metals/ miners down in May Au -25%, Ag – 37%, for a rude awakening.