The opportunities in precious metals and base metals

August 27, 2019

It’s another good day to be a precious metals investor as both silver and gold are moving higher. More importantly silver is leading the way! David Erfle, Founder of The Junior Miner Junky joins me to outline what he is looking for in precious metals stocks. When precious metals move higher a lot of the other commodities are forgotten. We also dive in the base metals and opportunities Dave is waiting for.

Click here to visit David’s site and find out more about his newsletter.

    Aug 27, 2019 27:06 PM

    A song for these happy times:

    Aug 27, 2019 27:30 PM

    Stockman is right (not Trump):
    ‘The Fed’s the Enemy of Prosperity’; ‘We’re in the Mother of All Bond Bubbles’

    Aug 27, 2019 27:31 PM

    Fantastic day in the Silver space. Lots of green on the screen.

    Symbol – #Silver #Producers – Chg %

    SVM Silvercorp Metals Inc. +11.15%
    GGD.TO GoGold Resources Inc. +10.71%
    EXN.TO Excellon Resources Inc. +10.68%
    CDE Coeur Mining, Inc. +9.65%
    MYA.TO Maya Gold and Silver Inc. +9.04%
    SBR.TO Silver Bear Resources Plc +8.11%
    PAAS Pan American Silver Corp. +7.47%
    HL Hecla Mining Company +7.23%
    IPT.V IMPACT Silver Corp. +6.74%
    FSM Fortuna Silver Mines Inc. +6.28%
    SCZ.V Santacruz Silver Mining Ltd. +6.25%
    HOC.L Hochschild Mining plc +5.61%
    EXK Endeavour Silver Corp. +5.56%
    USAS Americas Silver Corporation +5.31%
    SSRM SSR Mining Inc. +4.49%
    SMT.TO Sierra Metals Inc. +3.25%
    GPL Great Panther Mining Limited +2.79%
    AG First Majestic Silver Corp. +2.74%
    FRES.L Fresnillo Plc +1.93%
    ASM Avino Silver & Gold Mines Ltd. +1.72%

      Aug 27, 2019 27:32 PM

      Many of the Silver Jr Development-stage and Exploration-stage companies also had a great ~green day:

      Symbol – Silver #Developers & #Explorers – Chg %

      SPD.V Silver Predator Corp. +28.57%
      CCM.TO Canarc Resource Corp. +23.08%
      AXU Alexco Resource Corp. +14.95%
      NUAG.V New Pacific Metals Corp. +14.56%
      RYO.V Rio Silver Inc. +14.29%
      KTN.V Kootenay Silver Inc +13.04%
      AAG-H.V Aftermath Silver Ltd. +12.20%
      MSV.TO Minco Silver Corporation +11.84%
      GGX.V GGX Gold Corp. +10.26%
      MMG.V Metallic Minerals Corp. +9.38%
      REX.V Orex Minerals Inc. +9.09%
      SBR.TO Silver Bear Resources Plc +8.11%
      SIL.V SilverCrest Metals Inc. +7.94%
      MAG.TO MAG Silver Corp. +7.93%
      PSL.V Prospero Silver Corp. +6.25%
      ABRA.V AbraPlata Resource Corp. +6.25%
      AUMN Golden Minerals Company +5.20%
      DV.V Dolly Varden Silver Corporation +5.00%
      NBR.V Nubian Resources Ltd. +5.00%
      BHS.V Bayhorse Silver Inc. +5.00%
      UFO.L Alien Metals Limited +4.76%
      BCM.V Bear Creek Mining Corporation +4.70%
      AUN.V Aurcana Corporation +4.62%
      SSV.V Southern Silver Exploration Corp. +4.00%
      DSV.V Discovery Metals Corp. +3.26%
      G1A.AX Galena Mining Limited +2.86%
      SVE.V Silver One Resources Inc. +1.18%

        Aug 27, 2019 27:44 PM

        Silver up to $18.15 (finally crossing the $18 psychological barrier) and most stocks rocketed higher.

        Where are these Silver miners going to head if Silver catches up with the run that Gold has been on, makes a move to take out the 2016 high over $21+ ?

        Lots of room for Silver to run higher, but the multiples experienced in the miners will be breathtaking.

        Just like each of these runs, it is sad that so many investors at $14-$15 Silver were ready to throw in the towel, expecting $12-11-10-9….. It was discussed on here sooooo many times that Silver would eventually track with the moves higher in Gold, and that Gold was still in it’s bull market that started after the Dec 2015 low.

        Now that Gold has moved from $1045 up to $1552 (up $507 off the bottom), I wonder if all those waiting around and dithering on the sidelines about whether Gold is still in a bear market have gotten the signal (after Gold just took out another 4 key resistance prior peaks in this most recent leg higher) that the PM bull market is for real?

        As more generalist investors have that light bulb go off (hundreds of dollars in Gold gains too late), they still have a chance to make up for it if they’ll simply realize that all the noise about Silver being an industrial metal has been over-enforced, and the reality that it is a Precious Metal and Monetary Metal is still in play.

        Gold already took out it’s 2016 high of $1377.50 in the last few months and blasted right past it. What are the odds that as Silver plays catch up that it eventually blasts past it’s 2016 high over $21 and keeps on trucking?

        Ever Upward!

          Aug 28, 2019 28:15 AM

          Nice summary…….as always………
          Last night’s moves were interesting, judging from the charts…….jmo

            Aug 28, 2019 28:32 AM

            Thanks OOTB.

    Aug 27, 2019 27:39 PM

    IPT has been in consolidation mode for the last month but now looks ready to move higher:

    Aug 27, 2019 27:16 PM

    U.S. Bullion banks are experiencing a severe short squeeze.
    This has been partly due to London’s inability to cover obligations shifted over to them.

    The primary reason in London having a problem, other than the obvious shortage of metal is the effect of low interest rates.
    As the forward rate for Gold and the U.S. Dollar equalized, major investors started
    buying gold futures AND taking the metal as the futures matured.
    Similarly in silver which is only available in metal ozs (as opposed to value) at about eight times the available weight in gold.
    With a value ratio Au:Ag of 80 and a available weight ratio of Ag:Au about 8, clearly as soon as demand increased significantly price had to explode.

    Meanwhile the attempt of media to distract the attention of the City away from precious metals totally failed.

    Aug 27, 2019 27:35 PM

    Today was closing day for silver on the COMEX, so, alas, similar gains should not continue tomorrow, but it was an exciting short squeeze today.
    London gold has a closing day on Friday, so that may not see its usually drop.

    The amount of gold being transferred to Switzerland, presumably for re-casting and export to China is at an all time high.

    Aug 27, 2019 27:36 PM

    oops….. usually > usual.

    Aug 27, 2019 27:47 PM

    It is what you don’t know you don’t know that is always the ultimate problem…..

    Aug 27, 2019 27:14 PM

    Only a fool predicts a price and a date, so here’s the next date for a significant jump in Silver price….November 25.

    Aug 27, 2019 27:17 PM

    The dates for gold jumping might be August 30th (smaller jump) and October 28th (Big jump).

    I am told Switzerland is moving Gold to the LBMA in large quantities as well as to China.

      Aug 27, 2019 27:32 PM

      It is always wise to watch what the Swiss are doing.

      Global bankers and Gold refiners extraordinaire.

    Aug 27, 2019 27:34 PM

    Here is yet another Aussie Gold mining takeover….

    Echo Resources’ board welcomes Northern Star’s takeover offer
    By Lorna Nicholas – August 27, 2019

    Aug 27, 2019 27:40 PM

    When This Big Bull Market is dead, not billions but Trillions worth of profits, and paper profits will disappear. China will experience a political change as they try to keep their people fed and employed. They might think they have a longer timeframe in which to negotiate a trade deal but that will be over with a crash. New people will be called on to lead the World out of Depression, the old leaders will be blamed for lack of foresight and rightly so. DT

      Aug 27, 2019 27:16 PM

      So then, here comes 666

    Aug 27, 2019 27:33 PM

    $LODE – Comstock Mining:

    “We will receive over 4 million in cash between now and the closing and receive another 4 million in cash in the next nine months, following the closing, plus we’re still being reimbursed as of June 1 at a rate of over $2 million per annum.”

    “Now our market clearly doesn’t reflect any of this because people just don’t seem to believe it’s going to close. I’ve taken the position that focusing on closing it is the most important value that we can create and deliver with high certainty… because our values are too low and the deal is just too close to being closed.”

    Aug 27, 2019 27:56 PM

    Gold Stocks Investing: Fed Rate Cuts, China Trade War Have Investors Going For Gold

    Jed Graham – Investor’s Business Daily

    “The gold price surged past $1,550 to a new six-year high early on Aug. 26, days after Trump and China exchanged more fire — and higher tariffs.”

    “In the near term, the gold price may mirror the course of the China trade war, rising as it intensifies and backing off if cooler heads prevail. That’s because an escalation of trade conflict has darkened the outlook for the global economy and put aggressive Fed easing back in play. The slide in China’s yuan to a decade low vs. the dollar has provoked worries about countries engaging in competitive devaluation. If countries including the U.S. want a weaker currency, gold stands to be a winner.”

    Aug 28, 2019 28:20 AM

    Nice interview, always good to look ahead. In the end we need to convert some of our gains , when they occur, in the future.

      Aug 28, 2019 28:41 AM

      Agreed. My plan is to ride up the bull with the miners, but keep rotating more of the gains over into the royalty companies (with a more slow and steady gains business strategy, not as dependent on metals prices).

      During the front-end of tax-loss selling in November I’ll likely put some of the PM gains into beat up Uranium & Lithium stocks.

      Eventually when the commodity cycle plays through the deep gains will be stored in real estate.


        Aug 28, 2019 28:13 PM

        …. and a yacht 🙂

          Aug 28, 2019 28:49 PM

          Yeah. Maybe a yacht too. Haha!

        Aug 29, 2019 29:14 AM

        That is exactly what I want to do, convert profits into real estate. I think I’ll buy apartments pure for leisure goals to rent. That takes away the obligation to permanently rent where it’s more difficult to sell a property again in the market.