Gold and gold stocks looking very good but do investors need to be aware of another rush to cash?

April 14, 2020

Dave Erfle joins me today with a focus on the precious metals sector. With gold continuing to move higher and the stocks raising as well there is a a lot of optimum in the sector.

We look at the GDX chart which briefly touched 32, a 7 year high. Newmont has exploded higher and money is flowing down to the smaller cap companies as well. We address if the sector is susceptible to another washout and race to cash.

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    Apr 14, 2020 14:23 PM

    Bullish on gold but not on high risk miners, if stock sell off do to economic fallout due to virus those miners may get sold off quickly.

      Apr 14, 2020 14:25 PM

      The miners did get hit hard in late February to mid March due to the economic shocks, but most have bounced back 50-100% already, so that was a solid recovery and over a short time period.

      I guess it depends on one’s risk tolerance, but adding to mining positions in mid-March seemed much lower risk to me, because they’d already sold down to ridiculous valuations and the metal sell down got absurd as well.

      Like anything, the risk has a lot to do with each individual investors cost basis, when they are considering adding to positions or initiating a new one, and when they trim back or sell out a position.

      If the stocks and miners sell off hard again later in April or June, it will be less risky to bottom fish at those times, especially if metals prices stay elevated.

    Apr 14, 2020 14:51 PM

    From my view here in the cheap seats….you can add to all the other GOLD “issues” ….FOMO….Fear Of Missing Out…is about to kick in big time in the GOLD market!

    Apr 14, 2020 14:13 PM

    Thanks Cory. I agree with Mr. Erfle and won’t be selling my NEM even after this huge move. I hope to ride this bull a lot longer.

      Apr 14, 2020 14:46 PM

      6 1/2 bull market in the making…..The BIg Bull is on the way…..according to the latest GANN Report…

    Apr 14, 2020 14:13 PM

    (VZLA) Vizsla Announces U.S. Trading on the OTCQB Venture Market Under Symbol (VIZSF)

    “Trading on the OTCQB will expand the Company’s investor base both broadly and to U.S. investors and equips Vizsla with increased exposure and liquidity in the United States,” said Michael Konnert, President and CEO. “We are very excited to start trading on the OTCQB, which represents another step in Vizsla’s growth.”

    “Vizsla has an option to acquire 100% of the newly-consolidated 9,386.5 Ha Panuco district in southern Sinaloa, Mexico, near the city of Mazatlán. The option allows for the acquisition of over 75 Kms of total vein extent, a 500 tpd mill, 35 Kms of underground mines, tailings facilities, roads, power and permits.

    “The district contains intermediate to low sulfidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene.”

      Apr 14, 2020 14:19 PM

      (VZLA) (VIZSF) Vizsla Provides Update on Field Operations in Mexico
      @newswire on 2 Apr 2020

      “The Company has been able to complete an additional seven drill holes at the Honduras Vein and samples for six of the holes have been submitted for analysis prior to the suspension of exploration. ”

      Apr 14, 2020 14:07 PM

      izsla Has a huge property position, at least 20 targets it wants to drill , an old mill that needs complete refurbishing and worst of all not enough cash to drill any target to a resource. Will need much more cash and years to get in gear. There are much better choices

        Apr 15, 2020 15:09 AM

        Vizsla raised plenty of money for their current exploration program in 2020, and ALL exploration companies will need to raise multiple times to develop a resource, so I fail to see how that is any different than all other early stage targets. The difference is Vizsla is cashed up now and did so wisely at much higher prices, so they don’t need to raise for a while.

          Apr 15, 2020 15:11 AM

          keith – I’d also be curious to hear which early stage explorers are better choices, as I’m always open to reviewing other good opportunities.

          Vizsla just sticks out as a district scale silver explorer, with Millions in the bank, and with a ton of infrastructure already on-site, that yes needs refurbishing, but gives them a huge leg up on other greenfields explorers that have none of that.

            Apr 16, 2020 16:05 AM

            $6 Million in the bank, a huge prospective land package, infrastructure on site, and 7 drill holes sent to the assay lab from before the Covid-19 shut downs still pending.

            VZLA has been up nicely all week in anticipation and will rising Silver prices. I just don’t see what is not to like here?

    Apr 14, 2020 14:25 PM

    (ORE) (ORZCF) Orezone Receives Environmental Approval For Phase II Expansion at Bomboré
    @nasdaq on 14 Apr 2020 #Gold #Developer

    “The Bomboré Project was the subject of an updated feasibility study in 2019 that incorporated a staged higher-grade expansion to the oxide-only mine plan in the 2018 feasibility study. The Phase II Expansion incorporates select zones of higher-grade fresh rock and lower transition reserves, the high-grade P17S deposit, and the previously excluded seasonal flood plain oxides. With this mine expansion, the 2019 FS highlighted a 60% increase in mineral reserves to 1.8 million gold ounces along with significantly improved project economics as compared to the 2018 FS.”

      Apr 14, 2020 14:33 PM

      Yes I posted this good news earlier…’s had good volume past couple of days. The warrants actually traded as high as .12…

        Apr 14, 2020 14:41 PM

        Ha, I was just over on the other blog noting I just noticed you had posted this Orezone news as well. Apparently it needed a double-post. 🙂

          Apr 14, 2020 14:36 PM

          Here’s another good news release out of the West African Gold miners today:


          (ROXG) (ROGFF) Roxgold Delivers Robust PEA for the Séguéla Gold Project With After-Tax NPV of $268 Million and 66% IRR

          14 Apr 2020

            Apr 15, 2020 15:00 AM

            Yes it is. Haven’t gotten this one yet….but…….I think I need to

            Apr 15, 2020 15:54 AM

            Yes, Roxgold is a competent operator, with a profitable producing mine, and this 2nd development project is moving right along with an encouraging PEA, as noted in the press release above.

    Apr 14, 2020 14:14 PM

    All the other PMs have taken their 30-40% hair cut. Gold hasn’t done that,,’yet’.
    It will tho. (IMO)

      Apr 14, 2020 14:34 PM

      You and I are reading different tea leaves……..

      Apr 14, 2020 14:47 PM

      Sure. After it hits $1900. Just ride the tide.

    Apr 14, 2020 14:43 PM

    Gold Mining Stocks’ Outlook Bright on Coronavirus Fears

    Madhurima Das – April 14, 2020

    “Gold prices have gained 15% so far this year and surpassed the $1,700 an ounce threshold for the first time in seven years. This was primarily driven by the coronavirus-induced crisis that triggered apprehensions regarding the global economic growth. This, in turn, sent investors scurrying for safe-haven assets like gold.”

    “The Fed has slashed interest rates to zero. Notably, lower the interest rates, lesser will be the opportunity cost of holding non-yielding bullion, making gold an attractive option for investors holding other currencies. Further, lower oil prices and fears of supply crunch with miners halting their operations as per government mandates to stem the coronavirus spread have also contributed to the price movement.”

    “Further, mining companies are major consumers of energy with around 50% of their production costs closely linked to energy prices. The current combination of higher gold prices and lower oil prices will translate into improved operating margins and higher free cash flow for miners.”

    Apr 14, 2020 14:47 PM

    Nice ((((((( Cory )))))))) You start to feel the real GOLD Feeling ! The new gold !

      Apr 14, 2020 14:58 PM

      Sorry diss totaly Boll Cory Video Sorry i start feel the Gorona feeling !

        Apr 14, 2020 14:55 PM

        Franky (aka James) you really make me chuckle sometimes. You have got to be exaggerating the spelling errors as your shtick, because even if English is not your first language there are so many translation apps that would never use the world “diss” for “this,” or “Gorona” for “Corona” virus.

        Clearly you are purposely mashing up words, and I just wanted you to know, sometimes it is funny.

          Apr 14, 2020 14:57 PM

          “Buy buy buy….Gold. Cool is the way” – Franky

            Apr 14, 2020 14:01 PM

            Also, I’m not sure exactly what “the new gold!” is as it’s on the elemental table and has been around for millions of year. There isn’t anything “new ” about it. (lol)

            As for your comment to Cory about “You start to feel the real GOLD Feeling !”
            > Yeah, I think I’m starting to feel the real gold feeling. Feels good. 😉