With everything moving higher we focus on gold stocks, oil stocks, and cannabis stocks
Sean Brodrick joins me today for a broad look at the markets and the positive day for almost every sector. We focus on a few sectors that Sean has been playing and his outlook for each. These sectors include gold stocks, oil stocks, and US cannabis stocks. Please let me know if you want Sean and I to look into any certain companies you are invested in.
Yes keep an eye on those pot plays. Cresco for an undervalued MSO….IM Cannabis for an undervalued international play and red white and bloom for a spec Michigan play
The Pot space is one area I knew more about. What is an MSO?
Multi State Operator
Thanks Wolfster.
I wish I knew
Good interview with Sean B. It is always good to get his take on a variety of markets.
It sure was a bullish day for many different sectors today, which was a nice reprieve from the market concerns of late. Whether it will last, or be met with more downside volatility in the days and weeks to come remains to be seen, but it appears the markets are starting to digest the spilt US government, inevitability of a stimulus bill, and the continued tinkering and easing by the central banks.
Speaking of many sectors on the rise lately, has anyone noticed that Bitcoin has been surging higher for the last few months?
The most widely followed cryptocurrency is now back above $15,000 again, which is at least noteworthy.
I’ve had a small (yet growing position) in GBTC the Grayscale Bitcoin Trust, the last 2 months, after watching a few Real Vision videos with Raoul Pal is taking such a huge stake, that I figured it would be wise to at least have a fishing pole in the water during these turbulent times.
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Currently Bitcoin is trading at $15,682:
I know Bitcoin is hated by many, and seen as potentially valueless if the new quantum computers are released, or if central banks create their own competing digital currencies that crowd out it’s adoption.
I’ve also been quite critical of many of the altcoins and at time the frenzy into Bitcoin and then the terrible fallout in years past. However, I did have positions in the bitcoin miners back in 2017 and even into the decline in 2018, as part of investing is catching trends in motion.
At this point, I’ve still never bought any cryptos or ever had a digital wallet, but what I like about GBTC is that is a regular tradable security, as a proxy to Bitcoin price movements. While I know many will make a nasty face at even bringing up Bitcoin, and I understand the distrust in it having any longer term value or even intrinsic value, my point is simply that as a speculative asset class, is has been going up in price lately. If nothing else it has been a good trade.
I wouldn’t go as far as considering Bitcoin the “Economic Life Raft” that Raoul believes it is, but his arguments the last few months have been compelling enough, for me to at least put one iron in the fire with GBTC – the Grayscale Bitcoin Trust, and it has steadily been going up in price.
This is definitely not something I’m betting the farm on, and is merely a speculative position for me, but I thought I’d post this video below as simply some economic food for thought.
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The Bitcoin Life Raft: The End of Monetary & Fiscal Policy As We Know It (w/ Raoul Pal)
Real Vision Finance – Oct 19, 2020
GBTC Grayscale Bitcoin Trust 2 year chart:
In looking at the GBTC chart it is at an inflexion point where it could double top where it did back in 2019, correcting back down again, or break out in an impulse leg higher. It will be interesting to see which way things go.
Hi Ex. – Good to hear from you. I have thought about purchasing GBTC many times as a trading vehicle. I am not in it, but might start trading it.
Hey Charles. Yeah, I wanted a simple way to trade Bitcoin, without the hassle of buying cryptos and digital wallets and all of that. After owning a few crypto miners in the past, I was disappointed at their correlation, but after spending some time looking into it, GBTC looked like the easiest vehicle to get a little exposure, and it can be bought and sold like any other security very easily. It’s been a nice run so far, and I’m just watching to see if it breaks out, or corrects from it’s current level.
$100,000 in Gold, Bitcoin, or Silver? EB Tucker Places His Bet
Stansberry Research – November 5, 2020
“Gold, silver, and bitcoin were all up sharply Thursday with a wilting U.S. dollar and uncertainty surrounding the U.S. election. In an interview with our Daniela Cambone, metals expert E.B. Tucker reveals, given $100k, which of the three assets he would invest in— and notes where to seek safety right now and where he’s placing his bet for the best return.”
Sit Tight………and be Right………..is spot on….Gold….stimulus money…..
Only $12 Trillion in Gold in the World….
Gold……Things are happening quickly…..$2500 by year end,
Royalties …..gold royalties
Tucker more accurate….than Turd…..jmo
Agreed OOTB. I really like E.B. Tucker, and concur about sitting tight for the duration of the secular bull market that is playing out. Yes, more stimulus on the way, more debt, more central bank easing, negative real rates, and global uncertainty make the Precious Metals a great defensive and somewhat uncorrelated asset class to own.
It has also been clear for some time that Gold & Silver royalty companies are a superior business model to most businesses on the planet.
The Gold/Silver Royalty companies have also handsomely outperformed the metals in a big way the last few years. He’s a director of Metalla (which has really gone on a tear), and now the new base metals royalty company Nova Royalties. However, his point could also be illustrated with Franco Nevada, Wheaton Precious Metals, Sandstorm Gold, Maverix, Ely Gold, Abitibi Royalties/Golden Valley, EMX, etc… These royalty companies have been solid accumulation assets since the bottom in PMs in late Dec 2015/early 2016.
I’m happy to hold 5 different royalty companies in my portfolio, (Metalla, Maverix, Nomad, Golden Valley, and Sailfish), and as mentioned earlier this week, I’m thinking of adding in a few more like EMX, Ely Gold, Riverside, VOX,Elemental, Orogen, Altus, Anglo Pacific, and maybe even a little Osisko Gold Royalties or Sandstorm.
Just a few examples:
EMX Royalties was trading at $.36 at the sector low for the mining stocks on Jan 19, 2016. Today EMX closed at $2.97… about a 825% increase.
Metalla Royalty was trading at $.72 on 03/5/2018 and closed today at $9.15 at 1270% gain
Sandstorm Gold traded at $2.05 on 01/19/2016 and closed today at $8.17 for a 398% gain (and it traded up to $9.95 on 07/20/20 for a 485% gain at the summer peak).
Ely Gold was trading at $.10 on the venture exchange on 09/30/2018 and in 2 & 1/2 years closed today at $1.34 for a 1340% gain, and got up to $1.89 on 06/28/2020 for a 1890% gain.
There are a lot of new royalty companies coming onto the scene for these reasons to try and capture some of that outperformance, but ultimately there is going to be some cannibalization in the sector, where the larger or mid-tier companies will absorb some of the smaller Jr Royalty players.
The Royalty and Streaming space is going to be an exciting subsector to keep tabs on as the bull market in precious metals continues to unfold over the next 2 years+.
Metalla……..that is a HUGE move…….in a short time…..
Ely Gold…….same
I absoluted love the royalty model. Metalla was up 17% just yesterday and was one of my best performers. Not bad leverage for a royalty player. I have been buying Riverside and Orogen (Previously Everum) lately in my IRA account. Although Metalla is up big, I see much more upside in it given many of its royalties have not begun producing yet and they keep making great acquisitions. Its going to be a real powerhouse in the space for years to come.
Agreed OOTB, on the huge moves in the royalty companies in a relatively short amount of time. Most of the big moves came from the Jr to midsize royalty companies, but that is because the more Sr Royalty companies like Franco Nevada, Royal Gold, Wheaton Precious Metals, Osisko, and Sandstorm had already paved the way and proved the case over the last 5-10 years.
Many remarked that they don’t have as much upside torque as the actual miners but companies like Metalla, Maverix, Ely, Abitibi Royalties, EMX, etc… showed that they can have similar returns, while taking on much less operational risks, having substantially smaller staffs and revenue per employee, and still getting leverage to rising metals prices.
Charles, yes, Metalla moving 17% yesterday is a great example of just how these torqued up royalty companies can move. I was thrilled to see that with MTA and it outperformed many of the more established producers, developers, and even explorers.
Ever Upward!
EB Tucker: New Royalty Stock, Fresh Gold and Silver Price Calls
Investing News Network – Sep 30, 2020 #Video
That interview had a number of good points from E.B. on how crucial both Copper and Nickel are to the battery future of the energy markets, and touches on their new base metal royalty company Nova.
EB also breaks down his $2500 Gold and $40 Silver calls at the end of that INN interview.
Hey EX………..thanks for coming back ,and thanks for posting the royalty stuff…..
Appreciate…..
Sure thing OOTB. It was nice to spend a little time on the KER this week, and royalty companies are an interesting subsector within the precious metals and base metals space. Cheers!
Osisko Mining drills 2.3 m of 395 g/t Au at Windfall
2020-11-05 10:25 ET – News Release
Mr. John Burzynski reports
OSISKO WINDFALL INFILL DRILLING RETURNS MORE OF THE SAME
Osisko Mining Inc. has provided new analytical results from the continuing expansion and definition drill program at its 100-per-cent-owned Windfall gold project located in the Abitibi greenstone belt, Urban township, Eeyou Istchee James Bay, Quebec.