Richard “Doc” Postma and Shad Discuss Gold, Silver, and 5 Mining Stocks They Like
Richard “Doc” Postma joins Shad to discuss the precious metals sector, and then the conversation transitions to 5 mining stocks that they like to trade. We start by getting Docs thoughts on the technical set up in both gold and silver for the short and medium term. Next we pivot over to 5 of the more liquid mining stocks, where Shad lays out some fundamental reasons he likes each company, and Doc reviews the both the short-term and longer-term set up in each of the charts.
The companies discussed are:
- Sandstorm Gold (TSX:SSL – NYSE:SAND)
- Argonaut Gold (TSX:AR – OTC:ARNGF)
- Equinox Gold (TSX:EQX – NYSE:EQX)
- Endeavour Silver (TSX:EDR – NYSE:EXK)
- Alexco Resource Corp (TSX:AXU – NYSE:AXU)
Here is the latest technical analysis from Gary S. since you brought him up.
I still check in Gary’s work regularly and enjoy getting his take on the charts, and where he thinks we are in the daily or intermediate cycles.
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Gold update Confirmation
Jul 29, 2021 – Smart Money Tracker
So a 35% spike in NASDAQ and a 48% pop in silver in less than 5 months?
That’s just nuts, he can’t expect people to take him seriously. The guy probably has mental problems. Please don’t waste your time listening to crazy predictions like this, even if it’s for a laugh.
I have also learned not to trade/invest in NUGT, JNUG, AGQ instead buy quality junior and senior miners as they are flushed with cash right now. If you compare their performance they are responding just like any leveraged vehicle on good days.
Good point CaliJoe.
Most of the mining stocks are already very leveraged, and some of the microcap juniors priced small enough per share, and can move so dramatically that they are like trading options that don’t have a time expiration (unless they dilute themselves to oblivion.. Haha!).
Silver went up 56% in 29 weeks in 2016, 38% in 14 weeks in 2019 and over 150% in 20 weeks last year so Gary’s claim about silver is rather tame for him. His Nasdaq target is another story…
Silver is likely to way outperform the Nasdaq in the next 5 months.
SLV:QQQ
https://stockcharts.com/h-sc/ui?s=SLV%3AQQQ&p=D&yr=1&mn=1&dy=13&id=p22643965086&a=1000851105
Silver has a lot of catching up to do not only price wise but also time wise – gold is completing a handle while silver is still working on the cup. So far it looks like a textbook example of Wyckoff accumulation – phase D (with Wyckoff spring during spring last year 😉 )
Wyckoff Accumulation: How to trade with The Wyckoff Method
Nicolas Tang Date: December 15, 2020
“The Wyckoff accumulation phase is a sideways and range bound period that occurs after a prolonged downtrend. This is the area where larger players try to build positions.”
“There are six distinct parts of the wyckoff accumulation phase, all with an important function: the “Preliminary Support”, the “Selling Climax”. the automatic rally, the secondary test, the spring, and finally, last point of support, back up, and sign of strength.”
Speaking of Richard Wyckoff… and Technical Analysis….
> Here is a different Wyckoff (Jim Wyckoff) with some thoughts and technical levels.
Gold, silver see modest price corrections after good gains Thurs
Jim Wyckoff – Kitco – Friday July 30, 2021
“Technically, gold futures bulls have the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the July high of $1,835.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,789.10. First resistance is seen at this week’s high of $1,832.60 and then at the July high of $1,835.00. First support is seen at $1,815.00 and then at Thursday’s low of $1,806.10. Wyckoff’s Market Rating: 5.5.”
“The silver bears still have the overall near-term technical advantage. Prices are still in a 2.5-month-old downtrend on the daily bar chart. However, the bulls had a good week this week. Silver bulls’ next upside price objective is closing September futures prices above solid technical resistance at $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at this week’s low of $24.515. First resistance is seen at the overnight high of $25.685 and then at this week’s high of $25.875. Next support is seen at $25.25 and then at $25.00. Wyckoff’s Market Rating: 3.5.”
We definitely had SOS phase in silver for the last 7 months – phase E should follow
Gary Savage is a daredevil so obviously he bets by taking on leverage. I was his sub during 2016 run and lost some money on USLV, I enjoy his analysis nonetheless but I have learned nobody knows anything when it comes to metals. $50 silver will happen but it won’t be quick. Heck, the powers to be have been able to suppress silver for decades – what gives they will let go the iron grip so easily?
Ok I have to calm you out! You are one pundit who likes to stir shit and talk about everyone yet I don’t ever recall you making calls that are significant. Stop blowing air and do something if substance otherwise you are a real dud who has no credibility! Honestly listen to yourself or the pass 1 year.
Glen
Really? What is problem dude?
No kidding. I think Scotch whiskey is one of his problems.
Lol. It seems that way Matthew. Maybe the problem lies with the cheap stuff he drinks.
His comments were totally uncalled for and off-putting. A real douche if you ask me honestly.
Great maiden voyage, Shad. Once a month would be terrific, and maybe an expanded version quarterly. Seems like the last 18-24 months has been the Eric S & Quentin H lately dominating everyone’s attention. Eric has had the benefit to full exposure to so many plays even before anyone’s heard the name. I think Tavi Costa has saved Quentins reputation to an extent. Quentin has to tame his superlatives to the point that he has stretched himself too thin, and lost some credibility
God job, Team KER
Thanks for those kind words Marty. That really means a lot to me, as I’ve been a bit hesitant to do a segment like this one figuring I’d just get trolled or would sound like a goober.
Doc has been very encouraging and mentioned to me a few times that we should just record a segment together sometime, where I just toss out a few stocks I like on the fundamentals, and then he could do the short and long term technical set ups. This was our “maiden voyage” as you stated it so well.
We hear a lot about exploration drill plays, (like the ones you mentioned that some of the heavy hitters like E.S. and Q.H. are involved with), and many other exploration plays that are the flavor of the day. Occasionally we get some comments on the development stories that some of our guest newsletter writers and fund managers follow, but there are still many developers that rarely get discussed. If we do get a few folks on that talk about the producers they typically only mention the Seniors like Barrick, Newmont, Agnico Eagle etc… or just the GDX. What is the most rare to get any comments on though are the Mid-tier companies, and Doc and I hold a number of them and discuss them sometimes, so it seemed like a good time to try this in a slower market environment lately.
Cheers!
BTW – Thanks Marty for the suggestion on the frequency that would be interesting as monthly. That’s kind of what we were thinking as well (as weekly or bi monthly would be too often).
Heck, we may wrangle Cory into coming onto the next one and just talking some stocks we all like or trade for grins and giggles (and hopefully profits). 🙂
We also wanted to make sure we got Doc’s technical thoughts on the Gold and Silver markets in the update, and people appreciate getting his take on the markets, and we are grateful that Mr. Postma comes on the KE Report regular to share his time and expertise with us all.
I should also mention that were are grateful to all our generalist fund managers, market pundits, macro economics thought leaders, newslettter writers and various guest that appear on the KE Report podcasts.
We aren’t paying them a penny to appear, and they come onto the show because most of them do sincerely like helping investors and they enjoy talking about the markets. It is easier that folks may realize for them to just stop putting in the effort, or push off their appearances, or get bored with the routine, so we don’t take any of them for granted and we appreciate their participation on the site and their sharing. Some of them come back over and over and over again to share with the KER audience, just like many of the contributors on the blogs do, and all of that is what makes the KE Report a hub of investing information, mixed in with a little entertainment.
I realize you have your hands full in North America but no mid tier conversation would be complete without a few Aussies in there, particularly SLR and RMS.
Haha! Duly noted Terry.
Yes, there a plenty of interesting Aussie miners, but I don’t follow as many or know much about many of them. For example, you probably know a lot more about both SLR and RMS than I could ever hope to know. Also the demo’s on the KER audience is roughly 55% from the USA, 35% from Canada, and 15% everywhere else (including Australia), so we tried to pick stocks easy for North Americans to access. It is a global village though, so we may throw some Aussie listed or London listed stocks in the mix at one point, but we can at least review some companies operating abroad… even in the land down under. 🙂
Today’s segment was just meant to be a very high level pass across a few of the companies that Doc & I own, trade, and have a little history with. Many of these we’ve been chatting about trading for years now here on the KER blog, so it was a lot fun to do this show together.
This was also NOT meant to be a deep dive by any stretch as we didn’t get into all the minutia with executive pay, warrants and options, info on jurisdiction risk, or specific nuances of the financial statements, capital raises & dilution, production metrics breakdown by project, and exploration meters and grades etc… like we do on the regular KE Report company editorials and interviews.
That more deep-dive level of research is really what investors should do with any company they invest in and do their own fundamentals and technical due diligence. Of course many investors don’t do that kind of research on every stock they have in their portfolio, and there are plenty of people that just buy stocks purely off technical analysis, or the reverse where some just pick only due to fundamental company data points or because they like the team, and then there are some people that just stocks because they are hot, trending, widely followed, or a stock pick someone passed along. At the end of the day there are many different games to play in the marketplace casino, and they can all be rewarding and all have their limitations.
Again, this was meant to be more of a quick pass, with just a snapshot of the general company set up and a few things that caught our eyes in a more zoomed out sense about the company, projects, growth profile, and technical set up in the near-term and longer-term.
It would be like reviewing 5 movies real quick for audience with many different tastes, where you give a quick synopsis of the genre/director/ unique storyline plot elements, and then dissect the charts of ticket sales to analyze if they were trending up or down.
So for this one we picked some companies that likely already have some folks following the story or possibly invested, and still may have exposed folks to companies they may have heard of but didn’t really look at yet. Also, some of the ideas on the way we’re looking at these in a shotgun approach, may inspire folks to look into other things about different companies that they follow. Hopefully it is helpful in some way, or possibly informative and entertaining = infotainment. 🙂
Thanks for this reply Shad. I’m not good at multiple paragraphs so took me some time. I didn’t mention EVN, which is doing big things on its way to 1Moz/year but seems a little out of favor.
I’d like to see an analysis of these mid tiers based on a number of metrics, with some Aussie mid tiers slotted in.
Sounds good Terry. Yes, EVN.AX I am familiar with, and have considered owning that in the past, and took a look again when they acquired the Red Lake mine from Goldcorp. We can always do something where we do some analysis on some stocks that folks submit for a quick look at the fundamental analysis and then Doc can break down the technical set ups in those stocks down the road. We could then even have a special Aussie stocks edition, and we appreciate the ideas and suggestions so keep them coming.
Initially for this we just wanted to share some basic high level looks at some mid-tier stocks we both owned, that we both trade, that we both like fundamentally, and that we have discussed in some of our chats off-line. In a nutshell, we wanted to discuss stocks that we knew well that had been in our portfolios, but that rarely get discussed by most of the pundits we bring on the show. We still have a lot more of those to go through in future segments, and we may have Cory also throw in his analysis on a few stocks he likes or holds and get Doc to do some TA on those companies as well, but we are open to ideas and this was just something fun we thought people may enjoy.
Ex: Never underestimate the quality and quantity of the information you provide. It is without equal in so many ways.
Thanks David.
As for Quinton, he does stay busy but in most of his roles he is more of a technical advisor helping with the geological interpretations, so can keep tabs on many projects in that sense.
I think he just knocked it out of the park on the Eloro Resources interview we posted today, as that company has been hitting some serious paydirt.
Ever Upward!
Retest failure? – https://saturationtiming.blogspot.com/2021/07/gold-retest_30.html
Sibilance eliminated: https://gofile.io/d/gRKCEc
(Audacity. Low Pass Filter: Cutoff 3000 – 12 dB.)
Thanks BDC. Good recommendation to include a low pass filter on the audio.
Yeah, that edit you did sounds a lot better BDC. Greatly appreciated.
We’ll start running the audio through that low pass filter moving forward.
I also save talk shows in 48 bit mono, which is more than good enough.
Thanks for the insights BDC! Both are great suggestions 🙂
In my opinion Quinton and his crew are in the rarified air of genius. I love that they are in production in Australia cutting out a chunk of middlemen by proving their theories with production. I wish NFG would consider this strategy. I think that Quinton making that link of similarity between Fosterville and the NFG discovery combined with putting his money and expertise where his mouth is amazing and probably expert with a little luck thrown in!
Agreed FIH. Well stated on Quinton.
Doc and EX, I have owned SAND, Argonaut, EXK, and AXU for many years. When silver goes to $200 what will EXK, AXU, HL,AG, DOLLF, KUYAF, PAAS, and WPM sell for? Which is the best one for $200 silver? Thanks.
+200 Bonzo. Collect the whole set! (haha!!)
I do own the whole set but wonder which you and Doc think has the most leverage to $200 silver.
That’s tough. From where they stand today, I’d go with the smaller companies on that list (like Dolly Varden and Kuya Silver) as they have more room to expand, and the Silver miners will outpace the gold miners in general. However, those companies simultaneously the most risk of making a mistake that takes them out of the game, or more likely they’ll be takeover targets and not be around at $200 Silver (likely not even at $50 Silver). The more established companies like HL, AG, EXK, and WPM will definitely still be around at $200 Silver if & when it ever gets there.
Personally I’m just hoping Silver breaks above that $29-$30 Silver resistance level and gets up into the mid $30’s, as that would be plenty of action to get the Silver miners moving again. If it eventually takes a run at the all-time high in Silver prices at $49 next year in 2022 then fantastic. My positions are based on that scenario, and anything up and above at all time highs $50+ is just the icing on the cake.
Great format and some really good trading info. Looking forward to more.
Thanks David, in a month or so we may go for another one.
Yes agreed that having Doc’s trading targets are very helpful food for thought, and it is great to get his views on the charts and levels he’s watching.
Looks like Australia has hit the jackpot again with the silica sand. They got a shitload of it in their sandbox. Some ASX companies mentioned in a recent article include ASQ, DRX, MLM, PEC, SUV, VRX.
smallcaps.com.au
Terry – Thanks for keeping us all more up to date on the Aussie stocks, as they don’t get mentioned as much on here, with so much North American focus, but I personally appreciate it, and am sure there are others that do as well as we do have some good regular readers in Australia, and some North American investors that like branching out into some of the resource companies on the ASX.
Always nice to hear your thoughts Excelsior. Feel free to talk more often about stocks like that.
Much appreciated Ulf the Wolf and glad it was of value. Yeah, based on the feedback we may do so more of these down the road every month or so. Cheers!
Yes, love this format, and looking forward to more…
Thanks Huntbook. Nice to get that feedback.
Really enjoyed the segment and would love to hear more like this in the future.
Cheers
Much appreciated pedro203.
Hi Shad and Doc
This section is great, especially when I have limited time to find out what all the companies are doing. Excellent and really useful, thanks
If you listen to Gary Savage he sees $50 silver and a bubble top in NASDAQ of 20K by fall.
If you listen to this guy on his blog he thinks he the best in the business. What a big head he got, he a joke, he talks big but over years he gave up taking comments on blog and in his newsletter doesn’t even have a portfolio because he blew out so many subscribers he now just gives advice, ha, ha what a joke.
$50 silver he predicted last fall never happened I guess if you keep saying it it will happen eventually but it’s almost 8 months gone by on that call and he at it again, hey Gary how about making calls in real time like you used to brag about please just retire.