Erik Wetterling – Buying Gold Stocks On The Cheap Into Sector Capitulation

Erik Wetterling, Founder and Editor of the Hedgeless Horseman website, joins us to share why he remains encouraged to keep buying cheap valuations in gold stocks as we await an exhaustive selling capitulation in the precious metals sector.  Erik harkens back to the similarities we are seeing now where we may get one more false breakdown, to other turns in the sector back in late 2015 and 2018.   We also get into why he has increased the number of holdings in his portfolio, because he believes that there is so much room to run in many stocks that despite being more diversified that there is plenty of upside potential across the board in the junior gold stocks. 

Click here to visit Erik’s site – The Hedgeless Horseman.

    Jan 27, 2022 27:02 PM

    Yep, washout liquidation plunge always precedes meteoric rise in PM shares. Volume is incredibly low, signifying lack of sellers. Would remind HH about his prior comments that PM investing is an “art”. Today’s podcast rightly argues that investing in PM shares is a science. Volume and sentiment % are the science indicators. Perhaps the “art” is required investor discipline when you reach the puke zone.

      Jan 27, 2022 27:13 PM

      The art is what to buy. Buy bear creek an your no better off at every bottom since it’s a chronic trading sardine with no growth. The science in indicators are mostly curiosities for me. Im deployed cause I see undervaluation, not because how GDX looks.

    Jan 27, 2022 27:14 PM
    Jan 27, 2022 27:15 PM

    How can anyone keep buying in metals after a year and half collapse.
    Whatever most stocks were up at thier August 2021 highs have given it all back and then some.
    Hey eventually tide will turn but keep hearing buy, buy, even Dave Erfle couple weeks ago said he was all in and no cash you guys are puking up blood chasing these stocks.
    Why not just hold your core for long term and when gold gets above 1850 and stays there on monthly close then start buying when things get positive, heck if same guys calling for big bull market to $3K or $5K by 2025 how much is enough.
    Control greed, and if your trying to day trade monthly moves you should have been trading stock market the last six months not chasing greed hoping metals goes to moon. Oh well sorry forgot your gold bull.

      Jan 27, 2022 27:20 PM

      Agree Hedgeless as it definitely depends on how you are approaching the gold investment/trade. If you are buying GLD or GDX I would agree it hasn’t worked out in the short term and probably isn’t the best way to play Gold purely for returns and long term investing. But I think the more prudent investment is to find these undervalued gold/silver mining stocks and stocks with assumed economics (Explorers with FS, or mines in development), and allow the forecasted profits to dictate your investment rather than the price of gold. There are plenty of exploration and near term miners and mining companies that are well undervalued even if Gold was $1500. They will produce hundred of millions in free cash flow annually yet their market cap indicates a mine life of 4 years when clearly the economics/reserves show 20 years. Allow the economics to play out and these stocks will soar if the Gold price does catch on and take off but you have the buffer of their internal economics. The baby has definitely be thrown out with the bath water and the amount of gold/silver stocks on sale is incredible as long as you focus on long term diligent investing. Buying a general index is a bet on the gold price, but the bet that needs to be made is on the individual company first.

      Jan 27, 2022 27:48 PM

      I think you highlighted the problem. Most get in around the top of a bull leg and expect it to continue (I am a very bad seller and always expect miners to go even higher for example). Then they sit tight as long as they can during the inevitable bear leg before walking away in disgust. My fear is not that something can go lower (they always can). My fear is that I am overpaying for something that SHOULD go down and more importantly STAY down. Now I can barely see a junior that is overvalued they have become increasingly undervalued thanks to abysmal sentiment. I reckon the assay delays sector wide have contributed some 10%-20% to the downside due to added boredome and uncertainty. These prices does not make any sense at all because there are quite good projects out there that are trading for less that it cost to prove them up. If one includes the time, risk and the fact that such a project might be discovered in one out of every 500 prospects it makes no sense. If these valuations makes sense nobody would be stupid enough to explore for gold pretty much. And to top it all off the actual gold sector has been putting out record cash flow lately which proves the value. My 2 cents

    Jan 27, 2022 27:19 PM

    There would not be so many diverse opinions if markets were predictable. The upside is normally brief and unexpected and possibly known only by professional parasites. They probably rather take everyone’s money but have to accept that a few of us are sitting with our undervalued shares waiting for the Easter Bunny to come once again on a holiday of its choosing. That’s all I got.

      Jan 27, 2022 27:05 PM

      Henry Ford understood those parasites and their diabolically parasitic monetary system…
      “The one aim of these financiers is world control by the creation of inextinguishable debt.”

        Jan 27, 2022 27:12 PM

        They are doing a better job today since they got that Depression behind them.

        Jan 27, 2022 27:20 PM

        Sadly, the masses today are even less likely to know what Ford was talking about in this quote:
        “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

          Jan 27, 2022 27:38 PM

          Never deregulate. Regulation blocks criminals, not free markets. We are proving that also. We have deregulated and have massive corruption.

            Jan 27, 2022 27:14 PM

            You couldn’t be more wrong. We are currently regulated to death arbitrarily and immorally because criminals and politicians are always ultimately aligned. A level playing field is the answer which is obviously the reason we don’t have one! That is, the rule of law (not the rule of man which we have now in full force) and strong property rights which means strong INDIVIDUAL rights. I hope you haven’t fallen for the braindead assertion by leftists that the promotion of individual rights is somehow “selfish” or even dumber, racist. The precise opposite is obviously true on both counts.
            Regulations are always drafted by the highest bidder (most powerful contributors to/owners of politicians) and result in de facto and outright monopolies.
            Leftists are nothing but totalitarians at heart and in practice and good intentions do nothing to mitigate that fact. The last century has been absolutely dominated by leftists and we are far worse off for it. I realize that’s a preposterous assertion to the average lefty and maybe even the average “righty” but the facts are the facts and actions from the so-called right have been consistently very different than the rhetoric. The Republican party has been no more friendly to our natural (individual) rights than the Democrats. Collectivism has absolutely grown unabated and unchallenged for the 100+ years and we now have a complete idiocracy to show for it. The masses have been successfully reduced to livestock as was the plan all along.

            Jan 27, 2022 27:00 PM

            Citizens United provided for a Corporation being a person. The “ corporate person” is charged with all the criminal offenses and the actual criminals continue to commit crimes and have no risk to what tbey have stolen.
            Consumer Protection Agency: designed for an outlet for criminal complaints against banks and corporations for unfair criminal practices. Mulnany moved it under the Fed who are supposed to Regulate banks and don’t.
            Glass steagall: designed to separate Commercial Banking from Investment Banking. Designed to keep customer’s property from corporate property. Robert Rubin, former CEO of Citi bank pushed Clinton for years to get rid of it. When leaving office Clinton agreed and Congress went along with it. Opened the door to not only commingling funds, investing against client interests, opening the Fed window to Banks like Goldman to have access to the repo markets, expansion of derivatives and dark hole trading.
            Changing Accounting Rules to take Derivatives off balance sheet and expand the risk levels of already over risked banks.
            Citizens United also increasing campaign contributions for Corporations opening the door for unbalanced corporate influence in political campaigns or buying politicians.
            Eliminating post 1929 Wall Street regulations to prevent future occurrences (actual Act #s not at finger tips) but most all eliminated in last 20 years.
            Dodd Frank to replace Glass Steagall but no regulations established to control derivatives which are now in the quadrillions.
            Loosened liquidity rules for Wall Street
            Appointed insiders to CFTC, SEC, Justice Department, Treasury, Fed, OMB, cabinet positions to block criminal prosecutions and promote parties over law.
            Just a few issues without research on how deregulation has snd does destroy the Constitution and laws designed to protect the people from political and special interests. We have a crisis in corruption as a result with the tools to correct the problems undermined.
            Forgot: No auditing of The Fed or Exchange Stabilization Fund. Not only do these suspect Agencies launder money the Fed also prints it and it is future liabilities to the people. It is unknown how many trillions have been printed and distributed because there is no Regulation and self regulation is a total farce. Sorry but that is a huge one as it puts pressure on the bought and paid for Citizens United Politicians to block expenditures for the tax payer because future tax dollars already spent on Fed unaudited activity. The unregulated activity is the reason no one can talk anymore …because the Treasury and future Treasury has been transferred to unregulated financial and corporate interests all over the Western World with the sanction of Elected Politicians.

            Jan 27, 2022 27:20 PM

            Like 90+ percent of the population, you are strangely blind to the overarching corruption that is central banking itself. It is immoral/unsound and without any doubt whatsoever, unconstitutional. It is also by far the worst threat to America and individual rights/liberty yet you never call for its abolition. You’ve fallen for central planning at every level. Those three letter agencies that oversee every aspect of commerce and our lives are UN-American (and anti humanity) and make the fairness you seek impossible.
            It is bizarre and illogical beyond words how “the people” clamor for collectivism and the end of freedom in response to corrupt people when in fact collectivism is nothing but corruption institutionalized. You’d think that people would want corruption dealt with head-on to preserve freedom but that’s not the case because people are uninformed, misinformed and gullible. They allow corrupt central planners and their politicians to tell them what they want. Freedom is the golden goose and should be defended as such. It has never been the cause of corruption and criminality. On the contrary, a truly free market is the enemy of corruption since bad actors lose market share to those who do things right and the attendant competition provides multiple market alternatives. In addition to being rare and fleeting, monopolies are earned in a free market. What we have now is the opposite. Monopolies (or virtual monopolies) are common, permanent and unearned. They are obtained and protected by political favor.
            If we can’t even force our public servants to enforce laws already on the books, isn’t it foolhardy or worse to demand that they violate our rights in order to solve our problems?
            There’s no such thing as a form of collectivism that is constitutional, moral or sound and it seems that you and a few billion others don’t realize that.
            America’s founders clearly understood that collectivism (in all its forms including democracy) only makes sense if you believe that might makes right. It stands on nothing else for logical support.

            Jan 27, 2022 27:51 PM

            We are close. Pretty much what I am talking about is The Fed being the focal point for destruction of the Country and Economic system and how they have been isolated from regulation by not only statute but by structural deregulation through procedural deregulation and appointment of special interest cronies who deregulate through policy changes and organizational dysfunction. When you eliminate fiduciary responsibility and give a private organization the power to print a sovereign’s currency and have it unaudited and unsupervised by the sovereign, you in essence, make it outside the law and put it in a position to transfer all wealth and sovereignty to a private enterprise without recourse. That is the ultimate lack of regulation (and corruption).

            Jan 27, 2022 27:17 PM

            If the Federal Reserve was nationalized it would change nothing. The US gov is owned by the same people and even if it weren’t, politicians would do an even worse job of managing the destruction caused by central banking itself. Regulation can’t make central banking a good thing and even if it could, the people wouldn’t allow it. History, including very recent history, has proven that the masses will vote for exactly the worst and most undisciplined actions 100 percent of the time. Now more than ever (at least in modern times), the masses are severed from any understanding of reality especially pertaining to our monetary system and markets. If a politician can dream it, they’ll vote for it.
            P.s., I have to point out that the shenanigans you highlight are just further evidence against collectivism, not capitalism. Big business hates capitalism because it hates competition and the law applied equally to all. Their success and continued power is based on using the people’s government against them in multiple ways which absolutely falls under collectivism. On top of that, the “capital” they get to tap on very good terms comes via the central bank and its ability to create deposits at will and at the expense of the people in the present and future. We are made to pay for our own servitude and falling prosperity through the issuance of that inextinguishable debt that Ford warned us about. Thanks to our dumbing down, we happily underwrite a tiny few anti capitalists’ efforts to make immense profits risk free in perpetuity.

            Jan 28, 2022 28:59 AM

            Matthew has put down the great ideas written well…I cannot argue w anything…Thanx to Matthew for speaking to truth…the whole of our corrupted chaotic confused culture was laid out…EXCELLENT

          Jan 27, 2022 27:56 PM

          Matthew, as usual you share some incredible insights on so many societal flaws and with a magic bullet remedy, ‘On the contrary, a truly free market is the enemy of corruption since bad actors lose market share to those who do things right and the attendant competition provides multiple market alternatives’.
          So how is Lakedweller and the 90% rest of us, you describe as ‘the people’, in essence dummies, going to create this utopian free market with zero regulation/rules which impede our freedoms so we can then all prosper and live happily ever after.

            Jan 27, 2022 27:34 PM

            Jonsyl, you’re seeing things that aren’t there. The free market is definitely the enemy of corruption but that’s not to say it’s the cure. There is no cure and never will be and it’s the do-gooder lefty who obviously don’t understand that.
            Zero rules? Did you not read the parts where I mentioned the need for a level playing field and the rule of law and strong property rights? I’ve talked about this stuff for years here yet you can’t remember any of it? You know so little it’s difficult to engage you. Where do you get the confidence anyway? Money and economics are peculiar in that most people assume they have an understanding of the two despite putting no work into their understanding other than perhaps listening to shills on tv for a few minutes per week.
            Are you done with the straw men?

            Jan 27, 2022 27:03 PM

            Despite his economics quackery that is still pushed at the highest levels to this day (aiding and abetting the wealth-redistributing Left), Keynes himself admitted that:
            “Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
            — John Maynard Keynes, The Economic Consequences of the Peace

            Jan 27, 2022 27:07 PM

            Keynes’ paragraphs that preceded the above are also worth reading:

            “Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security but [also] at confidence in the equity of the existing distribution of wealth.

            Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become “profiteers,” who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.”

            Jan 27, 2022 27:20 PM

            Ludwig von Mises stated it best 100 years ago:

            “Socialism is not in the least what it pretends to be. It is not the pioneer of a better and finer world, but the spoiler of what thousands of years of civilization have created. It does not build; it destroys. For destruction is the essence of it. It produces nothing, it only consumes what the social order based on private ownership in the means of production has created.”

            Jan 28, 2022 28:05 AM

            So Matthew, a hell of lot messaging without any answer to this dilemma we face, other than to find any number of sources to blame, the fed, the politicians, the gov’t, the mindless leftys, the people, all 90% of them. The shills that provide their views, some call it news, on all that’s happening and which most of the people watch. The 90% of course.
            I wish you would just attempt to provide a constructive fix with this crisis, rather than perpetually complaining about all the woes we face, or quoting Lenin, Ford etc as your authorities from a century ago on our present state of affairs. Particularly as your world appears to be coming to an end. Mine has been ok for the most part with work, family, friends etc. I suspect that to be generally true with at least the majority of ‘the people’.

            Jan 28, 2022 28:44 AM

            You can’t fix what you don’t understand, jonsyl. This crisis (your word) is over a century old and I’ve commented on it for years and years because few get it. There is no fix at this point if avoiding pain for society at large is your goal but waking people up to their complete stupidity is a must if you want any chance at stopping things from getting far worse for our freedoms/rights, among other things.
            If you don’t know the truth about our corporate “news” then there’s probably little anyone can say to change your mind about anything.
            I don’t owe you or anyone “the fix” and you’re not worth dealing with as a human being if you call what I’m doing “complaining” or assume that I’m quoting who I do because they are “my authorities.” I share the quotes that I do because I independently know them to be accurate. I’m sorry you’re too lazy or uninterested to understand what it is to value learning or knowing anything.
            Your perception that my world is coming to an end says more about you than me. I’m sorry if reality is just too much for you but hey, the company you keep is over 200 million strong so don’t fret.
            As for the majority of people being fine, I suspect you are right for two reasons: Ignorance is bliss and people are resilient to the point that they can get thoroughly screwed over for their entire lives and either not notice or pretend that it’s not so bad. I’ve seen it all and the 90% you have an issue with could easily be too conservative.

            Jan 28, 2022 28:17 AM

            Ditto Matthew……………..
            You can’t fix what you don’t understand, jonsyl. This crisis (your word) is over a century old and I’ve commented on it for years and years because few get it. There is no fix at this point if avoiding pain for society at large is your goal but waking people up to their complete stupidity is a must if you want any chance at stopping things from getting far worse for our freedoms/rights, among other things.

            Jan 28, 2022 28:42 PM

            I think its tuff to find a system that is not corrupt.
            One that works anyway.
            The free market system of the “new world” was stolen, and as long as it could expand people thrived, white people that is.

            Out of interest, where was/is this no corruption society?

            Jan 28, 2022 28:57 PM

            Any system that is based on respect for our natural rights and holds them above the whims and desires of the ignorant mob would be as close to corruption-free as you could ever get.
            It should be obvious that you can’t eradicate corruption from mankind and it should also be obvious that freedom and self-ownership are ideals that are completely free of corruption while the Left’s coercive intentions are the manifestation of corruption itself.

            This is too idiotic for words: “The free market system of the “new world” was stolen, and as long as it could expand people thrived, white people that is.”

            Do yourself and the rest of us a favor and pay extremely close attention to every second of the following 5 minute video.

            Ditch your indoctrination, you can do it.

            Jan 29, 2022 29:39 AM

            Idiotic not to see the land in n.a. was stolen?
            ok, use the word conquer, is that less idiotic for you?

            I notice you could not name a single society that is or was free of corruption.
            Maybe because that is a fantasy?

            As for “natural rights”???

            You havnt realized yet you have 1 right as G Carlin astutely pointed out, and thats the right to “right this way.”

            I agree with jonsyl, quit the complaining and ” shine the light on the path forward and not perpetual harp about the problem.”

            A clue tho, its never gonna change. Never has, never will.

            Jan 29, 2022 29:36 PM

            Yes, not only was your comment idiotic, it was profoundly ignorant as well as racist. You’re an automaton for those who’ve so thoroughly brainwashed you. Do you think any peoples of any race held any aversion to conquering others 150 years ago and for millennia prior? Is there any real evidence that anything has changed today? Furthermore, do you think native Americans were nothing but wise and peaceful as depicted by agenda-driven Hollywood? Or do you suppose there’s a chance that they battled each other routinely and did ruthless things to each other? History matters. Context matters.
            You Lefties have been conditioned to think that losing makes one virtuous and deserving of a halo. You’ve all been played by your leaders for your entire lives.

            As for natural rights your attitude toward them is criminally idiotic to say the least and perfectly consistent with your undeniable ignorance. Why should anyone listen to you about any of your concerns with an attitude like that? You do realize that Carlin was a comedian, yes?

            As for your strawman perfect society nonargument, I never said or implied that there’s been a society without corruption and you’d know that if you were decent enough to read what I actually wrote instead of opining on what you’ve imagined that I wrote.

            You are correct, things will never change and I’ve said so repeatedly so you can drop the delusion that you’re informing me of anything in any way. The irony is that you and people just like you are THE reason things don’t improve. I have a feeling “b” is near and dear to your heart because you’re just as irrational as he is. We shouldn’t “complain”? Really???

            On the bright side, individuals learn and change all the time and leave the dumb mob behind as a result. When you get enough of the right individuals to wake up, things happen against the will of the dumb mob. Those individuals are out there and, unlike me, most are probably smart enough not to waste their time with society’s most destructive dummies.

            “Those who cannot change their minds cannot change anything.” — Bernard Shaw

      Jan 28, 2022 28:55 AM

      Matthew, you, and apparently a few others, are the voice in this world of subversion and mass enslavement that the masses are to stupid to understand or at least acknowledge. Rather than live this tormented realty of yours in isolation, which most can’t comprehend, shine the light on the path foreward and not perpetual harp about the problem.

        Jan 28, 2022 28:22 AM

        There is ONLY ONE THAT can SHINE THE LIGHT…………. Man is a sinner, bar none………….
        Might seek a little wisdom from the LORD, all the rest is vanity………….

          Jan 28, 2022 28:33 AM

          Fully agreed with you Jerry. JESUS is the only light in this darkness surrounding us.

            Jan 28, 2022 28:50 AM

            Hey, ok. Don’t want to mess with God.

            Jan 28, 2022 28:53 AM

            Thank you …….. Norrareal 1968………. Glad to see you are still around…….. It, is always nice, ..and great, when two or more are gathered…… sharing the light……. Blessings to you today……. Hoping you have a great day……….
            Everyday is new again…….

            Jan 28, 2022 28:56 AM

            God knows your heart………… even knows every hair on your head…………..

            Jan 28, 2022 28:21 AM

            Dear Jerry, thank you for your kind words. Yes, I am still around even though I don’t comment often.
            I have said it many times here, the metals will rise only and when the satanist elites who own/control all the central banks of the world decide so.

            Jan 28, 2022 28:36 AM

            Thanks Norrareal1968………….. I think , I have to agree with you on the satanic bankers……

    Jan 27, 2022 27:03 PM

    The daily gold chart is now net bearish but it might be bullish that this action followed the Fed’s comments. More often than not, significant action (down or up) immediately following the Fed reverses and goes the other way.
    GLD is showing the greatest volumes since June and is oversold on the 2 hour and lesser charts after hitting its lowest pivot supports on the 4 hour and lesser charts so tomorrow would be a good day for a strong bounce that could prove to be something more.
    A poke down to 1780 tomorrow would test six month uptrend support.

      Jan 27, 2022 27:47 PM

      Really gold chart net bearish but might be bullish.
      Yes 1780 gold would be a test of the six month support level (hopefully). So what.

        Jan 27, 2022 27:52 PM

        No, the daily chart is net bearish and the bullish part had to do with statistics around Fed meetings.
        Indeed, so what?

      Jan 28, 2022 28:01 AM

      right, first moves typically are wrong direction…no worries…yet

    Jan 27, 2022 27:13 PM
    Jan 27, 2022 27:18 PM

    They seemed to be a little more determined in taking price down and setting resistance (capping) these last couple of days. I feel like a good Friday is possible. We will know soon if they start walking down everything overnight and then an opening smash. If they lay back, then I may get up when the market opens and wait for a broadside. If things turn green, I will drink coffee and think about paying bills. If they hit at open I may never pay my bills again and move to New Zealand.
    Interesting chart. I hope it hits the top of the channel tomorrow.

      Jan 28, 2022 28:15 PM

      I recommend Australia for a number of reasons.

    Jan 27, 2022 27:41 PM

    Freaky Friday again………….

    Jan 27, 2022 27:19 PM
    Jan 28, 2022 28:27 AM

    THERE IS SOME GREAT MEAT…………. in the above conversations…………. as always
    Thanks…….. for being civil………… 🙂
    You all have a great week end….

    Jan 28, 2022 28:52 AM

    Realy appreciate all these commments.

      Jan 28, 2022 28:39 AM

      As do I Robert!

    Jan 29, 2022 29:32 AM

    The resolute and continuing demand for gold is from China and India whose annual consumption
    is approximately half of all gold produced annually’The other regular consumers are all non-Western.
    I laugh in imagining what the average Chinese or Indian or any other gold buyer would make of the above
    so called analysis’They would be unbelievable and curiosiily astonished.They buy gold to protect their
    livesl and. wealth from currency depreciation and/or outright seizure.The one well known investor who partially understands this is Eric Sprott.

      Jan 29, 2022 29:08 PM

      It is generally unnecessary to go through the mentally exhausting process of selecting which gold or silver shares too buy,just look at Eric Sprotts largest purchases,past and present ie Kirkland Lake Gold,Seabridge Gold(not directly held),Dolly Varden Silver etc.Take consideration of country risk iinvest only in Canada,Australia and certain US states