Dave Kranzler, Fund Manager and Publisher of the Mining Stock Journal and the Short Seller’s Journal, joins us to share his thoughts on recent turbulent commodities and precious metals markets on the back of the geopolitical tensions in Ukraine. We also discussed that nothing in the macroeconomic financial side of things has changed, and inflation has continued to keep ripping higher, and the Fed’s upcoming rate hikes are likely to be too little and too late to really tame down inflation. Dave feels if there is resolution of this war tension, that there could be a brief corrective move in the sector as things are getting more stretched on the daily charts, but that this pullback would be a buying opportunity.
Next we pivoted over into the gold and silver mining stocks, and drew some analogs to different periods in history as to how the miners were responding, and noted how undervalued most stocks are compared to the underlying metals prices, despite the very nice bounce in GDX and GDXJ over the last 2 months. Dave reminds investors that with silver recently starting to outperform gold, and with the larger cap major and mid-tier producers starting to outperform most other sectors, that this is a more bullish posture for the sector to take for the longer term, and expects the junior mining stocks to eventually get a bid and start catching up to the rest of the sector.
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