Weekend Show – Markets and Metals – All About Investing During A Bear Market

May 28, 2022

Welcome to another KE Report Weekend Show. This week we focus on investing during a bear market. The consensus is that we are still early on during this bear market which means having a game plan is critical. The correct strategy can help limit losses and even generate gains while many sectors are going down. 


We hope you all find this show helpful to guild the way for the next 3-6 month. Please keep in touch by emailing us at and



  • Segment 1 and 2 – Dana Lyons, Fund Manager, kicks off the show by shareing his outlook for a wide range of markets. We start with US markets, move to cryptocurrencies, commodities including gold and silver as well as the tech sector. Dana has called this reversal and bear market perfectly so you can really benefit from listening to how he is positioning in the markets. Dana’s site, The Lyons Share, is running a 25% off special right now. Click here to find out more.
  • Segment 3 – Adrian Day, President of Adrian Day Asset Management and Manager of the Euro Pacific Gold Fund joins us to discuss how markets historically react to recessions and central bank tightening cycles. We tie in recent economic data to highlight the sectors/areas of the economy that are holding up currently. Click here to learn more about Adrian Day Asset Management.
  • Segment 4 – Byron King is back on the show to focus on investing in resource stocks. Starting with a discussion on the larger miners and royalty companies, then filtering down to the exploration companies. It’s a very different environment for the juniors compared to the majors in a couple of critical ways. Click here to follow Byron at the Investor Intel website.


Exclusive Company Interviews This Week



Dana Lyons
Adrian Day
Byron King
    May 28, 2022 28:17 AM

    Thanks to all the KER guest contributors for another great week of daily editorials, company interviews with management, and another solid weekend show with Dana, Adrian, and Byron.

    Also thanks to all the listeners of the podcast and radio show, and those members of the KER crew that post and participate here on the blog, sharing insights with our community. Ever Upward!

    May 28, 2022 28:19 AM

    US GDP Contracts Further In 1Q

    Lucas Manfredi – Thu, May 26, 2022

    “The U.S. economy contracted 1.5% on an annualized basis in the first quarter of 2022, according to revised data released by the Bureau of Economic Analysis on Thursday. Economists surveyed by Refinitiv were expecting a seasonally adjusted annual contraction of 1.3%.”

    “The new downward revision for gross domestic product, the broadest measure of goods and services produced across the economy, comes after a previously reported 1.4% contraction. It was the first drop in GDP since the second quarter of 2020.”

    May 28, 2022 28:21 AM

    ‘We Actually Haven’t Seen Any Real Carnage Yet’

    Jesse Felder – The Felder Report (05/28/2022)

    May 28, 2022 28:24 AM

    Inflation Acquiescence

    Doug Noland – Seeking Alpha – May 28, 2022

    “Is the Fed all inflation bark and no bite? After all, CPI (y-o-y) surged to over 8% – and has been above the Fed’s 2% target now for 15 months – yet the target policy rate is today at only 0.75% to 1.0%. Inflation is exacting a heavy toll on the population; politicians are under the gun and vocal. The Fed, of course, is compelled to present steely resolve.”

    May 28, 2022 28:51 AM

    While there are structural signs of weakness, most sectors have been pretty oversold over the last 6 months, and I’d anticipate a continued bounce and relief rally for a while. We’ve already been seeing a reversion to the mean over the last 2 weeks, and there will likely be more strength where that came from in the near-term.

    For now it seems like most of the economic main stream media is getting a bit overly bearish, and reacting to some of the data that has already played through at this point (like the negative Q1 GDP, or the last 2 months CPI of 8.5% and 8.3%, and negative earnings reports). Over the next 2 quarters, GDP may be less negative, and the rate of change in CPI may trend slightly lower, and that may be enough of a reason for the some of the money on the sidelines to come back into the markets and nudge them a bit higher.

    Once we see this market bounce play through, up to stronger resistance levels, then I may put on some short hedges, but for now watching to see how far the bounce will go and how long it may last.

    May 28, 2022 28:22 AM

    Trend Turn Table:
    Done deal, other than minor tweaks.
    Energy, Gold, and Markets.

    May 28, 2022 28:36 AM

    The conventional market & PM Markets should hold their own the early part of June then watch out ofter that.

    May 28, 2022 28:39 AM

    Hi Ex, When a company has a metallurgical study done on it’s property after a sufficient number of drill results have come in to determine whether their property can eventually become a mine, what percentage of deleterious minerals in the concentrate would be acceptable to prove that they have the ability to go forward with their project? What would you consider as excellent, and two as acceptable, and three as being a no go? Or does this depend on what sort of metal is involved. Lets take a silver property with lead, zinc, and tin credits, or a copper gold porphyry. Thanks DT

      May 28, 2022 28:42 AM

      Hi DT that’s a good question on what kind of smelter penalties are acceptable in a concentrate. It really does depend on a number if factors, and the metals recovery amounts of the key metals being extracted versus any smelter credits or penalties.

      It also depends on the type of metal concentrate you’re talking about whether it’s a zinc con, copper con, lead con, etc… and if precious metals are present as co-cedits. For example, Silver often accompanies a lead or zinc concentrate, or gold may be included in a copper concentrate, and these may offset some of the deleterious elements like antimony, mercury, arsenic, too much manganese, bismuth, cadmium, etc…

      The dream is a clean concentrate, with no or few deleterious elements, but that isn’t common in the way mother nature creates base metals or even precious metals deposits. Often some of the pathfinder elements are the nasties, but it comes down to the concentrations and balance of metals.

      Another example is that in many Rare Earth deposits there are radioactive elements like thorium and uranium present, which makes extraction all but impossible for 99% of companies without a radioactive license. This is why Energy Fuels has a huge leg up on producing REEs from mineral rich sands.

      Anyway, it comes down to the metallurgical tests on what the recovery rates of the key metals are, plus any co-credits, and minus any smelter penalties, to see if concentrates will be economically viable. It also depends on where the smelters are located that would purchase the concentrates and if any deleterious minerals would be deal-breakers or not. Some won’t accept “dirty concentrates”, or some have tolerances where they can blend dirty cons with clean cons, and will pay a company 60%-80% of the metals value, compensating for the penalty minerals.

      This is where many projects bite the dust economically, and unfortunately it is often after taking investors on a ride for years with promising drill programs and resource estimates. Many investors only focus on those areas and then get blindsided later in the development story when the “gotchas” show up.

      This is why I often ask companies working on building resources about any early metallurgical work, as it really should be done earlier on to determine if it even makes sense to proceed, not just on the deleterious elements, but also to see which processing method should be used, and if this is going to be economic, all things considered. Some companies know they have issues long before they do a resource estimate, or PEA and prolong doing met-work to avoid the market realizing this inconvenient truth until the PFS or FS.

      I like to see companies start the met testing as early as possible, and find companies that routinely skip doing it or that avoid those questions as suspect. There are also development projects that have been on the market for a while, and people question why nobody has taken them over and sometimes it is the deleterious minerals present that are the fly in the ointment.

      Good companies test early, and get this figured out in the earlier stages, and will abandon problem deposits early on. Crappy companies resist doing this or just push it off for a while to mine the investors longer and keep pulling a paycheck (sometimes for years) before finally admitting there may be issues in metallurgy. Good topic DT.

        May 28, 2022 28:09 PM

        Didn’t know/consider any of this. One more reason for me personally to avoid nonproducers and leave those earlier stage companies to people with the knowledge or motivation to do more research.

    May 28, 2022 28:56 AM

    Salt-v. I mentioned this company late last year. A monster deposit in NFLD.Jon H. BMR. has been all over this company since 10 cents.Also “ little “ Vul-v, owns 28mm. shares.. worth spending a couple hrs. doing some DD.on both.

      May 29, 2022 29:02 AM

      Definitely worth looking at. I prefer VUL over SALT. In addition to the shares, VUL has a 3% NSR.

      May 28, 2022 28:45 AM

      Oh dang I just realized you posted something on metallurgical testing here. That is much better and more thorough than the note I sent over and it is definitely something to consider beyond drill results, depth, mining method, etc…

        May 29, 2022 29:33 AM

        Hi Ex, I enjoyed reading your post more than the link I provided. Thanks for your reply! DT

          May 29, 2022 29:37 PM

          Ex does an awesome job at researching, responding and sharing his insights. He cares, and his content is always appreciated.

            May 29, 2022 29:37 PM

            Thanks guys. Always nice sharing ideas with the KER crew.

      May 29, 2022 29:25 AM

      Your conversation triggered a memory of something I saw on the Southern Silver site recently and that was that one of the posters indicated Silver recovered was estimated at 95% and Zinc @ 92%. Not sure if it was from a metallurgical test or what, but if so, sounds significant.

    May 29, 2022 29:06 AM

    The FED loves conventional market rallies since they’ll continue to raise rates until the market descends to levels they find intolerable.

      May 29, 2022 29:32 AM

      Agreed, as the market starts taking bumps point by point on it’s way down, The Fed will start feeding in liquidity until the advance begins once more or until the money printing doesn’t have an effect. Rather than admit to their mistakes they will keep this charade going on as long as possible, and it will be sanctioned by whomever is in The White House. The politicians do not want a crash on their watch. DT

    May 30, 2022 30:19 AM

    Precisely what we spoke about a week ago that $1832 give or take was possibility and that we would be in a consolidation/Oscillating range and that one tickle me move head fake down could transpire but that June would be explosive/rewarding. Let’s see how she plays out. Still way early in the daily cycle.

    Happy Monday to all!


    May 31, 2022 31:41 AM

    Yesterday the Cad miners were up but my account never did the over night end of day adjustment to US for the gains. Rather they reflected yesterdays Cad performance as a current day gain … and then hit todays positive open for almost 50% loss on yesterdays gains …ending reflecting today so far as +6%. Is Canada down today while US up on miners? False representation for US.

      May 31, 2022 31:51 AM

      My account showing +3.83% when actually it is -4.5% down. Then end result is the same, but all the positive stocks are false. More like lazy book keeping.