Robert Sinn, aka Goldfinger, founder of Trading Lab, and editor of Energy & Gold, joins us to share his macroeconomic outlook and strategy for investing in the precious metals sector. With regards to the extreme market focus on the inflation picture and how it’s trending higher or lower will affect the Fed rate hiking cycle and quantitative tightening, Robert is in the camp that we are likely close to peak inflation at this point, and that moving forward we should see the inflation metrics start trending lower as the year progresses. In addition, the economic weakness we are seeing in the housing market and the growing trends of companies laying off workers and rising new jobless claims in the labor markets, will also be two areas that the central bank will be watching closely for where they may need to ease up on their policy tightening. We review the historical data were gold has tended to perform quite well to the upside as the Fed pauses their hiking, and eventually reverses course back to cutting rates again.
Next we shifted over to the very oversold gold and silver mining stocks, where Robert noted it is as if they were pricing in $1450-$1500 gold, instead of where gold is actually trading in the low $1700’s. At this point, with the whole sector being so deeply discounted, any positive news or data that could move forward when the Fed eventually pauses their hiking, could unleash a big buying surge in the beat up mining stocks. We also review that the PM miners have raised a great deal of capital over the last 2 years and there are many company with big drill programs still underway, so there should be some new discoveries made that bring in a bit more excitement from investors in the sector. We wrap up getting Roberts thoughts on how he is managing his portfolio, and a few stocks that he likes in this environment: Endurance Gold (EDG) (ENDGF), Banyan Gold (BYN) (BYAGF), and Snowline Gold (SGD) (SNWGF). *
*Guests featured herein may have been compensated for their services in working with some of the companies mentioned. Robert holds positions in the companies mentioned.
.