Brien Lundin – Precious Metals Have Continued A Stair-Step Process Of Two Steps Forward And One Step Back
Brien Lundin, Editor of The Gold Newsletter and our host at the New Orleans Investment Conference, joins us to discuss the sideways consolidation in precious metals sector at higher levels over the last few weeks, and why a breakout in pricing is what is needed to get more traction in the junior PM mining stocks. We reviewed the 2 steps forward, one step back, stair-stepping higher reaction for the last 6 months to the market expectations that Fed is getting near the end of their tightening cycle, and the eventual pause in any further rate hikes. Investor expectations using the Fed funds futures have made a huge turn from anticipating higher rates for longer, to now expecting a pause soon and potential cuts to rates later this year.
We wrap up discussing the mining stocks, where overall the larger cap names have been handsomely outperforming the moves in the metals on a percentage basis, but there are still highly discounted valuations and bargains to be found in companies that have derisked and defined resources in place. Brien mentions that companies with resources that are also doing good exploration work like Heliostar Metals (HSTR.V), Grande Portage Resources (GPG.V), and Maple Gold Mines (MGM.V) are some that have his interest at present.*
*In full disclosure, Brien Lundin may hold some companies listed in his own portfolio or recommend them in Gold Newsletter.