Brien Lundin, Editor of The Gold Newsletter and our host at the New Orleans Investment Conference, joins us to discuss how he is navigating the current correction in the precious metals sector, and what macroeconomic factors he is looking towards that could change the trend. We lead off with a more general discussion on what effects the debt ceiling debate, the banking sector concerns have had leading up to this point, and ultimately how these ongoing situations correlate to Fed policy expectations moving forward.
This filters down into how gold, silver, and the mining stocks have reacted so far this year, and as we’ve hit the “sell in May” period, where he now sees room to be a bit more cautious leading into the seasonally slower summer doldrums period in the months to come. Ultimately, the bigger picture is still quite constructive for the precious metals sector, and this pullback should be seen within a larger bull market pattern. With the Fed funds futures markets still pricing in rate cuts as soon as September, this could indicate there will be some economic challenges as the year unfolds, and this should be bullish for the PMs.
We wrap up with Brien highlighting I-80 Gold (IAU) (IAUX), Gold Basin Resources (GXX) (GXXFF), and Vizsla Silver (VZLA) as examples of companies continuing to build more value in press releases, while their prices have corrected down with the sector. While he cautions against trying to catch falling knives, he provides the nuance that accumulating quality companies during corrective moves, and holding through any further weakness, will be rewarded as the sentiment improves and the metals pricing breaks out later in the year.
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Click here to visit the Gold Newsletter website to keep up to date on Brien’s market comments.