John Rubino – Focusing On Which Gold Stocks To Position In Considering The Volatility In Precious Metals

Shad Marquitz
December 11, 2023

John Rubino, publisher of his newsletter over at Substack, joins me to discuss the recent volatility in gold, and which types of gold stocks he is animated by and holding in his portfolio. We start off discussing the roller coaster the last 2 weeks in the yellow metal, as it broke out on the longer-term charts, but then quickly reversed back down in pricing, correcting in the short-term, back under the $2000 level to kick off this week.  We review that many of the larger mining producers and ETFs like GDX did get a nice bid, and even some of the junior stocks started to move on the higher metals prices, but then over the last week the reversal has washed back out most of those gains.


Next we talked about how good drill news is still being completely ignored, or even sold off by investors, pointing to tough sector sentiment.  John highlighted the recent exceptional assay results from both Snowline Gold (SGD.V) (SNWGF) and I-80 Gold (IAU.TO) (IAUX) where markets actually turned lower after they were released, despite the companies continuing to build value.   He pointed out that this is symptomatic of the lack of momentum in the space at present, but that when the sentiment does shift on a larger breakout in gold prices, that results like these will be rerated much higher.


 In lieu of the risk off attitude from most market participants, John sees royalty companies and physical metal ETFs as the more defensive areas for investors to position.  This led to a discussion on jurisdiction risk as well, as it relates to the Cobre Panama mine from First Quantum (FM.TO) (FQVLF) being potentially shut down, and how it also affected Franco-Nevada’s (FNV) share price.  John has actually been buying Franco Nevada very recently into the bad sector sentiment paired with his thesis that the markets are over-reacting to the downside. His sense is that the recent selloff in FNV may have been overdone, in light of their hundreds of other royalties, and in the event that some resolution is reached for restarting the mine, that the market is not presently pricing in at all.




    Dec 11, 2023 11:50 PM

    Guys, I am thoroughly pi**ed with this latest dip in the gold price! DT

      Dec 12, 2023 12:22 AM

      DT, it might be time to worry when we stop seeing idiotic headlines like this one but for now we’re golden!

        Dec 12, 2023 12:28 AM

        Thanks Matthew, the invisible hands can only hold us back for so long (CPI Report today) and then I’m hoping for “The Kapow” moment. When all h*ll breaks out in the biker bar. LOL! DT 🤣

          Dec 12, 2023 12:09 PM

          Those invisible hands win a lot of battles but no wars!

        Dec 12, 2023 12:07 PM

        The subtitle of that article was even dumber: “Bullion would be trading at $1,190 an ounce if gold were trading at its average gold-to-CPI ratio”
        Sorry Mr. Hulbert but gold fact-checks the CPI not the other way around. Witting or not disinformation agents are everywhere.

    Dec 11, 2023 11:15 PM

    I know Rick Rule mentioned three days ago that he was buying into Franco Nevada, I believe he said their price had corrected by 40%. DT

    Dec 12, 2023 12:37 AM

    once again pulling the trigger is mucho difficult on GDX instruments…glta////
    I still see the target for /GC at 1980 area…….


      Dec 12, 2023 12:54 AM

      the charts less than day are not populating on TorSwim today…no idea why…i will try right now….nope

    Dec 12, 2023 12:54 PM

    Eastern Platinum an undervalued stock in an unloved sector.

    Dec 12, 2023 12:17 PM

    This is silver’s 7th straight lower close and I bet it will begin the day lower tomorrow before catching a strong bid.
    Notice today’s bullish crossing of the 600 day exponential MA over the 600 day simple MA. The last time that happened was in September 2019.

    Dec 12, 2023 12:18 PM

    Ti-Butch when I decide to invest in a company, I don’t just look at the name. Sure, Platinum is what you would expect if you don’t peel back the onion. Most of their revenue increase came from the sale of very strong chrome prices not platinum, palladium, or rhodium.

    Revenue for Q3 2023, increased to $21.8 million, representing a jump of 18.2 million, over the last quarter or 505.6% increase from Q3 2022. DT

    Dec 12, 2023 12:47 PM

    The Bank of Canada about a month ago said they are done raising rates for now. They seem to think inflation is under control but the guy out on the street doesn’t agree. What they say and what they do are different matters, but I don’t think The Fed will want to raise rates before Christmas. They don’t want to be The Grinch that stole Xmas. DT

    Dec 12, 2023 12:32 PM

    The cost of energy fell by 2.3% last month. I don’t know why they would report this because food and fuel are not supposed to be included in the CPI, unless of course the price of fuel or food drops. OH! OH!