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.

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https://rubino.substack.com/