Nick Hodge – A Stew Of Different Factors Fueling The Ongoing Commodities Supercycle In Silver, Gold, Uranium, Copper, and Lithium
Nick Hodge, Co-Owner of Digest Publishing and editor of Foundational Profits and Underground Alpha, joins me for our monthly longer-format discussion on the stew of different macroeconomic factors, continuing to fuel the commodities supercycle in silver, gold, uranium, copper, lithium, and opportunities in their related resource stocks.
We start off discussing record closing prices at the end of last year on the monthly, quarterly, and annual charts for silver, gold, platinum, copper, and overall strength in many other industrial and critical minerals.
It has been challenging for investors to keep track of all the different new developments when one considers the inclusion of even more metals on the official critical minerals list, the Chinese export controls on silver that started in January in addition to all the export controls on other commodities, the recent US intervention in Venezuela for access to heavy crude oil, the upcoming appointment of the new Fed chair that will be more dovish, the upcoming supreme court decision around the legality of tariffs, the arbitrage in many metals between the physical price and paper price on various exchanges, and all of the ongoing macroeconomic factors on inflation, debt, GDP growth, and fiscal policies that were already in place before all these new factors arose.
With regards to the precious metals, Nick states that we are clearly in the middle of a solid bull market, where investors should adopt a “buy the dip” mentality, similar to what we’ve seen for well over a decade in the general us equities in the S&P 500 or Nasdaq. We review the how the valuations of PM producers and developers have not kept up with surging metals prices, and how they are undervalued on many metrics. We discuss the slow adoption and participation from generalists and institutions into the gold and silver stocks, but that it is gradually starting to happen, and should further accelerate after we see Q4 earnings season reported, starting in a few weeks. He underscores the large pools of money still sitting in other sectors or on the sidelines that have the potential to rotate into this sector as valuation metrics become to compelling to ignore. Nick states that if 2024 was the year for gold, and 2025 was the year for silver, then 2026 will be the year for precious metals stocks.
Next, we shifted over to the growing investing theme around energy coming into this year and how that plays into the need for more commodities like uranium, oil, natural gas, copper, and lithium. We really cover a lot of ground here in this portion of discussion, spending a good deal of time laying out the fundamental investing thesis for nuclear power and supply/demand imbalances for more uranium. We then expand the conversation into some of the drivers that have pushed copper to all-time highs again over the last few weeks, and some of the Cu companies on Nick’s radar. Wrapping up we get into why he has been highlighting lithium and Li stocks over the last few months as a key contrarian commodity play tying into the growth in energy storage, and why he believes that trend will continue for the balance of this year.
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This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
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Okay, I will bite what Do You Know! LOL! DT
Silver, 15m, new pitchfork…
Silver update…
HydroGraph is on the move! As always DYODD DT!😊
Resistance @ 2.20 (HGRAF) now support. Volume move!
By April, the 200 week Bollinger bands for US 10-year yield will be as narrow as they have been over the last 30 years. 2026 should be interesting.
What is the reason Brixton has been scraping its lows? Does it even have gold?
Brixton management is extremely capable at what it does. Unfortunately that hasn’t translated well to the share price.
What it does is dress up promising drill results, attract interest from well known investors who take down private placements funding the next years drilling ALWAYS in areas far away from the drill holes which attracted the big investor interest in the first place.
In 2019 it was hole #150, a quite promising assay in its Golden Triangle property, on the basis of which Eric Sprott took down a large private placement and said on his podcast ‘it sure looks like Brixton has the goods”.
Brixton did absolutely NO stepout drilling from that hole. Not 50 metres out, not 100, nothing but instead pivoted to an area a kilometre away…quite promising the company said. My repeated inquiries as to when they would follow up hole 150 with stepouts went unanswered.
The next year they announced an agreement with mining hall of famer Eric Friedland for him to work on a promising silver property in Nevada. Another high profile individual now associated with Brixton. Friedland is presumably puttering around Nevada to this day.
Then there was the pivot to a promising property in Quebec with no famous name attached. There went another summer or two of negligible drilling results.
Last year a major (BHP?–i can’t be bothered to check) took down a private placement. Presumably wondrous assays are pending as they always are with this outfit.
What else? Brixton does have a certain elan, a flair for naming its exploration zones in the Golden triangle after single malt scotches–Talisker, Glenfiddich and so on.
Excelsior, polite to a fault, once described Brixton as afflicted with attention deficit disorder for its propensity to excite interest in one property–Helloooooo private placement–only to abandon that property and pivot to another.
They’re in year seven or eight of this nonsense. As i said at the beginning they are very good at what they do.
Its a living.
Spanky, it’s scraping such lows primarily because of tax loss harvesting in a year when most resource investors needed all the write offs they could get. On top of that, there’s the recent $12M capital raise. I don’t know if you noticed but it has been very well-bid since tax selling ended. Despite the action in gold, silver and copper, there’s very little long term conviction about this bull market. That will change and when it does, the juniors in general will behave very differently.
BHP’s stake cost $13.6M cdn while Friedland has spent about 2.5 times that on the Montana property. The current market cap is well below those combined amounts and almost a third of the mcap is cash.
I’ve been adding a little to my oversized position lately at .055 and .06 cdn.
Yes, it’s been quite clear how things farther out on the risk curve have lagged.
gold–>gold miners–>silver–>silver miners–>juniors/explorers?
You can defend a stock till the cows come home but if it doesn’t move up it is because investors aren’t interested, that doesn’t mean they won’t change their mind but Brixton has been underperforming for years. If you want to hold it that is your decision. But don’t analyze a stock to death, until the interest and I mean repeated volume changes you will earn pennies. I am not in this market or any market to earn pennies. Go where the money is loved that is the name of the game. DT 🤣🤣🤣
The money is loved right here in my own pocket. Doing fine without any headaches from these miscreant CEOs.
“There is only one good, knowledge, and one evil, ignorance.” — Socrates
The irony is that ignorant people see evil everywhere they look except the in the mirror.
IPT management did some self serving things that increased the share count substantially and harmed existing shareholders. Did they do this just so they could brag about not carrying any debt?
Not that it means anything but my accounts only had one day above the previous early October 25 high before now being taken down again for a few days, … but what do I know.