Sean Brodrick, Editor of Wealth Megatrends, Supercycle Investor, Resource Trader, and contributing analyst to Weiss Ratings Daily, joins us to provide his outlook on the valuations of gold, silver, antimony, and tungsten stocks when contrasted against the volatility we’ve seen in the metals over the last couple weeks and months.
Sean remains bullish for medium-term and longer-term in the precious metals, because all the fundamental macroeconomic and geopolitical factors are still in place and haven’t changed.
- However, after the wild price volatility in both directions for gold and silver in January and early February, he believes that we are likely now going to trend sideways in a price range for the near-term; basing for a while before the next move to the upside.
- He’s recently taken some solid profits in silver stocks, since he expects further sector consolidation.
- Sean noted how the Chinese policy and trends in physical precious metals markets have had an outsized effect, sending prices in the precious metals first higher, and then were a big catalyst for the corrective moves lower in the metal, leading the pricing moves that the western exchanges then followed.
- Despite harvesting gains in other silver stocks, he is considering getting back into First Majestic Silver Corp. (NYSE: AG) (TSX: AG) for their production profile and strong anticipated revenues and free cash flows from Q4 heading into Q1.
With regards to critical minerals, Sean remains quite interested in the metals of strategic importance to the US and the world at large, like rare earths, uranium, antimony, and tungsten.
- We reviewed the big news out this week that Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) announced it has entered into a joint venture with United States Antimony (NYSE American: UAMY) to build a new antimony processing facility at the Galena Silver Mine in Idaho. He likes this partnership since these companies are actually producing and processing antimony and have the US government as potential partner to sell to.
- Sean is not really interested in the many other exploration stocks that now claim they have exposure to antimony too, because their projects are simply not close to producing this defense metal anywhere in the near-term. The one exception would be the quality and advanced stage of the project that Perpetua Resources Corp. (Nasdaq: PPTA / TSX: PPTA) has recently gotten permitted, and that a fellow contributor at Weiss Ratings has provided a research report on.
- With regards to tungsten, Sean has had his subscribers positioned in Almonty Industries Inc. (NASDAQ: ALM) (TSX: AII) (ASX: AII) for exposure to this defense metal, in a Canadian company, operating in Asia, but listed on the big board on the US Nasdaq exchange.
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