Chris Temple, Editor and Publisher of the National Investor, joins us to review the macroeconomic trends moving the markets, and his outlook on US general equities, precious metals, and various segments of the critical minerals space. Chris also recaps some of the companies he just saw in person at a number of site visit tours throughout Nevada, California, and Arizona.
We start off discussing the Fed meeting earlier this week, and a brief summary of Jerome Powell’s 8-year tenure as the head of the US central bank. Next, we pivot over to the macro backdrop for incoming Fed head, Kevin Warsh; and the results that have accrued as the result of prior monetary and fiscal policy in the US and abroad. Chris note the persistent issues of record sovereign debt loads, higher-for-longer inflation levels, greatly spurred along by excessive money printing over Jerome Powell’s term, pressures from the war in the Middle East, and the potential for slowing economic growth and more meaningful pullback in the broad US equities in the medium-term.
Switching over to gold, silver, and the precious metals equities, Chris had warned subscribers earlier in the year that things had become overbought and gotten ahead of themselves and to fade that rally, anticipating a medium-term sector pullback.
- He pointed to the coming corrective move in the PM sector, that was then exasperated by the war in Iran, when many felt that would be a bullish driver for gold and silver.
- Central banks and generalist momentum investors had come into the precious metals over the last couple years, but then some of these same groups had shifted over to selling PMs over the last couple months, putting further pressure on the sector.
- Generalist investors are still very much fully deployed into US equity markets and in particular the tech stocks and AI trade, and have pushed those valuations to record levels. As a result they are less inclined to be following the future potential of the commodities stocks.
- Chris is prepared for a future corrective move in US stock markets, that would initially drag everything else down with it, including most commodity and resource stocks.
- However, he pointed to the 2009 period coming out of the Great Financial Crisis, where gold and silver rebounded quicker and went up more on a performance basis than the broad markets.
- He expects to see a similar trend after a market liquidity event, where the PMs rebound first and to a greater degree, and the rest of the metals complex will follow.
Next we shifted over to trends within the broad basket of Critical Minerals, where Chris makes the point that one can’t paint them all with a broad brush, as some have unique fundamental or macro drivers and have popped up periodically like a game of “whack-a-mole.” He pointed out that critical minerals like lithium, cobalt, and nickel had popped and then dropped over the last few years, but that he was more animated by uranium, fertilizers, magnesium, tungsten, titanium, copper, and zinc at present.
Wrapping up, Chris highlighted the companies he just met with on his multi-state site visit tour through Nevada, California, and Arizona including:
Gunnison Copper Corp. (TSX: GCU) (OTCQB: GCUMF), Nevada Organic Phosphate Inc. (CSE: NOP) (OTCQB: NOPFF), Integra Resources Corp. (TSXV: ITR) (NYSE American: ITRG), North Peak Resources Ltd. (TSXV: NPR) (OTCQB: NPRLF), Borealis Mining Company Limited (TSXV: BOGO) (OTCQB: BORMF), Apollo Silver Corp. (TSX.V: APGO) (OTCQB: APGOF), and Arizona Gold & Silver Inc. (TSXV: AZS) (OTCQB: AZASF).
Click here to follow along with Chris at the National Investor website.
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