Erik Wetterling – Fundamentals Versus Sentiment In PM Stocks, Silver Viper Runs Post Financing, Hecla Exploration In Nevada May Be Positive For Headwater Gold
Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins us to review the dichotomy between gold and silver stock fundamentals versus market reactions based on investor sentiment; which is oscillating quite a bit in both directions over the last 2 months.
We review how the sentiment and investor reaction towards company financings has changed a great deal over the last few months. Now upsized financings, like the one we saw announced for Silver Viper Minerals Corp. (TSXV: VIPR) (OTCQB: VIPRF) for $15 million, are having positive reactions after the news is released; instead of it being a reason to sell the stock down.
- Erik points out that now investors are more hesitant to just sit on the sidelines, because they see the risk being to the upside if the upsized capital raised can then lead to further news and value creation from the company.
Next we discussed what kinds of other resource sector news is getting the best reactions or most traction from the market, from fundamental milestones to merger and acquisition transactions. Erik highlights that he often likes to search for sector news that may still be impactful for juniors that he is positioned in, even if the news is not directly associated with a given company.
He highlights the news out today from Hecla Mining (NYSE: HL) focused on exploration at their Midas Project as potentially also beneficial to Headwater Gold Inc. (CSE: HWG) (OTCQB: HWAUF) exploring nearby in their JV with Newmont Gold.
“Hecla Mining Company today announced exploration results from its Midas Project in Nevada, where initial drilling of the previously untested two mile long Pogo Trend has discovered high-grade gold mineralization with visible gold on a new structure. Exploration success at the Midas gold-silver project in Nevada is validating the potential to restart operations at significantly lower capital intensity than comparable development projects, given the existing permitted 1,200 tpd mill and permitted tailings storage facility that remains substantially empty. With the foundational infrastructure already in place and permitted, Nevada’s supportive regulatory environment could facilitate timely permitting of additional requirements, positioning Midas as a low-capital-cost opportunity to expand the Company’s production profile in a world-class mining district. The Company also reported the advancement of Aurora exploration permitting to FAST-41 Transparency status.”
* In full disclosure, the companies mentioned by Erik in this interview, are positions held in his personal portfolio, and also may be site sponsors of The Hedgeless Horseman website at the time of this recording.
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Bullish Gartley Gold Possible.
If So, New Highs 2026.
(Sooner ??) BDC
https://www.tradingview.com/x/N4aAWJbM/
GOLD : Inverse Bullish Gartley
New High Soon?
GDX 87.42 ??
3-4 months of this rangebound action is going to frustrate a lot of people.
I am expecting that within the next few weeks, silver is going to produce a very large red weekly candle (which may only take us back to the 10 week EMA or just below). Critically, that large red candle should serve to cause a negative cross in the weekly MACD. I don’t believe there will be much if any follow through to the downside in terms of price though, and instead I am expecting silver to stay within a very narrow (for silver) and very flat price range until the rising 50 week EMA gets close to the October low around $45. I am guessing price should stay close to $50 for most of that sideways action–probably within $1-2 on either side.
There will be just enough weakness to get the MACD to work off some of its overbought state over the next 3-4 months, but the key will be that one big down week that sets the trajectory for momentum.
Alternating day algo open.
Moved some US Treasuries to India to see how their new currency works out initially.