Brien Lundin – Despite The Whipsaw Price Moves, The Longer-Term Outlook Is Still Constructive For Precious Metals
Brien Lundin, Editor of the Gold Newsletter, joins us to share his thoughts on the recent rollercoaster moves in the in the commodities sector and the precious metals, based on the war premium coming out, but the Fed rate hiking cycle kicking off to fight higher persistent inflation. Brien mentioned that he felt the pullback and consolidation in gold was expected and healthy, and is still very constructive on this move higher having much further to run longer term, and that the monetary and fiscal issues are going to regain dominance as the primary driver of the precious metals sector.
We discuss that there are a few things that could continue to pressure gold from a stronger resolution in Ukraine, to shorts defending their positions, but that so far the rebound in the sector and strength in the metals and miners has been the kind of bullish move that was anticipated on the back of the Fed rate hike announcement. The conversation then turned to how high and how many hikes the central bank will be able to make, and if they get to a breaking point, if they may go to other policy tools like yield curve controls or even negative interest rates down the road.
Next we shift over to that potential that more generalist investors are now focused on the commodity sector, and more people are waking up to the importance of supply chains and domestic raw materials. These leads to the question of if policy makers will help mining companies with permitting to get more projects expedited, permitted, and into production. We wrap with a discussion on 2 mining stocks that Brien likes at present and where he’s see the growth opportunity: Zacapa Resources (TSX.V: ZACA) and Trigon Metals (TSX.V: TM)
Ditto…………… Just starting……….. jthelong…….. lol….
Agreed OOTB. Still a long way to go for Gold and Silver in the unfolding bull market.
If one thinks about the points that Jordan Roy-Byrne, or Christopher Aaron, or Steve Penny made technically in their recent interviews about just how far the cup & handle pattern can extend over the next few years, the yellow metal still has lots of room to run to the upside.
Let the cup runneth over… 🙂
I’m keeping with my long term thoughts…………. gold going up……. and KISS…….
Gold…….. 1971…….. $35.
Gold……..2022………$2000
This is not going to change, (the direction)
Agreed OOTB. When people state Gold isn’t keeping up with inflation, that is a salient point. Gold in 1971 was $35, and today it is close to $1900-$2000. I’d say that it was an excellent store of value over the last 5 decades and counting.
Ever upward!
Livermore quote….comes to mind…………..
“I made more money, setting on my hands”(or something like that)…. 🙂
OOTB – Stay tuned for the upcoming interview being posted later today with Erik Wetterling (aka The Hedgeless Horseman) as that is exactly the topic he gets into as a value investor – being right and sitting tight (on one’s hands to avoid trading away a longer term winner).
Looks , like I might be ahead of the curve…… lol 🙂
Absolutely OOTB. You are always ahead of the curve…. forging the trail ahead.
🙂 thanks…….. Now, pride goeth before the fall… lol….So, I am looking for .. another curve ball coming… lol….. 🙂
I’ve got 75% in the sitting on hands category and hope they pay off big but right now my 25% short term flipping for 10-25% gains is making the real money the past month. Great for my tfsa
Good thoughts Wolfster. Yes, I’m in a similar boat, trading around 25%-50% of my position-sizing, (with occasional whole position trades), but mostly keep core positions in place for the longer-term trends, but while generating gains swing-trading the technical trends. Swing-trading partial positions repeatedly throughout each year, has magnified the gains in a big way over the positions held, but it isn’t for the faint of heart and is easy to get wrongfooted or lose if one doesn’t have a solid system and trading rules in place.
Steve Penny does an excellent job with breaking down the different strategies on long-term core holdings versus his swing-trading strategies in his newsletter, and has a commanding grasp on both areas. Long term sit on the hands for the larger bull, swing-trading to generate short-term gains and funds along the journey.
Wolfster – BTW, don’t know if you saw the interview up yesterday with Petrus Resources, but they are a Doc Jones oil & gas play, and I know you follow that sector and like some of Doc Jones other picks, so just curious to get your thoughts on that company sometime.
Well I missed the initial buying frenzy when Doc first mentioned and was bitter but with its recent consolidation I’m looking at it again. Trying to play the Doc plays based on potential news flow rerates so right now holding short and long positions in Gasx. Looking to use the short term play funds to start a position in Petrus. Believe Gasx has more near term potential
Makes sense Wolfster, and I’m also recently positioned (again) in GASX and believe NG Energy has a big year of growth on tap with the wells coming online at Maria Conchita and at Sinu 9. Plus that whole light oil potential is another kicker, so that will be interesting to see what they hit on discovery drilling there this year.
Petrus also looks like an interesting turn-around and growth story, and but may be at a more compelling entry point after correcting a bit more, but then again, the energy stocks could just keep running. I was just mulling it over and interested if you had any thoughts on it, but the stock has already made a big run higher at this point. Cheers!
Gold and real estate……… KISS……. both will do the work for ya…….. 🙂
+2
Gold Market Update – Slingshot Advance Is Still In Its Infancy….
Clive Maund – published Tuesday, March 15, 2022
“Everything is ‘going to plan’ as far as the Precious Metals sector is concerned with gold taking off strongly higher as predicted and the Precious Metals sector outperforming the broad market for the 1st time in a long time, also as predicted.”
“On gold’s latest 13-year chart we can see how it has been projected higher by the boundary of a giant Bowl pattern and even though it may pause to consolidate for a little while at the resistance at its 2020 highs to allow its overbought condition to ease somewhat, new highs don’t look far away, and it is ultimately set to go much much higher as the value of the dollar continues to dwindle in the face of frenetic money creation.”
https://www.clivemaund.com/gmu.php?art_id=68&date=2022-03-15
Gold: A True Store of Value
By Jesse Day for Sprott – Wednesday March 16, 2022
“On today’s episode, we seek to dig deep and uncover the mystery, the allure, and the political intrigue that have surrounded a commodity the Incas referred to as the Tears of the Sun, it’s Gold, on Commodity Culture.”
https://sprott.com/insights/educational-video-gold-a-true-store-of-value/#
Hawkish Powell: U.S. Economy ‘Can Handle’ Six More Rate Hikes
Anna Golubova – Kitco News – Wednesday March 16, 2022
“Federal Reserve Chair Jerome Powell sounded quite hawkish as the U.S. central bank raised rates by 25 basis points for the first time since 2018 and projected six more rate hikes in 2022.”
https://www.kitco.com/news/2022-03-16/Hawkish-Powell-U-S-economy-can-handle-six-more-rate-hikes.html
Freaky Friday…………again………… 🙂
anything can happen……….. today ,…….. in a world gone MAD……
Lol……….. good one………. Freaky Friday……… and what will be the curve ball from the MICC. today…. humm
Biden out of town…. and Putin with a price on his head……… humm…..
I’m just learning to expect the unexpected…. ha!
ditto………..
I’ve been buying SCZ, Santa Cruz and DML, Denison.
+2 Dan. Both Santacruz Silver and Denison Mines are big holdings for me too amigo, and have been growing in weighting in my portfolio over the last few years.
I was encouraged by the nice rebound in the gold and silver stocks yesterday, and the really big move in the Uranium stocks yesterday (with many up double-digits). Brien Lundin mentioned he was still very constructive the uranium miners in the interview up above and despite the big move many have had over over the last 2 years in particular, there is still more upside as U308 prices move towards that $60-$70+ pricing zone over the next year or two.
Freaky Friday………….. Just reporting for a heads up………..
Countdown to collapse of the petrodollar
“Project Sandman” describes a 100+ nation agreement that, when triggered, will see those nations simultaneously dump the dollar and abandon the “petrodollar” status that has allowed the USA to enjoy 50 years of fiat currency counterfeiting and material abundance at the expense of everyone else. When this decision is triggered, the dollar and all dollar-denominated assets will plunge to near-ZERO literally overnight.
This means all dollar-denominated bank accounts, bonds, pension funds, treasuries and other investment vehicles will essentially be worth zero for the simple reason that all banks and markets will freeze operations. (This is the James Rickards “Ice-9” scenario.)
Any funds you have in the stock market will be stuck in those markets, and the entire infrastructure of banking and finance will suffer a catastrophic liquidity crisis that will “freeze” nearly all financial transactions.
Saudi Arabia is already moving in the direction of triggering this “Project Sandman” (which was named after the sand in the Middle East, by the way). The countdown clock on the dollar is ticking.
PROJECT SANDMAN…………. humm anyone else heard about this one……….. ??
No way Saudi Arabia is abandoning petrodollar. The Saudi royal family will NEVER allow it. Saudi Arabia was created and It’s royal family brought to power by the Anglo Saxon banking elites.
Thanks for the reply………. I have never heard this one……. interesting ….. JMO
For those who do not understand, the dollar is the mightiest weapon the banking elites have. And it is protected by the might of US army, by far the strongest military power the world has ever seen.
Well that military is largely obsolete. Their ships are sitting ducks. Their missiles, although they have scary names like Hellfire, are subsonic and short range and no match for mach6+ Russian and Chinese missiles capable of 1000+km distances. Some NATO countries are now buying superior Russian air defence systems over American systems. USAF still pretty good and capable of doing damage from high altitudes but …
Please do tell me which NATO countries are buying russian air defence systems.
Elemental Royalties (TSX.V: ELE, OTCQX: ELEMF) – Ming Gold Stream Acquisition
– Mar 17, 2022
Richard Evans, Senior VP Technical for Elemental Royalties, discusses the recent acquisition of a new high grade gold royalty in Newfoundland, Canada.
Yesterday was good. Today back to some up some down except Emo. Normal.
Just checked and Emo up +6.2% … all others combined + $500
Yeah, yesterday was rocking with a bounce in most commodity sectors, but as for today, my portfolio is pretty much flat on the day, with a mixed bag of gainers and losers.
While there are some precious metals and base metals stocks up on the day (by the way, I finally got back in Emerita recently and have enjoyed the recent bounce), more of the strength for me is in the energy sector amongst the oil & nat gas plays, and the uranium stocks are stronger overall, after a fantastic day yesterday. I may do a bit of trimming of the hedges on some positions, but overall I’m just holding what I got for now and pretty happy with how things are allocated at present.
Big finish for Emo today. Today better than yesterday, so good finish Thurs/Fri for week. My 3 oils still negative. Every time they go green for a few days, they are hit back down. Oil is going to be in short supply no matter what the actors say on CNBC.
Welcome back to Emo. Now we got Ex, Goldfinger, Wolfster and Sprott. What a group of supporters!
It feels good to be back in Emerita again, but I’ve only got a first tranche in place, and was hoping to see more of a corrective move to be able to add in tranche’s two and three. BTW let’s not leave Doc Jones off that list of folks in position with EMO, as he was the one that brought it to our attention with his series of research reports on it.
Doc is the Godfather of Emerita.
Yes the emerita is getting good volume again along with the move up…..same for Gasx Couple Doc plays with near term catalysts.
Gold’s Rally Is Just Beginning
By Chris Igou – Thursday March 17, 2022
https://dailywealth.com/articles/golds-rally-is-just-beginning/