John Rubino – The Environment For Precious Metals Is Improving
John Rubino, Founder of The Dollar Collapse website, joins us for a wide-ranging discussion on factors that have improved in the precious metals environment. We review the recent crypto crash, due to the FTX exchange bankruptcy, and what that may mean for more crypto investors taking an interest in the similar sound money principles found in precious metals. We also review the expectations around the reduction of rate hikes at future Fed meetings, now that we are seeing inflation cool off a bit, and unemployment ratcheting higher. Some other areas touched upon where the continued signals of a slowing economy from weakness in the real estate market, used car prices pulling back in concert with loan default issues, the Chinese bailout of their real estate markets, and other data showing we are still heading into a recession.
Next we review of how gold, silver, and the mining stocks have reacted recently, making specific note of how well silver has done coming off it’s lows in September, and how the mining stocks tend to track it more closely than gold. John also points out the different reports we are seeing relating to the tightness in the physical silver markets, and how that could easily lead to some panic buying from concerned investors. We wrap up by pondering if the recent rout and lack of confidence in the cryptocurrencies, may actually migrate some sound money investors over to the precious metals.
Michael Rectenwald – Economic Destruction By Design
Liberty & Finance – Nov 13, 2022
0:00 Intro
1:30 Current threats
13:11 Own nothing?
15:41 Self-sufficiency
23:14 Who benefits?
26:25 Totalitarianism
32:20 Divide and conquer
37:13 Demoralizing people
47:03 Nine-point plan
56:00 Learn more
56:30 Miles Franklin
In the prior 2 segments with John Rubino, he mentioned the positive outlook he still has on the nuclear power sector and related Uranium miners. We saw another key transaction just recently announced of the acquisition of Energy Fuels Alta Mesa insitu project to Encore Energy, so more M&A continuing on a project level in the U stocks. This is on the back of Uranium Energy Corp UEC doing a few key acquisitions this year.
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(UUUU) (EFR) Energy Fuels Executes Definitive Agreement to Sell Alta Mesa ISR Project to (EU) (ENCUF) enCore Energy for $120 Million, Facilitating the Company’s Plans to Accelerate Both Uranium and Rare Earth Production
14 Nov 2022
https://ceo.ca/@newswire/energy-fuels-executes-definitive-agreement-to-sell
(UEC) Uranium Energy Corp Completes Acquisition of (UEX) UEX Corporation to Create the Largest Diversified North American Focused Uranium Company
22 Aug 2022
https://ceo.ca/@newswire/uranium-energy-corp-completes-acquisition-of-uex-corporation
(UEC) Uranium Energy Corp Expands Wyoming Hub and Spoke ISR Platform with Additional Resources and Filing of S-K 1300 Report
15 Sep 2022
“This filing marks the largest S-K 1300 uranium resources reported in the United States combining UEC’s recently acquired Uranium One Americas, Inc. (“U1A”) and Anfield Energy assets together with the Reno Creek Project.”
https://ceo.ca/@newswire/uranium-energy-corp-expands-wyoming-hub-and-spoke-isr
(UEC) Uranium Energy Corp Completes Acquisition of the World-Class Development-Stage Roughrider Uranium Project From Rio Tinto
17 Oct 2022
https://ceo.ca/@newswire/uranium-energy-corp-completes-acquisition-of-the-world-class
So for those following along, (UEC) Uranium Energy Corp has made 3 major acquisitions just this year and is really a much different company with a much broader asset mix than it even was just 6 months ago, with some real uranium project gems and prior flagship assets inside of its portfolio now.
In addition they have 5 million pounds of U308 they bought right out of the spot market which is also quite significant. Those pounds on hand could be used to give an interested utility company courting them for an off-take agreement, the confidence that UEC has plenty of wiggle room to meet delivery commitments, on the front-end… while they would be bringing some of their ISR assets online and into production.
I’ve been following UEC for over a decade and have been invested off and off for many years, and previously I thought one of their biggest attributes was a big board listing with lots of trading liquidity, and that they had a good (but not great) asset base… Fast forward to today, and it is clear they are in massive growth mode, and have really assembled an impressive mix of near-production assets, development projects, and exploration projects as well as the warehoused U308. Job well done!
(UUUU) Energy Fuels has been in beast mode the last 3 years, and was over a 14-bagger from the depths of the pandemic lows at $0.78 to the high a year ago at $11.39.
While it has pulled back substantially from there in a sideways to down consolidation move (closing today at $7.52), I could still see it being an easy double from here in one of the more established names in the Uranium sector.
It is getting close to seeing the 50 day EMA turn up and go through the 200 day EMA, and that may give it the juice to put in a nice upside rally, with first horizontal price resistance in that $8.24 – $8.39 zone, then next resistance at $9.41, and the more important horizontal price resistance up in that $11-$11.39 area… then open skies…
In contrast, UEC has had a more bullish steady climbing chart, that has remained in an uptrend, with a pattern of generally higher lows, and some spike highs, but then a recent sideways consolidation channel. I’m looking to see if UEC can break out of that consolidation to the upside, and if so may increase my position sizing, but it has remained one of my larger U-stock positions overall.
Now as far as one of the themes discussed in today’s interview with John Rubino — Silver has been strong lately.
We saw silver bottom in early September at $17.40, and then since then put in a series of higher lows, and break up through $18, $19, 20, $21, and now $22.
Silver closed last Friday, to end the week above both the 200 day EMA and the 200 day SMA, and closed today above the $22 level (at $22.11) that many have mentioned was a key psychological and technical level.
Maybe it’s gotten a bit stretched here on this upside move, and the weaker US dollar has likely helped, but that is a very impressive move by the lessor precious metal… (especially in light of all the calls for $14-$15 silver just 2 months ago from many market commentators and technicians).
Even if we do see Silver roll over a bit from here, that is still an impressive move it’s put in since early September, and significant that it bottomed before Gold (while gold was still putting in new recent lower lows), and it is good for the whole PM sector, including the mining stocks, that it has lead the charge higher lately.
We’ve also seen some very nice correlating moves in many of the Silver stocks.
For example, one silver producer that had a huge fall from grace a while back, but got sold down to just silly levels is (GATO) Gatos Silver Inc. Since September, it lagged the bottoming in Silver by about 2 weeks, which is nothing out of the ordinary, but it’s nearly doubled from the Sept low at $2.20 and the close this afternoon at $4.02. Next resistance is that recent pricing peak at $4.44, but after clearing that (preferably on a weekly basis) it could really blast higher.
There was also a nice move in the balanced Silver, Gold, Base Metals producer (HL) Hecla Mining, since mid September, where it also bottomed about 2 weeks after silver did, at $3.41, and now has surged up closing today at $5.61 for almost a 65% gain in just under 2 months. Not too shabby.
Even some of the junior Silver producers got into the spirit of things over the last 2 months, with (SCZ) Santacruz Silver bottom (you guessed it… about 2 weeks after silver did… notice a trend here…), at $0.29, and closed today up 79% since then to close today at $0.52.
Remember 2 months ago in September, when people were clamoring for investors to “Sell Everything and go to Cash!”. As mentioned at that time, savvy investors were not selling near lows to run cower in cash, but in contrast, were deploying cash to buy value while it was on the clearance rack.
Even some of the mid-tier gold producers have had some nice moves in sympathy with Silver and the silver stocks.
For example, look at the nice run (KRR) Karora Resources has had since (you guessed it…) about 2 weeks after silver bottomed. It hit a low of $2.38 in late September and closed today up almost 68% at $3.99.
There are plenty of examples of many PM stocks up nicely in double-digits since late September, and it has been a fantastic tradable rally for about 6-7 weeks in many mining stocks, for those that were deploying cash back in mid to late September, instead of listening to people advising people to sell everything and go to cash. Just something to mull over… 😉
Hey Ex. Saw your comments on GASX ……agreed that it’s created a nice buying opportunity with the sell off(mainly by Frank) as the friends and family get positioned with it now(how many times has the ceo said it) fully funded. Warrants are how I’m playing it but the recent sell off has them completely illiquid. Need it much higher to be able to trade them more.
Interesting you pointed out uranium and specifically UEC. Wealth Report was pumping UROY since Monday morning and it had nice pop too. Some interrelated deals between the two exists
And I guess I’ll point out Lithium Ionic hit a new high on nice volume.
And as a last point nickel still looks unstoppable going forwards so the next update from FPX should be interesting
Hey there Wolfster. Yeah, I’m not in GASX currently, after having sold it a couple of months back to focus more on the PM space, but after the big selling yesterday on the financing news and the selling from Frank Giustra (maybe to get in on the financing), NG Energy is looking more attractive now for an entry soon.
As for the Uranium stocks, I just thought it was relevant to point out the many acquisitions going on in such a tiny sector, like the acquisition of the 3 projects in the Alta Mesa ISR Project that enCore made from Energy Fuels, or the 3 separate acquisitions in a row that UEC has made just in the second half of this year. All of those companies are looking more an more solid.
Yes, for the Lithium space, I’m not following it as closely at this point, but it appears 2 of the newer trending stocks of the day, Lithium Ionic, and Sigma Lithium have had banner years. Again, based on where they are valued at this point in market cap, I don’t see much more to squeeze out of them at this point, and the sector looks extremely frothy at this point.
K. You win Ex. 🤪 Sold the lithium ionic to free up some money as I’m getting FOMO with the tag team of Doc Jones and Hedgeless horseman talking up the magna which already had a nice pop
Haha! Well please don’t sell your Lithium winners on my comments, because irrational moves can simply get even more irrational. We’ve seen it plenty of times before, where the moves higher just keep going.. and going… and going… divorced from reality or valuations that make logical sense. For all we know they’ll double again from where they are. It’s just for me, seeing Sigma Lithium with a $4.3 Billion CAD market cap, when they aren’t even in production yet, and don’t know what challenges they’ll encounter is a bit steep. It’s been a hell of a good run, but how much upside is there in that stock now at this point?
There may be more room to run in Lithium Ionic, but it’s already blasted up to a $220 Million market cap as a Li drillplay, so it’s hard for me personally to chase it here. Heck it may be a 5-bagger from here and go to a $Billion CAD market cap, but overall in the lithium space and even with these 2 newer companies leading the charge in 2022, they all just look very over-heated, and I don’t like chasing things.
Yes, Magna Mining is quite impressive. We just had them on the show the end of last week to introduce the story to the KER audience, once their acquisition from Lonmin of Denison/Crean Hill was complete.
Trend Strength: https://tinyurl.com/k8h8jpm9
PMs looking toppy this morning.
NatGas downward.
P.S. Table Numbers are not Quantitative. They represent Quality levels. Trend Quality differs going into various Turns, but may be more finely ascertained at higher ‘numbers’. This is somewhat akin to measuring Surface Roughness, which can be ‘numbered’ course to fine.
Dollar pop today. Possible turn.
Take down day. Same old algos.
However, with the economy and inflation under control, I need to pick-up some things at the Alternative Universe grocery store. I understand prices are great. Can anyone tell me where they are located.
Oh, I would update on drill results that were good, but the miners went down…so it is moot.
Cdn$ at important resistance:
https://stockcharts.com/h-sc/ui?s=%24CDW&p=W&yr=5&mn=0&dy=0&id=p38608362958&a=1236906701
Nasdaq Leads Wall Street Lower After Hawkish Fed Comments
By Shubham Batra and Ankika Biswas – Reuters – Nov 14, 2022
https://www.investing.com/news/stock-market-news/futures-decline-on-cautious-fed-tone-on-inflation-2942951