Dave Erfle – PM Stocks Have Decoupled From The Markets, But Will That Be A Positive For Shareholders?
Dave Erfle, Founder and Editor of The Junior Miner Junky joins us to discuss the decoupling of the precious metals stocks from the US markets. As markets have moved higher to 52 week highs the gold and silver stocks have continued to lag. We discuss what could attract the generalist investor into the sector, which has been lacking. This ties into junior gold company strategies of either aiming for a buyout or messaging that the company is looking to develop the project.
Click here to visit the Junior Miner Junky website to follow along with Dave’s market commentary.
For those following the Lion One story, which we had discussed on an earlier blog this week, Bob M. shares some very thought-provoking information on LIO moving on in that editorial above with Goldfinger.
I’m biased as an existing Lion One shareholder, but I was definitely smiling big reading over Bob’s hot take on the value proposition, just like I smile whenever we talk to Quinton about LIO.
I added back some Vizsla today with some SCZ and was waiting for it to recover a little more to add to Lion One in its wounded state. Maybe next week. (Surprised Goldfinger doesn’t have any Lion One)
Thanks for sharing your trading Lakedweller2, and which companies are catching your attention.
Yeah, I’m also surprised that Lion One is not in more people’s portfolio’s, but that may well change over time. Many solid stories started out exploration/development/production with little fanfare, but eventually garnered a larger audience once they demonstrated to the marketplace just how large or well-endowed their deposit was. The company has already released PLENTY of data that shows where this is going at this point in time, if people can read between the lines a little bit. What is crazy is how much value they have continued to demonstrate as the shares have gotten cheaper… creating a much more compelling value to price arbitrage.
My thesis is that we’ll see that same pattern with LIO, where people shrug off the bonanza grade drill results, until they continue to prove out just how large their alkaline gold system could be… not just at Tuvatu, but regionally all around their 7km wide volcanic caldera. Also to Bob M’s point, as they are now starting mining, if they show that most of the exploration results actually under-reported the gold insitu, due to the tiny veining he pointed out, then that could raise a few eyebrows. Of course, by that time where it is more obvious, the stock will likely have revalued much higher than where it is trading today. That’s what makes a market…
Video: Gold’s 3 Best Historical Comparisons
By Jordan Roy-Byrne CMT, MFTA • The Daily Gold – June 12, 2023
“There are three clear historical comparisons for Gold. These are the 1964-1965 period, the 1968-1972 period and 2009…”
https://thedailygold.com/video-golds-3-best-historical-comparisons/
What Makes a World-class Gold Deposit? (Updated 2023)
Melissa Pistilli – INN – Feb. 06, 2023
“The world holds several hundred active gold mines, but not all are created equal. So what makes a world-class deposit?…”
I will be purchasing Lion soon since the technicals are now looking pretty good. I’ve waited a long time for this thing to tank and will be getting shares soon at what I consider a great opportunity.
Bob Moriarty Reveals Two Of His Largest Junior Mining Positions And The Best Gold Project In Canada
by Ceo Technician (aka Goldfinger) – Energy & Gold – June 16th, 2023
> Goldfinger: “Let’s talk about gold, the gold price is $1975. If we think back, the last 30 years, $1975 is a pretty high gold price, relative to where we’ve been. In fact, it’s almost an all time high.”
>> Bob Moriarty: “Right.”
> Goldfinger: “It’s within 5% of an all time high. Yet, I see a lot of people complaining, a lot of gold investors saying they’re sick of investing in this useless thing that doesn’t go up. And when we talk about gold mining stocks, the sentiment is even worse. It’s absolutely… It’s horrendous. It’s so bad right now.”
>> Bob Moriarty: “No, it’s wonderful. It’s so bad. When you compare gold stocks to the S&P, or when you compare gold stocks to the price of gold, or when you compare gold stocks to commodities, gold’s at the lowest it’s ever been. Okay. And that’s a great time to invest, of course. If you put all your money into Novo, or into Irving, or into the stocks that have done nothing but go down, you’re saying, “God, I just hate this,” but the time to get into a market is when everybody hates it. And the time to get out of a market is when everybody loves it. And I think, the last time we talked, I said that I was inclined to believe that we’re near the top. Absolutely, now. The S&P and the NASDAQ could top in a week. Those DSI numbers are high. The Nikkei, at 93, 95, or 96 would be a historical record. So we are really, really high, and the next move is down for the DOW and up for gold shares.”
> Goldfinger: “So before we finish up, I want to talk about a couple of junior miners, and discussing the importance of having a selling discipline. In our last conversation you said that Lion One (TSX-V:LIO, OTC:LOMLF) is your largest position, as you alluded to, “It’s gone down with a lot of other juniors in the last few months.” What’s going on here? At 67 cents, I would argue, it’s pretty damn cheap here. But why is the market just giving this thing away?”
>> Bob Moriarty: “That’s a really good question. There’s actually a very simple answer. There was a hedge fund that had 11 or 12 million shares, and they’ve been dumping it for, at least, the last six months. And I think they’ve sold all their shares now. Of course, in my investment books, I’d say, buy when things are cheap, and sell when they’re expensive. And that sounds simplistic. It’s fact of the matter, it makes a ton of sense. You just made my point. I’m thinking, real seriously, about buying more. And the crazy thing is, I’ve got a lot of shares now.”
>Goldfinger: “Yeah. I have people asking me about Lion One. I’m not a shareholder, but obviously, we’ve talked about it multiple times, and I know it’s covered by Eric Coffin as well. A lot of smart guys own this one. Just looking at the chart, it looks like a lot of other charts out there are not particularly good. And it makes one wonder, “What the hell is going on?” Gold is 1975. These guys are building a mine, a high grade mine, in a good place to build a gold mine, where there’s other permitted operations. It’s puzzling. It’s really puzzling.”
>> Bob Moriarty: “Actually, it’s not… Because as soon as you consider the fact that somebody has unloaded 11 or 12 million shares, then you realize why it’s gone down. Now, there were a ton of other stocks that have gone down, that you can’t quite figure that out. And in my books, I pointed out that when liquidity is really bad, that’s a great time to buy stocks. Liquidity means you can unload any position, or buy any position, that’s a mark at the top. And when liquidity is terrible, and there’s 50 shares a day trading, that’s a sign of a bottom. Now, I’m trying to find a news release, and I want to show you. Okay. I’m going to send you a news release that absolutely shows, exactly, the problem. Do you understand what flash gold is?….”
(keep reading to get Bob’s breakdown of how the gold values in Lion One’s deposit may have actually been understated when drilling, which is a good problem to have. However, now that they are mining, and soon to be processing gold, then they’ll know if there is much more gold there than initially reported due to the complexity of the geology and mineralization of the tiny gold veins)
https://energyandgold.com/2023/06/16/bob-moriarty-reveals-two-of-his-largest-junior-mining-positions-and-the-best-gold-project-in-canada/