Weekend Show – Rick Rule & Jesse Felder – Silver, Uranium, Nickel and Gold Miners
Welcome to The KE Report Weekend Show! This Weekend’s Show is focused on resource sectors, one in a bull market and the others looking for catalysts. Uranium is in the bull market, silver is trading in a range while nickel and gold miners continue to slide lower.
- Segment 1 and 2 – Extended Segment – Rick Rule, Founder of Rule Investment Media joins us to discuss why he thinks silver and nickel are in for a major run higher in price. On the uranium front we ask his thoughts on the sustainability of the explosion of price and how he views the uranium stocks. Rick has a couple conference upcoming that we discussed. Here are the details on each.
- Prospect Generators Bootcamp (Virtual), Saturday, April 20th, 8am-4pm PST – Click here to sign up.
- Rule Symposium on Natural Resource Investing (In-person & Livestreamed), July 7-11, Boca Raton, Florida – Click here to sign up.
- Segment 3 and 4 – Jesse Felder, Founder of The Felder Report wraps up the show with a focus on the major gold mining stock. Coined the BANG stocks (Barrick, Agnico, Newmont and Goldcorp) these major miners have continued to struggle on the share price front, while gold holds above $2,000 and earnings have been strong. This ties into Jesse’s breakdown of the 3 most hated assets; gold miners, oil producers and Chinese equities.
Added Silver.
Added FCG (Explorers & Producers).
You’re weekly dose of PM hopium.
Inflation isn’t going away.
Rates will go up, not down… and so will the price of PMs.
Mining stocks will continue to wallow in the mud while tech stocks continue to double every year.
By this time next year, there will be half the number of people posting their thoughts here. That means there’s going to be one or two people posting here.
Have a great weekend.
Hey Joe, I agree on two of your points inflation will keep ticking higher and rates will rachet up, but mining stocks are going higher and tech stocks will be in the dumpster. You need to SELL, SELL, SELL, your technology shares or you will be a “BagDaddy Bagholder !” DT 🤣
I think we are about 6 months from the generational top in equities…the system will let inflation run…imho……i just want to avoid early positioning in gold miners….Because I do fear a bout of inflation prior to releasing the hyperinflation….that is me…..i cannot tell the future…glta
Well the buy buy buy ipt crowd has definately stopped.
Maybe Nenner is right,PMs down to begin the year and up the 2nd half? of 2024.
I own zero IPT now from it being my biggest holding, first time in a long while and don’t care to go back in, lots to choose from so why invest in sketchy financings.
IPT is a buy buy buy right now though not necessarily for the short term trader. It just filled its little gap from Feb. 8th 2016 and is quite cheap.
Nenner………. is right about half the time , which is kind of good…. Smart guy, no doubt,..does he know it all..? No one does.
There is zero chance he can read the minds of the corrupt organization which fill every void in
this investment sector, .. and stock market sector, and illegal fraud fake fed.
I do enjoy listening to him… 🙂 I wonder how much he knows about American politics… ?
And the corrupt minds of the WHO, IMF, UN, etc…
And thanks for the post.
Just a Rant, no need to respond… 🙂
You may be partially correct. BIden’s Boys (and girls) will try to keep the Titanic afloat through the election even though the iceberg has long ago been hit. I could foresee much more pain ahead in PM’s until the general market finally lists for a deep plunge. I could see everything go down at that point. However, at that point, it WILL be time for PMs to shine again. The current path is unsustainable. Even the Fed sees it. When the bubble bursts, it all goes. If you think tech will double every year, as you state, then you truly believe that “this time it’s different”. But it never is
Ah… there’s our contrarian indicator back again. For those that actually listened to the interviews with Rick and Jesse, they’ll realize that they both had very balanced takes on many markets and it was far from just “PM hopium.” (good grief)
Honestly much of the conversation we had with Rick was about Uranium and Nickel fundamentals, and then why he likes that Silver is so hated as a contrarian investment setup at present. Then Jesse discussed the general markets, and yes he did see value in the PMs considering that they were one of the 3 most hated sectors at present, along with the Oil & Gas stocks, and the Chinese equities. It was a very nuanced discussion, based on market fundamentals… not hope… but I wouldn’t expect drive-by commenters that likely didn’t even listen or comprehend what was covered to understand that.
>> As far as Joe’s comment about half the people posting here in a year, we’ll see, but we don’t gauge the success of our shows by the number of blog comments.
—> For example, there have already been over 1,200 people that have listened to this weekend show with Rick & Jesse across our site, podcast network, and YouTube page. Craig Hemke had about 1,500 listens across all of our platforms on Thursday, and yet we only had 2 blog comments. Michael Oliver had over 4,600 listens across all platforms and we only had 11 comments on our blog here, and a handful of trolls commenting on YouTube. We’ve also had over 1,300 listens across all platforms to the interview we conducted with Justin Huhn yesterday on the Uranium sector, and there were only 4 comments on the KER blog and they were from me.
**So obviously there is an audience for our content out there, and interest in these sectors, despite whether there are blog comments.
** We appreciate all the contributors here at the KER and the comments that may help investors, but the number of comments are definitely not a good indicator of how well this show is doing or how any market sectors are going. Sometimes our most popular shows for the week have 0 comments or only a handful, so there is absolutely no direct correlation between the number of comments and how a sector or speaker or company is doing.
The continued strength in the Uranium sector for the last 4 years, and the popularity of guests like Justin or Rick when they weigh in on these sectors, despite only a few blog comments is a testament to just that. Just sayin’…
Cheers and wishing all the good folks at the KER prosperity in their trading and in life.
What about Silvercorp. SVM
Hi Brian, Personally I’ve still got a nice weighting to Silvercorp (SVM) in my trading portfolio, and see it as eventually having better upside torque when sentiment shifts, like it has in past rallies; due to it’s lowest quartile All-In Sustaining Costs compared to it’s peer silver producers (also offset by substantial lead, zinc, and gold credits).
Additionally, it has a robust pipeline of development projects in prior producing mines or currently producing mines were the ounces produced can be increased over the next few years in a substantial way. The market is not currently looking ahead at the potential value creation here in their Chinese portfolio of assets.
Then one can point to their further diversification into South America with 4 different incubator companies; the most well-known and successful being New Pacific Metals (NUAG), which diversifies them outside of China. They are also still in a tug-of-war with Perseus Mining to see which company will takeover OreCorp in Tanzania, Africa. Regardless of the outcome, it is clear that Silvercorp is looking to grow through acquisition.
Hey Doc, if you’re out there, 1. What level of Silver are looking at to jump into the Silver Miners ($20), and 2. What are some of your top Silver Miners?
Nawanda, I’m starting to take a position in EXK which in all likelihood has a little further to fall. I’m waiting to start to take a position in FSM and will then keep adding over time. I’m also waiting to start positioning myself in SVM although I would like it to break lower here (which I think is very possible).Although HL is no longer a pure silver play, I’m waiting for it to feel more pain in the future before I start my tranches. Although there are some things I don’t like fundamentally about AG here, I’ll start acquiring some with a further breakdown. That also includes PAAS. As I’ve mentioned in the past (and if I’m correct) I feel the large cap gold stocks will see this year as their capitulation year—-if that’s true, the silver stocks still have some further to fall. Every week now I’m slowly building my long term holding positions. I believe there is no hurry yet. As and after thought, I’m starting to look at Avino—-haven’t purchased yet.
A $1 Trillion Conundrum: The U.S. Government’s Mounting Debt Bill
Higher Treasury yields snowball into $1.1 trillion of additional interest
By Eric Wallerstein – The Wall Street Journal – Feb. 16, 2024
“Treasury yields have sprung to multiyear highs, forcing the U.S. government to pay a lot more in interest and putting pressure on the budget. The U.S. government is expected to pay an additional $1.1 trillion in interest over the coming decade, according to the Congressional Budget Office’s latest estimates. Interest costs are on pace to surpass defense this year as one of the largest government expenses in the budget. Only Social Security and Medicare are forecast to be bigger burdens in the coming years…”
Cory and Shad
Really great segments this weekend. I listen to KER Weekend Show as I am doing my Saturday morning chores, so my wife thanks you for the show, too 😉
Rick Rule. Perhaps the longest segment I have heard on KER (47 minutes), but Rick kept my attention the whole time. I really liked the deep dive into only several topics. I think this might be the first interview that Rick did not use the phrase “penny dreadfuls”, as he has seems to have begun speculating in shares in well-researched companies with low market capitalization. Rick’s pivot, combined with Druckmeyer selling all or part of his holdings in the Mag-7 to rotate into Gold majors, is another reassuring signal that 2024 may be the year when valuations for PM equities begin to increase. For me, Rick’s comments on Platinum/Palladium (and the environmental impact of nickel mining) were the most interesting topic in his interview. I just recently opened a long-term-hold position in SPPP (Sprott Physical Pt/Pd Trust). I might be a bit early, but several respected sector commentators seem to think that palladium, especially, is beginning a multi-year uptrend. However, Rick seems to think a wait until 2025 is warranted (due to Russian Pt/Pd being dumped into the market keeping prices supressed).
Jesse Felder. Always has an interesting perspective on the markets. The general markets seem surreal to me. Unfortunately, I just spent some time looking at several charts regarding USA fiscal policy (Debt, Deficit, Interest Payments) and they are all very non-linear (indicating 2nd or 3rd order system effects that may have surprising unintended consequences). Personally, I believe the Nasdaq-100 is topping and am beginning to consider a position in SQQQ as a hedge for my 5 Explorers in case they temporarily drop with the general markets.
With regards to generalist investors rushing into the PM sector, I think it primarily hinges on people understanding that resource stocks are the critical foundation of the Green Energy (R)evolution. In the film The Graduate (1967), the secret, whispered word guaranteeing financial success was “Plastics’. Today, the whispered word is “Electricity”.
I really enjoy and appreciate the weekend shows. Always listen to CraigH and RobertS, too.
Hi there BrianE and thank you for the comments on the KE Report show in general, as well as the detailed feedback on the Rick Rule and Jesse Felder segments.
Yes, that longer format discussion with Rick was nice as we got to cover much more ground and dive deeper into the Uranium, Silver, and Nickel sectors. Yes, he does also seem to be more constructive on the junior mining stocks at present, as well as platinum & palladium for the longer-term.
Jesse is sharp and makes great macro points each time. I agreed with his points that PMs, Oil stocks, and Chinese equities are hated sectors and thus presenting some of the best contrarian setups.
Yes, the debt service issues are becoming a real 800 lb gorilla in the financial room. We’ll see how policy makers react as it grows into more and more of a juggernaut, that eventually will be too big to ignore.
‘Indispensable’ Mining And Junior’s Place In The Food Chain
Richard Mills – Ahead Of The Herd – 02-12-2024
“Due to our fascination with computers, social networks, and intellectual capital, we seem to have lost our connection with real, tangible goods, that starts with materials dug up or farmed. With skilled labor, these materials are transformed into goods, or foods, thus creating a value chain that provides income for workers involved in every step of their creation. This value chain is the only way to create new wealth.”
“But the consumer doesn’t see this value chain; all they see is the finished product. Rare is the cell phone user who has a full appreciation of all the metals that went into their phone, including copper, tellurium, lithium, cobalt, manganese and tungsten.”
“Many people view of mining as dirty, dangerous, polluting and better done someplace else. While the industry has certainly done its fair share of harms, I’m here to tell you that the world simply cannot function without it.”
“Minerals are essential components of cars, energy plants, solar panels, wind turbines, fertilizers, machinery and building construction.”
“The mining industry is the starting point of a value chain that starts with resource extraction and ends with the sale of countless end products. The mining and metals industry moves a $1 trillion economy.”
https://aheadoftheherd.com/indispensable-mining-and-juniors-place-in-the-food-chain-richard-mills/
SLV:GLD bottomed about a month ago and just had its best close of the new year while also closing above its 100 day MA for the first time in over 3 months, not a good sign if you’re bearish the sector.
https://stockcharts.com/h-sc/ui?s=SLV%3AGLD&p=D&yr=0&mn=11&dy=0&id=p20321134957&a=1607290904
Silver, at least short term, hasn’t looked so good in months. Longer term is still all clear since late last year. It’s a nice (bullish) change that silver is now leading gold off of lows and holding its own during declines.
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=D&yr=1&mn=0&dy=0&id=p55056688961&a=1607333969
Silver turned this week at its 250 week (roughly 5 year) MA…
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=W&yr=4&mn=2&dy=0&id=p69796277843&a=1589910107
It’s safe to say there are few if any speculators of the sort Rule described here or anywhere and that’s a good thing. As for silver, last week was a good one in terms of both price and momentum but it does need gold to confirm and I bet it will. Then the miners will confirm.
HL rates a buy/accumulate in my book.
https://stockcharts.com/h-sc/ui?s=HL&p=D&yr=1&mn=2&dy=0&id=p04622454907&a=1608030250
Lots of risk in the uranium miners now…
https://stockcharts.com/h-sc/ui?s=URNM&p=D&yr=2&mn=5&dy=0&id=p06128082255&a=1222251309
Shad, any chance of getting rid of that horrible Akismet software which censors our posts?
Unfortunately it is the software that blocks out 99% of the spam and threats to the site. I didn’t pick it out, the web guys did, but it is a very standard platform for that kind of back-end protection.
I just popped up and released that post of yours that was held in the moderation cue, so you should see it now.
Thanks for the response and releasing the post. Is it possible the web guys could configure it differently or change some settings so that it does not hold back the posts? Or at least not as many?
Glad to help Ebolan. I can ask Cory to run it by the web guy, to see about adjusting any parameters. Honestly I’ve got no idea how it even works, or why it decides to quarantine certain posts.
I’ve figured out that editing a post with a link always sends it there for some reason. Any post with multiple links also gets sent there (to avoid spamming). Also there may be certain sites with expired security certificates that also trigger it. If someone enters a username or email that isn’t the normal one used when registering to post on the site, or if either are misspelled that can trigger it too. Otherwise it’s a mystery why certain posts get flagged.
SSRmining has been taken to the woodshed and I’m interested. I’ll start nibbling this coming week and then build my position over the next few weeks.
SSRM would be a good buy under 3 bucks. Maybe even high 2’s
Nouveau Monde Graphite announced two offtake agreements for their graphite from GM and Panasonic (total of $287 million) on Thursday morning last week to get their mine and plant up and running.
China has been restricting the sale of graphite to other countries in a bid to become The World supplier of EV’s. Nouveau Monde stock responded and moved up on Thursday and Friday. It’s about time The West and its allies started to take China’s stranglehold on many strategic commodities with some alarm albeit they have been slow to react. I think when the market wakes up to this move NOU’s stock price will gain much more traction.
I also believe China is jumping the gun on EV’s commanding a big piece of the pie in the car market, the time for EV’s is not now and may never be that great with all the new technology coming on-line. China has made big mistakes before that is part of the growing process, they are now in the midst of an unprecedented housing bust. That doesn’t mean there isn’t a need for more graphite it certainly will be growing more important as a commodity in the future and The West doesn’t have the means as of yet to supply their needs. DT
Three Countries Hold 50% of the World’s Uranium Reserves
Feb 16, 2024
“Australia, Kazakhstan, and Canada possess over 50% of the world’s uranium reserves, with Australia standing out as the leader with over 1.7 million tonnes discovered.”
“Other significant uranium reserve holders include Russia, Namibia, South Africa, Brazil, Niger, and China, each contributing to the global uranium supply.”
“The article notes that new uranium deposits continue to be discovered, contributing to the increase in known reserves, with advancements in technology aiding exploration efforts.”
https://oilprice.com/Metals/Commodities/Three-Countries-Hold-50-of-the-Worlds-Uranium-Reserves.html
Bloody Australia number one in several commodities, shitloads of everything and still can’t balance a budget
Indeed. Sad but true…
Balance a budget. That’s funny. Our esteemed leader here in Canada believes the solution is to just throw money at an issue….. there’s a money tree growing here…..and never mind the pockets of friends that are lined…. how else is he going to go on lavish family vacations…..speaking of family how’s his mom and brother supposed to make money without the government contributions to companies…..I could go on for hours but have to go to work so I can pay my taxes.
Hi Wolfster, good rant, I thought you might enjoy the last 5 minutes of this interview where our conservative opposition leader Pierre Poilevre schools a reporter. DT
I’d say the most recent Poilevre WTF speech in the House of Commons is priceless gold.
Central banks are the money tree that has funded the downfall of the West over the last century. Their counterfeiting allows politicians to spend generations of future productivity and prosperity TODAY, impoverishing and enslaving humanity in the process while the masses cheer. Trump and all well-known “conservative” commentators strike at the limbs of evil but remain strangely silent about the Marxist root that makes it all possible. It’s almost like the right was captured and castrated 100 years ago but don’t expect the herd to figure that out in your lifetime!
The herd requires loyal leadership.
So far there is none.
So far.
The boom in battery metals is turning into BUST! I have said it all along the market must be the driver for what the consumer wants and needs. DT
It wasn’t the consumer that wanted EV’s it was The WEF (World Economic Forum) that mandated EV’s and the public went along with it until they finally realized they can’t afford these vehicles because the technology to make them cheap enough or practical enough to afford isn’t there and won’t be. EV’s are a pipe dream set-up to fool the gullible. DT
Unless those mandating it get voted out of office it will still get pushed through.
The public is fed up with The Socialist agenda for the masses deciding how they will spend our dollars and do our thinking. The next election will be a huge turning point especially here in Canada. DT
look up…………A Warrior Calls.com…. Christopher James…..
Sheeple need to wake up…..
The pipe dream that most don’t realize is that The WEF doesn’t want you to own a car they want everyone except themselves in public transit. Sell the public on EV’s mandate a date when fossil fuel cars can no longer be produced and by the time the public figures out the game plan that they can’t afford electric vehicles it will be too late to change their minds. Fortunately for the public they are finding out that the pipe dream is a nightmare in time to turn the EV trainwreck around. DT
The pipe dream is The WEF wants everyone except the elite to be transported around in vehicles that you temporarily rent or public transit, with the various governments implementing the end of combustion automobiles and in Canada that is 2030-5. They were hoping the public wouldn’t realize they can’t afford these vehicles until it is too late. But guess what the genie is out of the bottle and EV’s are going back in, where they belong. DT
WEF…………. are not in charge of anything…….. Self Proclaimed BS…………
No one , no man, gave these people authority over anyone… PERIOD….
satanic believers… Swiss need to arrest and try these people ….
A lot of the present-day leaders were schooled by The WEF before they were elected, Putin was one of them. The WEF still implements its policies through these same people, and many of them are heads of state. Putin understood what they were all about but many others who are in power still take directions from them. DT
I put out a “Special Alert” to subscribers of my Excelsior Prosperity channel over at Substack this morning, but will also share it here with the good folks at the KER.
_______________________________________________________________________________________________________
Special Alert – Uranium Stocks Magnetically Drawn To The 50-Day Moving Average
Excelsior Prosperity w/ Shad Marquitz – 02/19/2024
https://excelsiorprosperity.substack.com/p/special-alert-uranium-stocks-magnetically
Hi Ex, I just read your update on the uranium market, thanks buddy! DT
Much appreciated DT!
Apparently UUUU has a number of small uranium deposits rather than a large one. Could this be a reason for not getting as much credit…even though it is a very good company?
That’s a good question to consider Terry. Energy Fuels is unique in that is has a lot of other prior uranium companies (that bit the dust) flagship projects all within their portfolio of projects.
UUUU has produced 2/3 of all U.S. uranium since 2017, so it’s key player domestically, but now enCore, Ur-Energy, UEC, and Peninsula are starting to ramp up into or at least towards near-term production. All the US producers are small on the global scene though in comparison to the kinds of deposits in Kazakhstan, Uzbekistan, Australia, Namibia, Niger, and Canada.
I think Energy Fuels has messaged to the market that they could start producing 1.5-2 million ounces of U308 per year, but then they also have a pathway to grow that to around 4 million ounces per year over the next few years. That is still not a huge production profile, but it matters, and it is plenty to get them nice torque to rising uranium prices on the spot market or term market.
It is a bit puzzling why Energy Fuels is not responding like it’s other junior producers or near-term producers, and it is still well off it’s 2021 highs at $11.39, closing last Friday at $6.48. It’s not like enCore or UEC or Ur-Energy have much better resources than Energy Fuels, and UUUU has been a producer longer than those peers have. Denison and NexGen in Canada have bigger deposits but they are nowhere close to production at this point.
I don’t know if it is because the market doesn’t understand the rare earths processing/production and vanadium production angle, or if there is something else holding it back, but it definitely intrigues me as a contrarian place to start adding more to my UUUU position, as it appears to have plenty of room to still get rerated higher and I don’t anticipate that it will remain such a laggard as this year and next year pan out.
http://tinyurl.com/5n52rff9
NatGas Week: Turning
Bottom?