Jordan Roy-Bryne – Technical Analysis of GDX, GDXJ, Silver, And The Precious Metals Sector
Jordan Roy-Byrne, Founder of The Daily Gold, joins us to share his technical outlook on the gold mining ETFs (GDX) and (GDXJ), along with silver, gold, and the trends in the precious metals sector. Jordan shares key support and resistance areas for investors to watch, and why he feels that breadth indicators are much more critical to follow, than where pricing is in relation to key moving averages.
Additionally, he makes the point that in today’s environment, after the advent of gold and silver ETFs and so many other trading vehicles in the PMs, that the individual mining stocks are no longer leading indicators, and neither is silver. Gold is the leading indicator for the whole PM sector. With regards to silver, Jordan does outline that once the stiff resistance at $26 is broken through, with other resistance at $28, that it could set up a measured move up to $33-$34 after that.
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Hi there blazesb. I just did a big deep-dive today in my latest Substack article, reviewing the March Madness price trading and news as it relates to Argonaut Gold, and the takeover deal announced today from Alamos Gold.
I had mentioned in my article on March 3rd I had started to seriously accumulate Argonaut Gold in the week before, on Feb 28th, and why I thought it had been smashed down to insanely overvalued levels, and that despite their challenges at Maggino, that the corrective move had gone too far.
Then on March 6th, when the put out their Q4 and 2023 annual operations report, (AR) had a big spike higher when many investors finally realized that the market reaction to the downside, the week before, was way overdone. The stock had been trending higher the last few weeks, prior to the announcement today of them getting scooped up on the cheap by Alamos Gold.
I also get into the merger that was just called off with Karora Resources, (but that they announced today a new 3rd-party company for a potential business combination).
Additionally, I discuss the Mako Mining takeover of Goldsource Mines also announced this week.
>>> Lot’s of M&A with the growth-oriented gold producers this week!
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Special Alert: Opportunities With Growth-Oriented Gold Producers – Part 6
Excelsior Prosperity – 03/27/2024
https://excelsiorprosperity.substack.com/p/special-alert-opportunities-with
Thank you for your prompt reply Ex. Reading your substack i’m struck by your intention to let the AR shares convert to Alamos shares which you will then sell and reinvest…while keeping the shares of ‘SpinCo’ nominally worth .06.
Sounds like you regard the ‘Spinco’ properties as something of a freeroll. I’ll admit i’ve given little thought to those assets and the attendant shares i will receive once the Alamos/AR merger happens in June.
Thanks again.
Hi blazesb – Yeah, for now I’m comfortable holding Argonaut shares until the merger with Alamos, because I consider Alamos a best-in-class gold producer, and feel it will still track well with gold price moves in the interim; but the main reason is to get the Spinco shares with Florida Canyon and the 2 Mexican Mines (La Colorada and El Castillo), and the 3rd Mexican development project – Cerro del Gallo.
I’ve been following Florida Canyon since the Rye Patch win over Coeur Mining, the over to Alio when they bought Rye Patch, then to Argonaut when they bought Alio, and so I guess I’ll see what happens in the new Spinco, now that Alamos bough Argonaut. Also El Castillo was sold to Argonaut by the team currently behind Minera Alamos, and I’ve been following that mine for a long time too.
Yeah, at $.06 per share in the new Spinco, I’m not expecting any miracles, but I’m guessing that many of the Argonaut team members will keep their jobs by transferring over into this new company, and then look to add in a new anchor project to bring the costs down. Those mines are all really high cost producing assets that don’t have big reserves left, but I think they do have some exploration potential to expand resources and mine life, and that in a rising gold price environment (from $2200-$2400), they’ll still be able to turn a profit that they aren’t going to get any initial interest from in the market.
Then once the dust settles, and I’ve got the spinco shares, I’ll sell the Alamos shares to rotate the money into more undervalued names in the sector. There are plenty of other places I’d like to park that money in the gold and silver mining stocks.
Seems like there may be an agenda in driving down prices below value and taking over projects for peanuts. Shirley our Exchanges wouldn’t tolerate such unfair and illegal situations …. Unless they assist.
(Think Supply and Demand. It used to matter)
Who is Shirley?
Old joke: “Don’t call me Shirley”(surely)
Surely Nielson, funny guy.
👩🦰 Shirley
You guys are pretty funny too. Nice to have a little levity on the board. 🙂
Economic Calendar for anyone not monitoring it yet… I find it useful for short term trades.
Alamos buys Argonaut today…pays .40 per share. Brilliant timing by Alamos. Talk about buying at the bottom with gold at all time highs no less.
Not so brilliant move by Argonaut mgmt. Sold whole company for 325 million (actually the 325 mil is only for Magino–they are spinning off the rest of Argonaut’s assets into a new company appropriately referred to online as ‘Spinco’–) after spending 900 mil building Magino.