Dave Kranzler – Value Proposition In Junior Precious Metals Stocks Like Heliostar, Integra, Cabral, Discovery, Aya, and US Gold
Dave Kranzler, Fund Manager and Publisher of the Mining Stock Journal and the Short Seller’s Journal, joins me for a wide-ranging discussion on fundamental drivers for the precious metals complex and what junior gold and silver stocks he is bullish on in this current environment.
We start off looking at the factors behind the price action in gold and silver, looking at how central banks and large institutions have been joined by retail investors in the east and a more recently in the west, repatriating PMs back into their possession for a number of macro and geopolitical reasons.
This leads us into a discussion about gold stocks where Dave sees a good value proposition in the junior gold and silver developers that have purchased producing assets to augment their growth and bring in revenues to assist with their larger development projects like Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF), Integra Resources Corp. (TSXV: ITR) (NYSE-A: ITRG ), Cabral Gold Inc. (TSXV: CBR) (OTC: CBGZF), and Discovery Silver Corp. (TSX: DSV) (OTCQX: DSVSF). He also highlights U.S. Gold Corp. (NASDAQ: USAU) as a permitted development-stage company in Wyoming working on moving towards construction of their CK Gold Project.
Wrapping up we discuss investing in silver and the silver stocks where Dave mentions that Aya Gold & Silver Inc. (TSX: AYA) (OTCQX: AYASF) is his preferred vehicle as the only pureplay silver producer, now that SilverCrest Metals Inc. (TSX: SIL) (NYSE: SILV) has been acquired by Coeur Mining. We note how most other silver producers and developers don’t have more than 60%+ silver, and are simultaneously exposed to either gold or base metals. Regardless, Dave expects most silver names to run big when the bull market evolves to bring in the more speculative bid, noting that the gold:silver ratio at 90 could mark a turning point for a catchup trade in silver and the silver equities.
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Gap Close : Now or Later?
Unprecedented Spreads Between Spot and Futures Prices in Gold and Silver
Over the past few weeks, financial markets have experienced an unprecedented widening of spreads between spot and futures prices for both gold and silver.
Traditionally narrow, these spreads have expanded to as much as USD $60 for gold and over USD $1 for silver.
GATA………. today…
Climbing the silver wall of worry?
Same 4 hour chart but now with $33 in sight…
Did anyone catch the latest Jeffery Christian interview on KR. Time stamp 20:00. His opinion that investors may not be as interested in the mining stocks as in the past. I would have like to have heard more on why this is his view.
‘Why’ does Christian holds this view? Perhaps he’s suffering with the rest of us watching gold make all time highs daily without jr. miners rising in tandem.
Also perhaps, along with the rest of us, he sees digital tulip bulbs going ever upwards and shakes his head in wonder.
In talking to Jeff many times about this, he feels that the underperformance of PM equities thus far is a direct result of many people bailing on this sector because most of the companies have been poor capital allocations (and poor capital allocators) for the last 2-3 decades.
Many investors are off either chasing other speculative sectors, or they moved from the mining stocks into the metals, or leveraged plays on the metals without taking the individual company risk or underwhelming response from the ETFs.
This leveraged ETF have done well… SLVU.to
https://www.tradingview.com/x/tONOTajL/
DOLLAR : Likely Turn : Heading North