Erik Wetterling – PM Stocks Have Muted Reaction To Record High Gold Prices Above $3400
Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins me to discuss gold’s standout role as a safe haven, amidst the extreme market volatility; and how all of this is translating into muted reactions in gold stocks to their improving economics and the rerating opportunities present at current valuations.
–> Key themes covered in this interview:
- The gold price rose to record highs again today over $3,440, on the back of global uncertainty and a continued selloff in US general equity markets. Almost every market was down today expect for gold, and to a lesser extent, silver.
- We note the odd market action where a number of prominent precious metals producers sold off for a big portion of the day, with their margins continuing to expand, only clawing their way higher towards the end of the trading session.
- Many development projects with gold as primary or contributing input and expanding economics, were also selling off during much of Monday’s trading session, with some recovering in the final hour of trading.
- The importance of market psychology and investor sentiment trends into price moves; noting that some investors may not believe this move higher in metals prices is going to stick or have become too fearful to take actions. Other investors may be concerned by the selling in other markets, and thus they have been pulling profits on one of the few sectors in the green this year.
- A nuanced look at why we aren’t seeing a much bigger increase in merger and acquisition deals across the spectrum of gold companies. We do note the takeover deal announced today though, where Lumina Gold Corp. (TSXV: LUM) (OTCQB: LMGDF) is being acquired by CMOC Singapore Pte. Ltd.
- Reflections on how profitable even the Tier 2 and Tier 3 gold mines are at present, and the amount of M&A that has focused around Tier 2 and Teir 3 gold projects the last few years. Despite the retail obsession with discussing Tier 1 deposits, at the exclusion of everything else, there really are very few assets of this size and scale. There are plenty of opportunities available to investors further down the spectrum of projects that may still have large valuation disconnects.
Gold futures just cleared $3,500 a half hour ago (getting up to $3,504), but then pulling back down into the $3,490s…. Q2 margins in these gold producers are looking to be even larger than those in Q1, that were larger than those in Q4, that were larger than those in Q3….
Gold Tagged $3,500 In Overseas Trading – Mixed Response From The Gold Stocks
Excelsior Prosperity w/ Shad Marquitz (04-21-2025)
https://excelsiorprosperity.substack.com/p/gold-tagged-3500-in-overseas-trading
Kitco……$3499.70……………. HUGE MOVE ……
USD reached a long term fork support but I doubt it will hold for long, if holds at all.
https://schrts.co/pCvBIqyw
Seems everyone is up early……….. 🙂
Sign………. everything is moving quickly….reminds me of 2006… 🙂
Early bird,..catches the worm…. 🙂
follow the crumbs………..
FItts says….. have the TREASURY…..issue the currency…..humm
novel idea….. lol…. already in the Constitution….
Dollar to be backed by GOLD…humm I think we had that once before…lol
solves a lot of problems………….
Revalue GOLD………. to $12,000 per oz…. 🙂
https://ibb.co/GQpRjtKF
Possible GOLD Top,
Exact Price.
I BELIEVE…………….. VON is SPOT ON…………….
THE BIG SHORT AND THE BIGGER LONG
By Egon von Greyerz
Founder and Chairman
April 22, 2025
For at least 35 years, the monetary system has been telling us that the current era is coming to an end.
That means a debt collapse, a currency collapse and a collapse of most bubble assets like stocks and property. THUS THE BIG SHORT!
As I am writing this on Easter Monday, the Dow is down 1,100 points (2.9%) and the Nasdaq is down 3.3%.
Anyone who buys the dips will be slaughtered. As I have said for a very long time, before this is over, stocks will be down 90-99% in real terms, which is gold.
More importantly, this total collapse has very little to do with TRUMP. More later.
And don’t for a moment believe that gold is overvalued. As many have used conventional technical tools to predict a gold correction, I have been saying for a long time that gold is in an acceleration phase and will reach multiples of the current price. (Yes, of course, there will be corrections on the way up, but most probably not yet.) THUS THE BIG LONG!
J THE LONG……………………… 🙂
Have a GREAT DAY
VON said this……………. Which DT……said earlier this week…….. “PONZI”
But the time of manipulating rates is over. The market will now determine rates, which it should always do. And with uncontrollable debt escalation in the US and many other countries, the cost of debt can only go one way – UP!
Remember, there is only one buyer of US debt, which is the Fed. But the Fed can only buy debt if the US government issues more debt.
And therein lies the crux. More debt must be created in a futile attempt to save the ever-growing and out-of-control finances of the US.
This is without doubt the biggest Ponzi scheme in history. Madoff would certainly have enjoyed it.
This is without doubt the biggest Ponzi scheme in history. Madoff would certainly have enjoyed it.
And still, it would have been so easy, as all of this has been totally predictable.
To paraphrase Churchill, the more you study history, the more self-evident the future becomes.
Still no government, no central banker, no journalist and virtually no market student spends any time on learning from the past.
NOPE……………”possible top”……………………
If Trump goes to war with Iran the dollar will instantly roll over and perform a death rattle, and gold will go into the blue-sky empyrean! I’m sure Trump thinks he is invincible, and I must admit anyone who has survived what he has could easily fall into that trap. DT 😜
This will move the needle Today: DT
Sitka Gold Intersects 108.9 Metres of 3.27 g/t Gold Including 45.0 Metres of 4.52 g/t Gold Within 352.8 Metres of 1.55 g/t Gold at Its RC Gold Project, Yukon
https://www.tradingview.com/x/IFQR1QwQ/
GOLD : Current Status : Support Level
BDC – do you think that .618 Fib support will hold?
If gold pulls back a bit will that trigger a silver rally? Short gold, long silver market, that’s a silver bugs’ dream… 😁
I like the looks of Silver vs Gold here at least short term and we should know soon whether or not this is a major low for the SGR (or major high for the GSR).
130 minute:
https://schrts.co/HkWaesdP
Just filling yesterday’s big gap?
130 minute GLD:SLV
https://schrts.co/WGEFbpuB
Yesterday could very well have been a bear trap for SLV:GLD (a bull trap for GLD:SLV):
https://schrts.co/jvJKWyFB
Thanks for the charts again, I expect a squeeze up here on silver price.
Good point Dan. With the Gold:Silver ratio up near 105, then the mild pullback in gold today will assist a little bit, but it is more likely that silver stages an epic catch-up trade to compress that ratio back down to something near 80-1.
That would be great for this sector (80:1 at $3400 gold would be $42.50 silver)…. and the silver (and gold) stocks would get in gear with a pop above $40.
I definitely will not sell something I don’t own so won’t be actually shorting anything other than buying negative beta ETFs.
https://www.tradingview.com/x/3Cuzs9lZ/
GOLD : Approaching Level 2 Support
The dollar has now tested its 550 week (roughly 11 year) MA which is the same moving average that held in January 2021 and May 2021. At the same time it found some Andrews pitchfork support…
https://schrts.co/IfkJfdsA
It might not happen until October but I do think XBI (Biotech ETF) will take out this month’s low and when it does it will unleash significant downside action.
https://schrts.co/uPtAIREF
Silver will soon outperform the gold miners, not just gold.
SLV:GDX
https://schrts.co/ZpxFwIBS
Added to DVS @ $2.51, 1st of 2 layers
CMOC Singapore is a subsisiary of CMOC Group(603993), (HK:3993). Chinese company processing all kinds of metals, including rare earths.
They paid a hefty premium for Lumina.