Weekend Show – Doc & Rick Rule – Tips For Investing In Precious Metals Stocks
Welcome to The KE Report Weekend Show! On this Weekend’s Show we focus mostly on the precious metals markets with Richard Postma (Doc) and Rick Rule. We look at charts and discuss opportunities each is seeing in a range of resource stocks.
- Segment 1 and 2 – Richard Postma, AKA Doc, kicks off the show with a look at the gold and silver charts and shares the companies he is investing in. Doc shares his thoughts on the stocks that haven’t moved higher in the last two months, opportunities in small scale producers and portfolio diversification strategies.
- Segment 3 and 4 – Rick Rule, Founder of Rule Investment Media wraps up the show with an extended conversation on the best opportunities he sees in resource stocks. We discuss the funding environment for development and junior companies, optionality plays and grassroots exploration stocks. Click here to have Rick rank your metals stocks.
Click here to register for Rick’s upcoming conference in Boca Raton, Florida, on July 7-11th.
Upcoming live event! May 23rd at 11:30am PDT
- Fury Gold Mines – Updated Resource Estimate At Eau Claire, High-Grade Gold Portfolio in Low-Risk Jurisdictions
- Tim Clark, President and CEO, and Bryan Atkinson, Senior VP Exploration, will join me to recap the recently updated Mineral Resource Estimate at the Eau Claire Project as well as provide a full overview of the Company. The updated Resource is now just under 2million gold ounces.
Click here to register and tune in live!
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Being a trader, by necessity rather than design, Doc’s prognosis rings hopeful to me. However, have we not entered non-linear times since no later than Covid? BDC
I am glad to see that Doc has come in cautious here. Why? Because he has been a perfect contrary indicator over the past 2 years. Go back and listen to all of his visits over the past 2 years and he couldn’t have been positioned more wrong every time. Last Feb it was black bearish whereas one should have been wildly bullish…
Thank you KER for all the work that you do! I congratulate those that have managed to keep a seat at the casino table and are playing with house money. We’ve waited a long time for the gains in commodities that we are currently witnessing – I wish all the best of luck.
Much appreciated Jetty. Yes, nice to see so much green on the screen in the commodities and related resource stocks, and to see so many breakouts.
I catalogued some of the moves in the charts and pricing action in my Substack article today for anyone interested.
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Copper, And Silver, And Gold – Oh My!
Excelsior Prosperity w/ Shad Marquitz – (05/18/2024)
https://excelsiorprosperity.substack.com/p/copper-and-silver-and-gold-oh-my
Also, I put out another update in the series on junior and mid-tier royalty companies just yesterday.
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Opportunities With Mid-Tier And Junior Royalty Companies – Part 4
Excelsior Prosperity w/ Shad Marquitz – 05-17-2024
https://excelsiorprosperity.substack.com/p/opportunities-with-mid-tier-and-junior-1e5
I sold my last shares of Sandstorm on Friday for a 1% profit
Originally I bought Nomad Royalty and got Sandstorm through the merger two years ago
Before the merger I had a 87% profit
The merger gave another 34% premium to Nomad shareholders
This shows how poor the performance of Sandstorm was over the years
They have a good portfolio and will probably perform well during the gold bull run.
I decided to sell, as I am not so happy how the company was managed over the years. Enterprise value is around C$3 billion now, compared to Nomads C$600 million when I had a 87% profit.
Yeah, I was in Nomad as well, and let my shares convert over to Sandstorm, but I was already a Sandstorm shareholder and actively swing-trade or position trade the shares and have for years. By the way, I just ran into Vince (old CEO of Nomad) out at the Energy Transition Metals conference in D.C., and he said they were launching a base metals diversified royalty company soon…so stay tuned.
As for Sandstorm, they were pressured down the last few years like the rest of the sector and so I don’t look at that under performance has anything unique to just SAND.
However I do think they’ve got growth on tap over the next few years that is worth the candle for holding on (as outlined in Part 1 of my series on royalty companies). In my view they will eventually get out of the hurt locker for Hod Maden, once more folks look at how they’ve adjusted that deal and exposure to that project over time. Also the Mara stream with Glencore will be a big contributor coming down the development pipeline that is a bit too far off now to get much value, but over the next few years it will play a bigger role in their valuation.
So, I expect Sandstorm to get rerated higher more than other larger midtier royalty companies as they have underperformed some of their peer companies in the royalty space and I think there’s an arbitrage in the value to be picked up in the next year or 2.
That‘s nice to hear that Vince plans a new royalty company
He has done a great job at Nomad. I really liked his approach of high dividends and management buying with shareholders. That was an exception in the royalty space.
Please keep us informed
If the new royalty company has the same philosophy as Nomad that would be a nice investment opportunity
Yes will do. I’m also excited to see with Vince comes to market with this new diversified royalty company, with the same business philosophy and approach as they did with Nomad.
Looks good Ex, smart to be looking at adding copper juniors. I’ve had a keen eye on them (optionality) for the last few years and have taken positions. I continue to look at the sub 5M market cap lotto type picks.
Great show. I was sculpting Fury aggressively over the past week. Friday it ripped. They are falling like dominos now. Brixton is very close to ripping. Next week should be interesting!!
Charles, I’ve been acquiring Fury over months and added some again yesterday. Hope you’re as successful as I am in that stock. Doc.
Hi Doc – Thanks for chiming in. I’ve owned shares in Fury for a long time going back to the predecessor company. Should be a fun one to ride now that silver is breaking out given their 19.9% in Dolly Varden. Good luck to you and best wishes!
Thanks Charles.
Blackstone real estate fund could be in for a tumble. That is a good thing because they invested in a lot of residential real estate as well as commercial and industrial and they drove real estate prices higher. Not good for Joe “Palooka” and now it looks like it hasn’t worked out for Blackstone”. Just because you are “BIG” in The World of Investing you still must be very careful, and it looks like they started to believe too much in a flawed game plan. When you buy something with a mortgage attached at extremely low rates you better be careful that when rates go higher, and property values go lower that you can remain solvent. That is true for the little guy as well as “The Behemoth”! DT
https://digg.com/insider/link/blackstone-breit-commercial-real-estate-fund-misled-investors
https://tinyurl.com/bdd38r5j
Gold Century: Twin Peaks
The Third Breakout
The Dow closes at record high above 40,000 to cinch a five-week winning streak. What on earth is happening? The stock price level is dangerously high. The credit and debt levels are up the YAZOO! HOW LONG WILL THE OPPORTUNITY TO SELL AT THE TOP REMAIN.
The speculative spring fever of 2024 has set in.
The “Magnificent Seven” Tech Stocks. The first price is now, The second price is May 2022 in parenthesis!
Microsoft – $420.21 ($253.11)
Apple – $189.87 ($137.59)
Nvidia – $924.79 ($168.98)
Alphabet – $177.29 ($106.64)
Amazon – $184.70 ($107.56)
Meta – $471.91 ($192.24)
Tesla – $177.46 (209.39)
Don’t forget the dividends. Nvidia is Whacko!
What will the prices look like after the crash when everyone decides to sell at the same time. Remember the herd mentality applies to all markets across the board, it is ingrained in the human psyche’! LOL! DT🤣😜😁
SQQQ still doesn’t look like a buy, but agreed valuation are quite stretched and ridiculous.
Quarterly silver looks fantastic. Mark my words, those Slow and Full STOs are heading for 80+ even the 50,15 9 but it will take many years for that one…
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=Q&yr=30&mn=0&dy=0&id=t3476066755c&a=1649069281&r=1716092759981&cmd=print
Friday’s high happened at a big old Schiff fork resistance but I doubt that it will cause silver any problem even short term.
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=Q&yr=30&mn=0&dy=0&id=t9252317410c&a=781484393&r=1716094089737&cmd=print
If silver can close this quarter at 38 or higher I bet it will make quick work of the 40s.
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=Q&yr=45&mn=0&dy=0&id=p08773220975&a=1246870526&r=1716094414844&cmd=print
Weekly silver is showing great “melt up” potential here and now…
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=W&yr=6&mn=0&dy=0&id=p50509614036&a=1330540942
Matthew – thanks for those charts! Always a pleasure reviewing what you are up to.
Thanks Charles, we’re in for a ride that even the most confident bulls might find surprising!
So don’t lose your exposure by going to cash too soon!
Check out this Silver:Gold monthly breakout. The month isn’t over but I doubt very much that the bears will be able to stuff it back down.
The breakout level is based on the high monthly closes of 2011 and 2020:
https://stockcharts.com/h-sc/ui?s=%24SILVER%3A%24GOLD&p=M&yr=16&mn=5&dy=0&id=t0138961305c&a=1682305438&r=1716150575463&cmd=print
Basing that breakout line on high quarterly closes changes the picture a bit but the breakout is happening there too…
https://stockcharts.com/h-sc/ui?s=%24SILVER%3A%24GOLD&p=Q&yr=20&mn=0&dy=0&id=t9404842674c&a=1682308796&r=1716151378727&cmd=print
Matthew, nearly all recent PM pull backs have been minimal, with a few non-existent.
The Gold Century target (above) is a calculated estimate for the next ‘twin peak’ beginning (2033). The price is a bogey that may well be too low. BDC
BDC, I like the chart and the approach but would be shocked if gold took so long to hit such a low target. I’d guess it’s more likely to happen next year.
In 2006, 2008, and 2011 gold topped around 70% above its 15 quarter MA. Today that level is at 3256. In 1980 gold topped at over 100% above that 70% envelope.
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=Q&yr=20&mn=0&dy=0&id=t1058763283c&a=1567444541&r=1716172237821&cmd=print
Initially the idea for the chart was to begin circa 1971. Then the twin peak aspect came into view and 1933 was used. As you know, that’s when the FDR administration bumped up the Gold price and fixed it at $35 by law.
A ‘fractional reserve Gold’ system, where price fluctuation is somewhat muted by general agreement, would enable something like a 10:1 effect. Such an expansion of ‘backed credit’ could make Gold useful for world trade again. BDC
One thing’s for sure, gold is the inescapable senior numeraire of the world and always will be. The banksters can’t do anything about and they know it but still they push their nefarious agenda which Henry Ford talked about 100 years ago. For example, he correctly said: “The one aim of these financiers is world control by the creation of inextinguishable debt.”
Ford has been smeared ever since by the powers that be because the truth is their mortal enemy.
Despite serving the beast as head of the Fed for almost 20 years, Alan Greenspan has long been clear and accurate on gold and its merits. His 1966 essay, Gold and Economic Freedom, is very much worth reading and opens with this:
An almost hysterical antagonism toward the gold standard is one issue which unites
statists of all persuasions. They seem to sense-perhaps more clearly and subtly than many
consistent defenders of laissez-faire — that gold and economic freedom are inseparable,
that the gold standard is an instrument of laissez-faire and that each implies and requires
the other.
https://www.math.snu.ac.kr/~hichoi/finmath/AlanGreenspan-GoldEconomicFreedom.pdf
I noticed that my quarterly gold chart just above has expired so here it is again if anyone missed it:
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=Q&yr=20&mn=0&dy=0&id=t5809918811c&a=1567444541&r=1716233319204&cmd=print
That’s an interesting chart. It will be interesting to watch how price interacts with that 200 month moving average given it is gently sloping down and could offer some resistance. Hopefully it will be like a knife through butter!
Count me in the “hot knife through butter” camp!
At the moment it is just below its 144 month MA which of course approximates its 12 year MA.
https://stockcharts.com/h-sc/ui?s=%24SILVER%3A%24GOLD&p=M&yr=20&mn=5&dy=0&id=t8881379942c&a=1085283842&r=1716261513533&cmd=print
SILVER………………………………………
https://www.reddit.com/r/Wallstreetsilver/?f=flair_name%3A%22%F0%9F%93%BA%20%20Video%22
https://tinyurl.com/mr3fzhn6
NatGas Week: Stretching
Awaiting The Turn
Jeff Currie, The Copper Bull: “Most Compelling Trade I’ve Seen In My 30-Year Trading Career”
Friday, May 17, 2024
“Jeff Currie, who led commodities research at Goldman Sachs for nearly three decades and now serves as the chief strategy officer of the energy pathways team at Carlyle Group, appeared on Bloomberg’s Odd Lots to discuss why copper is the best trade he has seen in his entire career.”
“The drive towards electrification, whether that’s electric vehicles and data centers powering artificial intelligence, as well as reshoring manufacturing trends, the need to expand the nation’s power grid to handle surging load demand is in full swing but comes as new copper mining capacity has dwindled, and a squeeze on the Comex exchange has sent prices to record highs.”
My main air conditioning unit has 51 lbs. of copper in the coils. At $5 copper that is $250 US and $350 CDN, not chump change. DT
Yup. Walked by one put out at the end of the driveway and if it’s still there when I drive by it’ll be in my truck.
Wow D.T. That’s a lot of copper.. wonder how much is in the average EV. Charging cables.. some have mysteriously gone missing in my area
Ann. Are you out in bc???? My uncle is in Sechelt and that happened to him and when he reported it he was told it was happening a lot there.
Hi Wolfster
Yes. Vancouver..
It’s apparently not rampant yet but, starting and concerning according to a relative in theVPD.
Cheers
Dick – You better get a cage and lock up that condensing unit LOL!
Chuck, that’s a silly reply something I didn’t expect from you, but now I do! LOL! DT
SILJ:GDX has broken so get ready for the silver stocks accelerate away from the gold stocks. Relative to its 50 week MA SILJ:GDX just had its best weekly close in about 3 years and the RSI agreed with the action and hit its highest reading in over 3 years…
https://stockcharts.com/h-sc/ui?s=SILJ%3AGDX&p=W&yr=5&mn=0&dy=0&id=p44156685791&a=1682436979
Silver: Past resistance becomes support. Expecting 30 +/– 50 cents.
Hawking tried to warn us of the threat that A.I. machines pose for our species, I’m afraid A.I. intelligence has already surpassed humans. DT
https://www.indy100.com/science-tech/stephen-hawking-warning-artificial-intelligence-2667535606
https://www.youtube.com/watch?v=pkDPnf8iLpc
Michael Boutros, Technical Analysis
03:22 – US Dollar (DXY)
37:44 – Gold (XAU/USD)
45:13 – Silver (XAG/USD)
48:37 – Crude Oil (WTI)
52:49 – S&P 500 (SPX500)
https://www.youtube.com/watch?v=ISNZuKGwdJA
Larry Pesavento, futures day trader
(60 years trading experience)
4:10 Gold and Silver
19:50 GDX
DOC + Rick
looks like a dream team 😀
Thanks for bringing both to the weekend show