Gold news

 [Music] [Music] I'm Charlotte McLoud with investingnews docomo portfolio manager and consultant at fenick Consulting thank you so much for joining me great to have you here great to be here if there Charlotte yeah it's good to be catching up not too long after our previous conversation at VC but we do have a lot going on and right now as we speak March 4th in the morning we have gold I just looked at the chart about 2100 and well of course we will try to publish this interview as soon as

possible but I want to take a look at the Gold CR with you maybe we look at upside and downside scenarios just perhaps where we go from here yeah so we were sitting here a year ago on the floor at vck and we were talking about 1790 to 1800 holding and we we gave your listeners a number of reasons why that would happen and it did happen um and then we had the March financial crisis which put another floor on gold if you remember through most of the summer and fall we had a $1900 price with absolutely no days below 19,00 I mean

just unbelievable to me yet the gold stocks were waning um then we had the unfortunate events of October 7th which put another floor on gold in our opinion um and that still will continue to put a floor on gold because that the situation is fluid it is developing meaning that there's so many other things that are happening now geopolitically since that unfortunate day that um I don't think investors are paying attention to um and and now we have November 14th CPI print where the market rallied um we had a

December fed that was pretty um it changed their tone about rates you know and and that got the market really excited um and then we had gold you know flirt with 2100 at the very end of the year but then we had resistance and that's normal in a rally right you're going to hit certain levels that you're going to have to test but now as we sit here today March 4th we're at 2100 Plus on the intraday we need to see 2100 closed there once or twice to get more comfortable this week you know

unfortunately we've cut Jerome pal spey on Wednesday which to throw some cold water on the rally but you never know I mean he he in his in his history has talked at nonfed days um and moved the market so it's always important to pay attention to what when when poell speaks but long story short things are moving in the right direction we've been calling for gold to be above 2,000 an ounce you know for quite some time now we're we're there um and we think that you know once you get to 2200 it's going

to be you know kind of a fomo trade in terms of some of these gold stocks um I think the downside risk is retesting that 1800 kind of round number we got to around 1820 is um right before the October 7th events you're remember so we were headed that way but then we bounced hard and I just don't think we're going to get to the 17 19 1800 level we again if we do I I'm very confident we would hold that level okay I think that that's very good context on gold and how we got here and you mentioned a number of times

the gold stocks and I know a lot of people that I speak to are looking at the gold price they see it's quite high and gold stocks not so much so a lot of people are looking at that as an opportunity so maybe we check in with you and how you're approaching the gold stocks right now sure um it's been an it is an opportunity and it's also extremely frustrating for investors because there is such a disconnect in fact I wrote about this in my newsletter um the FED Commodities report just last

week that I can't remember even even looking at 2016 this the the disparity between the gold price in mining stocks cuz back in January of 16 we had that kind of Disconnect with gold just really depressed but we didn't have the backdrop for gold that we have now which is really positive um so I think gold stocks look really really cheap and you know one of the metrics we've talked about your show before this is relative straight index using RSI as a way to gauge that just as a quick look there's

a lot of gold stocks right now with RSI between 27 and 35 and when you get to that 30 level and get to near to that it's usually a buy look at new mod for an example right new mod gets downgraded by someone last week and I was very vocal about that saying this is probably the low that was last Monday like for gold stocks when you see Newmont downgraded on a quarter where they beat by 4 cents it's like come on guys I mean what are you what are you looking at it's like the time to downgrade stuff

was months ago you know and to me I'm not singling that person out but as a former analyst you have to take a stance sometimes and not just do what your firm tells you to do you got to think independently and it's just frustrating to see that I know that a lot of investors you know back me on that so I think Numa with a with a even though they cut their div is still very attractive yields and it's the leading company in GDX it's 12.8% of GDX GDX for those that don't know is the

largest ETF in our sector right so ETFs uh I have a background in I I have a background in mutual funds when you look at technical support on GDX it was right around 2562 we hit 2568 if I remember correctly about a week week and a half ago twice it bounced right there and so that was telling you something and now GDX is firmly above 27 so I think we're headed back to 30 on GDX pretty quickly here um when you look at the top three Holdings of GDX it's it's um Newmont NM then it's

baric G it's ago a and all three of those beat earnings so you know broadly for the big caps I like what I'm seeing um I can't remember a quarter like this where everyone's beating and yet the prices are so depressed okay I'm going to come back and ask you for gold companies that you're watching but before we go there we check in on Silver as well and get your outlook for silver this year it's another interesting one well uh you know I I have a background in silver and I

always try to temper that with just reality right like you have to you can't fall in love with Investments you know I'm I'm very hopeful that so will do well but at the same time I've got to lead people um in the direction that I see which is that 26 is Major resistance 30 is another resistance point right so like once you get through 26 you're going to get really good price action but to get through 26 we need a little more time we're sitting here at 2330 right now you know that 25 to 26 area

has been problematic for months and we've said that on your show a number of times and so once we get through that things will start screaming on the silver Equity side but this is the time to start making your wish list and making some small buys or large buys because when you look at the twerk we saw on Friday March 1st I mean look at some of these um look at a small producer like silverx you know up 9% that day um I just met with them last night for dinner and and they have so much promise in Peru you know Peru is

one of those areas where it's such a silver and copper Rich District but you know Castillo put a huge um Cloud over that entire area and Castillo is in jail like let's move on you know it's been 14 months and he's not a problem anymore so Peru looks really interesting to us as value investors um look at someone like a developer like aftermath on Friday up 15% in one day it's like these things have so much torque because they have a lot of ounces in the ground and investors like me know that so doing the

homework to understand that you know these companies are going to be the next leaders when silver breaks out that's kind of what I would suggest people do is work with a professional like myself to get an idea of which names would would fit that bill or do the research yourself so those are some some silver names that you'll like let's look at the Gold side as well often we follow up on companies that you've mentioned before we are at PDC so if there are any here that you would want to mention that

would also be topical yeah so I'm going to get an update from Guan silver tomorrow um and I know that sounds like a silver name but in talking to them last week they have about 40% uh in gold right now so I think that's another important thing for investors to do just because a name says something you know XYZ silver or XYZ gold a lot of times when you look under the hood they may be half gold like I mean look at a lot of the mid-tier silver names like uh core CDE um hecka HL a lot of these names

have a significant amount of gold now but they're still trading like silver stocks so that's a real value for us um who else am I meeting with here um there's there's a lot of companies I have 21 meetings set up in the next two days so I'm I'm a little bit you don't have to name them all no I won't but uh yeah your listeners can always hit me up for uh you know an update afterwards and I would encourage people to look at our newsletter as a starting point because

it's only $65 a month it gives people a lot of information um I write up names that I meet with here um not all of them but I'll write up a lot of those 21 meetings and put them out there to the public I mean we try to be as transparent as possible and that's just a great value we think very good okay thank you for going into that and before before we move on from precious metals I want to bring up the Fed so we always seem to talk about the FED when we meet and you you've consistently said the FED means business

when it comes to getting inflation down and so I'm curious what you see coming in 2024 I know the FED wants to proceed carefully and I think people have already adjusted their expectations for what we might see so what are your thoughts well I want to point out first before I forget what happened on Friday we had the ism number come out and it was around 47.8 if I'm remembering correctly the the estimate was 49 A5 anytime you're under 50 that shows an economy that isn't as hot as people

think so the market loved that right the broad Market loved that the gold Market popped on that number in my opinion and that's because the more soft economic data we get the more likelihood of fed Cuts right so that was a real positive um in my view we need to see no for payrolls do the same that's coming up this Friday every first Friday of the month you have to pay attention to that number following that of course we're going to get the CPI read which is more important than anything I think right

now making sure the FED is comfortable with the downward Trend you know over the last couple month Charlotte we saw an upward Trend in CPI right and so that's what's um holding gold and silver you know bowls back a little bit is is this kind of choppiness we've seen to walk you through it November 14th we had that CPI read that got everyone really interested including myself to kind of Come Away From what I was telling your listeners like you know I was getting more bullish as a result of that and

then we saw the December fed meeting where Powell was really kind of dubish almost you know I mean 17 of 19 voting members um were willing to talk rate cuts for this year and some of them were up to 125 Bas points meaning a 1.25% worth of cuts but let's look at what happened since January nothing right no no action March 20th right now there's a 7% probability of any action that's probably going to be nothing when you look at May 1st that's going to be the key meeting in my opinion coming up

because you're going to look at maybe like a 40% probability right now of a ray cut if we don't get a ray cut there I think the market meaning the broad Market is going to correct um because we have a lot of this move predicated on rate Cuts right yes and I'm pretty I'm sure that we'll check in with you closer to that time so we'll we'll watch for that we'll leave we'll leave precious metals there for now and I also want to ask you because you have a conference

coming up on energy transition Meadows and commodities so I wanted to talk about that we've talked before about energy we've gone over uranium we've done a little bit of oil and gas but this is more energy transition so I want to hear your thoughts on opportunities in there in terms of you know the the copper the lithiums that kind of thing so the conference is April 29th and 30th in Washington DC which is uh my old hood uh I I spent a lot of years there so I'm um going to drive a lot of

us retail to the conference um we'd love to have you know more CEOs take notice of this conference as the years progress because we think it'll be the premier conference out there for you know copper companies lithium companies uranium companies right in the US meaning that so many of those CEOs would come to me over the last few years to say hey we want to go to Beaver Creek we can't get in because there's a wait list and so uh you know Mesa and Jessica who will coordinate that event were kind enough

to look at this type of conference to address that need we have over 60 companies already on the lineup um we've got some great speakers outside of myself uh Rob McAn we've got uh camoo CEO we've got a lot of people from the dod doe so it's going to be a robust uh lineup and um I'm really excited for it you know um but to address your question I mean battery Metals um like copper right I mean copper to me is just a screaming by here um because everyone talks about copper with regards

to population growth with regards to electrification yet copper was down last year as a commodity how is that possible you know it's just it's mindboggling and so frustrating for investors including myself um but you have to look at that and say okay it's just taking longer to get to the end point right I mean there are some copper stocks that have made a move here um VR resources comes to mind um v rrcf u they what caught my attention with was actually their their Diamond project in Canada uh because I think

it's the first major Diamond Discovery potentially in in a couple of decades but they also have a copper project in the US right near where I'm at at in the western us when you look at it from you know aerially it's it's got infrastructure it's reer Highway um but they just need money to drill and that's so true of a lot of Juniors regardless of copper uranium gold right they just need the money to prove out what they have and um that's been the biggest challenge this year and last year is

finding Capital because investors are getting a little more Discerning I'd say maybe a lot more Discerning you know and not just throwing money at Investments because a lot of them haven't worked I do think VR is going to work uh Mike gunning has been at the helm for over a decade at this company but has you know 25 plus years of experience and that's an interesting one to us um there's so many good copper stocks at this price point you know under $4 copper um and I would encourage people again to look at

aligning themselves with a professional to kind of get an idea of what CU all these companies are not great at equal you know there's a lot of bad operators right down the hall there's a lot of great companies right down the hall you have to do the one of the things I've said many times in your show is it's not just what you buy it's what you avoid that makes you successful and um we like to think we have a little bit of knowledge in that space cu cuz I've you know been doing this 30 years and I've

been in the sector for 24 of those years so I take it really seriously um so yeah we would love to have any high and worth clients contact me about April 29 and 30 I'll I'll do my best to get you a complimentary pass or at least do what I can to Discount your admission and uh we'd love to see you there okay and of course your contact details will be in the video description for people if they want to find it I think we we can leave it there for now this is a good conversation but did you have any final

thoughts to leave investors with um yeah just make phone calls to companies right now like this is the time you want to do your homework to get any questions answered about what you own and what you're thinking about owning you know and if you don't have the time to do that because we work with a lot of lawyers doctors construction workers people that just don't have the time to do that kind of work then let me do it for you you know that's why I'm here working really hard hard with

meeting last night and 21 meetings the next two days to try to get all of my followers and clients like the truth about what's happening at these various companies okay very good well I will I will let you go for now it sounds like you have a lot to do but we'll check back in with you soon so thank you so much for being here today yeah of course thanks Charlotte of course and once again I'm Charlotte McLoud with investingnews decom and this is John fenick with fenick Consulting [Music]