Gold news

 [Music] I got Charlotte McLoud with investing news.com and here today with me is Jeff Clark editor of Peter prospector thank you so much for joining me great to have you on once again it's great to be back with you Charlotte thanks really good to be catching up with you I I checked back on our last conversation was all the way back in January so certainly a lot has happened in the gold and silver market since done if we look at just what gold has been doing it's reached all-time highs this year and I wondered if we

could start by talking about the main ders behind that that price rise well if you look back at the calendar gold ignited on uh leape day uh February 29th of this year and that's because the day before the FED came out and said well we may end up lowering rates three or four times this year and the market reacted to that and all of a sudden goal was Off to the Races and it jumped so high that all of a sudden you had some short covering that needed to happen that as well so you had short covering which means they're buying and

then you had momentum Chasers and Traders Jumping All In so uh that was a a pretty good Spike took us all the way up to about 24 400 it's since pulled back but I think that's what kind of started all of this and of course we have the FED to look forward to and what they might uh do in terms of when they lower rates um but I think that's that's the big news for the first half of 2024 yeah and you know okay speaking about the fed and this the influence that it's had on gold So Far So before

gold started to move I was hearing for quite some time from many people that we really needed the FED to start cutting before gold took off and of course we've seen that it didn't actually need that and we still have things like the stock market continues to be strong which you know we're also hearing well that needs to turn around and then that will help boost the gold price so what would do you make of that and are we are there other things that we should be considering now in this environment when

it comes to Gold that's a great question actually because believe it or not most people don't know this even in the gold Community but the gold price has doubled since 2019 it's doubled and yet what do we have in that time period as well no recession we have no uh well we had a recession in 2020 but we've had no recent recession when everybody was thinking we would have one the US dollar is higher the stock market is higher these are all things that are an typical to a rising gold price and so uh I I

think for those who said well I'm not going to uh in invest in gold or gold stocks or whatever uh until the FED lowers rates or until the US dollar crashes or whatever um you know th those those investors that have unfortunately missed out because you don't want to be looking at one part of the elephant you know gold can respond to many different things there's many factors and variables involved and so uh it's un certain times you want to be long gold make sure you own enough and have enough

uh exposure mining stocks in case they keep going which is what's happening now right and okay with that idea in mind that gold can respond to so many different factors I will ask you what you see coming from the FED in 2024 just because I'm curious and it is one of the things that we usually discuss when it comes to Gold so what do you what do you think we'll get from the fend moving into the end of the year yeah I hate that we have to talk about them I'm sorry no no it's not you I I just you

know we have to talk about them but I just don't like that we have to talk about them because they do impact markets but you know they're really a a marketing machine that's that's what's really they are and forward guidance is one of their mandates you know just talking and saying what they might do you know and look how that's worked out so far this year they've they've seesawed back and forth on this when we're going to lower rates how many times are we're going to low rates are

we going to lower rates at all uh this keeps going back and forth and so to be honestly Charlotte I don't give a lot of time to it and what they're saying and and doing they do impact markets so I do watch it and I think active investors should should pay attention to it um but you know what uh my portfolio is prepared for whatever they may do um I love what the Greek philosopher pericle said uh don't try to predict just prepare and some may say well how am I going to prepare if I don't know what's

coming it exactly you have to prepare for that you have to be prepared for uncertainty so I think what that means is you have to watch um you have to own enough gold and you know for gold stocks mining stocks which is what I specialize in spent a lot of my time doing and own a lot of I own them but I also have a cash buffer in case there is some sort of Crash that takes them back down further again so I got a little off track with you there but that's that's kind of how I approach all of this uh

with the fed and the inflation numbers and all of that the the CPI is not is not inflation it's a CPI it doesn't necessarily measure what's really happening out in the real world they keep it's it's embarrassing when the fed and politicians say that inflation is low we all know it's not low you know so I I don't spend a lot of time on that I watch it but it's not a priority for how I invest right and I think you've explained this before but probably it Bears repeating so when we talk about

owning enough gold that's kind of a tricky word so for you what does enough mean well there was actually a study done on how much gold you should own what when how much gold should you own before it becomes too much versus not having enough to make a material impact on your portfolio and there was a study done by CPM grip went way back to the 70s and they just tracked it and they came out with a roughly 20% figure uh between 20 to 25% but 20% was was kind of the bottom for the amount of gold one

should own to balance risk and reward in their portfolio over a long period of time now for some investors that's going to sound like a lot well I probably if it is a lot to you I would suggest that maybe you do need to own a lot right now you need to be a little overweight I think 20% a you know a real figure um that uh percentage in your portfolio will go down if you own mining stocks and we're right about where mining stocks are going they will uh gain greater than gold so the percentage of

your portfolio will go down but I would look at it right now especially if you're in the Juniors when they're uh still low and depressed and see if you can get to 20% I think that's a reasonable figure until we have an honest and sound monetary system I got to own 20% okay okay thank you for going into that I think that makes a lot of sense in today's environment and I know you've been talking about how you know you have to prepare without not necessarily knowing what's coming but if we look at

the gold price heading into the rest of this year so during our January conversation I think you had kind of said you know 21 22 2300 gold is going to get through there we could even go to 500 possibly this year so seeing though as it's moved so fast have you made any adjustments to your thinking yeah that's a good question because we've obviously blown through all those levels and the next Target or level is 2500 I do think we'll get to that this year because history tells me we will uh we've had a

38% rise in the gold price um at you know at this up cycle if you will um but the uh average up cycle is much higher and if this up cycle were to end now it would be the lowest um in history so um I'm forced to believe because of history that this trend is going higher so um I I do put a lot of uh uh let's say I have a high confidence level that V is going to breach the $2500 level this year I think it's it's definitely sounding more and more reasonable so we we'll keep an eye and see if that

happens I think on that note your recent medals investor for presentation you have a slide that I really liked and I believe it was looking at pullbacks during the 2001 to 2011 Gold bull market and I thought that could be important to go into just to give some context on how it can look even when we're going up we can go also back yes it's basically a two steps forward one step back uh uh price behavior in the middle of a bull market and yes that slide's a great I love it I'd love showing it to people because it

reminds you that hey even in a bull market even in the middle of a surge or a spike there's going to be pullbacks um from 2001 to 2011 that bull market um there were 20 Corrections um during that time so that's basically two a year almost right and the average correction in the gold price during that time was 12% believe it or not if you take out the 2008 crash it was still 10% so you know this current correction going from 2400 down to 2300 um that that's not a 12% correction it could go much much more and still be

a bull market so I think if investors realize that oh okay let's say we have you know a 5-year bull market that means there's going to be based on history 10 Corrections and that's perfectly normal that's happened before even in the other slide Charlotte um I showed one from just the 1979 Mania and even during that one there were seven Corrections yes no 2 4 six s yeah seven Corrections of 6% or more the average was 10.7% during a Mania that that was a runaway bull market right in 1979 there

a parabolic rise in the middle of that there were still seven Corrections of 6% or more so you have to expect that that's going to happen but you could use that to your advantage um you know when you see a big correction in the middle of a bull market that can be an opportunity you know if you want to buy and work gold if you're look you missed a Mining stock before um those kind of things so I think having the correct expectation about what a how a bu Market behaves uh can be very useful I always find those those

historical data points really useful for for feeling situated and what's going on so really good to go over and before we move on to talking maybe more about the equities I want to ask you about silver so we have silver also on the Move now finally and I'm wondering what you see going on there you know is it is it following gold is there something else going on what are your thoughts well silver is uh following gold um but it's actually outperforming gold like it usually does right it's a smaller Market

it's going to be more volatile on the downside but also on the upside which is what we've been seeing now I just ran this uh Charlotte yesterday gold is up since that uh February 29th date that I mentioned earlier gold is up 15.5% um silver is up 40.7% so silver is clear clearly and the mining sucks by the way are up even more than that but Silver's clearly out performing gold and that's typical that's that's that's what it usually does so I think that's going to continue

so if we're right about the gold bu Market the uptrend continuing then we should expect silver to do to do that as well and to continue to outperform Gold so I think it's reasonable to expect because you're probably going to ask me where I think Silver's going I I think you know the and anywhere between the $40 and $50 range in this current you know Bull Run uh is reasonable to expect again based on history and then ultimately I think silver is going higher than that it's inflation adjusted price by the way is

right around $75 using the CPI you know if you use John Williams Shadow stats it's triple digits but $35 silver you know on on a two to threee time frame is I think reasonable to expect okay thank you for going into that as well and all right so if we look at the junior research sector in general when we had talked previously you spoke about 2023 being perhaps the worst year for sentiment ever and US bottoming out around that time so how has sentiment look or I guess to what extent has it improved this year what are you

seeing well I think as any Junior Mining stock investor knows um it's uh it still hasn't improved all that much but I will point out GDX and gdxj have both outperformed gold since that uh February 29th date I've I've mentioned so um so mining stocks are carrying leverage as a group um but that doesn't mean of course every single stock is and most of the many of the Juniors let's say um that maybe aren't in the gdxj are underperforming right now they're they're still not moving and so that's

still ahead but I think um uh I think the fuse has been lit because once gold starts to move then the the money will move down into the producers then developers and then the Juniors that's very typical we've seen that happen throughout history and so that does mean the fuse has been lit we can expect within a whatever the period of time is that money will move down into the Juniors and and begin to ship we've seen a shift almost in in the gold price that the sentiment in gold price so next will

be the miners and then at the end of that will be the Juniors and you know what given how depressed they are oh my gosh we could see some really big Gators uh uh before this is all over okay I think that that helps one thing I wanted to ask so we've talked about prices for gold and silver what's going on in those markets we've talked a little bit about the equities are there any other trends that you're watching among the companies right now things that you are ping close attention

to you know what Charlotte I am I am laser focused on mining stocks right now so I'm watching those because I know that some of those can move if they make a discovery regardless of what the market did you know Snow Line gold was a 10x stock for us in 2022 last year Hercules silver was a a 10x stock for us so who's it going to be this year it it doesn't require the gold and silver move it requires something that the company is doing that is outside of what you know a lot of other companies might be

doing they're making a discovery they're significantly expanding their deposit they're going into production you know those kind of things so I'm watching that and then I I'm watching other metals as well um gold and silver definitely and then also watching copper and I'm also uh watching lithium and then of course we have some a big allocation to uranium right now that's a bullwark that's happening right now so I think investors who are if you're a Mining stock Speculator you

want to have exposure to um uh the uranium plays and a lot of those have moved we've actually taken profits in a lot of them but there are new companies coming along that are just getting started that you know I think could be good bets so not all of them but I think there are a select few out there that I'm personally betting on okay that's really interesting and of course when I talk to you I think I really always focus on gold and silver but of course there's other things going

on and we do talk about uranium on our Channel and I found that it's it's calmed down a little bit over the past few months people have been more interested in gold silver copper so maybe for for resource investors there's something to say in there about keeping an eye on the broad spectrum and you know okay gold is really hot right now maybe you're looking at uranium and you can get into something there any any thoughts you might share there yeah that's true it has pulled back a little bit um but this is a a

bull market uranium that's going to last for you know who knows how long but I would guess you know two to three years because of a supply demand issue because of politics especially with Russia because of the green energy movement you've had most politicians and environment Mist to a complete 180 on uranium they hated it three years ago now they love it and are even throwing money at it so um this this is going to run this is not fully played out so played out yet so you do want some exposure to those plays um and again if

something's run up a lot well there's other um you know uh uh stocks that you can get into that haven't run up a lot yet uh we're still speculating but I think given the backdrop of the fact that this is a bull market and it's going to run for a while you know having a basket of these speculations uh might just pay off really well all right and you know as we started to wrap up I want to make sure that I touch on some some recent news for you so quen Preston I think I think many of our listeners will know quen

from resource mement and she's recently moved on from her newsletter to a new opportunity and you will be I believe taking over her newsletter so I'm wondering if you can tell me a little bit about that transition what we should know yes thank you um so we always talk about m& and the mining sector right and how that can really kind of get things rolling right well now we have m&a and the newsletter seor so um yes we did purchase uh Gwen's uh paid newsletter uh the resource Maven um love Gwen she's

been great for our industry we'll certainly miss her I'm going to try and you know mimic and and and follow a lot of things that that she used to do um the only thing I will do is I will put a dress on so you can expect me to do that Charlotte but uh but yeah we're in the middle of that transition right now um so you can sign up on the resource Maven side or the perer prospector which is the gold advisor side it doesn't matter but that'll all be merged and in other good news uh Peter KRA of the silver

stock investor who worked with Gwen is also coming over to um the gold advisor so the business is is swelling uh rapidly um we're scrambling every day to to get it all done and and we're still in the middle of that transition but by the end of June that will be done and um uh so if you sign up on the maven site actually you can look at perer prospector for free and get a free digital download of the book Pay Dirt um if you want um and then everything begins a new in July uh so we're excited

um I uh Gwen had some some really good picks in her portfolio but we staffed her uh portfolio by the way uh went through every pick be you know during this transition about who's going to come over um took like three hours to go through everything but um I have to be honest there were at least a third of her picks that in my humble opinion did not pass pass the criteria for what I would look for and therefore they would not come over into P prospector um so we're being a little stingy I I would

just I just want best of best that's all I want and it has to be or it will be with the criteria that I use in the book painer so um but exciting days ahead there's there's a lot of picks for people to choose from there to create their own basket it's pretty exciting and hey I think right time right asset right I I think we're in the right place at the right time and uh the next two to three years we're all going to be very happy okay that's really interesting to get a look at kind of the mechanics of

as you say that that newsletter m&a so really interesting hopefully people will check out what you're doing there and just before I let you go I'll ask you if you have any final advice or words that you would leave inv basters with I know in in one of our conversations toward the beginning of the year you had told me you waiting you know for a phone call from a certain actor and this is f we would know top is in and it sounds I think we're still far from that oh heck yeah yeah the the the joke was that

Jennifer Aniston you know who my brother thinks is the most beautiful woman in the world uh when she calls somebody that looks like this she reaches that far down that that would be the top of the market well Jennifer Anderson is not called and I promise I will let you know when she does but yeah we're a long way from from this we're really just getting started okay I think that's a great place to wrap it up so let you go for now and of course we'll be checking in later in the year to find out what's going on so

thank you so much for the center view this was great Charlotte thanks for having me of course and once again I'm Charlotte McLoud with investing news.com and this is Jeff Clark with perer prospector thank you for watching if you like this video make sure you subscribe to our Channel we'd also love to hear your thoughts so leave us a comment below we'll see you next time [Music]