My portfolio woke up on Monday and chose violence. Pretty much everything across the board closed the week in the red. What is going on?
I talked to Andy, from Finding Value Finance on YouTube to figure it out.
What you need to know
- The weekly performance:
– Gold: -2%
– Silver: -6%
– Platinum: -6.5%
– Uranium: -15%
- The cause of this might have been the 50 basis point increase in interest rates.
- Finding Value Finance’s Andy thinks that this was a short-term deleveraging event that didn’t make any structural changes to the multi-year commodity super cyle, that he expects. He thinks we’re still very early in this commodity cycle.
- Andy thinks platinum is the most undervalued metal, although he is also focusing on shipping and other commodities. He has a long-term outlook and thinks there will be volatile ups and downs in all of those.
- The massive drop in uranium was not caused by manipulations, Andy told me. He thinks it was because of the short-term deleveraging effect in virtually every market. Based on Andy’s ratios, uranium remains undervalued relative to most commodities.
- An IP survey (induced polarization) is an important geophysical technique used by early-stage exploration companies. It can be relatively expensive ($50-100K per survey) and it can take a couple of weeks to complete, but it gives the company an idea as to where they might want to drill. Drilling is more expensive, so it’s better to educate first, before wasting money by drilling on places that are not as promising.
- Core Assets’ technical news from last week show potential for interesting drill targets (hopefully, but not certainly, this summer). This company is a paying customer of Resource Talks.
- Nevada King closed its financing. I spoke to Collin Kettell, their CEO, this week and will have the full video out mid-week. This company is a paying customer of Resource Talks.
- Gold Mountain Mining closed its financing. I haven’t gotten a chance to discuss the reason of this financing with Kevin, their CEO, but I hope I will be able to “grill” him soon. This company is a paying customer of Resource Talks.
- Kuya Silver announced that its raising $2M, at $1/shares with $1.40 half warrants. They say they’ll use the proceeds for general capital needs. This company is a paying customer of Resource Talks.
Please read this, and the full disclaimer over here, it really is important and for your own good:
This video should not be considered investment advice of any sort. Some companies mentioned in this video are paying customers of this website. The contents of this video are general and impersonal in nature No trading recommendations are being made in this article. Be diligent and do your own research before risking your capital. The investment decisions of the author are based on their own investor profile. This includes, but is not limited to, their risk profile, their cash balance, and their debts. The author likely has a higher risk appetite than yourself. That’s why you may never assume anything on this website to be personally tailored to your situation. Resource Talks, nor the Author of this article are a registered advisory service and we do not give investment advice. Our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time.
Last week, I talked to Steve Penny, the Silver Chartist, about where he sees the commodities markets going. You can watch that video here.
03:10 Andy on gold, silver, platinum, uranium
18:30 What are IP surveys and why you should care
34:30 Core Assets IP survey case study
49:00 Additional news from customers
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