What you need to know
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- Consumer prices rose 8.5% in March, highest since 1981. This moved the metals up, with gold closing the week 1.5% higher, Silver +3.5%, Uranium +0.5%.
- As long as gold stays above $1,780, we’re still in an uptrend and poised to move higher. Once we break through $2,089, the move to $2,500 should not be as hard, as per Silver Chartist.
- The gold & silver equities have been lagging the price in the underlying metals, which Steve sees as a buying opportunity, as he expects silver juniors to start outperforming again rather soon.
- We can expect the “junior” silver miners to outperform once the ratio between SILJ & GDX has broken to the upside, which according to Steve is just about to happen.
- The only metal that Steve sees as having potential to outperform silver is platinum, because of how historically undervalued it is. The risk is bigger, but the potential returns are bigger as well. Platinum is needed for the shift towards hydrogen as well, besides it being needed in ICE vehicles.
- There is no resistence on the uranium chart, before $73, according to Steve. He thinks it will happen in the next couple of quarters. At some point we’ll need to see consolidation in the uranium stocks, Steve told me.
- “Parabollic moves benefit the lowest number of retail participants”, Steve told me. He would prefer uranium not to have a short-term spike, as that would create a tough situation for the people who didn’t have a pre-determined exiting strategy. Having an exeting strategy is one of the main things Steve focusses on.
- The uranium equities have still not broken above their November highs, although the uranium spot price has. Steve expects the metal to grind sideways for the next few months, while the equities outperform it.
- A new survey of 4,000 people by Investopedia found that more millennials own cryptocurrencies than own stocks. (Some 38% own crypto, just ahead of the 37% who own stocks.) And 28% of millennials say they are planning to rely on their cryptocurrencies to support them in retirement. It’s no longer “early days” for crypto.
- Nevada King has been hiring grade-a metallurgists and geologists. Some people on CEO.ca made a good point that you don’t need an expensive team, unless you have expensive problems. Dr. Hennigh & Collin Kettel (NKG’s CEO) told me that there is nothing wrong with the project, and that Nevada King simply wants to do this properly, by indentifying the best targest to drill this summer. Nevada King is a paying customer of Resource Talks.
- Grade smearing is when a company finds high grade mineralisation in short intervals, but reports that as low grade, over long intervals. I don’t like companies that do that.
- St. James Gold Corp reported 89 meters of 0.5 g/t Au this past week. No comment from management so far. St. James Gold Corp is a paying customer of Resource Talks.
- The US wants to transition to all cars sold to be EVs, by 2030, but it doesn’t produce almost any of the metals needed domestically. America is not a resource poor country. But they don’t have the production capacity. Every year they are not exploring for, developing or producing metals, is a year in which finding, assaying, licensing, and putting a project into production takes more and more time and it costs more and more money. The longer this takes, the higher metals prices could go.
- Last week, I spoke to Bruce Counts from Lithoquest, who’s recently become a paying customer of Resource Talks. It was an interesting interview. You can watch it here.
02:30 Gold, silver & uranium update with Silver Chartist
11:55 28% of Millennials have lost their mind
16:50 Why is Nevada King hiring expensive geologists?
34:30 What is grade smearing?
43:40 The US will struggle finding materials over the next decade
You can find last week’s newsletter here.
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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.