This is a very brief summary of what was a lengthy interview. Don’t rely on this summary. Watch the full interview which is linked at the end of this post.
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Lobo Tiggre Interview (TEXT)
Is a recession bullish for gold and silver, and what in the world just happened earlier this week?
I think so, but not in the sense of a 2008-style collapse. Yesterday’s panic was a reminder that markets are on edge, and any small disruption can trigger a sell-off. However, I still believe we have to watch for what the central banks do next, especially with the possibility of more money printing. We’re not at the point of a major crash, but the signs of a hard landing are becoming more apparent.
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Was this THE market crash?
I think so, but not in the sense of a 2008-style collapse. Yesterday’s panic was a reminder that markets are on edge, and any small disruption can trigger a sell-off. However, I still believe we have to watch for what the central banks do next, especially with the possibility of more money printing. We’re not at the point of a major crash, but the signs of a hard landing are becoming more apparent.
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Why didn’t gold and silver rise with recession worries?
Gold and silver dropped because of a liquidity event—when people panic, they sell what they can get a bid for, and gold is always a liquid asset. But let’s keep things in perspective: gold dropped to $2,400, which is still a very strong price for the metal. The performance of gold compared to other assets during this panic actually shows its strength. Generalist investors likely sold gold to cover losses elsewhere, but this doesn’t change the long-term bullish case for gold.
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What do you sell in a market crash?
In a crash, you don’t sell your core holdings in AI stocks or something you believe in deeply. You sell what’s up or what’s most liquid—gold in this case. For seasoned investors, these dips in gold are buying opportunities, much like in 2008 when gold was a screaming buy at $700. The same logic applies now; smart investors see these moments as times to accumulate, not to liquidate.
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Which commodities should you be bullish on during a recession?
Gold is the clear winner. With the looming recession, the writing is on the wall for rate cuts, which is bullish for gold. While oil might have some near-term fluctuations due to Middle East tensions, it’s risky to buy it going into a recession. Silver, although tracking gold closely, has more industrial metal characteristics, which makes it less attractive during an economic downturn. Right now, if I had to choose between a gold and a silver stock, I’d go with gold.
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What in the world is happening in China?
China’s reported pause in gold buying might actually be a strategic move to lower prices before buying more. The Chinese Central Bank’s actions should be viewed with skepticism, but the fact that gold hasn’t dropped significantly despite their reported pause is bullish. It suggests that other global buyers are stepping in. The economic situation in China is dire, and their ongoing stimulus efforts indicate a deeper problem. This could negatively impact commodities at large but remains bullish for gold as a safe haven.
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When do the gains in gold translate into gains for the juniors?
The gains will translate when you pick the right stocks. The general indices might not be up much, but that doesn’t mean all stocks are performing poorly. The better-quality stocks are already responding. If your gold juniors aren’t performing now, when gold is near all-time highs, it might be time to reassess your picks. In this market, stock picking is critical, and not all juniors are created equal.
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Which kind of mining companies is Lobo investing in?
I focus on pre-production sweet spots (PPSS) and success-in-progress plays. These are less risky and offer good upside potential. Takeover targets are also on my radar, but I don’t buy stocks just for the potential of being acquired. I’m looking for companies with real growth potential and those that are already demonstrating success in their exploration and development efforts.
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Do you think that mine failures could change the landscape of the right-hand side of the Lassonde Curve?
It could be interesting if it did, and for me, it would be for the better. If it became more difficult to peg who’s doing it right, that would help experts like me do better than the average investor. However, despite the disasters, mining isn’t going to stop. We learn from our mistakes and make mining better and safer. Those who do it right will be rewarded, and their investors should be too.
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Do you think financing conditions will get tougher with recent mine failures?
Due diligence levels should ramp up, but I don’t see a significant change in how things are done. Even reputable shops sometimes finance companies that don’t seem to have a chance. The key is that financing is always available for good projects. If your project can’t get financed, it’s a sign of the quality of the assets, not the market conditions.
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Lobo Tiggre Interview (VIDEO)
In this interview, Lobo Tiggre discusses the current state of the gold and silver markets amidst economic uncertainty and potential recession. He delves into the reasons behind the recent fluctuations in gold and silver prices, the impact of market panic, and the role of generalist investors in these movements. Lobo also offers his insights into stock picking, particularly in the mining sector, emphasizing the importance of identifying quality companies over relying on indices. The conversation covers potential bullish trends for commodities during a recession, the impact of China’s economic situation on gold buying, and how recent mining failures could influence financing conditions in the industry.
