Several weeks ago when the TSX Venture was on its back due to tax loss selling I warned its planting time not selling time predicting a year end breakout in gold and the junior miners. Now gold has rallied pretty much everyday for 2 straight weeks making it short term overbought after a powerful breakout move into new 7 year highs.
Don't be surprised for a little profit taking along the way as precious metals bulls who have been beaten down for so long are finally able to take some gains as gold is overbought because of the recent instability in Iraq over the killing of the Iranian General by the USA.
I believe after a little bit of a breather in gold we could be on our way to new record highs in gold in 2020 past $2000 USD. There are real weaknesses with the economy and there are not many tools left for the bankers to employ. War is one possible fix to boost inflation but the American Public may be tired after close to 20 years of fighting in the Middle East.
For years the West has been trying to appease and keep a balance in the Middle East between the Shiites and Sunnis all for the sole purpose of a steady supply of oil. When one side gets too powerful the other is assisted. Recently Isis and Al Qaeda were devastated leading to the Shiites led by Iran to have control. The last thing the West wants is Iran to take over Baghdad which could lead to the next step which is war with Saudi Arabia over Mecca.
Trump made an interesting point that the USA doesn't need the Middle East oil anymore as the Country in now energy independent. Question remains what would happen if USA pulls troops out of region and leaves it for Nato to solve. Even many oil rich countries are looking for better energy alternatives such as nuclear and solar and the consumers are pushing for electric vehicles as Tesla overtakes the traditional automaker market.
Finally the junior gold miners are breaking out especially the explorers ready to drill. For years the majors have neglected exploration and they are running out of reserves. New discoveries are being looked at and some major exploration teams are getting permitted, funded and starting to drill.
For weeks I highlighted this little junior recommended by the top newsletter writers in the industry such as Eric Coffin, Brien Lundin, Bob Moriarity, Jordan Roy Byrne and Gwen Preston among others especially when I saw the Placer Dome Geo who discovered the major mine for Barrick Newmont join the team.
The overall team is amazing with an all star roster but this recent addition along with raising money indicated smart money is following this drilling program. The project is adjacent to Barrick-Newmont's largest gold mine in Latin America which produces over a million ounces of gold a year at all in sustaining costs under $650.
This is not just an area play...they have historical drill results already which shows its inline with the large system next door. They have 8 untested magnetic anomalies that have not been tested at all. They are fully financed and permitted for drilling which may get started any day now. The share count is still low around 100 million shares with almost a third of the float in the hands of insiders and strategics. The chart looks amazing.
Listen to my recent interview recorded before the Holidays with the CEO by clicking here...
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We step away from the geopolitical news and look at the upcoming earnings season for US equities. Ed Moya weighs in on some of the recent earnings results for the semiconductors sector that have surprised to the upside. we also discuss the moves in oil and the major factors outside of war fears that can drive prices int 2020.
I hope everyone had a very Merry Christmas, Happy Hanukkah, or whatever you wish to celebrate. For a week that was supposed to be slow for the markets we saw some impressive moves over the 4 trading days.
In this weekend’s show I focus on recapping the top investments and strategies our guests employed throughout the year. More importunately we also look ahead with predictions on US markets, yields, and the metals sectors.
Please keep in touch by emailing me at Fleck@kereport.com. I love hearing from all of you and wish you all a very happy New Year!
- Segment 1 – Jesse Felder kicks off this hour with what he says was the biggest story in 2019 – the Fed turnaround. As for 2020 we assess the energy market, the possibility of a recession, and his investing strategy starting the year.
- Segment 2 and 3 – Joe Mazumdar joins me for two segments outlining the best resources stocks he followed in 2019 and what he is looking for in terms of different metals and companies in 2020.
- Segment 4 – Josef Schachter wraps up the first hour with a focus on the energy markets. We look ahead to 2020 in terms of what will drive the overall sector and what stocks are set up to best benefit.
Rick is with us today to share his updated thoughts on the charts for the S&P, gold, silver, and oil. Rick also comments on how he thinks the election will play out in 2020 and the market impacts.
Sean Brodrick joins me today to summarize the many factors that are at play with the moves in gold and oil. Politics and trade dominate the moves but there are some nuances that could come to light in 2020 that would have a big impact on these sectors.
Please email me if you want more information on Sean’s newsletters – Fleck@kereport.com.
Joel Elconin joins me today with a quick comment on what could happen to finally make US markets go through a meaningful sell off. We also discuss the possibility of inflation finally picking up next year. A couple other sectors that are catching Joel’s eye is oil and financials. These are moving for different reasons but the oil price moves are a but suspicious.