Is there solace to be taken from the interrupted metals rally?
I think so. I know so.
I learned never to call these blunt smashes “corrections.” The 2024 gold-silver-copper rally was not a correction? What is correct?
THE SOLACE: “This kind of thing lowers expectations,” Gene McBurney, Madrid-based founder of investment bank GMP Securities, told me this morning.
Metals investors were until this week holding out for a return to $2,400 gold, $5-plus copper, $32 silver, and values further north. Far further.
Graddhy Trading silver chart
Gold exactly six months ago cost $3,040 an ounce; now, even with the smash this week, it is $3,345.
McBurney pointed out that we are of course talking about physical commodities prices and their paper futures contracts. “The (mining) stocks (paper) never had their rally.”
John McConnell of Victoria Gold (Eagle Gold Mine in Yukon) just sent me the inset chart (below) from Graddhy Trading. “Willem Middelkoop (Amsterdam commodities fund manager) thinks they are the best,” John tells me.
Graddhy Trading chart of HUI miners index
Thus: the Sweden-born Graddhy (no first name) is consistent this year with a forecast of a “secular” bull market for gold and silver. He runs his ship via private Twitter subscribers and has this for the non-paying public: https://x.com/graddhybpc?s=11&t=9ZR2bMTS-6c7vp0MLmSEZg
I believe Graddhy also sees Bitcoin ($70,000 today-Tuesday June 4, 2024) as a secular bull investment headed to $100,000.
At any rate, I had never heard of Graddhy and I sent him a note (no phone number listed). He said “not interested.” I infer he values his privacy.
Graddhy reasons, regarding gold: “The second and final upleg of the secular bull market has started. Yes, COMEX will run out. Yes, Precious metals manipulation will end .Yes, USD will lose reserve status Yes, East (China-etc.) will take over. “Yes, U.S. debt ceiling will be raised an 80th time.”
His critics? This one sums it up — from a “Geneva investor:” “Gold is 18% above its all-time high… of 2011. Gold has barely kept up with inflation in the past 15 years. It pumps and people start shilling it as a get-quick-rich scheme. Yours is dangerous advice and you should be ashamed.”
Trading note: Per The Calandra Report, I will forecast lightly and let our coverage and investment choices here at home and at The Calandra Report speak for me/us.
The only miner stocks NOT getting clocked today are the ones NOT trading. They include in our The Calandra Report sphere West Vault Mining WVM, Xtra-Gold Resources XTG. Namibia gold project developer Osino Resources OSI looks like its all-cash purchase by a China miner is all systems go and will close by the close of June.
Also, I like the way shares of Ridgeline Minerals RDG (Nevada multi-project developer — silver, gold, lead, etc.) are doing the past two weeks. See earlier coverage please at thomcalandra.com and your private emails; yes, I own RDG.
Late last week, I added yet more Ivanhoe Mines IVN, albeit at 12% higher prices than today’s level. Also, Elemental Royalties ELE. More platinum — Aberdeen Platinum Trust PPLT.
$88.75 at last look via UxC.com
I am considering adding more of copper producer and soon, zinc, platinum, nickel, palladium producer Ivanhoe Mines this week, and sister-co explorer Ivanhoe Electric IE, whose shares are getting, well, smashed.
Here is the latest uranium price in spot per pound — down from its $100 or so high of 5 or 6 weeks ago. So the nuclear fuel is not immune from the smash.
CanAlaska Uranium’s Cory Belyk, who keeps me current re: uranium, just received well above-average uranium grades and lengths from its Cameco partnership at West McArthur.
“The pause in price should be good for Athabasca Basin (Canada) explorers. Stability,”: Cory, CEO-geologist, says.
“I am thinking it is a good time to pick up some CVV stock. Best discovery story in the Athabasca, perhaps the world.”
OK. I know three or four other CEOs and geologists who are saying the same about their projects, including F3 Uranium‘s Athabasca Basin grades and lengths.
I own CVV and FUU and four other uranium exploration or producer stocks: enCore Energy EU; Skyharbour Resources; GoviEx Uranium GXU; Nuclear Fuels NF.
Thom Calandra is a writer and an investor. Research and material are meant as editorial opinion. He is not a professional investment adviser. Please do not consider his reporting as a recommendation to buy or sell securities.
