GDX – VanEck Vectors Gold Miners ETF $32.74
TBT – UltraShort 20+ Year Treasury $19.75
Long-term interest rates are causing issues with gold, gold miners and some large cap stock valuations. Unless it reverses it, will eventually cause problems for the entire stock market. Since it is inverse to government bond prices, you can visually (TBT chart) see it is causing pressure on bonds prices. Continue reading
Gold miners are drifting lower as interest rates on 20 & 30-year treasuries, move higher. We like these four Gold miners and think they are cheap protection should the market fall as well as just too cheap a valuation. We think that more difficult market times are ahead of us (this year) with rent and mortgage deferments drop away, Impact from the small – medium enterprise damage from government policy related to COVID-19, and failure of the vaccines to create herd immunity as fast as we would like, comes into focus. Gold (and silver) miners are a hedge against a general market sell off. If the market goes into a hard correction, we believe long interest rates will back off creating both a safe haven for equity investors and an attractive monetary backdrop for the miners. Continue reading
TBT (ProShares UltraShort 20+ Year Treasury) $19.05, is the inverse ETF for Long-term treasuries, 20-to-30-year treasuries. In other words, it is a visual of bond activity that is in harmony with interest rate direction and inverse to bond price movement. Interest rates have a direct impact on stock valuation metrics and on gold pricing. In a previous email we shared the correlation between TBT and GDX, the VanEck Gold Miners ETF. The correlation is spooky close – almost as if algos are programed to mirror the activity of TBT in an inverse way. Continue reading
Crypto mining is a new industry. The companies are young and will head into different direction most lost money so the real comp for us is Market Capitalization. Most are debt free as it is an easy period for then to raise money. Because it is easy to raise money, we consider the number of shares outstanding. We recognize most have or will raise money through secondary offerings and convertible debt offerings. This meant as a tool to watch and see how these companies evolve. Continue reading
We are bullish on Silver first, and Gold second. Silver first because the production of silver is below the multiple demands for silver. Gold does not have nearly as many industrial uses as does silver. In fact, in many respects silver should be more valuable than Gold, but we also know that will never come to happen. Based on the price spread mentioned below, between silver and gold, we are saying silver will increase a bigger percentage than gold. silver will rise bigger percent than gold. Continue reading
Our Top Trading Pick is AngloGold Ashanti (AU)
Precious metal stocks hit their highs for the year in the first week of August 2020.
AngloGold topped out at about $38.50 in August and in the correction reached a low near $20.15. Continue reading
New addition added to the portfolio of current Ten Under $10 positions
Galaxy Digital is a diversified financial services and investment management innovator in the digital asset, cryptocurrency, and blockchain technology sector. Continue reading
