from Kerry Lutz's Financial Survival Network
David Erfle is a self-taught mining sector investor, and the brains behind JuniorMinerJunky. We just went through the usual precious metals bottom in late July, early August. Volume on juniors is completely anemic. GDXJ has double bottomed which is usually a very bullish sign. David sat down with us to give an update gold, silver and mining stocks. Mining stocks have continued to go down leading to investors take tax losses in the summer, which is quite unheard of. David says this is the exact time when the opportunity in the sector is greatest, at the bottom. Therefore, you need to have a watch list and be ready to pounce. The juniors are in particularly strong position now. Since the last move up, they’ve cashed up and are ready to go. Drilling programs are happening right now and results are being release. There’s lots of value in the sector. Of course it’s always possible we could have another down leg that drops gold to 1600-1650. in this sector you never know. However, = if gold stays above 1750 it will soon be off to the races. The Fed is working overtime on pushing gold prices higher. It finally admitted what we all know, inflation is here to stay, and with its decision to not raise rates or taper, the secret is out of the bag.
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You and Mr. Erfle can joke about crypto, but I am a subscriber to his newsletter, for the past 18 months, and my crypto holdings have ballooned while my mining stocks have plummeted, and continue to do so.
Gold, boring as it’s been, is a market that’s thousands of years old, and spans all cultures. It will stand the test of time long after we’re both gone.
Crypto is new, and there’s a lot to be concerned about here…
– Transaction fees have been as high as $50; what happened to micro transactions?
– Bitcoin is not capable of handling global commerce; it can’t even handle as many transactions as Amazon.com processes. ONE COMPANY, if they were to do ALL their business in bitcoin, could grind transaction times to a halt, and fees to the moon.
– What happened to anonymity being a useful property of money? When did libertarians start embracing money that could be completely tracked and traced by the government? Do you REALLY think Monero and Piratechain are the money of the future.
– When people talk about “market capitalization” of Coca-Cola, there’s a lot of PROPERTY associated with that market capitalization… Brand value, real estate, trucks, distribution channels, CONSISTENT REVENUE STREAM FROM SALES, etc, etc… When people talk about “market capitalization” of “coins”, they take the price of the coin, and multiply it by today’s subjective value. In doing so, they assign billions of dollars of value to thin air.
– Markets move on sentiment… We’re at the point in crypto markets where live sporting events are running in-game ads for crypto-trading platforms. Who’s going to by the crypto FROM the knuckle-dragging troglodytes watching pro sports?
– The USD-Tether coins are TOTAL FRAUD.
Anyway, blah, blah, blah… Lots to be concerned about is all.
Way too much to comment on, but I pretty much disagree with your premise. All I hear from the precious metal pundits, month after month, is…we’re about to explode…gold to 5k, silver to 100, fed is money printer, inflation is here, blah, blah, blah…and my PM stock portfolio sinks like a rock. Today gold and silver got hammered AGAIN, and I am down double digit percentages on many of those JMJ stocks that I own. Meanwhile, though volatile, my crypto portfolio shines. Enough said.
Lots of people make lots of money in ponzi schemes.
I’m laying out fundamental disagreements with the valuations, and you reply, “yeah, but it’s going up!”
We’re talking past each other. Have a nice life.