Yeah, Well, if you're talking about the gold price and gold stocks,
which is my area of expertise, I think the gold price has more consolidation
to do here. I could see it easily going down to you know,
in nineteen hundred level. It's trying to bottom here at nineteen fifty where there's
some support. You're listening to Carrie Letts's Financial Survival Network where you get valuable
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dot com and get your free newsletter in gift Financial Survival Network now more than
ever, And welcome you are listening to watching the Financial Survival Network. I'm
your host, Carrie lets our good friend David Earthley. It's with us from
Junior, my minor junkie dot com and the Hey, David, like,
price of the metals is doing good, but the price of the stock not
so good. What gives well, it all depends on your point of view,
right um. You know we had the gold price go up over four
hundred and fifty dollars and six months from a triple bottom of sixteen twenty after
a false breakdown, you know, it's it's funny. Um. During this
consolidation, both bulls and bears alike have been supremely frustrated. So but the
gold stocks, you know, after the after the gold price went up so
much, gold stocks went up sixty five percent from their loans that the GDXJ
and the GX you know, which is two times leverage basically because the gold
price went up over thirty percent in six months and the gold stocks went up
sixty five percent in those six months. So consolidation time for both of those
moves. That's that's to be expected. But the juniors, you know,
they continue to lack um, you know, which is also their history.
And when you have an accumulative bottoming process, it's always the majors and the
royalty streaming plays that that do the best coming out of them, and then
eventually it trickles down to the juniors, and that happened hasn't happened yet.
You know, There's been select cases where some juniors have done well, but
on the whole, juniors continue to lack um. They continue to be very
very reasonably priced. I should you know, I should say they're they're ridiculously
priced because you know, most of these juniors they're training at at below forty
dollars announced in the ground. You know, they've they've proved up these multi
million ounced deposits and um, they're showing blue sky potential and they're showing the
majors. Hey, we've got these big deposits, we've de risked them up
to a certain point, and we're still able to raise money. The quality
come to the quality. Juniors that are D risking quality projects are still able
to raise money. Um, but it's it's the it's smaller juniors that are
lower on the totem pole in the in the d risking phase. Some of
them are having a hard time raising money and they're having to give away a
full warrant at a lower price than they expected to raise money. And it's
really hit their if their share price is hard and you know, the games
that are that continue to be played on Base Street, UM, you know
exacerbate this fact. You know, Um, if if you if funds hear
about a company that that is going to be raising money, you know they
can manipulate the stock lower and um, you know these games will continue to
be played here. They wouldn't do that, would they. You know what,
in in bullmarkets you have you know, um retail money come in and
stop up the access. When that happens, they an opportunity. But for
the past decade, basically we've been trading amongst ourselves. The generalist investor,
the retail investor hasn't been in this sector. They left in twenty thirteen when
the gold price broke down after the last bull market, and they yet to
return. So it makes it more difficult for us because we're trading against these
these really intelligence skilled resource investors who know all these games, and they also
know about when if they take a look at a company and they say,
okay, this company has just released great results, right, but they're going
to use that press release of great results as a liquidity event to sell the
stock if the company isn't cashed up for the next year or so, because
they see that Okay, they've they've they've put out these great results, but
they're going to need some more money pretty soon. So we're gonna wait for
the finance and get into the stock a lot cheaper at at a lower price
and probably get at least a half warrant or even a full warrant at the
same time. So these you know, this is going to continue until the
gold price as a solid floor at two thousand dollars an ounce, and we're
just not ready to have that take place yet. And a signal of that
will be a monthly close above two hundred. We almost had it last month.
The gold price closed I think eighty cents below two thousand dollars. And
once we have a monthly close above two thousand, I think then a floor
will start to be built in two thousand. But we need a monthly close
above twenty one hundred to signify a breakout in the gold price. Hey,
these operators will even sell the company's stock short when they have that momentous press
release, keep it down, keep it muted, and then they buy in
at the private placement, which will be depressed. The offering is going to
be at a depressed price. They've got a locked in profit and free warrants.
And then when they hold periods over for the warrants, if there is
a whole period rather for the shares, they dumped the shares and hold the
warrants right right. It's it's even happening to companies that don't need money and
don't need to finance. Um I had recently a CEO tell me, I
have a company that I've been in, I've been invested in for for a
year or so, you know, accumulating shares and um I saw a huge
volume in the stock after a very positive press release drill results come out,
and um he told me that yes, that was a fund using the excess
liquidity to to sell some to unload a position. But the next day the
stock went down feen percent on no volume, and I so, I'm I'm
so, I inquired and will know what happened there. He basically said,
um uh a bank came to us with uh a charity flow through deal that
we didn't need and that we didn't want, but they shopped it so hard
the market got ahold of it and figured that they were going to be raising
money. So they showed at the stock and you know, in an illiquid
market, got the got the share price down really low, and it's and
a share price is still down there even though they don't need money. They've
got thirty five million in the treasury, fully financed until the end of next
year, even if they wanted to, and they've got multimillions of ounces in
the ground in a top tier jurisdiction. You know, they're doing all the
right things. They're raising money at the right times, de risking the project
jack and things like this happened. So when things like this happened and there's
no retail around to come in and say, look, wow, look at
this company. Look at this. This stock is down fifteen percent on no
news. This is an opportunity. When that, when that money is not
there seeing that, then the stock continues to wallow lower. I mean,
if you look at the volume on the TSX venture, volume hasn't been this
low on the venture exchange since the gold price was trading below three hundred dollars
and ounced twenty years ago. There's nobody cares about the center right now.
It's incredible the opportunity. You just have to you can't use margin and you
have to be investing cash that you don't need right now that eventually the gold
price is going to break out and eventually, you know, these generalist investors
will come back. It's just not yet. The timing's not riking, all
right. So another dude, but look at the price as silver, how
strong that has been until recently. Yeah, it's it's amazing. Yeah,
I mean, you had you had that help, You had that four hundred
and fifty dollars move in the gold price right in six months. That needs
to consolidate. And the hint that the consolidate was going to call consolidation was
going to come was the silver price suddenly showing strong relative weakness to the gold
price along with the miners. That was a hint that that was going to
happen. And that started the Monday after the Federal Reserve came out and hinted
that they that they might not be raising rates in the next meeting, which
is in the middle of June. But then of course after after they said
that, um, other fedheads have come out and hinted that they will be
raising rates, and um, you know, it's it's all this FED speak
around the the the rate hide policy you see. In the short term,
it's it's a it's a debt ceiling complete theater. That's going to be you
know, the catalyst for the gold price. You know, if if if
they come out with you know, um, a resolution early, which I
highly doubt um, then the gold price is going to get hit. But
if they continue to play chicken, which I expect they will until you know,
the drop dead date, which some say it's June Firth like like yelling.
Some say it's the fifth or even ten, when they when the treasury
runs out of money. But you know, eventually they're they're gonna they're gonna
raise the debt ceiling. I mean, what is this dead ceiling? I
mean it's it's not existed. Obviously it can't be. You can't have a
debt ceiling. We have to continue to borrow and borrow and borrow to pay
to pay money that we can't pay back. Yeah, I mean, how
is this gonna happen here? Really? Dad? I mean yeah, everybody
has to come out looking good like they acted for the better of the country,
right Blue, Like oh yeah, yeah exactly, And each one thinks
they have the upper hand. You know. It's it's so tight in Congress
there and there's no and there's not very much bipartisanship left. I mean,
you just have Marjorie Taylor Green issue um issue impeachment papers on the president and
at some of his you know, some of the people so and they should
be impeached exactly, you know, those on themselves right. Yeah, it's
like, which crime family do you want to trust? Here? It's you
know and that and that is dividing the country even more so, I trust
crime families more than I crime family running the government because crime families at least
act in the interest of self preservation, which is why they kill you.
But these guys couldn't care less about self preservation. They're into instant gratification.
Yes, and you know eventually they're going to raise that debt ceiling because all
their pensions depend on it. Well, every everything depends on it, corrects
on it. Yeah, every that depends on it. So it's like,
if you're into self deception, then you're worried about it. If you know
that that these guys are going to do what they have to do to keep
the party going, then you know that the debt ceiling is completely meaningless.
It's just a chance to try to score political points on your so called adversaries,
right right, yeah, exactly, yes, yeah, So so now
that the good news, now that we've solved that problem here, right,
we've solved that problem with David. But but patients, you need to be
patient in this market. We know what's going to happen here, right,
I mean, well, we're between inflationary and deflationary. They keep raising rates,
Everything crashes, everything deflates, they raise rates, everything gets higher and
higher in price, and either in either of the scenarios, precious metals is
going to be what's left over, right exactly, I mean picture poison.
Yeah, I mean, they continue to raise interest rates. It brings us
closer and closer to recession. You see, you know, you see all
these indicators showing that a recept is going to happen. You know, um
now a soft a soft landing is being is pretty much by the wayside.
Now it's going to be a lot harder than they expect because they keep raising
rates, and you know, credit continues to tighten, and the yield curve
continues to show that that this recession is going to start pretty soon, and
gold usually consolidates, goes lower into recessions, and then once the recession takes
place, that's when it takes off and people start buying gold for protection.
I mean, I mean, that's the gold is the biggest protection for for
for recession and basically loss of faith in governments and their monetary policy, and
people continue to lose faith. You look at these gallop poles. They're losing
faith in the FED, They're losing faith in in the system. Um,
they're they're they're losing faith and politicians. I want to know who had faith
at this point? Who who are the people that had faith? Anyway?
That's certainly not you or I right, No, it hasn't been you or
an eye for quite some time. Are these people that still have faith in
your government? Because I don't know who they are? Honestly, certainly nobody
I've talked to in the past five years, at least you you know anybody?
Or are we just in a bubble? Yes? I think we're going
to bubble this. You know, you see a lot of people on the
street walking around with rose colored glasses on. You know they don't. I
don't really want to think about things like that. I've got other other problems
on my mind and vampaign credit card bill and over fifty percent of the countries
might have been paycheck to paycheck now nobody has any savings. And it's not
worrying about it, right right, that's not gonna worry about it. I'm
just gonna try to feed my family the best I can. There's nothing I
can do about it. So I'm just going to continue to work as hard
as I can to feed my family, try to stay at it dead.
But that is that is getting more and more difficult with credit card and rates
rising exponentially as the as the interest rate rises. Yeah, no, I
couldn't agree with you more. It's just being a little facetious. But but
let's face it. You know, the only people that have confidence in the
government is the government itself, right right, which continues to get bigger.
Yeah, yeah, well, no, wonder they'd have confidence, right man.
I don't know. I don't know what we've been, what people are
thinking. I just have no idea about Yeah, it's no, it boggles
my mind as well. Yeah. So, and I live in California,
so it's you know, I mean there's a lot more rules colored glass wearing
people where I live. I think they're wearing rose colored helmets. Honestly,
I mean it's kind of ridiculous here, but hey, ignorance got us into
this mess, and ignorance will get us out, right, David, what
way or another? Yes? Yeah, so I would ask where do we
go from here? But I kind of like don't really want to hear the
answer. Yeah, Well, if you're talking about the gold price and gold
stocks, which is my area of expertise, Um, I think the gold
price has more consolidation to do here. I could see it easily going down
to you know, um in nineteen hundred level. It's trying to bottom here
at nineteen fifty where there's some support, all right, and there's up trend
lines aboard at nineteen twenty five. But I think nineteen hundred is probably baked
in. But it all depends on you know, these zundress events. Ye
say that word, right, events that that could take place. Um.
You know, we still got a dead ceiling crisis going, we still got
a credit crisis going. We still got ongoing war, which it doesn't look
like it's going to end. It looks like it's going to ratchet up even
more. Um, you know, and and war is more inflationary than anything.
I mean, that is the most fitting Mary. Yeah, the FED
continues to have this fantasy of of a two percent inflation rate park. So
in the short term, the gold price is looking at the dead ceiling,
and the intermediate term it's looking at when the FED is going to stop raising
rates. But in the long term, it's looking at when the FED is
going to be forced to a give up their fantasy of a two percent inflation
rate, have to raise that and then say hey, we got to start
cutting rates, and the market will will tell them when that's going to happen.
Right, All right, Well, you're just a breath of fresh air
today. But we appreciate your coming on as always. Tell us how we
connect with you, how we subscribe to your service, why you should subscribe
in the light of your earlier comments, why should we we should just stop
throw that in the trash can big, because every dog has at stay.
Not that metals are a dog, but they've been performing like a dog.
Yeah. Well, as far as gold stocks are argancer and carry, you
know the opportunity, it just keeps getting better and better as far as the
gold stocks price in relation to the in relation to the gold price. The
last time we had these low levels ut in volume twenty years ago in the
Venture exchange, it was a buying opportunity because once the gold price broke out
above five hundred dollars, then gold stocks really took off and the generalist investor
came into the sector. And I think that's going to be equal to the
gold price finally getting over two thousand dollars and two thousand becoming a floor as
opposed to a twelve year ceiling. And will know that when the volume starts
to come into these gold stocks, you start to see volumes spiking on updates,
that's when you're gonna you're going to start to see general interest peak.
I'm not peak, but general interests start to come into the sector because,
like I said, they've been gone for ten years. So UM, this
is a great time to be patient and accumulate and definitely don't use margin,
especially in this sector. And um, holding the right stocks is key,
and my service can help you do that. I mean, I've got a
couple of stocks in my top ten that have been bifurcating from the sector.
I think one or two of my top ten juniors are going to get taken
over this year because I think I AM and A is going to start to
eat up again pretty soon. So UM, a service like mine can can
get you into the right stocks and keep you there. With the news that
I continue to put out about the sector and about the companies, I'm in
constant contact with all the companies that I have great relationships with that I'm invested
in, and and I go to conferences and have live one on one meetings
with them as well. I'm going to another one here in September, hopefully
you'll be there as well, at the Precious Metals Summit in Colorado. Definitely.
So UM. You know, I do my due diligence and um not
only before I buy the stock, but after I buy the stock can stock
continuously for myself and my subscribers. And as you know, I put my
own money into these companies as well, So I'm not just telling you to
buy something that I'm not invested in it, or more importantly, that I'm
getting paid to do. So I don't get paid by any of these companies.
Um. Basically, I run my service like I want juniors, junior
management teams to run their companies. You know, they put their own money
into their companies. At the companies that I invest in, they put their
own money in and they participate in financing, so they're completely aligned with shareholders
like I'm aligned with my subscribery. And I might add to before you make
any trade in any of your recommendation, you give twenty four hours, so
we gotta go David. Thanks so much anyway. The link to David sites
and the show notes this interview on Financial Survival Network dot com. Sign up
for a free newsletter. Emails are welcome. Klatcarreluts dot com. David Pleasure,
talk to you soon. Thanks Carrie. Always great pleasure talking to you