It's like you could say the same thing about gold, right. I mean,
what do the central banks see that your average retail investor that buys ETFs
doesn't see, Because that's what we're seeing, right, We're seeing central banks
continue to buy gold and keeping the gold price above two thousand dollars, while
your generalist investor continues to buy wildly overvalued stocks. You're listening to Carrie Leutz's
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They were the third week of January here and well, gold staying up over
two thousand, so you got to give it some credit there, But silver
not so good. The mining share is definitely not so good. But let's
talk with the head of a junior miner junkie, David Earthley. David,
it's great to have you back on so hey insane times we're living through here.
Huh yes, hey, great, great to see kerin. Thank thanks
for having me on again. Yeah, really really crazy times. The stock
market keeps going higher, the silver price and the gold miners continue to lead
the gold price lower. After the gold price made what a monthly quarterly you're
nearly all time high, but that elusive twenty level, which is where we
need that that monthly close above before we can really get excited as yet to
take place. While the stock market continues to go higher and zaps any enthusiasm
whatsoever out of even if you're considering getting into minors, which is which is
really a good thing if you're playing the long you know, the long game
here and accumulating shares because you know you're able to take your time and focus
and and focus on the best of the best and you don't have to worry
about the rest and continue to accumulate and wait for that, uh, that's
flip of the switch which we know is coming. You know, the FED
basically has caved on inflation, right, I mean towards the end of the
year last year, their last you know, the last FED meeting in the
middle of December, they basically caved. They issued a roadmap for for rate
cuts while inflation is still twice as high as their two percent target. Yeah,
and then they come out and and and and talk talk and say it's
it's and continue to say that the rates are going to stay higher for longer.
But they know they can't stay higher for longer because they know that they
cannot perform with under a higher under a long term high interest rate environment.
And that's why they issued that roadmap. And you know they're they're basically going
to keep doing what they're doing until they break something, and then that's their
modus operandi, right, I mean, the Fed is reactive, not proactive.
Right. Sure, they've been proactive and saying that they're going to cut
rates, but they're always reactive when they finally do. Yeah. Hey,
and it's to insult to injury it because site got hacked and they got ransomwared,
I guess. And now I look at the site, I don't know
where anything is anymore. Even though it was not the most attractive website,
at least you knew where to look. Now it's like nothing is the same
anymore. I know, it's crazy. And you know all my articles,
you know, I've been I've been writing a weekly article for kidco for you
know, since twenty sixteen, and they're all in their database, and now
all the links to all those articles are different. So I have to go
on my website and basically fight all the links that the correct links now that
they're that they're in the process of fixing this problem, and put them back
on my website us that that's a job for another day. But I digress
here. You know, it's it's really interesting the way the gold price continues
to hold up above two thousand dollars an ounce. If you look it looks
very bullish. And then you look at the charts of the gold stocks and
the gold sector, and you have to turn it upside turn it upside down
to for it to look the same, which you know, it creates the
opportunity, which you know, half of me is very you know, very
happy that you know, I've got a lot of subscribers recently that feel the
same way I do, and they're accumulating stock at these really really depressed,
ridiculously low prices. And but the other half of me, if is you
know, frustrated because you know, we know this is that this is going
to happen we just don't know when and going to happen, meaning the stock
market needs to roll over for for investors to to basically start looking for hedges
again and get back into the gold space because you look at the volumes of
especially these juniors, they're basically at I don't give a ship level, right,
I mean the jors, they're like almost completely a liquid. Yes,
there's a lot of them that are yes, and you know, let's face
it, you know most of them need to go away, and there's just
too many of them. There's only so many checks that these that these uh,
that these banks can write for these projects. You know, a lot
of these companies are fooling themselves and they're basically lifestyle companies that that that they
that they're fooling themselves into thinking that a major is going to come along and
buy them. Well, you're pulling their investors, uh, but exactly exactly.
I mean, let's face it, like eighty eighty five percent of our
lifestyle company and it's somebody. Yeah, it's up to somebody like me to
pick out the best of the best and get into the best of the best
at prices like this, because let's face it, you know, I mean,
the money you're going to make in this sector, you know, in
the future, is when you're buying in times like this. I mean,
you don't buy these things when they're rising. You buy them when they're sinking
and it's up to be And you know, and you're savvy investor, is
that that knows this sector to buy the right companies and hold the right companies
for when that switch does get flipped, which inevitably will. Have you ever
seen sentiment as negative and bearish and really just downright depressed as it is now?
No in relation to a strong goal price, I haven't. No,
I mean I've seen I've seen sentiment this bad. Yes, in late twenty
fifteen, absolutely, sentiment was actually worse than this. And at the same
time, projects weren't getting financed. You know, the good projejects are getting
financed now. But it's but it's you know, it's it's the early stage
exploration companies, you know, that have marginal projects that if they do finally
get a finance, finally, you know, find somebody to write them a
check. It's basically just money to keep the lights on because you need,
you know, you need at least a million bucks in the bank to keep
the lights on for a year. Sure. So yeah, so so it
is better in that respect as far as companies are getting financed. But in
late twenty fifteen, they weren't. I mean, I mean that this sector
had gone down eighty five percent into the end of twenty fifteen from from from
its peak in twenty eleven. So I mean that took that that basically took
all the generalists investors out of the sector, and it took a lot of
of resource speculators out of the sector. But it's it's it's funny that in
twenty fifteen also that it's kind of similar to what's happening right now because in
the end into the end of twenty fifteen, you had the mining sector finally
start to carve out a bottom after that just brutal for three point five year
bear market, right, it started to carve out that bottom, and a
lot of you know, contrarian speculators, which you have to be one to
make money in the sector. Sure, we're accumulating, you know, the
quality juniors heading into the end of twenty fifteen, and of course I was
one of them, and we just said to ourselves, hey, this is
just an incredible opportunity. Everybody thinks the gold price is going to go below
a thousand dollars, just like they thought gold was going to go above two
thousand dollars in twenty eleven. Well, it never happened in twenty eleven,
and it never happened in twenty fifteen. The gold price never got below one
thousand dollars. True, but the share but the market basically had one more
trick up at sleep after the calendar turned to twenty sixteen. After that,
after that base was being created. After six months, I think right like
the middle of January, there was a day where the where that bottom fell
out and all these stops were hit of these of these speculators accumulating these juniors.
They thought, okay, here we go again. We got a shoot,
we got a short dis sector and basically we got stopped out of everything
and wait for the bottom to come. Well, that very same day was
an inter day reversal. After stopping all these all these investors out, and
it just turned her around and never looked back. Six months, it went
up like over two hundred I remember, yeah, me too, like it
was yesterday. It was amazing. My account, you know, was was
you know, which which I started in UH in late twenty fifteen with about
its close to half a million bucks. It was down to like three hundred
and twenty five three hundred and forty thousand dollars a beginning of January, just
like, oh my god, this is ridiculous, and it just gotta wait
because I know, I bought the Riot companies and all of a sudden,
by the by by the middle of twenty sixteen, it was over a million
bucks, so, you know, and I was able to bank you know,
ninety nine percent capital gains in twenty sixteen after the year started off so
dreadfully. So that's you know, that's kind of reminiscent. I think of
what's happening right now because you know, into the end of twenty twenty three,
the gold stocks were creating a six month base, and now to begin
twenty twenty four, they're shitting the bed again. It looks like they're at
least going to test their October lows, and we could have a sharp move
or below those October lows. But that will be an incredible buying opportunity if
it happens. You think they'll test I think it's going to test the October
low, and we're only six percent away from right now, and there's there's
gaps in the GDX and gd XJ where they've sold down to the top of
those daily gaps right now. So I expect those gaps to fill here this
probably this week, heading into the you know, the FED meeting at the
end of the month. But because if you take a look at what's happening
with the miners and silver, they've been leading, they've been showing relative weakness
ever since the end of January. So they're basically screaming, hey, this
correction is the twenty twenty four is going to start off with a correction,
And that's what's happened. All right, Well, people, I talk to
the people and the good companies that actually have real projects there, Like you
say, they are able to raise money, they have majors, and they
have institutions sinking money into them. And I ask kind of every mining company
executive I speak with, I say, what do the institutions and the majors
see that the individual and the retail market are missing. It's like you could
say the same thing about gold, right, I mean, what do the
central banks see that your average retail investor that buys ETFs doesn't see because that's
what we're seeing, right, We're seeing central banks continue to buy gold and
keeping the gold price above two thousand dollars, while your generalist and investor continues
to buy wildly overvalued stocks and as opposed to starting to hedge because of what's
coming. I mean, if you take a look at what happened, what's
kind of similarly shaping out right now is we got it. We got a
huge bubble, right, I mean everybody knows it. It's just the timing
of what it's going to pope. People continue to ride it until until it
pops. Right. So we had the same thing happened at the turn of
the century, right, we had the dot com bubble into two thousand and
the bubble started to burst and the Fed, you know, the rates were
high the Fed. Everybody knew the Fed was going to lower rates, they
just didn't know when. And what did they do. The very first week
of two thousand and one, Alan Greenspag comes out and they announced an emergency
meeting cut fifty basis points. I remember that basically ushered in the gold bone
market that lasted a decade and old went from two fifty to nineteen twenty five.
I remember it well, me too. I mean, I didn't get
in until two thousand and three, but you know, I was accumulating stocks
from gold stocks from two thousand and three to two thousand and five. You
know, you know, I did something crazy and looking back on it,
very stupid, and selling my house and putting all the proceeds into juniors.
But at the time, you know, I wasn't married, I didn't have
a family. You know, it was just me. So it still going
to ford a solid opportunity. I'm like, this is this is this is
an incredible opportunity that could change my life. And I'm lucky. Luckily for
me, it was the right call because six months after I did it,
the gold price finally got over to that five hundred dollars level, which was
which was basically what the two thousand to twenty one hundred dollars it is right
now. Five hundred back then was the level that it couldn't get above,
and once it did, the gold price doubled in a few years years.
So my and I did really, really well, and I became financially independent.
I mean I got I mean sure, I got out lucky. But
I put myself in the position to be lucky. I did a lot of
research, I did a lot of work, and it paid off for me.
You know, I definitely don't invest gestures do that, you know,
don't do something like crazy like I did. But I mean, that's the
opportunity I see right now, like I saw back a great I started buying
gold, my first few ounces of it in nineteen ninety nine and I think
it was two hundred and eighty dollars the ounce, and kind of never looked
back. And yeah, we've had our ups and downs for sure, but
hey, it's basically ninefold the investment there. So you know, with very
holding on to as much as I possibly could. We had taxes, divorces,
weddings and stuff like that, so at some point happens in between,
right, yeah, but that's why you have it, you know exactly,
ultimate savings. And you hope, you hope to keep it to pass it
on to your kids. You hope you don't have to use that. Hey,
you have to use some, you got to use some. But I
kept all my silver. I have a friend who thanked me because in two
thousand and nine, ten and eleven, so I got him to buy gold,
and he bought a lot more than me, and then his business went
down the tubes and the divorce and a whole bunch of other stuff, and
he held on it in gold. He had to he had to sell off
a portion of it, oh substantial portions. But until you know, it
was a lifeboat for him. He said, if I hadn't listened to you,
if I hadn't bought that gold, I would have never saved that much
money in the bank and be able to flut my way through the couple of
bed years that I had. Right, So the ultimately is a different I'm
accepting physical that could that could save you and not being able to click a
button to get rid of it exactly, exactly and really important. And that's
the way he worked for me too. I mean, you know, that's
in a couple of rough years. But I had the metal there. I
always knew I had it. I still have it, And when I had
to dispose of some to pay some bills I did, I didn't feel good
about it. It was like gut wrenching to me, David, because I
knew where it was heading. But I wanted it seven and eight hundred so
it's still selling it a substantial profit a you know, one hundred percent or
so, but you know it hurt, no question about it. So yeah,
I mean the same thing with me. You know, I've had that
rock, and fortunately, fortunately for me, I've never had to sell any
you know, and I haven't bought any in quite a while. I haven't
bought any for for for over ten years, I know, from longer than
that, I think fifteen years, I haven't bought any. It just sits
there and you know, hopefully I can pass it along to my son.
But it's the silver that I bought most of, and I bought it,
you know, less than five bucks an ounce, and I don't even think
about it. I just think that's something I hope i'd never have to use
and I could just pass it along to my sid Yeah. I bought a
lot of it in that six seven dollars range in when silver crashed after the
great financial collapse, that's when I bought it. I was in there with
two hands nice the post office was bringing a handtruck into my office with the
bags of silver. That's what you have to do in this sector, right,
you have to buy those fishy lines and sell those right o ords.
I mean, especially in the stocks for sure. Hey, so I think
now and I think it'll agree, it's much easier to pick out those really
good juniors. Yeah, then it's ever been before because all the other ones
are literally on Karen maintenance. They're in like comas centers, right, yep,
absolutely absolutely, And you've got all this time to do all the proper
research to get into the right ones. And if you don't have the time,
you know, you can subscribe to a news letter like mine that it's
basically started his I've basically started my own mutual fund, right. I have
twenty stocks, twenty juniors that I you know, researched the hell out of.
I have a twenty stock watch list also in case, you know,
one of them does something I don't like and I can replace it with something.
And I know these management teams really, really well. Many of them
made me a lot of money in the past with previous projects, and I
keep up to date with them. You know. I go to Beaver Creek
and I go to the PEDAC conference. There are six months apart, so
I get to speak with pretty much everybody face to face that I need to
speak with every six months and if something happens, you know, they're they're
always available for me to to talk to them on a zoom meeting anytime I
want. And you know, these companies are doing the right things at the
right time. They're raising money at the right time. There their weathering storm.
They know, they have fantastic projects, they have the access to capital,
and they're just doing the right things in a really really bad market,
you know, and you really really in a bad market, you know,
it's the good projects always get financed. Yeah, so true, especially these
exploration companies. You know, they you know, they really need to start
merging. Some of them are starting to sell off some projects, but they
need to start merging. We see some of it, but we need to
see a lot more. Yeah. Well, I like when they sell off
a project, they take shares back in another company that can then consolidate that
project. So they're sitting on a really nice, you know, potential return
on investment. So the optionality in these shares really increases. And right you
know, there's a number right now. The really good thing right now is
you don't need to be a high net worth investor to take place in a
in a finance to get a warrant to have huge upside, right, because
these juniors are trading in perpetual war prices right now, you don't have to
you don't have to deal with having to, you know, get into a
private placement, worry about having to sell them four months later, or if
you're a US investor like me, I mean, I pretty much stopped participating
in private placement because they don't make any sense for you US investors anymore.
Nah No, especially when the Canadians don't have the hold at all now right,
head for the exits and when there's a new financing, they sell the
shares they had and they go into the new one and they get a warrant
and you know, right, while US investors have to deal with a draconian
legend removal process which is ridiculous, which is irrational and has no place in
the current financial markets. The way that business has transacted, it's a paper
process when we're using digital markets, makes no sense exactly, Yep, makes
no sense. Very least the hold should automatically dissolve. Okay, if you've
got behold, Yes, these fees they continue to charge us, Yeah,
US investors have to pay so many fees. It just doesn't make any sense.
It's enough to make you want to give up your citizenship move can well
at it is no solution. But Wes, you're not an American and you're
not subject to right, right exactly, only Americans who have penalized. So,
but we can rant and rave about tax wherever we go. You can't
escape it. Tax on global earnings. And then they want an exit tax
if you have too much money and you leave. So but more and more
people are becoming expats and renouncing their US citizenship, and that should be a
warning call, just like the price of gold, you know, yep,
So all right, I don't want to be a wet towel here, bummer.
I think the opportunities there if it's if we don't, you know,
it would make sense that we'll see another low, maybe in March, you
know, maybe in more well yeah, I mean watched silver and the shares
when they start to outperform gold, then you know it's a bottom basically,
Yeah, good point. All right, Hey, Junior Minor Junkie dot com
link is in the show notes of this interview on Financial Survival Network dot com.
Question for David myself, shoot me an email, Klatcarrie LUTs dot com
and Hey, sign up for a free newsletter. David, Always a pleasure,
Thanks for stopping by. Thank you Carry Always great to talk to you.
Thanks for listening to Carrie Letz's Financial Survival Network, your solution to today's
trying times. For the latest, go to Financial Survival Network dot com.
Financial Survival Network now more than ever, CRUs