For those of you watching the prices of gold, US dollar, Bitcoin and lumber…
April 19 (King World News) – Peter Boockvar: While I almost never talk about the price of Bitcoin, I do follow closely the infrastructure of crypto and how it is unfolding and am a believer (some of the lingo and terminology however is Greek to me but I’m trying to learn), though not an owner of any coins. While I believe in the macro factors that was the genesis of Bitcoin and continue to drive it, I have no opinion on whether Bitcoin is worth $56,000, $64,000, $560,000 or $560.
Gold’s History Makes It Solid
As a bull on gold I’ve been asked how I have any idea where that can go too but at least with gold I have thousands of years of history to analyze along with tens of thousands of tons owned by central banks as reserves…
Billionaire and mining legend Ross Beaty, Chairman of Pan American Silver, just spoke about what he expects to see in the gold and silver markets and also shared one of his top stock picks in the mining sector CLICK HERE OR ON THE IMAGE BELOW TO HEAR BEATY’S INTERVIEW.
Either way, I think the direction of Bitcoin is a good bellwether on the risk appetite of the broader markets and view it from that lens more than anything else. With the selloff in Bitcoin over the weekend, that lens, and whether valid, will be put to a test.
US Dollar Struggling, Gold Surging
Keep an eye on the US dollar as it continues to rollover and now sits right on its 100 day moving average after breaking below its 50 and 200. The index is at the lowest level since early March with the euro back above $1.20. I think the euro in particular is benefiting from a rebound in the pace of the vaccine rollout. I remain a secular bear on the dollar as long as the trade and budget deficits remain on their current paths and the Federal Reserve continues with its 3rd world country monetary policy manipulation. Coincident with the dollar move and the fall in real rates, gold is rising to the highest since late February.
INFLATION: Lumber Prices Continue To Rise
Ahead of the mortgage apps data on Wednesday, existing home sales on Thursday and new home sales on Friday, the rise in lumber just keeps going vertical. It hasn’t had a red day since March 26th. Last week alone it was up 15% and by 36% since that day in March. Here is a chart since the mid 2000’s bubble in housing as of Friday’s close. How companies, for those exposed, are maneuvering thru the broad based cost pressures will be key component of this earnings season.
In case you missed it…
Raining Cash On Shareholders
Eric King: “Ryan, when gold breaks above $2,100 and silver takes out its previous high of $50, your company will be like a giant ATM machine raining down cash on shareholders.”
Ryan McIntyre: “I think the best thing about Maverix is how it’s positioned. We have the stability of strong current cash flow, but we also already have built-in organic growth. We now have 115 royalties and streams, with 13 of them paying. That means we have interests in over 100 projects that are being advanced by all of the operators, and some of those are moving toward production very quickly so we are pretty excited about that.”
Eric King: “What do you think will be the biggest catalyst for the stock in 2021?”
Dramatically Increased Revenue
Ryan McIntyre: “We have the Camino Rojo project going into production at the end of this year. That will add an additional 5%-10% to our revenue base.
We also have Coeur Mining potentially announcing the expansion and restart of the Silvertip operation where we have a royalty interest. The announcement could come in the second half of the year and this would add another 5%-10% to our revenue base.
Added To The GDXJ
We were also added to the GDXJ about a month ago. That has added more eyeballs on our stock and is a huge turning point for Maverix in terms of visibility.
It is also important, Eric, to note that we have been inundated with deal activity this year. We are busier than we have ever been on that front. So the addition to the GDXJ and the other exciting things happening with our royalty portfolio are why investors should be owning the stock here…Maverix Metals, symbol MMX in Canada and the US.
***To hear E.B. Tucker discuss the coming panic into gold, silver and the mining shares CLICK HERE OR ON THE IMAGE BELOW.
***To hear Alasdair Macleod discusses a possible short squeeze in the silver market CLICK HERE OR ON THE IMAGE BELOW.
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