A former small cap research analyst looks for value in the Canadian junior mining sector and shares his experiences, thoughts, and rants. The blog is free and for information alpha bay bitcoin only, so should not be construed in any way as investment advice. There seems to have been increased talk about silver over the past few weeks.
Could this be the start of a mean-reversion trend that sees silver move back towards its more typical range of 1-to-65 versus gold? I hope so, given the significant silver exposure in my portfolio. However, I have a hard time believing that silver can have a significant rally without gold’s participation. Tin – no longer a boring metal! Or, so at least I thought. Recently, Rio Tinto Ventures hired MIT to study which metals would be most impacted by new technologies such as autonomous and electric vehicles, renewable energy, energy storage, and advanced computing and IT. Never in my wildest dreams would I have expected tin to come out at the top of that list, edging out lithium and cobalt.
We’ve all heard lots of hype about lithium, cobalt, nickel, and even vanadium being the hot metals associated with electric vehicles and batteries. Lithium has lost some of its luster due to Tesla’s struggles as well as potential that SQM could flood the lithium market. What did I learn at PDAC? Developers Association of Canada, or PDAC, convention in Toronto has ended.
I was there, as were 25,000 other people. Some people can never have enough free pens or squishy toys. I’d like to see a concerted effort by the mining industry to eliminate all the free junk that is given away at conferences like PDAC. When you feed a pigeon, you’ll get more and more pigeons that suddenly show up.
Ask yourself if you really want to attract pigeons pen collectors. People who covet free trinkets are not who we want to attract to an investment conference. Prior to being a junior mining IR consultant and blogger, I used to be in equities research and trading. Back in those days, I studied the markets intensely looking for buying opportunities. I used a variety of technical indicators, technical analysis, fundamentals, and intuition to guide my decisions. The equities market is constantly evolving and changing.
So, once again we have a junior mining company announcing a new discovery prior to releasing assay results. That stock crashed in spectacular fashion at the beginning of 2018. For some morbid reason, it gives me pleasure to see Bitcoin and other cryptocurrencies crashing. Maybe it is because there is way too much talk about cryptos now or maybe I’m jealous of all those Bitcoin millionaires buying Lambos. Cryptocurrencies have not had a good year so far and the sell off has now accelerated due to rumors that China and South Korea may implement regulations that could go as far as banning trading in cryptos. Below is the one month chart for Bitcoin.