John Feneck: Gold, Silver to Retest Highs, "Don't Get Off the Horse"

TLDR;

John Fenick from Fenick Consulting provides an update on gold and silver prices, highlighting the impact of geopolitical events and market dynamics. He discusses potential rotation from tech to precious metals, emphasizing the importance of tungsten due to its defense applications and limited supply outside of China. He also shares insights on specific gold, silver, and tungsten stocks, and upcoming events and webinars for investors.

Gold is expected to retest and break through the $5,600 level.
Silver has established a new price base around $50-$54.
Tungsten is critical for defense applications, with limited supply outside of China.

Intro [0:00]

Charlotte Mloud from investingnews.com introduces John Fenick, portfolio manager and consultant at Fenick Consulting, to discuss the gold price, silver and tungsten market outlook.

Gold to retest US$5,600 [0:22]

John Fenick notes that gold has reached $5,000 since their last conversation in January and is set to retest $5,600 and break through it, especially given the Iranian war. He advises investors to consider gold in their portfolios, cautioning against complacency from gains in the S&P and NASDAQ. He points out that household name stocks haven't yielded returns in the past year, suggesting a shift towards gold equities. He observes a rotation from the tech sector into precious metals, with gold equities having bottomed in September 2022. While producing companies have already seen gains, developers and explorers are expected to follow.

Silver's new price base [3:30]

John Fenick discusses silver, noting it peaked around $120-$121 before crashing on January 30th. Despite a slow rebound, silver has consolidated in February, establishing a new price base around $50-$54, with $50 acting as the new floor. He maintains a target of $133, with his partner Durrett suggesting $150-$175. He advises investors to stay invested in the sector, emphasizing its ongoing rally.

Gold stocks to watch [5:05]

John Fenick mentions Alcane Resources (ALKF in the States, ALK in Canada) as performing extremely well, citing its three producing mines in Australia and Sweden, a pristine balance sheet, zero debt, and substantial cash. He also highlights Daenerius Metals (DNRSF in the states and DME in Canada), a smaller producer in Colombia, praising chairman Saraphino Akono's 40 years of mining experience and the company's significant resource potential. He notes the supportive environment for mining in Colombia, with potential political shifts favoring the industry.

Tungsten market outlook [8:21]

John Fenick discusses the tungsten market, noting the last US production was in 2015. Tungsten is critical for defense applications like armor, tanks, and missiles, with no replacement. However, 84% of tungsten production is in China, which has restricted exports. Russia is another significant producer. He suggests the possibility of fast-tracking tungsten projects in the US due to the current wartime situation.

Tungsten stocks to watch [10:19]

John Fenick mentions Spartan Metals (SPRMF in the states and W in Canada), which is seven years from production but could be fast-tracked to three and a half years. He also highlights Guardian Metal (GMTLF in the States, gme.l in London), his largest equity holding, and American Tungsten (TUNF in the States and TUNG in Canada), noting their strong cash positions and potential for uplisting to the NYC or NASDAQ. He also mentions Western Star Resources (WSR in the states), which has a tight share structure and low valuation. He explains that fast-tracking can significantly reduce the time to production, citing Paramount Gold (PZG) as an example where fast-tracking led to a substantial increase in the share price.

John's upcoming events [13:48]

John Fenick mentions upcoming US conferences May 17-19 in DC and May 20-22 in Florida, and a two-hour webinar for $199 with his partner Don Durret, focusing on gold and silver stocks and their screening process.