TLDR;
In this interview, John Fenick shares his insights on the current state of the metals market, particularly silver and gold, and highlights potential investment opportunities in related stocks. He discusses upcoming events, price targets for silver, key drivers for gold, and stocks to watch in the gold, silver, and PGM sectors. Fenick emphasizes the importance of geopolitical factors and the potential impact of Fed policy on the metals market.
- Silver hits $100/oz, target $130-133 by Q2.
- Gold driven by geopolitical tensions, targets raised to $5,400-$6,000.
- Fed policy taking a backseat to geopolitical events.
- Special situations in rare earths, antimony, platinum, and palladium.
Intro [0:00]
Charlotte Mloud from investingnews.com introduces John Fenick, portfolio manager and consultant at Fenic Consulting, to discuss the metals market and investment opportunities. They exchange New Year greetings and set the stage for a discussion on metals and markets, including Fenick's upcoming events.
John's upcoming events [0:21]
John Fenick announces two East Coast conferences scheduled for May 17-19 in Washington DC and May 20-22 in Fort Lauderdale, Florida. These invitation-only events are designed to efficiently connect companies with investors interested in buying equities and mining stocks. The conferences will employ a one-on-one format, similar to that used by Beaver Creek, allowing for focused discussions between CEOs and potential investors.
Next silver price target [2:13]
Silver has reached $100 per ounce, a level John Fenick has anticipated for a while. He mentions that silver was his firm's largest holding at 17.8% as of December 31st. While starting to trim his position, Fenick's next target for silver is $130 to $133 by Q2, noting the metal's strong upward momentum and consistent buying on dips.
Silver stocks to watch [5:00]
Fenick discusses selling silver at the $100 level, emphasizing it as a psychological level with significant resistance. He highlights the substantial gains made from around $30 an ounce and mentions a few silver stocks, including Buonato Silver (GSVRF in the US, GSVR in Canada), noting its aggressive CEO James Anderson and recent acquisition of Bolanitos. He also mentions Highlander Silver (HLSCF in the US), praising its CEO Dan Earl and their acquisition of Bear Creek's Karani project, a significant silver deposit. Fenick addresses the question of silver stocks' outperformance, pointing to America's Gold and Silver (USAS) as an example of significant gains, and recommends silver ETFs like SILJ, SIL, and SLVP for exposure to the silver market.
Gold's key price driver [10:31]
Gold is approaching the $5,000 per ounce level, driven by geopolitical factors. Fenick notes that major banks like Goldman Sachs, JP Morgan, and Bank of America have raised their gold price targets to $5,400, $6,000, and over $5,500, respectively. He attributes this to global protectionism and various geopolitical hotspots, viewing this environment as the "new norm."
This week's Fed meeting [13:17]
The upcoming Fed meeting on January 28 is unlikely to result in interest rate cuts. The focus will be on how Jerome Powell reacts to pressure from Donald Trump regarding interest rate policy. Fenick anticipates that Powell may eventually step down, with Trump appointing someone more aligned with lower interest rates, which would be beneficial for real estate and, by extension, gold and silver.
Gold stocks to watch [15:30]
Fenick reviews the performance of gold ETFs, noting that GDX was up about 155% and GDXJ performed even better, up over 170%. He points out that GDXJ has not yet reached its all-time high, indicating further upside potential in the junior market. He mentions Quest Core Mining (QQQF in the US, QQQ in Canada), highlighting its recent positive drill results in Sonora, Mexico, and Triumph Gold (TIGCF in the US, TIG in Canada), which has a gold-tungsten-antimony project in Yukon and a newly acquired silver project in Utah.
"Special situations" stocks [21:19]
Fenick suggests looking into "special situations" for investment opportunities, particularly in rare earths, antimony, and PGMs (platinum group metals). He believes the US-China agreement on rare earths and critical minerals is unlikely to hold up, making inexpensive antimony and tungsten stocks attractive.
PGMs stocks to watch [24:44]
Fenick discusses platinum and palladium, noting their interesting price dynamics following the Russian invasion of Ukraine. He recommends the ETFs PLT (platinum) and PALL (palladium) for tracking these metals. He also mentions Platinx (now PTX Metals, PNXF in the US, PTX in Canada), a deep value play with platinum, palladium, nickel, copper, gold, and uranium assets, and Stillwater Critical (PGEZF in the US, PGE in Canada), which is exploring in Montana and has significant cash reserves for drilling.
Outro [30:38]
Fenick advises investors to work with a professional in the metals market, emphasizing the importance of risk management. He highlights his firm's strong 10-year track record and commitment to value investing. Charlotte Mloud thanks John Fenick for his insights, and the segment concludes.
