written by reader GOLD, SILVER, COPPER, AND HARD ASSETS…2019

By hendrixnuzzles, November 27, 2018

This is a late continuation of the predecessor thread titled:

“Gold, Silver, and Hard Assets…FALL 2017”…from which, I quote:

“Everyone makes mistakes and I make more than my share.” 

Well, I nailed that one. In 2018, overall my picks were not successful. 

Many of the mining speculations were duds. Plus the commodity price landscape was not favorable for the sector.

So there is no particular reason to listen to my opinions, more than anyone else’s.                         

Caveat emptor.  But here we go again, hopefully for a better year.

PURPOSE The purpose of this thread is find and discuss good long term investments and speculations  in gold, silver, and other selected metals. We are not a short-term trading thread, although occasionally there are short-term trading opportunities that may arise.

FOCUS Gold, silver, copper, nickel, platinum group metals, zinc, uranium.

NOT A FOCUS: Scandium, cobalt, aluminum, manganese, lithium, and aluminum; and developments in extraction and technology. These are better discussed on other threads.  Some overlap is unavoidable but keep it  to the minimum.

AUTHOR INTENT…Two themes:  long-term capital preservation based on metals, especially precious and demand industrials; and big capital gain speculations based on them. 

This second theme can lead to very speculative investments in exploration and development.

This can be in conflict with the theme of capital preservation, as it was for me in 2018.

I cannot fully reconcile this paradox, and  I can understand if a reader does not feel inclined to put money into these vehicles.

BIAS…Obviously I am biased to hard assets…see title of thread. I favor royalty companies, developers, and  miners.  My enthusiasm for exploration has been reduced, as my efforts in that sector were failures for the most part last year. But they are still entertaining, and the memory of a few big hits keeps me interested. 

I have significant positions in physical metals but it is boring to talk about them,                       

I believe in the concept of optionality as propounded by Rick Rule.

Because of this I am of the opinion that , in general, MINERS SUCK.

I am wary of big-cap miners, ETFs, and indexes.

I am strongly influenced by leadership and management. I am a  big fan of Robert Friedland. His companies have evolved into a major component of my portfolio and interest. I consider him to be without peer in the mining development business. I am partial to other personalities in the mining business, such as Watson, Sprott, Rule, Mcewen, Lundin, Keevil, Lassonde, and a few others.

My favorite jurisdictions are Canada and Australia, but I will look at sketchy neighborhoods if I think the story is compelling.

I believe gold and silver prices have been manipulated and suppressed by powerful groups, including and especially governments and central banks.

I think these efforts will eventually fail, but they can visit havoc on prices and values in the meantime ,and keep prices artificially low for long periods.

Accordingly, I have shifted a fair allocation of my holdings away from gold and silver, and into copper and other metals that I believe will benefit from the trend towards electrification.

POSITIONS My largest positions are Cleanteq Holdings, Sandstorm Gold, Ivanhoe Mines. My percentage of gold and silver assets is still probably much higher than that of most people.

Clean Teq is my largest position but is not a primary topic on this thread.

Positions :

Miners, even though they suck:         

  •  $IVPAF Ivanhoe Mines (multi-metal, 3rd largest position)
  • $MAG Mag Silver (silver