Gerardo Del Real,
Editor
April 8, 2024
Hey everybody,
This is your Resource Stock Digest editor Gerardo Del Real here with a few quick morning thoughts on what I will be watching this week.
The gold price continues to surge, topping US$2,340 per ounce. Silver is outperforming as well and is up some 5% in just the past few trading days and is now flirting with the US$28 per ounce mark.
Copper is shining as we speak. It recently broke convincingly through the US$4 mark and is now trading right around US$4.28 per pound. The red metal looks to have continued upward momentum with supply deficits now being acknowledged even by the Goldmans and JP Morgans of the world.
It'll be interesting to see if the dollar index can hold up. It's at 104 as we speak. It's been back and forth between 103 and 105 with potential easing later this year along with the prospect of three rate cuts.
The Copper Bull Is Ready to Charge
A pound of copper is currently worth about $4.
But coming spikes in demand could quickly change all that. According to Goldman Sachs, it could soon be 5x… even 10x that amount. As their head of metals put it: “We’re not ruling out that copper could be as much as $50 a pound.”
That’s because traditional mining won’t be able to scale fast enough to meet demand. But a powerful new chemical formula could change all this — and reap the biggest rewards.
Of course, all of this is happening against a global backdrop of heightened geopolitical volatility, which is increasing capital flows into the greenback. And that makes it even more compelling to see the gold price trading so robustly in the face of what continues to be a very strong dollar index.
Last but not least, I'm watching the junior space.
Patriot Battery Metals (TSX: PMET)(OTC: PMETF) had some great news this morning on what has been a very successful drill program at CV9 and CV13 with a number of strong lithium showings.
Perpetua Resources (TSX: PPTA)(NASDAQ: PPTA) had some excellent news this morning as well and is up some 50% over the past week and up nearly 30% this morning on the hopes of a US$1.8B capital injection from Uncle Sam — meaning us as US taxpayers — from the Inflation Reduction Act, which, again, is comically named but has been very effective at advancing a lot of critical metals projects. In this case, gold with a substantial antimony kicker at PPTA’s Stibnite project in Idaho.
Revival Gold (TSX-V: RVG)(OTC: RVLGF) is up 14% in the past week.
Kutcho Copper (TSX-V: KC)(OTC: KCCFF) is up 40% in the past week.
Bravo Mining (TSX-V: BRVO)(OTC: BRVMF) seems to be bottoming.
So, a lot to like across-the-board here.
I also received an email asking why I'm still so bullish on lithium despite some US automakers making a pivot away from EVs in favor of hydrogen-powered vehicles.
I would simply caution that that is a very US-centric view of things. Remember, markets are global in nature. If you look at rising lithium demand from China, and if you look at rising lithium demand from overseas, there clearly is an uptrend forming in the lithium space.
“Peak Lithium” Is Making Investors Wealthy
Lithium is an abundant resource across the globe. But here’s the thing… only a handful of deposits are ready to mine. Given that most lithium mines are already at max capacity, the world is stuck in a “peak lithium” crisis that’ll last for years. It’s pushed lithium prices up 700% in the last 24 months… with no end in sight.
Let me show you why the lithium crisis is an opportunity for smart investors — and why it could hand you the biggest returns of your life.
I highlight that because of the recent consolidation in the lithium market… and, from what I’m seeing globally, there’s a lot of potential for making a lot of money in the lithium mining space going forward.
That’s all I got. I hope everyone has a great week.
Let's get it!
Gerardo Del Real
Editor, Resource Stock Digest