Jeb Handwerger: Expect a Second Leg Higher for Gold in 2021

TL;DR

Junior mining investor David Hamburger discusses the impact of the COVID-19 pandemic, government stimulus, and lack of gold discoveries on the junior mining sector. He anticipates further rally in gold prices in 2021 and emphasizes the importance of studying the mining sector for investment opportunities.

Transcript

i'm charlotte macleod with the investing news network and here today with me is jeb hamburger he's a junior mining investor and he runs the website gold stock goldstocktrades you can also find him on twitter at goldstocktrades thank you so much for being here online with me today thank you charlotte i've enjoyed watching your interviews over many y... Read More

Key Insights

• ❓ The COVID-19 pandemic and economic downturn have created significant challenges and opportunities for junior mining investors.
• 🤑 Massive money printing and stimulus measures have led to inflation, increasing interest in gold and junior miners.
• 🖤 The lack of major gold discoveries and potential premiums from major and mid-tier mining companies indicate a positive outlook for the sector.
• ✋ Diversification, studying the mining sector, and identifying emerging producers and high-grade discoveries are crucial for success in the junior mining sector.
• 💪 Bitcoin and other cryptocurrencies have attracted some investors, but the long-term potential for gold and silver remains strong.

Questions & Answers

Q: How has the COVID-19 pandemic and related economic crisis affected the junior mining sector?

The pandemic and economic downturn have created significant challenges for junior mining investors, but also unprecedented opportunities. The massive money printing and stimulus measures have led to inflation and increased interest in gold and junior miners.

Q: What are the trends in the mining sector going into 2021?

Hamburger expects further rally in gold prices, driven by monetary inflation, lack of major gold discoveries, and the potential for premium acquisitions by major and mid-tier mining companies. He also highlights the potential for growth in other metals, such as copper, platinum, palladium, and uranium.

Q: How should investors choose stocks in the mining sector?

Hamburger advises considering individual risk appetite and diversifying portfolios. He suggests looking for emerging producers and companies nearing production decisions for potential triple or quadruple gains. However, he also emphasizes the importance of investing in companies with good management, strong assets, and the potential for new high-grade discoveries.

Q: How do cryptocurrencies, such as Bitcoin, affect investments in gold and junior mining?

Hamburger acknowledges that some investors have diverted their attention and investments to cryptocurrencies and other sectors, such as mushrooms and cannabis. However, he believes that as gold and silver regain momentum, investors will return to the precious metals and the junior mining sector.

Summary & Key Takeaways

• 2020 has been a challenging year for junior mining investors, starting with concerns over interest rates and leading to the COVID-19 pandemic and global economic downturn.

• The response to the crisis, including massive money printing and stimulus measures, has created a significant opportunity for gold investors and junior miners.

• Hamburger highlights the potential for a second leg in the gold rally, driven by monetary inflation, lack of major gold discoveries, and the potential for future premiums from major and mid-tier mining companies.