Miners Have Confronted Years of Ache, Now the Worst is Over

John Feneck: Miners Have Confronted Years of Ache, Now the Worst is Overyoutu.be

The mining sector has confronted challenges within the final couple of years, particularly on the junior facet, however John Feneck, portfolio supervisor and marketing consultant at Feneck Consulting, sees mild on the finish of the tunnel.

He famous that usually selloffs final from six to eight months within the mining sector, however the present rout has gone on for greater than 24 months — this might create outsized positive aspects for savvy buyers if the pattern continues.

“We’re beginning to see some actual curiosity within the commodities sector typically, which could be very thrilling. We received some comply with via yesterday and at this time,” mentioned Feneck on November 8. “We’re beginning to see some actual momentum in our house, which is incredible.”

He is inspired by indicators that cash managers are beginning to have a look at the trade once more, and mentioned Q3’s file central financial institution gold shopping for can be bullish. Nevertheless, Feneck acknowledged that dangers stay — though he does not assume it’ll occur, he famous that some market watchers assume gold might drop beneath US$1,560 per ounce, at which level US$1,500 could be across the nook.

“We have to see gold get again into that channel that it was in for months, US$1,750 to US$1,850,” he mentioned. “It was there for months — I wish to see it get again there earlier than I get too excited.” By way of silver, Feneck famous that it has “massive resistance” from about US$22 to US$25 per ounce, and a breakthrough there could be encouraging.

He named various juniors he is watching proper now, together with Idaho Champion Gold Mines (CSE:ITKO,OTCQB:GLDRF), Thunder Mountain Gold (TSXV:THM,OTCQB:THMG), Silver X Mining (TSXV:AGX,OTCQB:AGXPF), Canadian Palladium Assets (CSE:BULL,OTCQB:DCNNF), Discussion board Power Metals (TSXV:FMC,OTCQB:FDCFF) and Normal Uranium (TSXV:STND,OTCQB:STTDF).

“I believe that the chance proper now for the mining sector — whether or not it is juniors, mid-caps, large-caps — there’s simply a lot alternative in entrance of us over the subsequent few weeks and months,” Feneck mentioned because the interview concluded. “I believe the worst is admittedly behind us as we glance ahead … you wish to search for sure issues to carry, like gold at US$1,560, silver at US$16. If we see these items maintain, then you have to get extra assured in your shopping for.”

Watch the interview above for extra from Feneck on the useful resource sector.

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Securities Disclosure: I, Charlotte McLeod, maintain no direct funding curiosity in any firm talked about on this article.

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The Investing Information Community doesn’t assure the accuracy or thoroughness of the data reported within the interviews it conducts. The opinions expressed in these interviews don’t mirror the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.