Sovereign's early 2020 picks
My Top picks.
Primary Theme; 2020 starts us in the late 2nd or early 3rd inning of the PM bull. 2nd quarter of attention-grabbing mining results due to higher metals prices will bring in Generalist momentum capital, Massive Short interest in Comex will draw further attention and money into the miners. However portfolio positions do not require higher gold and silver prices to advance and miners will continue their advances based more on generalist interest after an initial spurt of the S&P/Dow complex pauses heavily overbought. Repo is likely from Deutsche Bank death and derivatives blowback around the world. Not much being said about the Fed Repos going to important foreign banks. Deutsche Death to be announced later this year. US economy will continue to deteriorate.
Top sector pick: Royalty Streamers are a huge plus in my book right now. They have been quietly picking up revenue streams via NSR and Streaming agreements and do not incur the risks of the mining operations themselves.
Watch Ross Beatty. He's not done making Equinox a 1-million+ ounce gold producer by 2023. The man is having a blast putting deals together. Expect more acquistions along the way.
All listings in alphabetical order.
PM Royalty Stocks:
Ely Gold Royalties, ELYGF, EMX Royalty Corp, EMX, Metalla Royalty and Streaming LTD, MTAFD, and Sandstorm Gold, SAND
Midcaps Miners
Equinox Gold Corp, EQX, Pretium Resources, PVG, Silver Standard Resources, SSRM
Silver Focus:
First Majestic, AG, Mag Resources, MAG, Silvercrest Metals, SILV
Small Miners (for 2-5 year time horizon)
Excellon Resources, EXLLF, Gold Mining, GLDLF, K92 Mining, KNTNF, Liberty Gold, LGDTF, Pure Gold, LRTNF, Sabina Gold and Silver, SGSVF, Wallbridge Mining, WLBMF
Situations:
Kirkland Lake, KL, New Gold, NGD, US Gold, USAU,
Watchlist: 22 others at this time including potential takeovers, continuing Due Diligence.
Daily Trader as conditions indicate:
Direxion Daily Junior Gold Miners 3X Shares, JNUG. I do not short Use of deep in the money covered calls to take positions in good prospects with less capital investments. Also holding several warrant issues for multiple year optionality.
