Value Microcaps Junior Miners

[Bobwins]

I have been waiting for precious metals for a long time...

So I guess I'm greedy and want to see more. I think silver will outperform gold in 2021. It trailed gold in 2020 so some logic to that. I missed the base metal surge this year. Guess I'm just not as optimistic that the economy is going to surge back to life. Copper certainly has fundamentals going for it as there is a real shortage of product and the cv19 mine shutdowns didn't help. In addition, there is the longer term green energy argument that will support copper going forward but it's going to be awhile before any beneficial legislation passes and causes actual usage increases.

So while I agree that base metals are going to increase as the world economy recovers, I still think precious metals will outperform in 2021. Both will likely be positive but I just think there is going to be some ugly economic truth surfacing in 2021.

The vaccines won't be fully deployed until mid 2021 so I don't think we're going to see airlines, cruise ships, hotels and tourism, in general, take off until after Q2. But as long as the vaccines do their job, it could be pretty explosive.

Bankruptcies are going to become a regular part of our lives for a couple of years, I would think. Eventually that is going to show up in the economic stats. Restaurants are going to be front and center.

But your question is probably focused on housing. If the jobs are there and people keep buying houses, then base metal consumption should be healthy. I'm not sure it's going to boom. Copper is the exception. If you're going to add to base and specialty miners, I would think that miners with exposure to multiple metals might be a safer way to increase your exposure. FCX is the poster boy for copper but has significant gold production. Obviously there will be smaller versions of Freeport where you can get good exposure to the base metals while retaining some PM production. Silver miners might be a good compromise. Most of them have significant base metal production because there aren't many pure silver mines. Zinc and lead comprise a hefty percentage of production for most. Copper exposure is more likely from gold producers.

The spending by all governments isn't going to stop. And in the short term, they will think there are no consequences but history says otherwise. Buying votes works as long as the currency is relatively stable so that the debasement isn't obvious. As the populations come out from their bunkers and start spending money, monetary velocity is going to increase and inflation should follow.

We are seeing unprecedented government actions and spending following this worldwide event. Hopefully 2021 won't be as strange as 2020. But there are an awful lot of goblins in the closet and I don't think this is going to be a smooth uneventful recovery.

Good luck to all of us. We might need it. We certainly can't depend on politicians to save us.

We have seen the enemy and it is THEM! They create the bubbles, they create the deficits, they print the money to prevent the bubbles from popping. Of course we are all part of it, always demanding more government "Free" money with no new taxes. I don't know if I'm going to be around when the SHTF but I doubt it's going to be pleasant.