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February 27, 2024
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I’m Upping Gold and Silver Stock Positions, Shorting Financials

I’m Upping Gold and Silver Stock Positions, Shorting Financials



The banking crisis has shifted the landscape for precious metals, and it’s not over yet.

That’s according to John Feneck, portfolio manager and consultant at Feneck Consulting. Speaking to the Investing News Network, he said he’s made adjustments to his portfolio since early March, when the collapses began.

“We upped our position in gold and silver stocks heavily after March 8, and we simultaneously shorted financials,” Feneck explained in the interview. “We remain short all those financials right now, and that’s worked out great.”


Feneck was speaking on May 15, when gold was above US$2,000 per ounce, but he said a pullback to US$1,900 wouldn’t be unexpected and would probably be healthy. Since then the yellow metal has dropped as low as US$1,955.

“I think your major support levels are that US$1,790 to US$1,800 range … and then somewhere in the high (US$1,800s) hopefully would hold — maybe like US$1,850 even,” he said, noting that the yellow metal continues to make a series of higher lows. “But look, even if things go to US$1,850 I think you’re still going to hit US$2,100 here within six months or so.”

When it comes to silver, the story is different. Feneck said the white metal is facing fairly significant resistance at US$26.50 to US$28 per ounce, a level that it recently tested and again failed to push through.

“It’s really frustrating for me and other investors because we want to see that level broken. I think we’re going to get that this year, again within six months. But the big round number to look for is US$30 — when you get to US$30 silver and you break that with some authority, meaning a couple of closes above US$30, it’s go time in silver stocks,” he said.

“Investors are going to wish they were positioned because it will happen faster than people expect.”

Watch the interview above to hear Feneck’s thoughts on Guanajuato Silver (TSXV:GSVR,OTCQX:GSVRF), Ascendant Resources (TSX:ASND,OTCQB:ASDRF), Copper Lake Resources (TSXV:CPL,OTC Pink:WTCZF), Aftermath Silver (TSXV:AAG,OTCQX:AAGFF), Stillwater Critical Minerals (TSXV:PGE,OTCQB:PGEZF), Forum Energy Metals (TSXV:FMC,OTCQB:FDCFF), Silver X Mining (TSXV:AGX,OTCQB:AGXPF) and Transition Metals (TSXV:XTM,OTC Pink:TNTMF).

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Ascendant Resources and Forum Energy Metals are clients of the Investing News Network. This article is not paid-for content.

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.




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