Chen Lin: Gold, Silver Prices Breaking Out, My Stock Strategy Now
Summary
Gold Market Dynamics: Chen Lin highlights the increasing interest in gold, driven by Asian investors allocating more to gold and China's central bank accelerating gold purchases amid a growing trade surplus.
Western Gold Interest: Despite gold's recent breakout, Western investors remain less engaged, with less than 1% allocation, but potential economic weaknesses and Fed rate cuts could shift this trend.
Investment Strategy: Lin emphasizes a strategy focused on gold call options and liquid producers, aiming to maximize profits during bull markets while being cautious of potential downturns.
Silver Market Insights: Silver prices are rising due to a multi-year deficit and potential shifts towards a silver standard, with Lin predicting a possible move to triple-digit prices.
Silver Stocks Approach: Lin is bullish on silver stocks, particularly First Majestic, due to its high leverage to silver price movements, and emphasizes stock picking for maximum gains.
Critical Minerals Focus: The podcast discusses the importance of critical minerals, with a focus on rare earth elements and the strategic positioning of companies like Cerro De Pasco and Energy Fuels.
M&A Activity: Lin expresses optimism about M&A in the gold sector, advising investors to focus on companies with valuable assets likely to be acquisition targets.
Market Outlook: Lin advises investors to capitalize on the current gold and silver market uptrend, while remaining vigilant for potential market peaks in the coming years.
Transcript
[Music] I'm Charlotte McLeod with InvestingNews.com, and here today with me is Chen Lin of Lin Asset Management. Thank you so much for being here. Great to have you back once again. Thank you, Charlotte. Glad to be back. Really good to be speaking with you. Probably the perfect time. I wanted to follow up on a few topics that we touched on the last time we spoke all the way back in March. So, we talked at the time about gold, silver, and critical minerals. So, we'll go into all of those three today. Maybe starting off with gold because gold has just been making headline after headline in the last few weeks at record highs on a this run. I'm wondering if you can start by breaking down what is the main gold price driver that you see right now. Right now is investors start waking up uh to to gold. Okay. uh there's a report pretty good report that's basically in Asia uh rich people start allocate 10% to gold I mean in the west still maybe less than 1%. So that's that's a movement. Second movement uh there is a pick up in in the central bank buying from China last month. uh actually goldman uh came out with a report that China actually probably going to buy more gold because right now the the situation in China is China even despite of trade war with United States and with you know other countries China's trade surplus is growing rapidly last year is1 trillion US dollar this year is more than going to be more much more than one trillion so where are they going to park the money so uh in gold mining they will just they will increase the gold purchase by a few hundred% uh from now on and then continue buy for next 3 to 5 years to to reach a certain plate plateau but very interestingly uh recently the the the stock in China's uh gold future market just going parabolically that actually precede the recent gold breakout gold breakout about two weeks ago almost exactly that's very good timely interview valuation Charlotte. So it you pick the right hand. So gold broke out is after the parabolic move of the the gold stock in China's um future because both gold has been rangebound for a long long time and then suddenly start broke out two two weeks started breaking out two weeks ago. I could see that it's a big movement of China's uh stock stock in the Shanghai and other stock future exchange. So I see what it does is first China accelerate gold purchase and then so well informed Chinese investor probably heard of that that's first second I think probably gold man report is right China going to buy more gold and then Chinese citizen want to front run the Chinese government that's really interesting thank you for going into that because you know when I've been asking about what's driving gold right now over the last couple of weeks a lot of what I'm hearing ing about is with more of a a western focus where we're talking about well the Fed has this upcoming meeting probably going to see interest rate cuts from the Fed. How do you factor that into when you're looking at the gold market? Oh yeah, it will help like the Fed will cut this week right basically is 25% and 50%. And the United States government turn out the job report is much weaker than I didn't mention that because I I know everybody seems to focus on that. So I saw you your people are well informed but we turn on we lost actually the down revision almost a million job right in the past year. So uh United States looking the economy looking weaker Fed is going to cut US dollar is about to break down. So all this help go what I'm saying is that the why the gold suddenly broke out two weeks ago. I think one of the contribution fact I'm happy to send you the chart is a parabolic move of the chi China uh gold holding. Yeah. Yeah, really interesting to go into that. And so we're talking about this the western interest in gold is still not there. You're mentioning probably not even above 1% at this point. At what point do you think the west does start to wake up to okay, something is going on here. Maybe we need to increase the amount of gold that we own. Yeah, there is a talk on the the bond market. This is seriously problem right now. There's a lot of resemblance resemblance of 70s, right? the the the inflation is still relatively high. The economy is weak and the bond market is having a terrible year, right? So, uh Bank of America is pointing out is basically anything but bond. Anything but US uh in their report. So, it's a lot of money parking in the bond traditionally, but if the inflations continue to be high, the bond will be weak. That's a problem for the bond investor. They will be losing money. So when those money coming out, we're going to be the overpriced stock market or you know they they could diversify some into gold. I think that's that will drive gold especially silver more even more favor uh even higher. So I'm quite happy with with gold and silver. Well and I was going to ask you about the implication of of all these factors for the gold price. So of course we have gold really on the move especially over the last couple of weeks. If you look forward, what do you see? Where do you see gold ending let's say 2025 at in terms of the price? Oh, that's very hard. That's very hard to to predict. My my hope frankly as gold investor that gold do not make barb move. Gold just go up because it's it has a 35 you know 34 3500 for a long time. So this move hopefully go to 4,000 around and stay there for some time. Right. the the the the issues is if you make a parabolic move it will be a par could be a very sharp correction in the 70 like 70 as well that's very hurt the gold mining companies sentiment so I I hope gold just slowly my hope but I could be wrong go slowly grinding higher maybe you know 4,000 by the end of the year maybe 45 next year but the gold mining company most of the company cost is about 1,500 so their margins are increasing the margin is so much higher than Walmart you know and they don't they not recognized in that right now so I think I like gold miner company mining company and I just discuss a little bit with with you I'm telling my subscribers when gold broke out the two weeks I start buying gold core option because my stock has gone up so much some as high as a th00and% so I don't want to chase them so I buy call options and they're doing well so far Yeah, maybe it's a good time to talk a little bit more about your strategy when it comes to the gold stocks right now. So, the call options is one way that you're taking a look. Are you looking at companies of all sizes or are you honing in in any specific area? How how are you looking at it? Yeah, I I I'm you know, first I'm I'm manage my family's asset also write a newsletter. I tell my tell the ideas. I I like liquid stock because my family has a sizable you know uh asset base. uh so I one not I always like is the producer and so it's very liquid you if you don't like it you can get out almost in one day right so and but my producer has been appreciated so much so I cannot really chase at this moment but then I saw gold breakouts like just buy core options you can try even GDX core option my GDI core option almost doubled I mean in the in two weeks so there are so many avenues you can play Uh my strategy tend to be aggressive. Uh because if you look at the historical uh gold bull and bus, bull and bus and lot of um when they go down it basically a lot of times wipe out all the gains especially in gold mining uh company uh as before. So I always have this uh urgency when in a bull market I need to maximize my profit and then when the market start to turn one day always do I mean so I I will play conservatively try to do the capital conservation try to avoid the downdraft or you know reduce the loss of the downdraft but maximize the the profit on the up upswing. So gold typically enter a season if you know that you know very well the gold is seasonal uh September October is the Indian new year Christmas and Chinese new year January February so in this period gold physical demand is high uh and so gold typical do well so that's why I'm buying cool options into you know early next year hopefully I mean I've been done that before I got 20 10 20 baggers relatively easily. So, uh I hope I can repeat that and then you know with a profit we can put something else maybe critical metal maybe silver maybe maybe juniors I also invest in heavily invest in junior junior tend to move differently uh versus producer junior has its own pattern. So uh you know they may not move as much as a producer frankly when when we have this move some stock. So you can always hopefully I take profit next year and then I look at the other juniors who invest also other sector like critical medals which I'm very very excited about. I think it's really good to cover the timing because people people look at this and they wonder okay well when when is the time to get in when is the time to get out. So good to take a look at at your strategy there. Just a little bit more on the gold companies. So you mentioned with the price being so high the gold producers are are doing well. We're starting to see some pretty big M&A activity in the gold space, in the mining space as well. Are you liking what you see there? Do these transactions make sense? And what do you see coming forward when it comes to M&A activity? Yes. Uh oh, I always like MMA, but I don't like to the purchase. I like to be buy purchase, right? The stock um you know, recently the the Hamlow purchase, right? So the barric which happens the the target company was I own I mean I'm very happy I mean the the stock is halted right now they're doing a b deal at $2 and very happy so see where where it trading at that I think that's a good purchase um there uh there's a there's quite a few I think will accelerate uh so you want to buy those companies with good a good asset or you know to be to be bought. So that's my that's my advice. So I I love the M&A and it's but sometime the top of the market the big far big uh gold company they tend to overpay. So so that's that's something you need to keep in mind. Yeah. Yeah. Got to be careful there. And let's let's take a look over at silver as well. So also really exciting price moves in silver. We saw it get past 40 and even $42 per ounce. And this is something that investors have been waiting for a long time for. So I'll ask you the same question I asked with gold. What is driving this move in silver that that we have been waiting for for quite some time? Yeah, there's multiple fold. We have silver deficit uh for past four years, four five years. So uh if you uh notice uh when the deficit after 3 years sometime metal can make a very dramatic move just like platin it suddenly jumped right after four years of deficit. So uh before palladian also made a similar move. So those are small uh uh metals take some time for investor to realize that that's one thing and second uh silver versus gold if you look at the 30-year actually put it chart together 30 35 years gold and versus silver you silver shouldn't be much much higher silver should be triple digit so uh that's another and then the third there's a call for the central bank to go back to the silver standard remember silver used to be the monetary metal and then it it dropped the monetary metal. So people with gold people think also thinking about silver maybe we should have a s silver dollar back US and Canada we used to have that in as as as early as 60s right so 1960 so so that so that that's a you know I see um silver should break the $50 uh historical high and I'm hoping to triple digit silver in in the next few years hopefully hopefully we can we can see that finally just just going back to the central bank angle do you think central banks would buy silver that's a very good question that's that's a million dollar question so I heard uh Russia already make some move uh to make a silver one of the monetary metals Russia already did uh that will put pressure on China very very heavy pressure because China historically silver is um monetary metal right if you go to China bank bank means silver. It's in Chinese. Okay. Bank mean silver. So basically in the culture culture wise and also on historical um in history uh people remember silver and the as the as the money. So they could if Chinese if Chinese central bank make a move this silver can really run but I don't know whether they will or they will not but it's it's pressure. Yeah. Yeah. That would be quite something I think. And I want to ask you about this silver stocks as well. how you're approaching because we know of course that there are are fewer silver companies out there than gold companies. So what is your approach right now when it comes to the silver stocks? Yeah, I generally stop picking uh you know I do stock picker. I pick number one silver stock of you know actually it's mine this year number one silver actually number five on the can Canada in all all the stock okay of you know I think um I was we invite them to present on my panel early this year so investor if they realize that the boy at that time they will be number one stock silver stock that's I'm very happy number two actually also my first NEO I already sold it because trading in London you know time zone difference. I mean I made a good part money and core probably number three silver stock I already start selling it reach 10 year high recently this this week and still going higher so I start to trend right now I'm more focus on uh first majestic uh why I like first majestic it's a highly leverage silver 60% revenue is silver though silver move first majestic tend to be the most leveraged stock okay so I I like I have I have stock I have core options are so good. Core option already up 100% in a week. So um yeah stock also has multiple folds. So then those are I think but I think it has momentum uh because the the silver goes um so goes first majestic that's happened historically so many times I hoping for much higher price or much much higher. I hope my option will be 10 20 bagger by early next year. So that's uh that's typical. I mean I have those um uh the silver uh you know stock and then uh I also have this used to be silver quest and now quarterly I mean they appreciate so much a lot of silver stock already appreciate so much and the one haven't really appreciate a lot in silver but they have some little bit startup start startup issues. or you know if you're you know if it's um uh people need to take some risk to to invest that that's a producer uh for juniors one of my favorite has been Cerro De Pasco, they going to present two weeks from from here on my panel so I hope investor to take a look and this could be the the superstar not super also has some critical metal um so have the two in one so so again investing stock very very risky you have to read all uh disclaimers on your website, on my website, just to make sure you know you're you know you're getting the right stuff. Do your own analysis. Absolutely. That's that's so important. And just a one more note on silver. So there is some excitement I think a few weeks ago at this point when the US released its new draft critical minerals list. So and silver was on there. So I don't know if it's quite official yet, but looks like it's heading in that direction. So what are your thoughts on that? Does silver make sense as a a critical mineral for you? Yeah, absolutely. You hit it right on the nail. That's another thing I want to talk. The US released a critical mineral and then there's a chart on which metals how important they are to to United States. Silver actually is there and believe it or not this is there and I'm so happy that it's been recognized as one of the critical minerals and maybe it's wake up some investor to to put more money into silver. Again, silver market is relatively small. So, not a lot of money can really move it. And so, that's why one thing about silvers, you know, when they really move, you know, may wake up one day, it's up $10. I mean, it happened before. I've been through that. So, I so that my experience and I'm I'm I'm heavily in silver stock, sore options, and then silver future. So, uh, you know, uh, my plan is the silver hit 50, I'll take some off future market, not in stock, but I think it will blow through 50. Maybe I well, I'll take profit $100. Makes makes sense. And so, let's continue on on the critical minerals angle. This is another topic we talked about toward the beginning of the year. So, I think everybody knows, especially now with all the tariffs in place, how important critical minerals are becoming. But it's there's so many metals that now are critical. So it's maybe difficult for investors to know okay which should I focus on? So when it comes to critical minerals where are you focusing at the moment? What do you see as the most important right? So there is a a list I think I'm happy to send send you the chart you can take a look on the um uh published by United State government only a few a few weeks ago. So I have silver in it and also listed the five most important metal uh that to the United States that China control almost 100%. That cost United States 15 billion. The first time they quantify that 15 billion a year. Okay, that's a number. Uh that's a four is a heavy rers you know those I I'll send you the name because very hard for me to pronounce I mean but the fifth one is scaly. Okay. So the top five uh you can see that you can you can see the the value but most most importantly is also heavily used in the military. So if we cannot produce fighter jet that's cannot quantify so it's probably could be even higher. Very interestingly Baron's magazine just last weekend the cover page of Baron magazine is rare earth that's that's very good. So that means mainstream investors are looking at the rarest but unfortunately as I explained to you I think it's a terribly written uh article it's really not Baron standard that guy doesn't really have detail understanding of the rare earth different rare earth that how they're important they don't have the picture even the United States government picture which rare earth is more important and also doesn't understand the mining and processing are two different thing mining China only mining 50% % but China is m processing 90% more than 90% rarers. Okay. So processing actually more important than mining to the United States. So that that's why I really like a little company which I own from you know for a few years called the energy fuel. Uu so because it it has only processing plant in the United States already start producing heavy rear. So when they announced the announcement came out last week uh even I heard from some feedback from China so oh United States uh gap is not five year maybe it's three years if government really gave them money maybe two years so they can catch up with the heavy but market really doesn't see that I mean doesn't haven't recognized so that's actually another uh discovery process that takes some time for for investor to realize how if Not every rare earth is is the same and also there's real metals uh like gallium and germanium. Germanium going to be important too that uh because it's the solid state battery I saw coming out later this year and early next year the Chinese already start making those they're actually very heavy in germanium. So germanium going to be another hot metal. So those are the super critical to the United States and then 100% controlled uh by China almost 100%. Right? So gallium is 98%, germanium no number is very very close to 100%. So those are most important to United States. Uh I think maybe take a few months for investor to realize that um it is um every rare earth is different and every company is different. Yeah. Yeah, and there are so many of them. It can be really hard, I think, to get a handle on it at first, but maybe we are coming into that time when people people's awareness grows. So, what do you think? So, clearly there is emphasis right now from the US on having critical minerals mining come back into the country and hopefully the processing as well. How how well do you think the US is doing at this time? What would you want to see maybe more of at the right now? Well and you know if you look at the China and then uh United States just had another round of talk in Spain with no results. I think one of the trump card China have is rare earth and critical other critical matters. So I I think United States government also it's a learning process but realize what hurt United States the most. Uh but it's all already there. I mean if you dig a little bit deeper you realize those medals are super super critical to the United States and I think in maybe in a few months uh investor will will recognize uh those how important those those metals are. So for for us uh we want to position ourself uh before people recognize that. So that's another reason I like Cerro De Pasco, they probably had the largest gallium deposit outside China and so that's not just silver also is a it's a rare earth real critical metal play so uh so two in one yeah yeah nice to see those together and any any other areas that you are focusing right now that you see as good investment opportunities yeah um other other mining area I mean I'm mostly into those I think those are pretty heavy in mining you know uh also in some some copper I like copper uh so there's one company, McEwen Mining, I really like because they're going to do copper unit going to be IPO uh in a few months and then the the valuation of the copper unit will believe it or not the shareholder own will be higher than the current market cap. So that that's that's almost like and then they also have a very nice uh you know gold business going. You get the gold for free. So that that's the thing I like and um I already own that for some time. Uh stock and core options for full disclosure. Okay. Well, I think this was really good. We it feels like we went through the main focuses in your strategy right now. But before I let you go, any final thoughts that you would leave investors with? It's definitely an exciting time at the moment. Yeah, I my my thought is always um the uh investor we are in in this u round right in this gold and silver run. I hope investors maximize profit look using the opportunity maximize the profit because we have been down for so many years and the rebound can be very very sharp and we I seems uh especially in a lot of stocks too we're in the early phase so hopefully you have to maximize your profit and protect your profit uh when when the when market peak so I hope it won't happen doesn't look like going to happen next few months But in the few years it could pick and then that's something always keep in your mind. Okay. Well, I think those are really good words to end on. So, thank you so much for coming on to talk today. It was great to get your updated thoughts on what's going on in the resource sector. Thank you, Charlotte. Great to talk to you again. Of course. Once again, I'm Charlotte McLeod with InvestingNews.com and this is Chen Lin. Thank you for watching. If you like this video, make sure you hit the like button and subscribe to our channel. We'd also love to hear your thoughts, so leave us a comment below. [Music]
Chen Lin: Gold, Silver Prices Breaking Out, My Stock Strategy Now
Summary
Transcript
[Music] I'm Charlotte McLeod with InvestingNews.com, and here today with me is Chen Lin of Lin Asset Management. Thank you so much for being here. Great to have you back once again. Thank you, Charlotte. Glad to be back. Really good to be speaking with you. Probably the perfect time. I wanted to follow up on a few topics that we touched on the last time we spoke all the way back in March. So, we talked at the time about gold, silver, and critical minerals. So, we'll go into all of those three today. Maybe starting off with gold because gold has just been making headline after headline in the last few weeks at record highs on a this run. I'm wondering if you can start by breaking down what is the main gold price driver that you see right now. Right now is investors start waking up uh to to gold. Okay. uh there's a report pretty good report that's basically in Asia uh rich people start allocate 10% to gold I mean in the west still maybe less than 1%. So that's that's a movement. Second movement uh there is a pick up in in the central bank buying from China last month. uh actually goldman uh came out with a report that China actually probably going to buy more gold because right now the the situation in China is China even despite of trade war with United States and with you know other countries China's trade surplus is growing rapidly last year is1 trillion US dollar this year is more than going to be more much more than one trillion so where are they going to park the money so uh in gold mining they will just they will increase the gold purchase by a few hundred% uh from now on and then continue buy for next 3 to 5 years to to reach a certain plate plateau but very interestingly uh recently the the the stock in China's uh gold future market just going parabolically that actually precede the recent gold breakout gold breakout about two weeks ago almost exactly that's very good timely interview valuation Charlotte. So it you pick the right hand. So gold broke out is after the parabolic move of the the gold stock in China's um future because both gold has been rangebound for a long long time and then suddenly start broke out two two weeks started breaking out two weeks ago. I could see that it's a big movement of China's uh stock stock in the Shanghai and other stock future exchange. So I see what it does is first China accelerate gold purchase and then so well informed Chinese investor probably heard of that that's first second I think probably gold man report is right China going to buy more gold and then Chinese citizen want to front run the Chinese government that's really interesting thank you for going into that because you know when I've been asking about what's driving gold right now over the last couple of weeks a lot of what I'm hearing ing about is with more of a a western focus where we're talking about well the Fed has this upcoming meeting probably going to see interest rate cuts from the Fed. How do you factor that into when you're looking at the gold market? Oh yeah, it will help like the Fed will cut this week right basically is 25% and 50%. And the United States government turn out the job report is much weaker than I didn't mention that because I I know everybody seems to focus on that. So I saw you your people are well informed but we turn on we lost actually the down revision almost a million job right in the past year. So uh United States looking the economy looking weaker Fed is going to cut US dollar is about to break down. So all this help go what I'm saying is that the why the gold suddenly broke out two weeks ago. I think one of the contribution fact I'm happy to send you the chart is a parabolic move of the chi China uh gold holding. Yeah. Yeah, really interesting to go into that. And so we're talking about this the western interest in gold is still not there. You're mentioning probably not even above 1% at this point. At what point do you think the west does start to wake up to okay, something is going on here. Maybe we need to increase the amount of gold that we own. Yeah, there is a talk on the the bond market. This is seriously problem right now. There's a lot of resemblance resemblance of 70s, right? the the the inflation is still relatively high. The economy is weak and the bond market is having a terrible year, right? So, uh Bank of America is pointing out is basically anything but bond. Anything but US uh in their report. So, it's a lot of money parking in the bond traditionally, but if the inflations continue to be high, the bond will be weak. That's a problem for the bond investor. They will be losing money. So when those money coming out, we're going to be the overpriced stock market or you know they they could diversify some into gold. I think that's that will drive gold especially silver more even more favor uh even higher. So I'm quite happy with with gold and silver. Well and I was going to ask you about the implication of of all these factors for the gold price. So of course we have gold really on the move especially over the last couple of weeks. If you look forward, what do you see? Where do you see gold ending let's say 2025 at in terms of the price? Oh, that's very hard. That's very hard to to predict. My my hope frankly as gold investor that gold do not make barb move. Gold just go up because it's it has a 35 you know 34 3500 for a long time. So this move hopefully go to 4,000 around and stay there for some time. Right. the the the the issues is if you make a parabolic move it will be a par could be a very sharp correction in the 70 like 70 as well that's very hurt the gold mining companies sentiment so I I hope gold just slowly my hope but I could be wrong go slowly grinding higher maybe you know 4,000 by the end of the year maybe 45 next year but the gold mining company most of the company cost is about 1,500 so their margins are increasing the margin is so much higher than Walmart you know and they don't they not recognized in that right now so I think I like gold miner company mining company and I just discuss a little bit with with you I'm telling my subscribers when gold broke out the two weeks I start buying gold core option because my stock has gone up so much some as high as a th00and% so I don't want to chase them so I buy call options and they're doing well so far Yeah, maybe it's a good time to talk a little bit more about your strategy when it comes to the gold stocks right now. So, the call options is one way that you're taking a look. Are you looking at companies of all sizes or are you honing in in any specific area? How how are you looking at it? Yeah, I I I'm you know, first I'm I'm manage my family's asset also write a newsletter. I tell my tell the ideas. I I like liquid stock because my family has a sizable you know uh asset base. uh so I one not I always like is the producer and so it's very liquid you if you don't like it you can get out almost in one day right so and but my producer has been appreciated so much so I cannot really chase at this moment but then I saw gold breakouts like just buy core options you can try even GDX core option my GDI core option almost doubled I mean in the in two weeks so there are so many avenues you can play Uh my strategy tend to be aggressive. Uh because if you look at the historical uh gold bull and bus, bull and bus and lot of um when they go down it basically a lot of times wipe out all the gains especially in gold mining uh company uh as before. So I always have this uh urgency when in a bull market I need to maximize my profit and then when the market start to turn one day always do I mean so I I will play conservatively try to do the capital conservation try to avoid the downdraft or you know reduce the loss of the downdraft but maximize the the profit on the up upswing. So gold typically enter a season if you know that you know very well the gold is seasonal uh September October is the Indian new year Christmas and Chinese new year January February so in this period gold physical demand is high uh and so gold typical do well so that's why I'm buying cool options into you know early next year hopefully I mean I've been done that before I got 20 10 20 baggers relatively easily. So, uh I hope I can repeat that and then you know with a profit we can put something else maybe critical metal maybe silver maybe maybe juniors I also invest in heavily invest in junior junior tend to move differently uh versus producer junior has its own pattern. So uh you know they may not move as much as a producer frankly when when we have this move some stock. So you can always hopefully I take profit next year and then I look at the other juniors who invest also other sector like critical medals which I'm very very excited about. I think it's really good to cover the timing because people people look at this and they wonder okay well when when is the time to get in when is the time to get out. So good to take a look at at your strategy there. Just a little bit more on the gold companies. So you mentioned with the price being so high the gold producers are are doing well. We're starting to see some pretty big M&A activity in the gold space, in the mining space as well. Are you liking what you see there? Do these transactions make sense? And what do you see coming forward when it comes to M&A activity? Yes. Uh oh, I always like MMA, but I don't like to the purchase. I like to be buy purchase, right? The stock um you know, recently the the Hamlow purchase, right? So the barric which happens the the target company was I own I mean I'm very happy I mean the the stock is halted right now they're doing a b deal at $2 and very happy so see where where it trading at that I think that's a good purchase um there uh there's a there's quite a few I think will accelerate uh so you want to buy those companies with good a good asset or you know to be to be bought. So that's my that's my advice. So I I love the M&A and it's but sometime the top of the market the big far big uh gold company they tend to overpay. So so that's that's something you need to keep in mind. Yeah. Yeah. Got to be careful there. And let's let's take a look over at silver as well. So also really exciting price moves in silver. We saw it get past 40 and even $42 per ounce. And this is something that investors have been waiting for a long time for. So I'll ask you the same question I asked with gold. What is driving this move in silver that that we have been waiting for for quite some time? Yeah, there's multiple fold. We have silver deficit uh for past four years, four five years. So uh if you uh notice uh when the deficit after 3 years sometime metal can make a very dramatic move just like platin it suddenly jumped right after four years of deficit. So uh before palladian also made a similar move. So those are small uh uh metals take some time for investor to realize that that's one thing and second uh silver versus gold if you look at the 30-year actually put it chart together 30 35 years gold and versus silver you silver shouldn't be much much higher silver should be triple digit so uh that's another and then the third there's a call for the central bank to go back to the silver standard remember silver used to be the monetary metal and then it it dropped the monetary metal. So people with gold people think also thinking about silver maybe we should have a s silver dollar back US and Canada we used to have that in as as as early as 60s right so 1960 so so that so that that's a you know I see um silver should break the $50 uh historical high and I'm hoping to triple digit silver in in the next few years hopefully hopefully we can we can see that finally just just going back to the central bank angle do you think central banks would buy silver that's a very good question that's that's a million dollar question so I heard uh Russia already make some move uh to make a silver one of the monetary metals Russia already did uh that will put pressure on China very very heavy pressure because China historically silver is um monetary metal right if you go to China bank bank means silver. It's in Chinese. Okay. Bank mean silver. So basically in the culture culture wise and also on historical um in history uh people remember silver and the as the as the money. So they could if Chinese if Chinese central bank make a move this silver can really run but I don't know whether they will or they will not but it's it's pressure. Yeah. Yeah. That would be quite something I think. And I want to ask you about this silver stocks as well. how you're approaching because we know of course that there are are fewer silver companies out there than gold companies. So what is your approach right now when it comes to the silver stocks? Yeah, I generally stop picking uh you know I do stock picker. I pick number one silver stock of you know actually it's mine this year number one silver actually number five on the can Canada in all all the stock okay of you know I think um I was we invite them to present on my panel early this year so investor if they realize that the boy at that time they will be number one stock silver stock that's I'm very happy number two actually also my first NEO I already sold it because trading in London you know time zone difference. I mean I made a good part money and core probably number three silver stock I already start selling it reach 10 year high recently this this week and still going higher so I start to trend right now I'm more focus on uh first majestic uh why I like first majestic it's a highly leverage silver 60% revenue is silver though silver move first majestic tend to be the most leveraged stock okay so I I like I have I have stock I have core options are so good. Core option already up 100% in a week. So um yeah stock also has multiple folds. So then those are I think but I think it has momentum uh because the the silver goes um so goes first majestic that's happened historically so many times I hoping for much higher price or much much higher. I hope my option will be 10 20 bagger by early next year. So that's uh that's typical. I mean I have those um uh the silver uh you know stock and then uh I also have this used to be silver quest and now quarterly I mean they appreciate so much a lot of silver stock already appreciate so much and the one haven't really appreciate a lot in silver but they have some little bit startup start startup issues. or you know if you're you know if it's um uh people need to take some risk to to invest that that's a producer uh for juniors one of my favorite has been Cerro De Pasco, they going to present two weeks from from here on my panel so I hope investor to take a look and this could be the the superstar not super also has some critical metal um so have the two in one so so again investing stock very very risky you have to read all uh disclaimers on your website, on my website, just to make sure you know you're you know you're getting the right stuff. Do your own analysis. Absolutely. That's that's so important. And just a one more note on silver. So there is some excitement I think a few weeks ago at this point when the US released its new draft critical minerals list. So and silver was on there. So I don't know if it's quite official yet, but looks like it's heading in that direction. So what are your thoughts on that? Does silver make sense as a a critical mineral for you? Yeah, absolutely. You hit it right on the nail. That's another thing I want to talk. The US released a critical mineral and then there's a chart on which metals how important they are to to United States. Silver actually is there and believe it or not this is there and I'm so happy that it's been recognized as one of the critical minerals and maybe it's wake up some investor to to put more money into silver. Again, silver market is relatively small. So, not a lot of money can really move it. And so, that's why one thing about silvers, you know, when they really move, you know, may wake up one day, it's up $10. I mean, it happened before. I've been through that. So, I so that my experience and I'm I'm I'm heavily in silver stock, sore options, and then silver future. So, uh, you know, uh, my plan is the silver hit 50, I'll take some off future market, not in stock, but I think it will blow through 50. Maybe I well, I'll take profit $100. Makes makes sense. And so, let's continue on on the critical minerals angle. This is another topic we talked about toward the beginning of the year. So, I think everybody knows, especially now with all the tariffs in place, how important critical minerals are becoming. But it's there's so many metals that now are critical. So it's maybe difficult for investors to know okay which should I focus on? So when it comes to critical minerals where are you focusing at the moment? What do you see as the most important right? So there is a a list I think I'm happy to send send you the chart you can take a look on the um uh published by United State government only a few a few weeks ago. So I have silver in it and also listed the five most important metal uh that to the United States that China control almost 100%. That cost United States 15 billion. The first time they quantify that 15 billion a year. Okay, that's a number. Uh that's a four is a heavy rers you know those I I'll send you the name because very hard for me to pronounce I mean but the fifth one is scaly. Okay. So the top five uh you can see that you can you can see the the value but most most importantly is also heavily used in the military. So if we cannot produce fighter jet that's cannot quantify so it's probably could be even higher. Very interestingly Baron's magazine just last weekend the cover page of Baron magazine is rare earth that's that's very good. So that means mainstream investors are looking at the rarest but unfortunately as I explained to you I think it's a terribly written uh article it's really not Baron standard that guy doesn't really have detail understanding of the rare earth different rare earth that how they're important they don't have the picture even the United States government picture which rare earth is more important and also doesn't understand the mining and processing are two different thing mining China only mining 50% % but China is m processing 90% more than 90% rarers. Okay. So processing actually more important than mining to the United States. So that that's why I really like a little company which I own from you know for a few years called the energy fuel. Uu so because it it has only processing plant in the United States already start producing heavy rear. So when they announced the announcement came out last week uh even I heard from some feedback from China so oh United States uh gap is not five year maybe it's three years if government really gave them money maybe two years so they can catch up with the heavy but market really doesn't see that I mean doesn't haven't recognized so that's actually another uh discovery process that takes some time for for investor to realize how if Not every rare earth is is the same and also there's real metals uh like gallium and germanium. Germanium going to be important too that uh because it's the solid state battery I saw coming out later this year and early next year the Chinese already start making those they're actually very heavy in germanium. So germanium going to be another hot metal. So those are the super critical to the United States and then 100% controlled uh by China almost 100%. Right? So gallium is 98%, germanium no number is very very close to 100%. So those are most important to United States. Uh I think maybe take a few months for investor to realize that um it is um every rare earth is different and every company is different. Yeah. Yeah, and there are so many of them. It can be really hard, I think, to get a handle on it at first, but maybe we are coming into that time when people people's awareness grows. So, what do you think? So, clearly there is emphasis right now from the US on having critical minerals mining come back into the country and hopefully the processing as well. How how well do you think the US is doing at this time? What would you want to see maybe more of at the right now? Well and you know if you look at the China and then uh United States just had another round of talk in Spain with no results. I think one of the trump card China have is rare earth and critical other critical matters. So I I think United States government also it's a learning process but realize what hurt United States the most. Uh but it's all already there. I mean if you dig a little bit deeper you realize those medals are super super critical to the United States and I think in maybe in a few months uh investor will will recognize uh those how important those those metals are. So for for us uh we want to position ourself uh before people recognize that. So that's another reason I like Cerro De Pasco, they probably had the largest gallium deposit outside China and so that's not just silver also is a it's a rare earth real critical metal play so uh so two in one yeah yeah nice to see those together and any any other areas that you are focusing right now that you see as good investment opportunities yeah um other other mining area I mean I'm mostly into those I think those are pretty heavy in mining you know uh also in some some copper I like copper uh so there's one company, McEwen Mining, I really like because they're going to do copper unit going to be IPO uh in a few months and then the the valuation of the copper unit will believe it or not the shareholder own will be higher than the current market cap. So that that's that's almost like and then they also have a very nice uh you know gold business going. You get the gold for free. So that that's the thing I like and um I already own that for some time. Uh stock and core options for full disclosure. Okay. Well, I think this was really good. We it feels like we went through the main focuses in your strategy right now. But before I let you go, any final thoughts that you would leave investors with? It's definitely an exciting time at the moment. Yeah, I my my thought is always um the uh investor we are in in this u round right in this gold and silver run. I hope investors maximize profit look using the opportunity maximize the profit because we have been down for so many years and the rebound can be very very sharp and we I seems uh especially in a lot of stocks too we're in the early phase so hopefully you have to maximize your profit and protect your profit uh when when the when market peak so I hope it won't happen doesn't look like going to happen next few months But in the few years it could pick and then that's something always keep in your mind. Okay. Well, I think those are really good words to end on. So, thank you so much for coming on to talk today. It was great to get your updated thoughts on what's going on in the resource sector. Thank you, Charlotte. Great to talk to you again. Of course. Once again, I'm Charlotte McLeod with InvestingNews.com and this is Chen Lin. Thank you for watching. If you like this video, make sure you hit the like button and subscribe to our channel. We'd also love to hear your thoughts, so leave us a comment below. [Music]