Brett Heath: Sentiment Has Changed Drastically in the Last Month
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Brett sees severe capitulation across the board from the metals to the majors and down to the juniors. Most of the majors are at or near 52-week lows. This looks like scary times, and both gold and silver are incredibly volatile right now.
The sentiment has changed drastically from just a month ago. What we have seen for the last two years is gold stuck in a channel. It was looking like gold and silver were setting up for a very good run, but that did not materialize. He warns that the market may continue to be oversold for some time.
With this latest market decline, a lot of issuers were caught off guard. Many are in a vulnerable position with their stock holdings down forty percent.
Investors need to be ready to take advantage of opportunities. You do not want to be holding companies that need to raise capital in the next year as they will likely get very unfavorable terms. You want to understand the financial situation of the companies you do hold and where the value truly lies.
Royalty and streaming companies can benefit from this type of market. When companies or holders see this level of negative sentiment, they may throw in the towel. Historically this is when the real deals are made. Brett outlines how Metalla operates and why they differ from other royalty and streaming companies.
He says, “Investors get killed when they act on fear, they need to learn to use the fear in the markets to their advantage.”