{"id":22018,"date":"2020-07-26T16:01:09","date_gmt":"2020-07-26T20:01:09","guid":{"rendered":"https:\/\/capital10x.com\/old\/?p=22018"},"modified":"2020-11-26T09:45:54","modified_gmt":"2020-11-26T14:45:54","slug":"markets-and-metals-weekly-navigator-july-26th-2020","status":"publish","type":"post","link":"https:\/\/capital10x.com\/old\/markets-and-metals-weekly-navigator-july-26th-2020\/","title":{"rendered":"Markets and Metals Weekly Navigator (July 26th, 2020)"},"content":{"rendered":"<h2>Break Out! Gold Breaks $1,900\/oz and Silver Smashes through $20\/oz<\/h2>\n<p>Precious metals enjoyed a historic week with silver breaking $20\/oz with authority and gold cracking $1,900\/oz &#8211; inching its way to its all time high of $1,921\/oz.\u00a0 Silver was up 18% for the week and gold finished up 5%.<\/p>\n<h4>Gold &amp; Silver Performance for the Week of July 20th &#8211; 23rd\/2020<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22019\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/SLV_GLD_chart.png\" alt=\"\" width=\"2000\" height=\"1269\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/SLV_GLD_chart.png 1614w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/SLV_GLD_chart-300x190.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/SLV_GLD_chart-1024x650.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/SLV_GLD_chart-768x487.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/SLV_GLD_chart-1536x975.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/SLV_GLD_chart-696x442.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/SLV_GLD_chart-1392x883.png 1392w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<h2>Silver Ready for Prime Time<\/h2>\n<p>Capital 10X highlighted the dynamics of the last silver bull market on June 9th, 2020 with our first volume of the <a href=\"https:\/\/capital10x.com\/old\/silvers-last-bull-run-vs-gold\/\">Silver Insights Series<\/a>.\u00a0 In that edition we mapped the silver\/gold ratio historically, highlighting the potential for a significant break out.<\/p>\n<h4>Silver ETF vs. Gold ETF Ratio<\/h4>\n<figure id=\"attachment_21747\" aria-describedby=\"caption-attachment-21747\" style=\"width: 1755px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-21747\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/06\/GLD_SLV_chart.png\" alt=\"\" width=\"1755\" height=\"1024\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/06\/GLD_SLV_chart.png 1755w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/06\/GLD_SLV_chart-300x175.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/06\/GLD_SLV_chart-1024x598.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/06\/GLD_SLV_chart-768x448.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/06\/GLD_SLV_chart-1536x896.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/06\/GLD_SLV_chart-696x406.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/06\/GLD_SLV_chart-1392x812.png 1392w\" sizes=\"auto, (max-width: 1755px) 100vw, 1755px\" \/><figcaption id=\"caption-attachment-21747\" class=\"wp-caption-text\">Source: YCharts<\/figcaption><\/figure>\n<p>Looking at the gold\/silver ratio (the inverse of the previous graph) on a longer time horizon (70 years) &#8211; the average is 53x, this would imply 50% upside relative to gold.<\/p>\n<h4>Gold-Silver Ratio: 70 Years<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22020\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/gold-silver-ratio.gif\" alt=\"\" width=\"736\" height=\"530\" \/><\/p>\n<p>Using the average ratio of 53x the implied price of silver is $35\/oz, this would bring the metal to its previous high (March 2011).<\/p>\n<h4>Silver Chart: 1950-2020<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22021\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/silver-long-term-chart.gif\" alt=\"\" width=\"736\" height=\"530\" \/><\/p>\n<p>Capital 10X launched the <a href=\"https:\/\/capital10x.com\/old\/leverage-silver-stocks-vs-silver-bar\/\">2nd installment of the Silver Insights Series<\/a> last week on July 20th\/2020 where we quantitatively analyzed the best positioned mid-cap and large cap silver miners &#8211; a must read research report. The summary video is presented below.<\/p>\n<div style=\"width: 696px;\" class=\"wp-video\"><video class=\"wp-video-shortcode\" id=\"video-22018-1\" width=\"696\" height=\"392\" poster=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/silver-series-cover.jpg\" preload=\"metadata\" controls=\"controls\"><source type=\"video\/mp4\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/silver-stocks-vs-silver-bars-MAIN-FNL.mp4?_=1\" \/><a href=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/silver-stocks-vs-silver-bars-MAIN-FNL.mp4\">https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/silver-stocks-vs-silver-bars-MAIN-FNL.mp4<\/a><\/video><\/div>\n<p>&nbsp;<\/p>\n<h2>Gold Inching Towards &#8220;Blue Sky&#8221; Breakout<\/h2>\n<p>When gold cracks its all-time highs of $1,921 it will be a blue sky breakout moment for the metal. The combination of rising geopolitical tensions (America vs. China) and massive global central bank money printing are more than enough kindling to drive speculative fervor.<\/p>\n<h4>Gold Price Chart: 2000-2020<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22023\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/gold-20-year-chart.gif\" alt=\"\" width=\"736\" height=\"530\" \/><\/p>\n<p>The gold mining equities have done very well YTD, significantly outperforming gold.<\/p>\n<h4>2020 YTD: Gold ETF (GLD), Senior Gold Miners (GDX) , Junior Gold Miners (GDXJ)<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22025\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-1.png\" alt=\"\" width=\"2000\" height=\"1309\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-1.png 1565w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-1-300x196.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-1-1024x670.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-1-768x503.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-1-1536x1005.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-1-696x456.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-1-1392x911.png 1392w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<p>However, on a longer-term view gold mining equities have significant ground to make up &#8211; investing in mining companies rather than the metal continues to the more attractive risk\/reward proposition.<\/p>\n<h4>2010-2020: Gold ETF (GLD), Senior Gold Miners (GDX) , Junior Gold Miners (GDXJ)<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22026\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-2.png\" alt=\"\" width=\"2000\" height=\"1309\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-2.png 1565w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-2-300x196.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-2-1024x670.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-2-768x503.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-2-1536x1005.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-2-696x456.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_GDX_GDXJ_chart-2-1392x911.png 1392w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<h2>Copper Remains the Under-followed Inflation Play<\/h2>\n<p>Copper and copper miners have had a strong rally off the bottom, however still significantly lag gold and gold miners. The same dynamics that have drive gold higher will ultimately drive copper higher too, namely inflation. As we&#8217;ve highlighted in the<a href=\"https:\/\/capital10x.com\/old\/markets-metals-weekly-navigator-june-28th-2020\/\"> June 28th edition of the weekly<\/a>, copper continues to be plagued by significant supply disruptions.<\/p>\n<h4>2020 YTD: Gold vs. Copper. vs. Copper Miners<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22034\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_CPER_COPX_chart.png\" alt=\"\" width=\"2000\" height=\"1309\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_CPER_COPX_chart.png 1565w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_CPER_COPX_chart-300x196.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_CPER_COPX_chart-1024x670.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_CPER_COPX_chart-768x503.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_CPER_COPX_chart-1536x1005.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_CPER_COPX_chart-696x456.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/GLD_CPER_COPX_chart-1392x911.png 1392w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<p>Sierra Metals (NYSE:SMTS, TSX:SMT) remains a very attractively positioned poly-metallic miner with significant copper exposure.\u00a0 Even with the headwinds of COVID-19 the company Q1 2020 production was only down -10% on a copper equivalent basis.<\/p>\n<p>Sierra Metals is currently in the processing of ramping back up to full capacity at its major mines, additionally <a href=\"https:\/\/capital10x.com\/old\/sierra-metals-smts-impressive-drill-results-cusi-silver-mine\/\">discovered a new high grade silver zone at its Cusi Mine<\/a> in Mexico that offers meaningful resource upside.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21981\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/sierra-earnings-charts-2020-07-17-1.png\" alt=\"\" width=\"800\" height=\"933\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/sierra-earnings-charts-2020-07-17-1.png 800w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/sierra-earnings-charts-2020-07-17-1-257x300.png 257w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/sierra-earnings-charts-2020-07-17-1-768x896.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/sierra-earnings-charts-2020-07-17-1-696x812.png 696w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<h2>Cannabis Week in Review<\/h2>\n<p>A tough week for cannabis equities, the Horizons Marijuana Life Sciences ETF was down -5% for the week, while the S&amp;P 500 was flat.\u00a0 The weakness can be attributed to Organigram&#8217;s poor quarter (discussed in more detail below).<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22027\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_^SPX_chart-1.png\" alt=\"\" width=\"2000\" height=\"1269\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_^SPX_chart-1.png 1614w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_^SPX_chart-1-300x190.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_^SPX_chart-1-1024x650.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_^SPX_chart-1-768x487.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_^SPX_chart-1-1536x975.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_^SPX_chart-1-696x442.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_^SPX_chart-1-1392x883.png 1392w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<p>Organigram (TSX:OGI, NYSE:OGI) had a very challenging Q3 2020 result with revenue down -27% year-over-year, inventory write downs and large headcount reduction (25% of the workforce).<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22028\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_OGI.TO_chart.png\" alt=\"\" width=\"2000\" height=\"1269\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_OGI.TO_chart.png 1614w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_OGI.TO_chart-300x190.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_OGI.TO_chart-1024x650.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_OGI.TO_chart-768x487.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_OGI.TO_chart-1536x975.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_OGI.TO_chart-696x442.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/HMMJ.TO_OGI.TO_chart-1392x883.png 1392w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<p>Aphria (TSX:APHA, NYSE:APHA) is set to announce Q4 2020 earnings on Wednesday July 29th before the market.\u00a0 Consensus revenue is estimated to come in at $108M and EBITDA at $5.8M.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22032\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA-analyst-estimates.png\" alt=\"\" width=\"583\" height=\"148\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA-analyst-estimates.png 583w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA-analyst-estimates-300x76.png 300w\" sizes=\"auto, (max-width: 583px) 100vw, 583px\" \/><\/p>\n<p>Aphria is the best performing large-cap Canadian cannabis producer over the last year, down -12%; the rest of its peers are down from -47% to -86%.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22031\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart.png\" alt=\"\" width=\"2000\" height=\"1429\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart.png 1433w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-300x214.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-1024x732.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-768x549.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-1536x1097.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-696x497.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-1392x995.png 1392w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-100x70.png 100w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<p>Aphria trades at one of the lowest forward Price\/Sales multiples in the group at 2.7x, only Village Farms trades at a lower Price\/Sales ratio at 1.9x.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22030\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-1.png\" alt=\"\" width=\"2000\" height=\"1429\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-1.png 1433w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-1-300x214.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-1-1024x732.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-1-768x549.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-1-1536x1097.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-1-696x497.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-1-1392x995.png 1392w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/07\/APHA_ACB_CGC_OGI_CRON_VFF_chart-1-100x70.png 100w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A weekly review of the most important news impacting the metals and cannabis markets. This week: historic breakouts for gold and silver!<\/p>\n","protected":false},"author":7,"featured_media":14220,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1755,59],"tags":[9,10,76,1600,1521,1591,104,904,905,846,848,1633,847,1267],"class_list":{"0":"post-22018","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-growth_navigator","8":"category-metals","9":"tag-apha","10":"tag-aphria","11":"tag-copper","12":"tag-gdx","13":"tag-gdxj","14":"tag-gld","15":"tag-gold","16":"tag-ogi","17":"tag-organigram","18":"tag-sierra-metals","19":"tag-silver","20":"tag-slv","21":"tag-smt","22":"tag-smts"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Markets and Metals Weekly Navigator (July 26th, 2020) | Capital 10X<\/title>\n<meta name=\"description\" content=\"A weekly review of the most important news impacting the metals and cannabis markets. 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