{"id":22057,"date":"2020-08-02T21:22:01","date_gmt":"2020-08-03T01:22:01","guid":{"rendered":"https:\/\/capital10x.com\/old\/?p=22057"},"modified":"2020-11-26T09:45:43","modified_gmt":"2020-11-26T14:45:43","slug":"markets-and-metals-navigator-august-2nd-2020","status":"publish","type":"post","link":"https:\/\/capital10x.com\/old\/markets-and-metals-navigator-august-2nd-2020\/","title":{"rendered":"Markets and Metals Navigator (August 2nd, 2020)"},"content":{"rendered":"<h2>Gold and Silver Keep Charging!<\/h2>\n<p>The precious metals bull run is firing on all cylinders, gold was up 4% on the week and silver was up 7%.<\/p>\n<p>Gold had its strongest month in July since 2012, with bullion up 11%. Silver however took the spotlight, up 35% for the month. It&#8217;s clear investors have accepted silver as leveraged play on gold.<\/p>\n<h4>Gold &amp; Silver Performance for the Month of July, 2020<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22058\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/GLD_SLV_chart.png\" alt=\"\" width=\"2000\" height=\"1269\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/GLD_SLV_chart.png 1614w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/GLD_SLV_chart-300x190.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/GLD_SLV_chart-1024x650.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/GLD_SLV_chart-768x487.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/GLD_SLV_chart-1536x975.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/GLD_SLV_chart-696x442.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/GLD_SLV_chart-1392x883.png 1392w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<p>While gold has smashed through the previous record high ($1,921) this week, the World Gold Council highlights that it is below its inflation adjusted high of $2,800\/oz\u00a0 (1980).<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22064\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/gold-inflation-adjusted.png\" alt=\"\" width=\"900\" height=\"494\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/gold-inflation-adjusted.png 900w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/gold-inflation-adjusted-300x165.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/gold-inflation-adjusted-768x422.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/gold-inflation-adjusted-696x382.png 696w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><\/p>\n<p>The U.S. 10-Year real yield (10-year yield minus inflation) is fallen below -1%, the lowest on record. Low real yields are very bullish for gold as it eliminates the opportunity cost of holding the metal (it doesn&#8217;t pay interest).<\/p>\n<h4>U.S. 10-Year Real Yield<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22061\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/10-year-real-yield.gif\" alt=\"\" width=\"736\" height=\"529\" \/><\/p>\n<p>Additionally, Deutsche Bank&#8217;s analysis has found that the 10-year U.S. government bond yield is at a 234 year low.\u00a0 The tailwind for gold and silver is very significant.<\/p>\n<h4>10-Year US Government Yield<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22059\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/real-yields-200-years.png\" alt=\"\" width=\"792\" height=\"386\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/real-yields-200-years.png 792w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/real-yields-200-years-300x146.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/real-yields-200-years-768x374.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/real-yields-200-years-696x339.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/real-yields-200-years-533x261.png 533w\" sizes=\"auto, (max-width: 792px) 100vw, 792px\" \/><\/p>\n<p>Diversified miners with silver exposure are well positioned in this backdrop, as strong incremental cash flow from their silver byproducts drive earnings leverage in the business.<\/p>\n<p>Sierra Metals (NYSE:SMTS, TSX:SMT) is one of the companies that will significantly benefit from higher silver prices, producing over 3.4 million ounces of silver in 2019. The company <a href=\"https:\/\/capital10x.com\/old\/sierra-cusi-restart-silver\/\">announced on July 28th<\/a> that it will restart operations at it&#8217;s Cusi Silver Mine in Mexico.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22063\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/sierra-silver.png\" alt=\"\" width=\"692\" height=\"436\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/sierra-silver.png 692w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/sierra-silver-300x189.png 300w\" sizes=\"auto, (max-width: 692px) 100vw, 692px\" \/><\/p>\n<h2>Cannabis Week in Review<\/h2>\n<p>Canadian cannabis equities had an inline week, the Horizons Marijuana ETF (HMMJ) finished ahead of the S&amp;P 500 and TSX. However cannabis equities were up significantly more earlier in the week, only to give it back as Aphria earnings didn&#8217;t spark the imagination of the sector bulls.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22067\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_chart.png\" alt=\"\" width=\"2000\" height=\"1309\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_chart.png 1565w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_chart-300x196.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_chart-1024x670.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_chart-768x503.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_chart-1536x1005.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_chart-696x456.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_chart-1392x911.png 1392w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<p>Aphria (TSX:APHA, NYSE: APHA) Q4 earnings results beat analyst revenue estimates by 3%, which was driven the retail division, revenue was up +18% y\/y for the quarter.<\/p>\n<p>The company also announced a $100 million USD at the market offering which management states will be used for expansion and general corporate purposes.<\/p>\n<p>On balance this wasn&#8217;t the blow out quarter bulls had hoped for, the stock lagged on the week however is still outperforming the index YTD.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22068\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_APHA.TO_chart.png\" alt=\"\" width=\"2000\" height=\"1269\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_APHA.TO_chart.png 1614w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_APHA.TO_chart-300x190.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_APHA.TO_chart-1024x650.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_APHA.TO_chart-768x487.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_APHA.TO_chart-1536x975.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_APHA.TO_chart-696x442.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_SPY_^TSX_APHA.TO_chart-1392x883.png 1392w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<h3>US Cannabis Stocks Breaking Out<\/h3>\n<p>We&#8217;re seeing a clear breakout in the US cannabis names relative to the Canadian names. Last week the 4 largest US cannabis companies (Trulieve, Curaleaf, Cresco, Green Thumb) were up on average 10% vs. the Horizons Marijuana Index up 2%.<\/p>\n<p>On a year-to-date basis the performance differential is far more pronounced.\u00a0 Trulieve, Green Thumb and Curaleaf are up 40.8%, 40.7% and 37.7% respectively.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22069\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_chart.png\" alt=\"\" width=\"2000\" height=\"1389\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_chart.png 1474w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_chart-300x208.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_chart-1024x711.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_chart-768x533.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_chart-1536x1067.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_chart-218x150.png 218w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_chart-696x483.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_chart-1392x967.png 1392w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_chart-100x70.png 100w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_chart-200x140.png 200w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<p>Price-to-Sales multiples are reasonable as well, ranging from 3-6x; in comparison Canopy Growth trades on 17x.\u00a0 Additionally the U.S. companies have significantly higher growth, Trulieve and Curaleaf are expected to grow sales this year by 70% and 200% respectively.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22072\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_CGC_chart-1.png\" alt=\"\" width=\"2000\" height=\"1349\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_CGC_chart-1.png 1518w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_CGC_chart-1-300x202.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_CGC_chart-1-1024x691.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_CGC_chart-1-768x518.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_CGC_chart-1-1536x1036.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_CGC_chart-1-696x469.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/08\/HMMJ.TO_TRUL.CX_CURA.CX_CL.CX_GTII.CX_CGC_chart-1-1392x939.png 1392w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A weekly review of the most important news impacting the metals and cannabis markets. This week: gold &#038; silver keep trucking &#038; US pot decoupling.<\/p>\n","protected":false},"author":7,"featured_media":15924,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1755,59],"tags":[],"class_list":{"0":"post-22057","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-growth_navigator","8":"category-metals"},"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 Navigator (August 2nd, 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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