{"id":22252,"date":"2020-09-27T12:54:35","date_gmt":"2020-09-27T16:54:35","guid":{"rendered":"https:\/\/capital10x.com\/old\/?p=22252"},"modified":"2020-11-26T09:42:47","modified_gmt":"2020-11-26T14:42:47","slug":"markets-metals-navigator-september-27-2020","status":"publish","type":"post","link":"https:\/\/capital10x.com\/old\/markets-metals-navigator-september-27-2020\/","title":{"rendered":"Markets & Metals Navigator (September 27, 2020)"},"content":{"rendered":"

Gold & Silver Retreat in the face of US Dollar Strength<\/h2>\n

Gold and silver had their worst weekly setback since March of this year, with gold off -4.5% and silver off -14.5%.\u00a0 Prior to this week’s selloff precious metals have traded very well through a weak US stock market tape and high associated volatility.<\/p>\n

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The recent strength of the US dollar has been a headwind for gold. Gold has a high correlation to both real interest rates and the US dollar.<\/p>\n

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We believe the US dollar can show glimmers of strength but can never shake the structural challenges of debt and money printing. This is a problem for all fiat currencies.<\/p>\n

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Interest Rates in Perspective – 700 years!<\/h3>\n

If there’s one chart that encapsulates the war on savers it’s this one, 700 years of falling real interest rates.\u00a0 As a reminder, high interest rates deter investors from owning gold, and low rates incentive gold ownership (smaller opportunity cost).<\/p>\n

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Copper Remains Resilient: First Quantum and Sierra Metals Offer Attractive Value<\/h2>\n

On August 7th Capital 10X published\u00a0\u201cCopper \u2013 The Catch-Up Inflation Trade\u201d<\/a>, where we identified copper as the undervalued inflation hedge relative to gold and silver.<\/p>\n

We published an update to the original report last week<\/a>, since we made the call on August 7th copper has meaningfully outperformed both gold and silver.<\/p>\n

In the update report we highlighted First Quantum (TSX:FM) and Sierra Metals (NYSE:SMTS; TSX:SMT) as the two copper miners trading at the most attractive valuations. Both stocks trade at a deep discount on price-to-cashflow and price-to-sales metrics vs. Lundin Mining (TSX:LUN) and Freeport (NYSE:FCX).<\/p>\n

https:\/\/capital10x.com\/old\/wp-content\/uploads\/2020\/09\/2020-08-06-Copper-catch-up-trade-FNL.mp4<\/a><\/video><\/div>\n

Capital 10X Interviews Kim Rivers, CEO of Trulieve<\/h1>\n

Capital 10X had the pleasure of sitting down with Kim Rivers, CEO of Trulieve (CSX:TRUL) to discuss their latest medical cannabis geographic expansion into Pennsylvania through the acquisitions of PurePenn and Solevo.<\/p>\n

Kim also discusses opportunities for further growth and differentiates between recreational and medical markets. She also helps us understand the drivers that have enabled Trulieve to have best-in-class returns on equity in the Cannabis Industry.<\/p>\n