Uranium continues to creep higher as spot price rose to $33.50 thanks in part to the SPUT (Sprott Physical Uranium Trust) buying more of the physical commodity on the open market.
Today we sold calls / bought Energy Fuels ($UUUU), bought more Denison Mines ($DNN), sold calls / bought Metalla Royalty and Streaming ($MTA), sold calls / bought Innovio Pharmaceuticals ($INO), sold calls / bought Riot Blockchain ($RIOT) and sold calls / bought Canaan ($CAN).
Was it the Uranium? Was it the Vanadium? Was it the Rare Earth Elements? We don’t know exactly, but what a day for Energy Fuels. Things seem to be looking up for this provider of elements needed to power the 21st century. Perhaps thats why it is our largest kinetic rocket.
Sandstorm Gold is a gold royalty company that we have liked for quite some time. We have been hesitant to take a position recently because of the stock’s impressive run up. However, now that the stock price has pulled back to the low $6 range we are jumping in. Sandstorm Gold is our newest kinetic rocket.
I read recently that gold royalty companies perform well later in gold bull markets compared to the miners. When gold rises in a bull market, so does the price of other commodities that are required to mine gold – such as oil. The differentiator for a royalty company vs a miner is that their costs are fixed and not variable – since their per ounce price is set when negotiating the royalty. So, when commodity prices increase, royalty company margins are protected.
We are excited to have Sandstorm as a new addition to our kinetic rocket portfolio.
Crypto is surging today as Bitcoin has risen to $38,176. Our favorite way to play the crypto market is with Canaan, Inc. ($CAN) – a maker of super computers like the AvalonMiner 1246. Canaan, Inc. is one of our new kinetic rockets because from Bitcoin to Dogecoin they all need to be mined and what better way to do it than with a supercomputer.
After yesterdays craziness with the #silversqueeze things are settling back to normal in the silver and uranium markets. Ho-hum. And what have we here? Is crypto catching a bid? Bitcoin is at $34,964 as I type this – interesting… we did see Canaan ($CAN) one of our new kinetic rockets and our crypto play move higher.
We’ve been huge fans of silver for years now, so it goes without saying that we were very intrigued by #silversqueeze trending on Twitter over the weekend.
Today during my lunch break I went down to my local coin shop to see what all the fuss was about. The parking lot was full, but there were only a few people in line outside the building. I called the phone number listed on the sign and eventually got to a live voice. She took my name and phone number, and I received a text a few seconds later. I was #37 in line and my estimated wait time was 4.5 hours!
OK, things were getting a bit more real. I went to McDonalds for some lunch, and then went home and jumped on Apmex.com. Silver Eagles were selling for $41 each – a $12 premium over spot!
Ultimately I decided to skip the line at the local shop and buy a few online for an outrageous premium.
If you are wondering if the #silversqueeze is real, it is.
Denison Mines, one of our kinetic rockets, reported some drill results today, including some new high grade uranium mineralization four kilometers northwest of the Phoenix deposit. Drill hole WR-741AD2 also contained some high grade nickel. Here is the full press release:
Sometimes you just have to buy a stock because its so unloved. Such is the case with DHT Holdings Inc. ($DHT) our newest kinetic rocket. It does pay a dividend, and we are happy to steadily accumulate from here. Tankers may not set sail for awhile, so we are hopping onboard the ship to be ready when they do.
Well, we did it. We finally entered the crypto space by purchasing a small amount of Canaan Inc. ($CAN) on the Nasdaq) today – a new kinetic rocket! Canaan Inc. is a Chinese company that builds crypto mining rigs – theirs is called the Avalon Immersion Cooling Miner.
The price of bitcoin has rocketed lately and this has caused a lot of buzz around blockchain / cryptocurrencies. On Saturday I was listening to The Market Huddle and Lynn Alden who I believe is one of the most knowledgeable experts on bitcoin right now. The demand for cryptocurrencies is increasing due to macroeconomic forces like the dollar’s perceived value decreasing and slowly losing its status as the word’s reserve currency.
Due to the nature of the hash behind bitcoin, mining the coins becomes more energy intensive with each coin mined. So, as bitcoin and other blockchain applications continue to grow in popularity, so will the demand for these sorts of mining tools.