Video & Podcast Of The Week

A Look At Rumors In The Coal Sector & Things Going On The Gold Market

This week I have a video covering rumors in the coal sector, and the other taking a deep dive into the gold market. I have been doing the math on some of the coal companies, and I think that there are several interesting opportunities in the sector. Gold is something to watch for a variety of reasons, and I think we see significantly higher gold prices at some point this decade.

Should Whitehaven Buy Daunia & Blackwater?

This video is worth watching for anyone interested in the coal sector. You can skip to the six minute mark and watch the relevant segment (it’s about 40 minutes), but it covers the rumors that Whitehaven Coal is going after BHP’s BHP 0.00%↑ Daunia and Blackwater coal mines. BHP is trying to divest their coal assets, and depending on the purchase price, it could turn out to be an absolute steal for Whitehaven.

It would approximately double their production, and rumor has it that Whitehaven is the only bidder in play. Whitehaven trades on the Australian Exchange as well as an OTC listing in the US. The US shares are trading at $4.40 as I write this, have no debt on the balance sheet, with $2.21 in cash per share on the balance sheet at the last report. I will be watching closely to see how it plays out, but Whitehaven could be a new addition to the portfolio depending on what happens with Whitehaven and their shares in coming weeks.

Should Whitehaven Buy Daunia & Blackwater?

Gold Goats n Guns w/ Vince Lanci

I listened to this one on the plane back to Boise, but if you want to listen to some of the nuances on the gold market, including futures, COMEX, and some of the mechanics that influence things behind the scenes, this podcast will be interesting for you. I could butcher it trying to explain some of the complicated pieces, but I will try to distill it down to a couple of main takeaways for readers.

One of the main takeaways I got from it is that gold continues to flow east (to China), and their gold financial market continues to gain trading volume. Gold on the Shanghai Exchange has also been trading at a significant premium to western exchanges in recent weeks, so that will be something to watch. One other takeaway is that central banks around the world continue to buy gold, which is another thing to keep an eye on. I don’t know how long it will take, but my opinion is that gold eventually goes much higher in price (you can argue it’s just the devaluation of the currency, the dollar becoming worth less). It could be this year, it could be in the next three to five years, but I don’t think we will be looking at $2000 per ounce in 2030.