What is driving gold and where is the price heading?
Doc chats with us today about gold and where he sees the price moving. There are many different factors to consider that can drive gold but a couple standout in our minds.
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I do recall that, Gabriel.
http://www.archives.gov/federal-register/codification/executive-order/12631.html
The only limitation is that too much printing destroys the value of the currency, hence inflation or hyperinflation.
We, the US, and to some extent the whole world, are slowly spiralling downwards in currency values, and having inflation.
The trick is not to print too fast, or give the perception of deliberate over-weakness in the currency, because then money exits that currency (e.g. Zimbabwe or Argentina) and true hyper-inflation (currency destruction) happens.
Thanks for this insight, CFS!
Doc, I am torn. Gary Savage says to buy gold stocks now for a 2 month rally but you said SLW was going below 10 and TGD might drop to 20 cents. You are both pretty sharp, so I don’t know what to do.
When in doubt ……don’t
BB; it probably has to do with time frame—-could we see more move up in the PM stocks—-yes; will it be the bottom for a number of these stocks—-IMO, no. In my view, we could see a 2-4 week rally in the PM stocks but I don’t believe it’ll be tremendously strong. After that I believe we go lower again. I continue to believe SLW sees 10—-I see nothing on the technicals at this point in time that tells me otherwise. The odds are against a huge move up.
Good comments Doc. I’m looking at things in a similar way with a muted counter-trend move up in PMs and the miners for the next few weeks and then a move back down to test the lows (staying within that falling wedge pattern).
Since their may be a little more upside left in the market I nibbled at Argonaut Gold again today at $1.12 after selling it earlier in the week. If PMs get hit again tomorrow, then I may average down and pick up a few more of the Gold miners again. I did hold onto a few miners like Americas Silver Corp, Rye Patch, Exeter, Platinum Group Metals, Mandalay Resources, Jaguar Mining, Golden Queen, some of my Sandstorm Gold, some SIL & partial SWC postions. I also started a small position in Sierra Metals yesterday. This week I sold my shares in Hecla, Coeur, Argonaut, Yamana, Romarco, Silvercrest, Lake Shore Gold, a big portion of my Sandstorm Gold, a big portion of SIL, most of my Stillwater Mining, and all my shares of JNUG (too early I might add). I’m thinking of going back in on Lake Shore Gold, Coeur, and possibly a few others later today or tomorrow if we pull back a little further. I’ve been active in other sectors as well, so it’s been a busy week.
(Update) Sandstorm Gold Acquires Another 2% Of Aurico Metals
Aug. 13, 2015
Summary
-SAND purchases an aggregate of 2,362,401 common shares of AuRico Metals Inc., representing approximately 2% of the outstanding common shares of AuRico.
-Upon completion, SAND will own an aggregate of 14,174,402 AuRico Shares, or 12% of the outstanding AuRico Shares.
I’ll be adding back to my SAND position as I like the leadership of Nolan Watson and the acquisitions Sandstorm has made over the last year.
I did average down today on Argonaut Gold (ARNGF), expecting a further bounce in PMs next week. My average cost basis is now $1.06.
Picked up more Sandstorm Gold (SAND)today at $2.82. Average cost basis now at $2.64 (it raised it some, but it’s a bigger position if we get a further rally in PMs next week). Really I’m thrilled to pick up Sandstorm any time it is under $3. I could see it testing $3.32-$3.33 on good breakout, and then its likely capped at next resistance at $3.72 (Jan 20th peak from earlier this year).
Silvercorp Reports Q1 Fiscal 2016 Financial And Operating Results
VANCOUVER, British Columbia – August 13, 2015
FIRST QUARTER HIGHLIGHTS
-Silver sales of 1.4 million ounces, lead sales of 14.9 million pounds, and zinc sales of 4.6 million pounds, up 22%, 29%, and 276% from the prior year quarter;
-Sales of $32.2 million, up 5% from the prior year quarter despite a 17% and 8% decline in the average selling price of silver and lead from prior year period;
-Gross margin of 36% compared with 51% in the prior year period;
-Cash flows from operations of $13.3 million, or $0.08 per share;
-Net income attributable to equity shareholders of $2.3 million, or $0.01 per share;
-Cash cost per ounce of silver, net of by-product credits, of $1.39, compared to $0.46 in the prior year quarter; and
-All-in sustaining cost per ounce of silver, net of by-product credits, of $10.94, compared to $11.88 in the prior year quarter.
-Ended the quarter with $74.9 million in cash and short term investments.
http://www.silvercorpmetals.com/news/index.php?&content_id=484
Thanks, Doc. Now I’ll have to decide if I want to be a 2 month trader when I am more of a long term guy.
BB, I bought some last week and will look at what happens the next 2 days—that’ll tell me how strong this move will be and about how long. I don’t plan on holding long term with the ones bought last week. There’ll be plenty of chances in the future for lower prices yet.
In a late stage bull market do you get a 10% correction? There were no big corrections leading into the October 2007 top (from memory). Complacency and lack of fear are evident at a top. No conspiracy here IMO.
Hi Karl345345,
A 10% correction is certainly possibly, particularly give the control of the FED. (imho)
The American sheeple are asleep………..and do not get the worldly news…..
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Here’s a treat for y’all:
FranSix – thanks for the Marc Faber treat.
Oil is finally in the $42-$38 range I’ve been waiting on all year. I’d like to see it pull back to the tighter range of $40-$38 and then I may jump back into this space for a move back up.
Crude Oil $41.80 -0.43
B2Gold Reports Second Quarter 2015 Results.
Delivers Record Gold Production with Cash Operating Costs $71 Per Ounce Below Budget.
Vancouver, August 13, 2015
SilverCrest Announces Q2, 2015 Financial Results; Operating Cash Flow of $8.1 million ($0.07/share), Earnings of $3.86 million ($0.03/share), Guidance for Cash Cost/AgEq Ounce Reduced
VANCOUVER, Aug. 12, 2015
Paul Volcker, who is seen as the great hero central banker, actually expressed in his memoirs just how much control the central bankers have, and he actually regretted not pushing the price of gold down.