Morning Commentary with Chris Temple
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Will the action of the Bank of England reducing interest rates affect the U.S. equity markets?
DFS I agree! The Schmucks find it much more difficult to tax deflation…so we therefore have a fetish for monetary inflation.
The debt-based Ponzi scheme monetary system requires inflation to survive and inflation (money printing) is, itself, a huge tax. The deflationists are out to lunch.
Silver Price Support Pivot Point Resistance
20.4160 20.1363 20.4853 20.8343
Gold Price Support Pivot Point Resistance
20.4160 20.1363 20.4853 20.8343
If silver does not get above its pivot price, we may see a correction or flat period.
With luck, gold or PGMs may pull its price up.
Oops
Gold. Price Support Pivot Point Resistance
1,362.01 1,347.90 1,359.24 1,370.58
TORONTO, Aug. 04, 2016 (GLOBE NEWSWIRE) — McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) is pleased to announce consolidated quarterly production of 39,555 gold equivalent ounces(1), which accounts for 27,888 ounces gold and 875,006 ounces silver. The Company reported net income of $8.4 million(2) and $21.3 million as well as earnings from mining operations of $19.3 million(3) and $38.8 million(3) for the three and six months ended June 30, 2016, respectively.
The Company generated $4.8 million and $19.5 million of net cash flow from operations for the three and six months ended June 30, 2016 respectively. During the quarter we purchased a royalty on our El Gallo property for $5.3 million which reduced our cash flow but increased our future leverage to higher gold and silver prices.
We ended the second quarter of 2016 with liquid assets of $55.7 million composed of cash of $36.7 million, precious metals of $14.3 million and marketable securities of $4.7 million. The Company has no debt. As at August 2, 2016 we had liquid assets of $51.8 million.
The tables below provide selected operating and financial results for Q2, comparative results for Q2 2015, and our production and cost guidance for full year 2016. For our SEC Form 10-Q Financial Statements and MD&A please refer to: http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000314203
Nice results for MXU.
MUX….sorry having a dyslexia day….
We may start getting changes in stock prices based on fundamentals.
MUX now has a Forward P/E = 50.0 (Yahoo finance).
Does everyone think 50 is reasonable P/E for these PM producers?
It seems like the 25 range would be more reasonable.
Hecla P/E = 25
Good point Brian. Some of these may be getting just a little ahead of themselves, but the market is forward-looking, so they must be factoring in higher metals prices.
BCA Research discusses equity highs and under owned sectors:
http://blog.bcaresearch.com/is-a-blow-off-in-global-equities-on-the-horizon
I don’t know if I trust conventional analysis and “wisdom”
Why? I believe this time it REALLY IS DIFFERENT.
Sure, it is an experiment. The central banks may be wrong in their analysis; but there again, they may not be!
There will be political problems at sometime. That is obvious, because in bubbles the haves get richer in proportion to the have-nots.
While, as Japan has proven, money-printing can continue indefinitely, the fall-out from money printing and the jealousy induced will become policitically uncomfortable.
Debt burdens at all levels are excessive, and will cause potential problems. Clearly interest rates CANNOT BE RAISED significantly without causing major problems.
This, however, merely takes away the ability of central banks to control the inflation that they are attempting to induce.
Right now they are walking a fine line keeping bubbles inflated, waiting for general inflation to develop.
That means that as long as Central Banks are prepared to bail out banks, insurance companies and pension funds there is no reason for a stock market collapse.
There is no real price discovery, so against what can a stock market be measured?
Interest rates are manipulated. Bonds wil continue to be bought by central banks, so how can they collapse?
The ultimate projection has to be that central banks or governments will increasingly own more of everything until it becomes politically untenable.
Some random thoughts….
HL making it happen!
Random but also very sensible
The move to 41.42 for oil has triggered major buying. It is now 42.05.
Silver Crest Metals on fire right now.
I think I posted this Aug 2.
SilverCrest Announces First Drill Hole Results From Las Chispas; Multiple Drill Intercepts of Greater Than 2,000 gpt AgEq*
TSX-V: SIL
Gadzooks!
The only other companies with those grades (or even close) are Alexco, Excellon, and Brixton
Impact has come close…
April 23, 2012
IMPACT Silver Intersects 1,875 g/t Silver across 1.00 meters and 115 g/t Silver across 23.39 meters at the Oscar Vein Corridor in Mexico
http://www.impactsilver.com/s/NewsReleases.asp?ReportID=594503&_Type=News-Releases&_Title=IMPACT-Silver-Intersects-1875-gt-Silver-across-1.00-meters-and-115-gt-Silve…
Thanks for sharing those hits on the Oscar Vein. Nice!
Alexco has returned far better grades a number of times…
Sep 17, 2015
Alexco Drills 5 meters (True Width) of 7,462 grams per tonne Silver (240 ounces per tonne) at Bermingham, Along with Other Significant Silver Intercepts
http://www.alexcoresource.com/s/news.asp?ReportID=723173
Holy crapatoli.
Another knife attack in london includes a usa woman one dead 5 injured. The spin out of control in the turkish government, is also troubleing . Makes gold and silver seem like good investments. My gold and silver stocks soaring again today . best of health and wealth to you all S
I think the attacker was just crazy though, not Islamic.
Russell square is a pretty nice area though, if I remember correctly, fairly close to US Embassy.
I marked Don Corleone’s words as he advised and he was wrong:
Gold:
Make no mistake, there is collusion between all the central banks, and they are trying to induce inflation, because they have run out of overt taxation capability.
Inflation must eventually happen, because of all the money-printing.
BUT will it be controllable when it arrives? I suspect not.