The big movers today is the move down in the USD and oil
Doc joins Cory and Al to recap the markets from today. Gold garnered a buy which was mostly due to the drop in the US Dollar of almost a full half point. Oil also moved down and Cory is looking at some lower price targets.
Click download link to listen on this device: Download Show
Longer term Silver chart shows the U-Shaped recovery:
http://stockcharts.com/h-sc/ui?s=%24SILVER&p=D&yr=3&mn=0&dy=0&id=p21581155602
Could it be a giant cup and handle pattern?
Looks like it..to
$21.63…and 1/8 above
I’d love to see Silver break out above that prior neckline from 2013/2014…..
Ditto
Hi Doc, when I heard about the huge find in the Carlin by GSV, which is 20% owned by OCANF, I decided not to wait any longer for a correction in Oceana and bought a truckload at the Tues opening @3.36. Do you still expect OCANF to go below 3?
OCANF up 7%, GSV up 30% today…..I guess I don’t understand your reasoning.
GSV had already screamed up while OCANF had gone down after the announcement, so I went with OCANF. Now I wish I’d bought GSV. But OCANF is good too.
Bonzo Barzini, Oceana gold is a great investment. they get the right people working for them. I would not second guess the management at OGC.
Oceana must have smart people as they bought 20% of GSV a year ago. NEM was right next door to GSV and did nothing. Now NEM or ABX will probably wind up paying billions for GSV.
+2 Dick Tracy and Bonzo Barzini – Agreed about OceanaGold .
Weighted alpha for OCANF is 100.18
………………..for GSV is 268.95,
So I would dispute your graphical interpretations.
I’m not saying anything negative about OCANF. That was not my point, I believe it is worth owning, but when I invest I try to use the best fundamtal analysis, plus as much new information as possible. I don’t short term trade, so my analysis is aimed at week/month/year time scales. The weighted alpha gives extrapolated linear projections for relative price movement over a month-like time scale. (With zero being flat line, negative implying price drop)
One of their management personnel worked at GSV. They also have management that understands Nulegacy. I know you know because I read your posts. DT
Remember, DYODD! DT
The weighted alpha for NULGF is -6.6
Bonzo, I added some more Oceana to my position on this pull back.
Glad to hear it, Doc. Great minds think alike.
Interesting comments from Doc about putting your money into precious metals as opposed to conventionals going forward.
I still find it hard to believe that people think that many miners could double, treble or even more from this price point… but we seem to be living in scary times again where the aim appears to be to devalue the price of paper money. Scary. This has echos of Germany in the 1930s.
Hello Bob UK,
Hope all’s well.
Re: your comment “I still find it hard to believe that people think that many miners could double, treble or even more from this price point”.
Do this little exercise for yourself:
1) run some valuation numbers for the miners with (2) some metal pricing assumptions – of course, pricing assumptions gotta be higher than what pricing is now, if you believe this is what will occur.
NOOOOWWWW (then) look at the charts.
Still find it hard to believe ? 😉
What will push prices higher is liquidity (ie all those who are NOT yet in the sector).
Those who think that the whole world is now on the precious metal train and almost everybody is invested (hence we are now in a big precious metals bubble again) are (to use a word Bob Moriarty taught me recently –> Bob, PS: I love you man) dingbats.
I spoke to the CEO of a financial institution today. They manage about $1.5bn of capital (small in the grand scheme of things, I know).
Do you know what is their exposure to precious metals (bullion or stocks): the answer is a 4 letter word starting with a “Z”, ending with “O” and with “ER” in the middle.
I’m telling you: d-i-n-g-b-a-t-s.
Some people think they are (heroic ?) contrarians when they say the sector is not in a bull market yet.
Contrarian ??? If contrarian implies being pretty lonely in the market to have an opinion, I have bad news for this people… Coz I can pinpoint those “pseudo contrarians” to a bunch of people in the asset management industry who still have ZERO exposure to the metals – including some hedge fund owners I know personally – and don’t wanna hear about metals (I suppose, not yet at least….).
When prices will be HIGHER, they will finally admit this sector is in a bull.
So do you know how this is called ? It’s called being a “Tape follower”. T-a-p-e f-o-l-l-o-w-e-r.
It reminds some who on KER, were saying when gold was near $1100 that… well… when gold will be ABOVE $1400ish THEN it will be “safe” to invest in gold becoz THEN that level would mean gold is out of the bear again. I mean… seriously… Is that proper investing ??? [I repeat: tape followers]
Back to you Bob:
Sharpen your pencil or warm up your calculator, and let me/us know how the little exercise went. 😉 I promise you, you’ll be amazed at what running a few numbers and looking at a chart can do. 😉 This exercise will give you your OWN perspective on stocks instead of listening to “people” (including monkeys like myself).
Keep your head cool and don’t get too carried away though. That’s all.
Best as always,
LPG
PS: if you need some assistance with a few stocks, shoot an email to Cory/Big Al to my attention. They’ll forward it and I’ll try to assist.
LPG, what is the French word for “dingbats?”
Hello Bonzo,
Hope all’s well w. you.
I think “abruti” would be appropriate… although “imbecile” or “idiot” should also work.
But “abruti” is one notch above “imbecile” or “idiot” in my book, hence my preference in that case 😉
Best as always,
LPG
Merci, LPG. “Idiot” et “imbecile” sont the meme en Anglais et Francais. “Abruti” sounds like an Italian word. I took 3 years of French in college in the ’60’s and they never taught me the word “abruti.” I must remember it if I ever return to France or Quebec.
Bonzo,
You raised my curiosity so I did a quick search about it…
The word has latin roots: well spotted – kudos.
Best to you,
LPG
Sounds like ‘bruto’ en español. A great word, which has plenty of application in Latin America.
LPG, Bob must think markets are efficient and always represent true value!
Naaaaaa C/DFS…..
I like Bob Uk. On this one, he finds it “hard to believe”.
So instead of relying on belief, I just suggested to Bob to use a pencil/calculator to run a few numbers, and then look at some charts… Everything will come into place then. Time will take care of everything.
Again, time will take care of everything. For plenty of stocks… these past 8 mths have already taken care of the past 2.5-3yrs.
But nothing moves in a straight line – hence my comment of “Keep your head cool and don’t get too carried away though.”
Best to you and to all,
LPG
Oh, thanks for this LPG. I have just glance over it and am now going to make a cup of tea so that I can digest your thoughts more fully.
Also, check out a ratio chart like the one Matthew posted recently, of XAU to the price of gold.
http://schrts.co/Yox0a6
2-3% annual gain with full market risk isn’t where I’d have any money. Does Doc. see any potential in the VIX ETFs?
India is in monsoon season with above average rainfall, which means we will be getting a boost in buying from the wedding season better than last year, in a few months.
Question remains: Does the purchase of physical have anything to do with the paper price, which still governs?
Sparkling white wine from California is often better than champagne, at a fraction of the price!
And for the environmentalists, just think of how little transportation pollution there is if you live in Napa.
BLS Just “Revised” Away Obama’s “Fastest” Wage Growth Since The Crisis
http://www.zerohedge.com/news/2016-08-10/inconvenient-jobs-revisions-obama
Way off topic, unless you consider where some raw materials are going.
They are still basing their designs on stuff COPIED from the US. WHen they do something more original we’re in trouble. Won’t be too long, I fear.
http://sputniknews.com/asia/20160810/1044110574/china-beijing-aircraft-carrier-defense.html
They could always beat the US in any prolonged war by sheer weight of numbers!
Gold Price Support Pivot Point Resistance
1,346.81 1,329.58 1,347.09 1,364.60
Silver Price Support Pivot Point Resistance
20.1610 19.5293 20.1383 20.7473
Which seems to give silver better performance probability than gold tomorrow, at this point in time.
(Although in this interconnected world the SGE overnight performance may change things by the time I wake up)
Where do Goldseek and silver seek get their numbers from?
In the futures market:
……………….current price gain …open……..high on day low……previous close
GCY00 (Cash) 1,347.71 +1.66 1,344.32 1,347.75 1,343.58 1,346.05
The Goldseek numbers seem not always to change properly.
I know on Bloomberg when you check out the gold futures price they always seem to go to the most active month, not the current cash price in the futures market.
The current most active month being Dec16
The SGE is closed at the moment, but did so above the US, so may drag the US up.
Pt and Pd both up $4 last time I checked.
Trump can make America great again, he has the skills from working in the real world and not a fabricated world where politicians are bought and sold. DT
What h’ do you think he did, other than buy politicians, when he could?
P.s. He tried that in Scotland for his golf course. Did not work. Had to give up original plans and buy an existing house and remodel.
CFS, I don’t think you understand anything other than your own thoughts that is what happens to people who live alone for a very long time. They don’t have someone to challenge their thinking which always seems right to them. DT
A risk we all run, no? In my case, I prefer Trump to Clinton, but realize that all I know about the man is that he’s always been a tacky showboat. I hope your optimism is correct, but I really don’t understand what it’s based on.
+1 GH
Like the general, Trump’s fans do not understand economics or base their actions on consistent, sound principles.
*general PUBLIC
What difference does it make?
Hilly could have a weekieleek in her jump suit.
Well, if they want a share of GSV, they’re going to have to pry it out of cold dead hands. (Just kidding!) Does that make me politically correct? Class Trump act.
Karl, your not thinking of leaving us, just kidding. DT
https://m.youtube.com/watch?v=nzhMULhrAIg&ebc=ANyPxKq0zXK4k7JI3i9ztWOmUVKIo4PzR72bJUyu62wJHfLK4vM3f4BxVUstVumBjsx3YJelasVCgc1duil5HnxI8JW00RwZjw
Latest, plus David Morgan yesterday
nowhere to go but up
When SGE opened up I though I could see some profit taking in both gold and silver.
I’m always sensitive to volume behavior that seems to change. We may have a drop when the US opens tomorrow. The long term trend, I firmly believe, is up.
Klondikegold
10/08/16
Vancouver, British Columbia, Canada, August 10, 2016, Klondike Gold Corp. (TSX.V:KG; FRA: LBDP) (“Klondike Gold” or the “Company”) announces assays from the Violet Ridge target and updates progress of ongoing drilling at the Lone Star property near Dawson City, Yukon Territory
Crazy Jim Willie
Monte di Paschi solution
http://www.zerohedge.com/news/2016-07-31/full-details-behind-monte-paschis-€5-billion-bail-out
Anyone following NOA, North American energy, a mining services company operating in Western Canada.
A lot of increased volume, insider buying, but just down-graded by analysts and it just raised income estimates.
Either the insiders or the analysts are wrong.
Also very heavy volume in Teranga
I mentioned Teranga because I thought there was a shareholder vote pending over the Gryphon take-over, and volume tends to be flatter pending the vote result, unless there has been extraordinary price movement.
DFS – I’m a shareholder in Gryphon minerals waiting for my shares to merge with (TGZ.TO) (TGCDF) Teranga Gold. We’ve had a very lively debate about the positive potential of the merger, combined company, and related W. African miners in this chat room. Check it out:
Here’s an African Gold producer that is getting it’s mine restarted in Liberia, and almost everyone has given up on it because they were burned in the past. I never invested in them when they had the teething problems, milling problems, and Ebola virus scare in the past, but investors may have thrown out the baby with the bathwater on this one. They are back in production and producing gold again, and they are working towards 60 days of steady-state commercial production.
Are there any contrarians that believe in turn-arounds?
_________________________________________________________________________
Aureus Mining Inc Q2 2016 RESULTS AND OPERATIONAL UPDATE (AUE.TO) (ARSMF)
8 August 2016
http://aureus-mining.com/investors/news/latest-news/q2-2016-results-and-operational-update
Bulls Eye: Maya Gold & Silver
Maya Gold & Silver (MYA.V) (MYAGF)
https://www.ceo.ca/@pamplonatrader/bulls-eye-maya-gold-silver
(IVN.TO) (IVPAF) Ivanhoe Mines Announces Drill Results and Expands Kakula Discovery Zone to More Than 3 Kilometres
KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO–(Marketwired – Aug. 11, 2016)
Some impressive Silver and Gold results for (BBB.V) (BXTMF) Brixton Metals:
___________________________________________________________________
Brixton Metals Drills 1,944 g/t Ag over 3m and 4m of 4.9 g/t Au, 397 g/t Ag at its Langis Project
VANCOUVER, Aug. 11, 2016
I remain impressed on Brixton Metals management, assets, exploration work, development work, and the fact that they have both a past producing Silver Langis Mine in Ontario, and their prospective Thorn Gold/Silver property in BC in the Golden Triangle.
Check out page 5 for the key investors:
Rob McEwen 10%
Hecla owns 7%
Eric Sprott owns 5%
CMP owns 12%
Management owns 13%
http://brixtonmetals.com/cn/wp-content/uploads/2013/08/Brixton-Presentation-AUGUST-2016-.pdf
JohnK – We had a good discussion this week on (KS.V) (KLSVF) Klondike Silver.
I brought up the topic again on Tommy’s site, and got an amazing response back from a seasoned contributor DanO who used to hold land adjacent to Klondike Silver and had some great photos of their Sandon Mill. Though you may enjoy it:
(SVM.TO) (SVMLF) Silvercorp Metals Reports Q1 Results: Net Income up 73%, Cash Flows From Operations up 52% to US$20.2 Million
VANCOUVER, Aug. 11, 2016
(SMT.TO) (DBEXF) Sierra Metals updates Mineral Reserve and Resource Estimate for Yauricocha Mine, Peru
TORONTO, Aug. 11, 2016
Torex Gold Resources Announces Q2 2016 Financial and Operational Results
TORONTO, ONTARIO–(Marketwired – Aug. 11, 2016)
(PVG) Pretivm Resources Reports Second Quarter 2016 Results
VANCOUVER, BRITISH COLUMBIA–(Marketwired – Aug. 10, 2016)
Pretium has working capital of $313.8-million at Q2 end
The Canadian dollar is getting ready to start its next rally:
August 10, 2016
Avino Commences Construction of New Tailings Storage Facility
Avino Silver & Gold Mines Ltd. (ASM: TSX-V, ASM: NYSE-MKT; “Avino” or “the Company”) is pleased to announce the commencement of construction of the new Tailings Storage Facility (“TSF”) at its Avino property located in Durango, Mexico.
+1 That’s great news. This means that they are on track to be able to mine the old tailings once the new tailings storage facility is built. Nice.
DFS I responded to you about Teranga Gold up above. That TGZ room has many good thoughts….
Thanks, Ex.
Once Gryphon & Teranga finish their merger, the combined company will be set up nicely for expansion. Teranga is still undervalued compared to it’s peers like Roxgold, Asanko, and Endeavour Mining, and could become a takeover candidate themselves…. (maybe B2Gold or Semafo or Randgold would make a move on them).
BTW there is still an arbitrage value between the Gryphon shares and the Teranga shares. The conversion rate is (.169) shares of Teranga (TGCDF) for each Gryphon Minerals (GPHYF) share. I bought even more at the open this morning (I’ve done this a few times now) on the cheap, and the spread has tightened back up a bit today, but still….
AAU 8/10
ALMADEN CONFIRMS HIGH GRADE VEIN ZONE OUTSIDE OF AMENDED PEA PIT, HITS 1.0 METER OF 6.19 G/T GOLD, 1250 G/T SILVER WITHIN BROAD ZONE OF VEINING RETURNING 70.43 METERS OF 0.44 G/T GOLD AND 54 G/T SILVER
August 11th, 2016
PREMIER GOLD MINES LIMITED (“Premier” or “The Company”) (TSX:PG) is pleased to announce that ore from the Company’s 40%-owned South Arturo Mine is now being processed at Barrick’s Goldstrike Mine processing facility. South Arturo is located in the Carlin Trend, Nevada and is a joint venture between Premier and Barrick Gold Corporation’s wholly-owned subsidiary Barrick Gold Exploration Inc. (“Barrick”) with Barrick as operator.
The mine was developed on-time and on-budget. Initial gold production is expected to ramp up during Q3-2016 with attributable gold production to Premier estimated at 80,000 ounces during the current calendar year. Premier expects South Arturo will be cash flow positive for the year net of capital.
(NXE.V) (NXGEF) NexGen Energy Makes New High Grade Discovery 4.7 km Northeast of the Arrow Deposit
VANCOUVER, Aug. 11, 2016
Investors are going bat crap crazy over Nexgen in this room with over a hundred comments today on it. You’ll have to keep scanning up to older posts to even get to all the ones from today, much less this week. Goodness Gracious! (it is a world class discovery).
7 drill rigs going!
The summer 2016 program comprising 35,000 m of drilling is continuing with seven drill rigs active.
The Company has cash on hand of approximately $91 million.
Here’s a good chart somebody posted in that room:
Skeeta – Here’s some good news finally for the Aussie Uranium Miners 🙂
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No commercial contract yet but South Australia keen to export uranium to India
Sachin Parashar | TNN | Aug 8, 2016
SSRI up 12% in heavy volume. Appears to be hedge fund buying, to me.
Alibaba (BABA) took one heck of a jump in very heavy volume!
Glad to see silver in the roaring $20’s