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An in depth look at Gold and GDX

Big Al
August 15, 2016

Doc joins us to wrap up the market in terms of gold and the GDX. Cory and Doc share their technical outlook in the short term on how they think these markets will move. To follow along be sure to pull up the gold and GDX charts.

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Discussion
54 Comments
    Aug 15, 2016 15:42 PM

    Conventionals are scary. They have been scary for a long time but, boy, you have to have nerves of steel to be buying conventionals now IMPO.

    DFS
    Aug 15, 2016 15:49 PM

    But the Central banks have got your back.

    Protect with trailing stops and watch rotations between sectors, which is occurring.

    DFS
    Aug 15, 2016 15:52 PM

    Besides Bob UK, where else is there to go?
    Rick has been right so far, but I think bonds are relying on the greater fool theory now.

      Aug 15, 2016 15:59 PM

      No where else to go – does not mean that I like it though.

    Aug 15, 2016 15:53 PM

    Doc/ Cory/ Al…Could you three Gents follow this up tomorrow. On silver, Thanks.

    Aug 15, 2016 15:06 PM

    Good show

    DFS
    Aug 15, 2016 15:12 PM

    Another possible reason we might not have had a correction in precious metals is the SGE.
    Right now the SGE gold is up at $1342 and silver has held above $20 all but for a few minutes last week, and is around $20.30 last time I checked.

      Aug 15, 2016 15:21 PM

      DFS, I posted an infographic under Chris Temple…Did you see it. China & Gold.

        DFS
        Aug 15, 2016 15:11 PM

        Yes is it on Goldseek.
        I did not know the building they were going to use for the SGE,
        But it turns out I stood outside that very building a couple of years ago waiting for my son to turn up. That area of Shanghai uses so many fluorescent lights on the
        Outside of their buildings, it’s bright! Even many of the boats going around have
        All different fluorescents at night. I’ll probably never make it back there, I don’t think my body could take the flight. Even the 11 hours from California to England on a Boeing 787 is getting hard.

      Aug 15, 2016 15:01 PM

      And we especially won’t have a correction in PMs if the central banks and Sorrows put estrogen in the USD! 🙂

        DFS
        Aug 15, 2016 15:34 PM

        Good one, my iPad winked at it.

          Aug 15, 2016 15:48 PM

          I tell ya, DFS, I think there is a little gremlin in every one of these electronic gizmos just to make our life hell.

          I can’t even begin to tell you the problems I have had. Long ago when at university I relied on a spell checker after I accidentally typed gook intending to type good. The thing that made this mistake so dreadful was that the recipient was Asian! Prior to this I had disabled the spell checker because it always turned on auto-correct. (And turning off auto-correct would turn off the spell checker.)

          After that I relied too much on the spell checker and auto-correct. I took a class from a professor named Sutton and auto correct changed it to Satan. I did not catch that before turning in the paper!

    Aug 15, 2016 15:36 PM

    Mexus Gold US (MXSG)
    $0.0784 up $ 0.0124 (18.79% gain)

    Mexus completes installation of liner on heap leach pad
    08/15/2016

    CARSON CITY, Nev., August 15st, 2016 (GLOBE NEWSWIRE) — Mexus Gold US (OTCQB:MXSG) is pleased to announce that the liner installation on its heap leach pad is now complete. The next step in the process is to place the filtration material on the pad. Mexus expects this step to be completed by the 19that which time ore can begin to be placed on the pad.

    http://www.mexusgoldus.com/news.php

      Aug 15, 2016 15:14 PM

      I’ve mentioned a few times that along with Jaguar Mining, Aurcana, and Nicola Mining…..that Luna Gold (LGC) (LGCUF) was going to be a great turn-around story. A few people mocked Luna Gold, and mentioned what a mess they were for Sandstorm gold, and then threw the baby out with the bath water (typical herd behavior).

      Sandstorm (SSL) (SAND) gave Luna a chance to regroup, and Sandstorm has already turned a profit on the overall deal. Over the course of 2016 Luna Gold has been putting things back in order, and thus far they are a 10 bagger from the Jan lows earlier this year. One thing that caught my attention on this latest press release is that Luna has a very solid board with many of the old True Gold executives.

      _____________________________________________________________________

      Luna Gold Announces Senior Management Changes and Financing
      VANCOUVER, BC–(Marketwired – August 15, 2016)

      The new Luna senior management team includes:

      – Christian Milau, CEO and Director – previously CEO and Director of True Gold Mining Inc., CFO of Endeavour Mining Corp., Treasurer of New Gold Inc. and VP Corporate Finance at BNP Paribas and Deloitte
      – David Laing, COO and Director – previously COO of True Gold, COO of Quintana Resources Capital, EVP of Endeavour Mining, SVP of Endeavour Financial, President of MRDI USA and also roles at Billiton and Bema Gold Corp.
      – Peter Hardie, CFO – previously CFO of True Gold and VP Finance and CFO of Nevsun Resources Ltd.
      – Scott Heffernan, EVP Exploration – previously VP Exploration of True Gold, VP Exploration of Wealth Minerals Ltd. and Exploration Manager (Argentina) of Cardero Resource Corporation
      – Sebastian D’Amici, SVP Finance – previously VP Finance of True Gold, and also senior finance and accounting roles with CHC Helicopters, Clarus Securities and PricewaterhouseCoopers

      http://www.marketwired.com/press-release/luna-gold-announces-senior-management-changes-and-financing-tsx-lgc-2150581.htm

        Aug 15, 2016 15:18 PM

        Bulls Eye: Charts to Buy 8/15 – 8/19
        by @PamplonaTrader on August 15, 2016

        https://www.ceo.ca/@pamplonatrader/bulls-eye-charts-to-buy-815-819

          Aug 15, 2016 15:42 PM

          Bear Creek Mining Corporation (TSX-V: BCM) | Stock News Now
          Published on Aug 15, 2016

          SNNLive spoke with Catherine McLeod-Seltzer, Chairman of Bear Creek Mining Corporation (TSX-V: BCM) at the Sprott Natural Resource Symposium 2016 in Vancouver, BC.

          https://www.youtube.com/watch?v=edgMgZUyjX8

            Aug 15, 2016 15:44 PM

            Cyprium Mining (GUG) (DFCPF) – New Silver mine coming into production…..
            InvestingNews – Published on Aug 15, 2016

            https://www.youtube.com/watch?v=wLhHabll5yw

            Aug 15, 2016 15:10 PM

            Just as a reminder Cyprium Mining (CUG) (DFCPF) is neighbor to MAG Silver (MAG).

          Aug 15, 2016 15:28 PM

          Rob McEwen: $5,000 Gold Price is 4 Years Away
          Published on Aug 12, 2016

          Gold prices have risen drastically so far in 2016, but Rob McEwen, founder of Goldcorp (GG) and chairman and CEO of McEwen Mining (MUX), believes that there’s more in store.

          McEwen believes that gold prices could challenge $2,000 by the end of the year, hitting $5,000 gold in four years. “We have a point right now where gold’s moving in all currencies just like what happened at the beginning of 2005,” he said. “I think we are in the beginning of a new gold run.”

          https://www.youtube.com/watch?v=MQwjWdEXxxg

            LPG
            Aug 15, 2016 15:40 PM

            If his $5,000 gold price target occurs within 4yrs… I will….
            I will…
            let’s make it simple: I’ll just have some bubbly w. the popcorn. 🙂
            It will be the gold bulls trademark cocktail: “da bubblycorn.” 🙂

            Joke aside….$5k in 4yrs…I wouldn’t be on that. But I don’t mind being proven wrong on that one.

            My 2cts.

            LPG

            Aug 15, 2016 15:53 PM

            Ha! I’m with ya on “da bubblycorn,” if gold ever got up that high. I’m not sure where gold will go, but I feell very confident in Gold taking out the old high near $1921 at one point in this bull run over the next 4-5 years.

            Personally, I’d be thrilled with Gold taking out the $1434 prior peak by year end, and for it to take out the prior trough of $1535 on a closing basis in 2017.

            http://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&st=2008-08-01&en=(today)&id=p98377963582

            Aug 15, 2016 15:56 PM

            BTW – I posted that video of Rob because with a flash title like that and a mining legend, people notice…..

            However, what I thought was the most interesting discussion on the video was the interest he is taking in a number of Jr explorers, and how the Golden Predator (GPY) (NTGSF) finance deal happened. 😉

            Aug 15, 2016 15:06 PM

            Golden Predator (GPY) (NTGSF) – Year To Date in 2016

            http://stockcharts.com/h-sc/ui?s=GPY.V&p=D&st=2016-01-01&en=(today)&id=p63724590013

            Aug 15, 2016 15:07 PM

            Yeup…… that is what a 10 bagger looks like folks….. 😮

        Aug 15, 2016 15:46 PM

        Mariana Resources Ltd. (TSX-V: MRA) (AIM: MARL) | Stock News Now
        Published on Aug 15, 2016

        SNNLive spoke with Glen Parsons, CEO of Mariana Resources Ltd. (TSX-V: MRA) (AIM: MARL) at the Sprott Natural Resource Symposium 2016 in Vancouver, BC.

        https://www.youtube.com/watch?v=Gj2d0D5DoU8

          Aug 15, 2016 15:52 PM

          Brent Cook, Exploration Insights – Economic Deposits with Buyout Potential | Stock News Now
          Published on Aug 11, 2016

          In this Wall Street View, our host caught up with Brent Cook, Editor/Geologist of Exploration Insights at the Sprott Natural Resource Symposium 2016 in Vancouver, BC.

          https://www.youtube.com/watch?v=51sHVUuJWG0

        Aug 16, 2016 16:03 AM

        Excelsior, thanks for your posts. I like LGCUF I think in a few years it will be 10x. I also like these TGD, GSS, VGZ, USAPF, BAA, what is your take?

          Aug 16, 2016 16:10 PM

          Thanks Cindy,

          (LGCUF) Luna Gold already is about a 10-bagger this year, but yes I could see it going up another 10 x over the next few years.

          Timmons Gold (TGD) has been solid performer, and turned things around surprising many people this year. Vista Gold (VGZ) is one of the largest development stories for Gold in Australia and is one I’m watching closely. Americas Silver Corp (USAPF) – I’m a big fan, and have been trading in an out of their shares since they were Scorpio Silver, and then US Silver & Gold, and now Americas Silver. I have a nice core position in them and still feel they are greatly undervalued compared to their producing peers, and considering their exploration upside. As for Banro (BAA) I am aware of it, and it gets discussed often on ceo.ca but I haven’t dug into it very deeply, (but maybe I need to 🙂 )

          May your investments be very prosperous.

          Aug 16, 2016 16:45 AM

          EX, an comments on Avino’s earnings repost?

            Aug 16, 2016 16:22 AM

            Hi Marty.

            Well, I thought it was fine, but anticipate next quarters revenues and cashflows to be higher (and more impressive) because their average selling price for Silver should be about $2-$3 highers, and Gold should be about $75-$100 per ounce higher. Avino will also have worked through most of the low grade ore and will be tapping into higher grade ore moving forward.

            I’ll also need to dig in a bit deeper to find out why their AISC rose year or year, and it may just simply be the lower production volumes for the quarter. Also, what they are spending on ramping up to commercial production at the Avino mine may have played a factor.

            Keep in mind that they just announced a positive development in commissioning & builiding the new tailings facility, (so that they can mine and process the ore in the old tailings). That will give them 5 years of increased production and drive the costs down further moving forward. I would anticipate that starting in 2017.

            SECOND QUARTER 2016 HIGHLIGHTS

            – Declared Commercial Production at the Avino Mine
            – Generated revenues of $11.9 million from the sale concentrates, a 102% increase from the second quarter of 2015
            – Mine operating income amounted to $3.2 million, a 36% increase compared to the second quarter of 2015
            – Total equity reached $58.8 million, a 20% increase compared to the second quarter of 2015
            – Net income (loss) after taxes amounted to $(450,087)
            – Produced 629,780 silver equivalent ounces, including 380,620 ounces of silver, 1,509 ounces of gold and 1,054,935 pounds of copper
            – Consolidated all-in sustaining cost (“AISC”)2 was $14.51 (US$11.27) per payable silver equivalent ounce, a 247% increase compared to $11.72 or (US$9.53) per ounce in the second quarter of 2015
            – Average realized selling prices for silver and gold were US$16.99 and US$1,262 per ounce respectively
            – Cash and cash equivalents of $10.7 million were on hand at the end of the quarter

            http://www.avino.com/s/news.asp?ReportID=760430

    Aug 15, 2016 15:03 PM

    Deutsche Bank Discloses Equity Positions in Fifty Gold and Silver Mining Companies.

    Top Three Holdings: Newmont Mining ($278.7 million) Barricks ($240.5 million) and Gold Corp ($196 million)

    Deutsche Bank Gold and Silver Mining Holdings are Twice the Size of the Swiss National Bank’s Mining Holdings

    Other Deutsche Bank holdings include First Majestic ($44.9 million) and Sprott’s Physical Gold and Silver Funds ($268K)

    Please book mark this page as further information about prior and subsequent Deutsche Bank SEC filings will be added.

    https://smaulgld.com/deutsche-bank-discloses-2-billion-gold-silver-mining-share-portfolio/

      Aug 15, 2016 15:44 PM

      DB buying discounted shares while admitting manipulation of the gold and silver markets. Then they report their multi billions of mining shares to the SEC who falls asleep and works out a fine for metals manipulation. Justice Dept does absolutely nothing as usual and further validates they have sold out to the elites.

        LPG
        Aug 15, 2016 15:10 PM

        David,
        I think you’re totally mixing things up on that one.
        My 2cts.
        LPG

      LPG
      Aug 15, 2016 15:33 PM

      Markedtofuture,

      DB owns these positions via their asset management units – ie it’s mostly NOT their money.

      Per your link:
      “Today German banking giant, Deutsche Bank AG (DB) filed its Form 13-F with the United States Securities and Exchange Commission. In that filing, DB disclosed that as of June 30, 2016, ITS INVESTMENT MANAGEMENT AFFILIATES* ”

      ===> ” * Deutsche Bank Trust Co Americas, BT ALEX BROWN INC, Deutsche Asset Management Investmentgesellshaft, DEUTSCHE INVESTMENT MANAGEMENT AMERICAS INC,RREEF AMERICA LLC, Deutsche Bank (Suisse) SA,DEUTSCHE BANK NATIONAL TRUST CO, Deutsche Bank Trust CO Delaware, Deutsche Bank Trust Company, National Association, Oppenheim Asset Management Services S.a.r.l, Abbey Life Assurance Co Ltd.,Deutsche Asset Management (UK) Ltd ”

      My 2cts.

      LPG

        Aug 15, 2016 15:48 PM

        LPG,
        Are you saying that DB is a solvent bank? Just wondering.

          LPG
          Aug 15, 2016 15:12 PM

          Hello Chartster,
          Hope all’s well.
          I don’t think that was the point of my comment – at all …
          Best to you,
          LPG

            Aug 15, 2016 15:01 PM

            LPG,
            I was taken back from the comment a bit. As the DB affiliates and asset management companies are Duetsche bank. I guess I missed your point.

            Either you are up late, or an early bird…

            Best to You

            LPG
            Aug 16, 2016 16:51 PM

            Chartster,

            When someone by units in a fund managed by Deutsche Bank, who owns the assets? the buyer or Deutsche ?

            If the funds goes up 20% in value, does Deutsche make a 20% profit or the unit holder ?

            I reiterate my views: most of the assets in these funds do not belong to Deutsche.
            So Deutsche doesn’t own $2bn worth of PM stocks. Deutsche owns $2bn of PM stocks in their FUNDS on behalf of their clients. [“big” difference]

            My 2cts.

            Best to you,

            LPG

    Aug 15, 2016 15:19 PM

    Wow! Thanks for that article, Markedtofuture!

    Aug 15, 2016 15:27 PM

    DB is ..so…toast..

      Aug 15, 2016 15:47 PM

      DB is a derivative nightmare. There seems to be information popping out of the woodwork all over the place lately. They make a great case for building 7 in this video.

      http://yournewswire.com/rt-claims-911-was-an-inside-job/

        GH
        Aug 16, 2016 16:58 AM

        I get the impression most people still don’t even know about building 7. NIST’s claim it was office fires is absurd–there is simply no way a freefall collapse, visually indistinguishable from a demolition, could be due to office fires.

        Outside of the US, my sense is that most intelligent people believe 9/11 was self-inflicted.

    Aug 16, 2016 16:48 AM

    PRETIUM -More BONANZA grade oz/ton results – 30 oz – 1200 oz / ton. NOTE OZ/ton, not grams/ton. At least 47,000,000 oz at the Valley of the Kngs.Gotta be in it to win it!

    Aug 16, 2016 16:09 AM

    Good downward action in Gold this morning, in the good old USA. Wash,rinse ,repeat.

      Aug 16, 2016 16:14 AM

      Industrial production and capacity utilization report,beat “market” expectations. Really?

      Aug 16, 2016 16:31 AM

      Don’t forget to tell Avi there was no Au/Ag manipulation Friday @ noon-4, or the opening this morning

        Aug 16, 2016 16:36 AM

        Ah Very Interesting….AVI 🙂

      Aug 16, 2016 16:45 AM

      US Industrial Production Slumps To Longest Non-Recessionary Contraction Is(in) History.. zerohedge

        Aug 16, 2016 16:48 AM

        Housing jumps on rental units….from ownership to owe ership

    DFS
    Aug 16, 2016 16:26 AM

    Market wasn’t expecting much!

    DFS
    Aug 16, 2016 16:07 AM

    I thought they found some silver from somewhere, but rumor has it China did a bit of shorting too.