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September is looking to be down across the board

Cory
September 1, 2016

Doc is back with us today so we decide to take a look at a number of markets. We start with gold and gold stocks as judged by the GDX. We then move on to oil and the US markets. The overwhelming take home is a September that will be down. Doc shares the levels he is watching and expecting for all the markets mentioned.

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Discussion
27 Comments
    Sep 01, 2016 01:12 AM

    I am getting HAMMERED in a bad way on UWTI, ASM, and NAT. Not getting beat up too much on USLV. I have 1/2 a position in each for day trades but it did not pan out. Watching the monthly charts for reversals.

      Sep 01, 2016 01:17 AM

      Ask Doc if it’s time to buy NAT. He used to own it and may still.

      Sep 01, 2016 01:18 AM

      Jason you could have bought some ASM in the high $1.90’s today and and sold some into the strength around $2.08 currently to lower your cost basis. Just a thought….

        Sep 01, 2016 01:21 AM

        I hope to become as good as Marty who snagged some ASM at $1.93. Nice!

          Sep 01, 2016 01:06 PM

          ASM now at $2.12

            Sep 02, 2016 02:30 AM

            Doc – I always appreciate your market insights. Good luck with the move BTW.

    Sep 01, 2016 01:16 AM

    Doc, I hope you saw the article in the Wed. WSJ about U. of Michigan’s 7 fullbacks. Michigan has more fullbacks than all the other Big 10 schools combined, as many don’t have even one. I remember when Texas had the great fullback Steve Wooster and won 30 straight games with the wishbone that was invented to make use of his talents.

      Tom
      Sep 01, 2016 01:31 PM

      Looks like the Huskers might be the Big 10 sleeper this year.

    RB
    Sep 01, 2016 01:31 AM

    What is Doc’s opinion about 1X ETF gold bear fund to play the downdraft in gold miners? what would be a good long-term method? Thanks.

    Sep 01, 2016 01:40 PM

    Where to put some money?? I took some today and restocked the pantry & freezer somewhat. Albertson’s bought out a local grocer and they’re dumping all the inventory, mostly @50% off. Good comments today! Thanks.

      Sep 01, 2016 01:25 PM

      It’s hard to beat a risk-free doubling of your money — which is what that sale amounts to.

        Sep 01, 2016 01:12 PM

        I went grocery shopping last night and dropped $550 in one heaping cart. Something tells me that I didn’t get as good of a deal as Silverdollar did. It was $700 worth before the discount card and coupons, so I saved $150. The cashier seemed impressed, but I wasn’t feeling like food was in a deflationary environment….

    Sep 01, 2016 01:31 PM

    You guys have agreeably been calling gold and silver down all year. Eventually, I expect you will make the right call.

    Sep 01, 2016 01:10 PM

    With all the chatter of late about ASM, I jumped in today at $1.97. I may be wrong, but I don’t see a lot of downside from here.

      Sep 01, 2016 01:01 PM

      Karl – I follow Avino closely, like a number of investors here, and I know Chris Temple, Jay Taylor, and the Gwen Preston/Scott Gibson/Eric Coffin/Brent Cook/Brien Lundin consortium are fans as well, so you are in good company.

      They have 3 Active Projects
      1.San Gonzalo Mine (In Production)
      2.Avino Mine (Resumed full scale processing Jan 1, 2015)
      3.Oxide Tailings Resource (PEA completed in 2012)

      On that # 3 the Tailings Resource – they are going to add 5 years of production into the mix from their old tailings, once they finish building out the new tailings and just announced the progress on getting the new one permitted and commissioned.

      ____________________________________________________________________________

      Avino Commences Construction of New Tailings Storage Facility
      August 10, 2016

      http://www.avino.com/s/news.asp?ReportID=759868

        Sep 01, 2016 01:05 PM

        In addition to their 2 active mines and their Oxide tailings (like having a 3rd small mine), they also have the Bralorne property (and they have a fair bit of experience with it in past chapters, spun it out a while ago, and just brought it back into the fold in the last 2 years, so it will be their next expansion project and it’s a prior producing mine of some significance.

        Click on some of the photos and expansion properties on Bralorne for more info:

        http://www.avino.com/s/bralorne.asp

          Sep 01, 2016 01:09 PM

          Another game changer for Avino is when they set up their offtake agreement with Samsung.

          The fact that Samsung interviewed and researched a number of different production mines, and picked Avino Silver & Gold should speak volumes about their future!

          Here is a brief description of their partnership from page 20 of their Corporate Presentation:

          __________________________________________________________________________

          In July 2015, Avino signed a term facility agreement with Samsung C&T U.K. Limited. For the sale of Avino Mine concentrate.

          Terms of the Agreement:

          Avino will sell Avino Mine concentrates on an exclusive basis to Samsung for a period of 36 months
          Samsung advanced Avino US$10 million in August 2015 whichwill be repaid with interest using Avino’sfuture shipments of concentrates; Avino made an initial repayment of US$666,666 in June 2016, and will make remaining repayments with interest in 14 equal monthly instalments commencing June 2017 and ending July 2018
          Samsung will pay for the concentrates at prevailing metal prices for copper, silver and gold, less treatment, refining, shipping and insurance charges
          Interest accrues at 3-month $US LIBOR plus 4.75% and the facility is secured by the shares of Avino’swholly owned subsidiary BralorneGold Mines Ltd.
          The agreement relates to sale of concentrates produced from the Avino Mine only, and does not include concentrates produced from the San Gonzalo Mine
          __________________________________________________________________________

          Here is Avino’s Corporate Presentation:

          http://www.avino.com/i/pdf/Avino-Investor-Handbook.pdf

    Sep 02, 2016 02:15 AM

    You guys are the perfect contrarian indicators. From Brexit to a “July and August” that will be very difficult for the metals and their shares.
    But that is good. It looks like gold and silver are up on non-farm payrolls. Keep these calls coming boys.

      GH
      Sep 02, 2016 02:06 AM

      Care to throw your hat in the ring, rather than just take potshots?

        Sep 02, 2016 02:14 PM

        I’m already in the ring. Simply pointing out what I’m seeing. Long and strong in the precious metals and their equities. This correction appears overdone, despite “technicals” and charts, wavists and cyclists.

          Sep 02, 2016 02:46 PM

          I agree with you and the technicals do, too.