George Gero’s notes on commodities
I reached out to George Gero, Managing Director of RBC Wealth Management, to get his comments on the open interest in gold and other commodities. George will be on the show next week so in the meantime here is what he had to say…
Gold not yet responding to future inflationary outlook, 13 ½ year dollar highs, stock sector highs, ten year jumping to 2.30 area from 1.80 area all means longs need patience. Gold futures open interest 488675, down from one week ago 534640, as funds were fleeing, liquidation ensuing. Copper 241233, up from 239320, silver 174278, down with gold from 184277 and options up to 1,304813 from 1,220379. All this brought year lows, as expectations of large stimulus which later can be inflationary brought higher rates and stronger dollar as affirmed as well by Janet Yellen. If you recall early 1980 era gold’s response to inflation and high interest rates could re-occur next year.
@StarFire – “I’ve never been more dumbfounded in my life over the state it the world. {Full stop} But what I do believe is that soon enough we won’t be measuring the price of $silver in USD, instead, it will be based on the quantity of chickens 1 oz of silver will buy.”
@Excelsior – “@StarFire – Ah yes…. the ole’ #Silver : #Chicken ratio.”
Here is a Ratio Chart of Silver:Tyson Foods
http://stockcharts.com/h-sc/ui?s=%24SILVER%3ATSN&p=D&b=5&g=0&id=p97281350313
Will Silver breakout or is it too….. Chicken?
#ThanksgivingSilverTurkeyRallyToCrushChicken
Gold Fields Announces Withdrawal of Joint Acquisition Proposal for Kirkland Lake; Remains Interested in a Negotiated Transaction
Nov. 18, 2016 /CNW/ –
“Gold Fields Limited (Gold Fields) (JSE, NYSE: GFI) announces that it and Silver Standard Resources Inc. (Silver Standard) (TSX:SRO, Nasdaq: SSRI) have today withdrawn their latest joint proposal to acquire all of the outstanding shares of Kirkland Lake Gold Inc. (Kirkland Lake) (TSX: KLG) in a negotiated transaction.”
This was an absolutely great post today from the guy behind the Comanus Rising Podcast:
__________________________________________________________________________
@stateside – “A post to clear up misconceptions – One of my day jobs is as a General Manager of a syndication of cartoonists and editorial cartoonists. On the editorial side we have under contract about 10 that lean hard democrat/liberal, 10 that lean hard republican/conservative and 5 that are moderate. I know all of them and can appreciate the humor from all sides. ”
“We offer them up to any newspaper/website that wants to include it in their publication. I also have political writers under my wing – one being Donna Brazile (current DNC chair). I consider her a friend and we have spoken on many occasions about political issues – some we agree on others we don’t. I read several websites almost daily including Mother Jones, The Nation, The Intercept, Drudge Report and Zero Hedge so I can understand the views from all sides. I’m a white male with white kids. ”
“One of my daughters dates a legal Hispanic immigrant. One of my other daughters best friend is a lesbian. My third daughter dated an African-American. There is not a racist bone in my body but say anything that implies a support of Trump and you are labeled a racist. One of my daughters biggest issues in this election was the right to life. Trump says he is pro-life. Hillary is pro-choice and believes you can kill a baby in the womb a day before he or she is born. My daughter (who had dated an African American) is now a racist according to many of her facebook friends and I’m sure many here who post frequently on the index because she voted for the issue that was important to her.”
” I voted for Trump because I oppose elitists and established political figures who are driven solely by power and use corruption and deceit to gain that power. It was an easy choice for me. I voted for Obama in 2008 and wrote in a candidate in 2012. I’m for the little guy.”
“My website’s name comes from an individual who was a slave over 2,000 years ago who wouldn’t succumb to those powerful in government. I will continue to fight against the establishment.”
“Just a suggestion – if you’re a Hillary supporter step out from you’re small group of friends who have similar beliefs and talk to the other side – listen, don’t judge. The same goes for Trump supporters. It will serve you well. Read websites you don’t agree with – follow people on twitter you don’t agree with. Take the blinders off – it’s not that scary out there. It really isn’t…”
Agreed, great post. Too many echo chambers and self-licking ice cream cones out there. For me, I am looking forward to spending holidays with extended family, whose political views range the entire spectrum. There can be disagreement while maintaining mutual respect. Still, some cannot be reasoned with no matter what.
Who said this?
I don’t want to waste time reading the article.
But I want to add him or her to my “must go” list
James Flanagan on the gold miners:
“My philosophy in the markets requires that I look to buy on weakness. More specifically to buy into major corrections.
What many traders and investors are unaware of is that on average markets retrace approximate 59% percent of whatever the preceding leg up is in an overall bull market. This is true whether we’re talking about the stock market, gold or soybeans. In other words, the declines when they come are dramatic and make it very difficult on the longs.
Making it difficult on the precious metals bulls is certainly what we are experiencing during as a result of the current decline in the gold silver and precious metals stocks.
AND YET THE PRICE LEVELS WE HAVE JUST REACHED IN THE PRECIOUS METALS ARE JUST WHAT YOU’D EXPECT DURING A MAJOR CORRECTION.
As I said in the webinar, we are at the approximate limit of what one would expect for the completion of a correction in the precious metals.
If the declines persist, it will be time to fold up the tent and live to fight another day. It’s as simple as that.
A reversal to the upside, however, would carry with it great promise for an unfolding 2nd leg up in an overall bull market. This provides the opportunity to cut your losses and let your profits run.”
THE PRICE LEVELS WE HAVE JUST REACHED IN THE PRECIOUS METALS ARE JUST WHAT YOU’D EXPECT DURING A MAJOR CORRECTION.
Exactly right.
Ep. 465: Insider look into the 2016 Silver & Gold Summit
on November 18, 2016 by Frank Curzio
Stocks Mentioned
Skyharbour Resources Ltd. (SYH.V)
Denison Mines Corp. (DNN)
Cameco Corporation (CCJ)
NexGen Energy Ltd. (NXE.TO)
Fission Uranium Corp. (FCU.TO)
Northern Dynasty Minerals Ltd (NAK)
Auryn Resources Inc. (AUG.V)
Gold Standard Ventures Corp. (GSV)
First Mining Finance Corp. (FF.V)
First Majestic Silver Corp. (AG)
First Quantum Minerals Ltd. (FM.TO)
http://www.frankcurzio.com/insider-look-into-the-2016-silver-and-gold-summit/
This is an Audio Interview BTW… (it’s easy to miss the little triangle at first glance)
NexGen Intersects Widespread Mineralization at Arrow
Nov. 18, 2016 /CNW/
“NexGen Energy Ltd. (TSX:NXE, OTCQX:NXGEF) is pleased to report radioactivity results from 38 holes representing the conclusion of our highly successful summer drilling program on our 100% owned, Rook I property, Athabasca Basin, Saskatchewan.”
For those that missed this announcement:
NexGen Appoints Dr. Mark O’Dea to Board of Directors
VANCOUVER, Nov. 9, 2016
(TSX:NXE, OTCQX:NXGEF) is pleased to announce the appointment of Dr. Mark O’Dea as an independent non-executive director, effective November 8, 2016.
***Mark O’Dea PhD., P.Geo.
“Mark O’Dea has played leadership roles in founding, financing and building numerous mining companies, creating over $3 billion in shareholder value. As Co-Founder, CEO and Director, he grew Fronteer Gold from start-up to its sale in 2011 to Newmont Mining, which included the spin-out of Pilot Gold. Dr. O’Dea also co-founded and served as CEO and Director of Aurora Energy which was sold to Paladin in 2011. He co-founded True North Nickel which was sold to Royal Nickel in 2014, and most recently co-founded and served as Executive Chairman of True Gold Mining which was sold to Endeavour Mining in 2016. He is the founder of Oxygen Capital Corp., and currently serves as Chairman of the Board of Pilot Gold and as Director of Pure Gold Mining. He has received numerous business and industry awards, including the Globe and Mail’s Top 40 Under 40, winner of the EY Entrepreneur of the Year 2014 Pacific mining and metals category, and the AMEBC’s Murray Pezim Award for perseverance and success in financing mineral exploration.”
Japan’s Nuclear export ambitions hit wall as Vietnam set to rip up reactor order
Fri Nov 18, 2016
http://www.reuters.com/article/us-japan-vietnam-nuclearpower-idUSKBN13D0RK
Uranium price: Industry settles down to depressing reality
Frik Els | Nov. 8, 2016
SURVIVING Economic Collapse and Cashless Society In India
Posted on November 18, 2016
Indians are going to revolt
Cast less society….is not going to be cash less
Godzilla = cashless society
That was Irish after a long weekend with the little people
Or Hillary after dark
This time Godzilla = U308 Miners reaction to current Spot Uranium Price
Godzilla attacks Nuclear Power Station
Gold hanging tough after dump of 3 year supply.
Tesla Fremont Factory: stunning new 360-image shows scale of the plant which could soon double in size
Fred Lambert – NOVEMBER 16
Fundamentals for Copper Haven’t Changed:
2016-11-17
Julian Kettle, Vice Chairman, Metals & Mining, Wood Mackenzie joins Bloomberg TV Canada’s Pamela Ritchie to discuss why he doesn’t think copper’s recent rally will be sustained.
http://bloombergtv.ca/2016-11-17/news/industries/mining/fundamentals-for-copper-havent-changed-wood-mackenzies-kettle/