Economic Data Points and Gold Investing Including Stocks

February 4, 2017

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On this Superbowl weekend we spend a lot of time looking at the moves in gold this week and the precious metals in a more broad sense. The full second hour is dedicated to a couple gold stocks as well as a new ETF that combines gold and S&P exposure plus some technical analysis.

We hope you all enjoy this week’s show. Please feel free to re-post and share with your friends. Let’s all hope for an excited game on Sunday!


  • Segment 1 & 2: I kick off the first two segments with Peter Boockvar, Chief Market Analyst at the Lyndsay Group discussing what he calls the “Everything Bubble”. We also look at some sectors that Peter like this year
  • Segment 3: Elliot Wave Trader Avi Gilburt has a bullish look at US equities and the Precious Metals.
  • Segment 4: Co-Founder Of Peak Prosperity Chris Martenson shares his views on why the jobs numbers are not a true representation of the US economy.
  • Segment 5: Auryn Resources released news this week on the Huilacollo property. Executive Chairman Ivan Bebek explains what surprised the team about the results.
  • Segment 6: Fund Manager Dana Lyons shares his thoughts on the gold and silver ETF charts.
  • Segment 7: A new guest Greg King, Founder and CEO REX Shares ETF, introduces a new ETF they recently launched which provide exposure to Gold and the S&P.
  • Segment 8: Wrapping up our hour focused on gold investments is an intro to a new Company to the site Aurvista Gold. The President and CEO Jean Lafleur outlines the current resource and plans for 2017.

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    Feb 04, 2017 04:49 AM

    Hi Skeeta, Thanks, Guys

    Feb 04, 2017 04:15 AM

    Good grief – Avi is very bullish on silver short-term! That’s quite a large and fast move up coming.

      Feb 04, 2017 04:31 AM

      Both short term and even better longer term Silver looks good to me. It is after all the BEST electrical conductor at any temperature above about -200 degrees centigrade, and we live in a civilized world dependent on electricity.

      Feb 04, 2017 04:23 AM

      I meant, that is quite a fast and big move coming up if Avi is right.

        Feb 04, 2017 04:40 AM

        We are only a couple of months away from the PDAC effect, unfortunately.

          Feb 04, 2017 04:40 AM


            Feb 04, 2017 04:03 AM

            There is seasonality to the gold price and that the best time to buy is from mid-June to mid-August of any given year, bull or bear.

            Course I only changed light bulbs for a living. lol

    Feb 04, 2017 04:25 AM

    One thing which is going to effect everything, but about which no one is talking:
    I do not believe the Federal Reserve will survive this four-year Presidential term.
    (The jury is still out on the survival of Donald J. Trump. I hope he will survive.)

    Feb 04, 2017 04:03 AM

    One thing about Trump’s personality is that the air around him is not in a fog of uncertainty, if Janet Yellen or the central bankers oppose any move that he deems necessary for the economy, he will quickly move to replace and/or curtail their power. Then we will see who is the lion in the den. DT

    Feb 04, 2017 04:38 AM

    I’m with Avi on silver, it is going to have a great year. The silver-gold ratio has been consolidating its Q2 2016 move in a bullish manner. It has been capped by the 200 (& 233) week MA for the last 7 months while the 50 week MA has provided support.

    Despite being well below last year’s high, silver is still worth 23% more gold than it was 11 months ago — and we haven’t seen anything yet.

      Feb 04, 2017 04:49 AM

      Priced in dollars, the chart looks different but is still bullish and improving. Silver is up 28% since the bear market low (was up 56% last July).

      Feb 04, 2017 04:03 PM

      I’d like to see Silver gallop a bit here…..

        Feb 04, 2017 04:29 PM

        Ex, If Silver starts to gallop here we might need to take Matthew (Jesse Livermore) down to the tracks so he can say “see JTL, I told you so!” DT

          Feb 04, 2017 04:36 PM

          James “the contrary indicator” is more like it:

          On December 15, 2016 at 3:29 pm,
          James the lesser says:
          Drunkenniller got it right
          Let me know if he ever gets back into gold

          (Drunkenniller = Druckenmiller)

            Feb 04, 2017 04:51 PM

            Technical analysis plus fundamental analysis =rational analysis.John Bollinger,”Bollinger on Bollinger.”

            Feb 05, 2017 05:29 AM


            If you notice carefully, my buddy, JTL nailed the bottom to the minute unlike some others I know who missed it by hours.

            Feb 05, 2017 05:34 AM

            Gee thanks, Bob. You just had to point that out, didn’t you?

            Feb 05, 2017 05:44 AM

            “Lol” of course, in case anyone isn’t sure. 😉

          Feb 04, 2017 04:04 PM


            Feb 04, 2017 04:14 PM

            The other point that I don’t hear many discussing is that with rise of both Zinc & Lead prices it is many of the SILVER companies that are benefitting by lowering their Cash Costs and All-In Sustaining Costs with both metals as a kicker.

            People are rushing out into “ZINC” companies which are often polymetallic base metals companies like Copper/Zinc/Lead but often there is quite a bit of Silver around. However, in the Zincmania that is starting to take hold, it is clear many of the Silver companies are going to really benefit nicely.

            Also Lead’s increase is rarely discussed but on a percentage basis it has really started to rise lately.


            Another year, another Lead squeeze, but is this one different?:
            Andy Home – Thu Feb 2, 2017

            “Last year zinc was the star performer among the major base metals traded on the London Metal Exchange (LME).

            Might it be sister metal lead’s turn to shine this year?

            The unglamorous heavy metal has already had a tumultuous start to 2017.

            LME three-month metal, currently trading around $2,340 per tonne, has notched up a year-to-date gain of over 16 percent, beating zinc into second place.

            Funds have been quietly lifting their exposure. As of the close of last week the money manager net long position was equal to 18.5 percent of open interest, a record level since the LME started publishing such data in July 2014.

            A ferocious squeeze on the London market has helped. The LME’s benchmark cash-to-three-months spread traded out to $45.50-per tonne backwardation at one stage last month, a degree of tightness not seen since 2011….”


            Feb 04, 2017 04:30 PM

            Nice call Shad or should I call you Excelsior? The zinc component was part of the logic used to get into CLZ.

            Feb 04, 2017 04:44 PM

            Thanks Johnk. Either is fine. I just didn’t want to post that way since it’s a public forum, and due to people from work inquiring about the site and my writing. Yes, we’ll start seeing lower and lower costs with the Silver producers or projected costs from the developers as the Zinc and Lead prices keep climbing. It really will put a little life back into the sector (along with a rising Silver price of course).


            Feb 04, 2017 04:52 PM

            Here’s a Wood McKenzie Slideshow on the marcro supply/demand picture on LEAD.

            The Lead market in 2017
            Farid Ahmed – Principal Analyst Lead Markets


            Feb 04, 2017 04:02 PM

            Brien Lundin: “It’s the Right Time to Invest in Zinc”
            Feb 1, 2017

            “Zinc was the best-performing LME metal last year, and many market participants are optimistic about its prospects. That said, the Investing News Network caught up with Brien Lundin, CEO of Jefferson Financial, at this year’s Vancouver Resources Investment Conference (VRIC), to get more insight on the base metal.

            Lundin shared his thoughts on what could impact prices saying that he could easily see prices getting up to $1.50 or $1.60 this year. INN also asked him about what other commodities he will follow in 2017, with gold at the top of his list. “I think President Trump is going to be better for gold than I thought,” he added.


        Feb 05, 2017 05:51 AM

        Speaking of Silver mining…..

        Is anyone else on here following Golden Arrow Resources? (GRG) (GARWF)

        They have a JV with Silver Standard that looks very interesting….


        “A Significant Silver-Lead-zinc Project with Growing Resources Creating a Path to Production”

        “Golden Arrow holds a 100% interest in the Chinchillas project which hosts a resource of 100 million ounces of silver / 155 million ounces silver equivalent (AgEq) in the Measured & Indicated categories and 44 million ounces silver /90 million ounces AgEq in the Inferred category (See Table 1 below for details.) The updated resource estimate is part of the Chinchillas Project pre-development activities, funded by Silver Standard, which are being undertaken to evaluate the feasibility of creating a combined mining business with Silver Standard’s Pirquitas mine, as announced October 1st, 2015.”

          Feb 05, 2017 05:59 AM

          The Gold Report Examines the Upcoming Joint Venture Decision on Golden Arrow’s Chinchillas Project
          (Marketwired – January 18, 2017) –

          “Development progresses at Golden Arrow Resources Corp.’s (GRG) (GARWF) Chinchillas project as investors await Silver Standard Resources’ business combination decision, which is due by March.”

          “Golden Arrow Resources and Silver Standard Resources entered into a business combination agreement in October 2015 for the joint development of Golden Arrow’s Chinchillas project and “an agreement to combine the producing Pirquitas Mine and the Chinchillas project, located approximately 35 kilometres apart in Jujuy Province of Argentina, into a single new operation.” The joint venture would be 75% owned by Silver Standard and 25% owned by Golden Arrow.”

      Feb 04, 2017 04:15 PM

      Matthew, just you wait till the price of Silver gets manipulated upwards, then Bob Moriarty can say “manipulation doesn’t matter”, it certainly does to me if they can pull off a huge upward move and squash the shorts. This will be a selling opportunity of a lifetime! LOL! DT

        Feb 05, 2017 05:44 AM


        If there was ever meaningful manipulation in a market, it would be taking silver from $4 to $50. Calling it suppression was about as scammy as anything I have ever heard. Silver exploded higher and everyone was believing it was being suppressed.

        Some suppression. Some manipulation.

        Do it again.

    Feb 04, 2017 04:19 AM

    Gold looks good but not as good as silver — and that is a good thing…

    Feb 04, 2017 04:32 AM

    Thanks Cory, great show again.
    Just curious is your show available during the trading day on Friday. Noticed that Aurvista jumped 25% on Friday or 5.5 cents. Strange that this would happen or is it just a coincidence. Thanks

    Feb 04, 2017 04:33 AM

    I will be shocked if gold/silver do much the first half of the year—-the conventional markets should do okay the first half of the year and gold/silver will not take out their highs any time soon. There will be no “fantastic'” move. I’ve put my chips on the table which I don’t do very often.

      Feb 04, 2017 04:53 AM

      In the first 2 months of last year at the beginning of the gold run, there was a 22% gain; this year at the beginning of the 2 month run we have seen less then a 9% gain. The odds of a repeat like last year are small. I would listen very closely to Dana Lyons’ views which I believe are going to be more accurate.

        Feb 04, 2017 04:47 AM

        Doc, I put my chips on the table often and have been saying that the first half of ’17 would be weaker than the second half even though it will still be good.

        Remember, at the low for gold in December, you were looking significantly lower for GDX and the metals and posted the following:

        On December 18, 2016 at 5:41 am,
        RICHARD/DOC says:
        All I have to say is what I’ve been saying for some time; there is no magic elixir for the PMs in the near term. This investment area is for the patient.

        Then GDX went up almost 35% while silver gained 13%.

        In a bull market, no magic elixir is needed. The old sayings about bull markets are true: surprises will be to the upside; downside targets will often not be reached; and few will avoid getting bucked off.

        The following chart shows that year 2 of a bull market can be significantly better/stronger than year 1…

          Feb 04, 2017 04:22 PM

          It looks like we agree the 2nd half will be better—–

            Feb 04, 2017 04:50 PM

            Looking forward to buying the first half and smiling in the 2nd half.

            Ever Upward!

      Feb 04, 2017 04:11 PM

      Thanks for chiming in, Doc. I’m with you on that. I’m looking to buy more PM investments. When do you think is the most probably time to buy more at the lowest price going forward?

        Feb 04, 2017 04:12 PM


    Feb 04, 2017 04:15 AM

    Gold didn´t take out/run to the 1450 area in 2016,does it mean anything ?

    Feb 04, 2017 04:54 AM

    On the day that one of Rick Ackerman’s headlines read: “Gold Bull Vanishing One Day at a Time”, I said “the bears will lose.”

    On December 15, 2016 at 9:57 am,
    spanky says:
    I cannot think of a single reason to go long PMs as a speculative investment here–fundamental or technical–even from a contrarian perspective. Therefore it must be the bottom. I am not kidding. Matthew is going to look like Jesse Livermore in hindsight. 😛

    On December 15, 2016 at 10:05 am,
    Matthew says:

    On December 15, 2016 at 10:09 am,
    spanky says:
    I am losing it probably, but this is different than 2013, when most of these correlations and the effect of QE were really unknown or at least undiscovered by many investors, especially resource investors.
    Right at this moment, it is just too bearish because everyone knows the script. And look at the technicals–hideous.
    It has to be a bottom or within 2-3 trading days. I sincerely believe that because I am just to confident in the bearish case. lol.

    On December 15, 2016 at 10:17 am,
    Matthew says:
    It’s great to see you so rational when it’s so important to be. The bears will lose.

    On December 15, 2016 at 3:18 pm,
    Gator says:
    All due respect Matthew…I’ve heard this before…several times….regards

    On December 15, 2016 at 9:24 pm,
    Matthew says:
    I know that, Gator, but they will. 2016 was a helluva year for me and ’17 will be better.

    Feb 04, 2017 04:17 PM

    Great show as always… :Auryn.I mentioned earlier this week that I see Auryn being taken out within the next 12-18 monthsAs I think about it,I wonder what their plans are going forward.I’d be interested in Ivan’s take what their plans are since they have 3 separate plays.Would they consider selling each one separately or sell the whole package or would they actually consider taking things all the way to production for their first time ever???Also they have a new company Stratton resources that might interest some people

    Feb 04, 2017 04:04 PM

    I think it’s a very good sign that the politics part of the weekend show has 43 comments while the gold related part has only 16 besides mine.

    Despite the great gains so far this year, there doesn’t seem to be much optimism. Bull markets scale a wall of worry.

      Feb 04, 2017 04:14 PM

      Mathew, I’m on board with that. Spanky made a great call as did you.December 19th I started anew position in CLZ.V. Same M.O here in this one,no optimism. Things are about to get real interesting.

        Feb 04, 2017 04:28 PM
          Feb 04, 2017 04:49 PM

          John, you have to be careful and CLZ is an example—-so many of these can be hyped and people can be hurt again just like those that have held some all the way down from 2011. There are a number of these companies that have gotten hit like CLZ. People that are chasing this thing again with this rally will have a higher average cost. This bull market is taking time to unravel in a U shaped manner as mentioned ad infinitum. You have plenty of time to add on pull backs to solid companies.

            Feb 04, 2017 04:18 PM

            I appreciate the comments.I have been working on refining my technical analysis and this was my first attempt at picking a bottom. I am always looking for new approaches to apply technical analysis. So far I’m up 23% from the entry. If silver can catch a move,I think this will go as well.
            Speaking of solid companies, how about the move in Osisko Mining,Haywood has a $4 price target. They are planning 150,000 m drill program this year.Cory and Gwen talked about this earlier. Probably a good time to start accumulating the associated players in the Urban Barry.Full disclosure,I own Osisko,Beaufield,and Toma Gold.

            Feb 04, 2017 04:04 PM

            John, I’ve held Osisko from its’ lows—It’s one of my bigger positions—I like it fundamentally and technically

            Feb 04, 2017 04:25 PM

            Thanks Doc:
            Osisko Mining is my largest position. I came in through the back door with Ryan Gold.
            With the three for consolidation they did my cost basis is .48 Canadian.

            Feb 04, 2017 04:45 PM

            Also I would like to thank you for your contributions to this site. I have learned an immense amount of knowledge from you. From the webinars to the daily contributions, you made me realize that before I could become profitable as an investor I needed to get a handle on the technicals.

    Feb 04, 2017 04:39 PM

    IN THE SCRUTINY GENERATION -issue 15 january 2017

    Featuring – Red Eagle Mining (TSX:R) – Mining in Colombia

      Feb 04, 2017 04:41 PM

      They gave Red Eagle Mining (R) (RDEMF) a project score of 99.2 out of 100.


    Feb 04, 2017 04:51 PM

    I have not been here in awhile.
    I notice the board has been divided between precious metals and politics.
    I am curious why this happened.
    I find it difficult to separate the two.
    Bad politics is what makes the PMs attractive.
    What was the thinking behind the division?

      Feb 05, 2017 05:53 PM

      Afternoon Dennis,

      The division resulted from me wanting Cory to not simply be a co-host but a host of an important portion of our Show. I have to say, that he is handling that responsibility very well. He is really responsible and well organized.

      As you probably are aware, I have turned into a serious political junkie. The more I delve into this subject, the more I learn about people. I have come to some fascinating conclusions not just about others but about myself also.

      I love our Show and the folks who come to our site. If our “family” looses interest in political discussion, I will certainly go back to strictly economics.

      Thank you for asking.

        Feb 05, 2017 05:48 PM

        I like it Al.
        I’m not in the US, or American, but i find the new format really interesting.
        Cory’s spot on too.
        Thanks for the dedication. It’s appreciated.

    Feb 04, 2017 04:09 PM

    Investing News Network – VIDEOS

    Lots of good video interviews from the Cambridge and Roundup conferences.

    Thom Calandra, Mickey Fulp, John Kaiser, Louis James, Brien Lundin, and a bunch of CEO and Management Teams from companies were interviewed. Worth checking some of them out this weekend. Cheers!

      Feb 04, 2017 04:09 PM

      Mickey Fulp: The Uranium Supply/Demand Problem Will End Soon
      Feb 1, 2017

      “There was a lot of optimism at this year’s Vancouver Resource Investment Conference (VRIC), where experts and thought leaders shared their knowledge and insights. The Investing News Network (INN) did not miss the chance to be there and caught up with Mercenary Geologist Mickey Fulp, to discuss the future of the resource market.”

      “Fulp’s top commodities for this year include copper and uranium. He expects the red metal will continue to consolidate for some time, after being up last year, while uranium is looking “pretty good” after some developments in the market.”

        Feb 04, 2017 04:15 PM

        Thom Calandra: Uranium Demand Will “Always be There” Going Forward
        Feb 2, 2017

        The uranium space has seen renewed interest in 2017, in part due to Kazakhstan’s announcement that it plans to reduce its uranium output by 10 percent this year. To learn more about what’s in store for the market this year, the Investing News Network (INN) spoke with Thom Calandra of The Calandra Report.

        In the interview above, Calandra comments on Kazakhstan’s plans and notes that while that action has only pushed uranium equities up a little so far, “it looks real. It looks like the ‘bottom’ is in.”
        Calandra also spoke briefly about uranium demand, stating that by 2030 China will be the largest consumer of yellowcake, the uranium concentrate utilities need to power their nuclear reactors. He also sees the US using more nuclear power in the coming years.

        “The demand going forward will always be there,” he said. “I don’t think we’re going to learn anytime in the next 10 years how to get energy from splitting atoms … it would be great if we had solar power and wind power on an industrial, regional, national scale. Probably not possible.”

    Feb 04, 2017 04:01 PM

    (NIM) (HUSIF) Nicola Mining – #Video Interview with INN Vancouver Resource Investing Conference #Gold #Silver #TollMilling #Copper #Exploration
    Jan 31, 2017

      Feb 04, 2017 04:02 PM

      Interview with the CEO of Nicola Mining (NIM.V)— Peter Espig
      Oct 18, 2016

        Feb 04, 2017 04:04 PM

        Nicola Mining Inc.: Exklusive Interview Munich Precious Metals Conference 2016 (NIM.V)CEO-Roaster Interview with Peter Espig of Nicola Mining Inc. (TSX-V: NIM) . The interview was recorded on November 3, 2016 at the “Edelmetallmesse 2016” in Munich, Germany.

          Feb 04, 2017 04:40 PM

          Good stuff Shad:
          I started tracking NIM July 6th of 2016,since then it is up 80%,not bad.
          Also in the same group was Nighthawk up 82.05%.
          There both in the Shad/Mathew group. Cheers!

            Feb 04, 2017 04:02 PM

            Absolutely. Epstein Research has been positive on Nicola Mining this year, and Brent Cook and Joe Mazumdar have been positive on Nighthawk recently, so that has been good.

    Feb 04, 2017 04:06 PM

    Mr Bebek of Auryn is THE man! Pile aboard guys!

    Feb 04, 2017 04:25 PM

    Well Doc im impressed. Putting the cards on the table is risky, but kudos to you.

    I personally agree with you, now is no time to get carried away with what is presently taking place in the pms markets. My personal belief is that until gold and silver take out their previous solid support areas ($1520 for gold and $26 for silver) towards the end of the bull market in 2012, then they remain in a bear market when one takes a longer term perspective outlook on this market. Moreso when you take into account golds failed resistance clearance of $1360 in 2014 and 2016.

    Feb 04, 2017 04:49 PM

    Sebments 1 & 2:
    Peter Boockvar Correctly labels the current situation as an everything bubble.
    I think of it as a richman’s play toys bubble. Mr Boockvar then goes on to suggest that a cycle of raising interest rates will break the bubble.

    I have a problem with this analysis. I remember Ms Yellen stating there would be 4 rate rises last year, whereas there was only one.
    Call me a skeptic, but once someone lies to me, I tend NOT TO BELIEVE ANYTHING THEY SAY, until it is proven correct.
    So I am left with a starting assumption of NO ONE OFFICIAL SAYING INTEREST RATES WILL RISE!!!!!
    This assumption is backed by the fact that so far the Fed has been following the trail blazed by Japan. If it continues so to do, then the Fed will not increase interest rates.
    The Fed is monetizing the debt to a certain extent anyway, so what has it to gain by raising interest rates?
    If anything, regardless of what it says, the Fed actually wants inflation.
    Trump wants a weaker dollar, so why regardless of what it says, should the Fed want to strengthen the dollar? Raising interest rates would tend to strengthen the dollar.
    Historically when the Fed has raised interest rates, it does so until the majority of the time it has broken the economy into recession. Is it not possible the Fed might actually have learnt from past history? 2 cents.

    Feb 04, 2017 04:03 PM

    Segment 4:
    Nice anecdote about rats, but come on! Really.
    Milo did a talk at University of New Mexico a few days earlier with few problems.
    The fact is that in California there are a majority of RABID Democrats contained within the Democrat majority. This was a politically-motivated attack that actually had little to do with regular, normal students.
    It also helps when the evil billionaire , former Nazi, Soros finances disturbances intended to destroy confidence in leadership of a country, so he can profit from that destruction.
    Google his son, Alex Soros, and you will get some idea of how the money for the demonstrators might have been funneled.

    Feb 04, 2017 04:05 PM

    Oops, I meant minority of RABID Democrats within a majority of Democrats.

    My brain moves faster than my fingers…

    Feb 04, 2017 04:25 PM

    Segment 5:

    By “lower half” did Bebek mean more southerly half or downhill end?
    I assume one cannot sample soil samples from an underground mine.

    Feb 04, 2017 04:05 PM

    Cobalt could be one of the sleeper metals that gets traction, the price has been improving quite significantly, it is also a component in lithium ion batteries. Cobalt is a critical inelastic metal as it is only found as a secondary supply with other metals. There are no cobalt mines.

      Feb 04, 2017 04:23 PM

      DT – Agreed.

      Cobalt is very important for the developing Battery marketplace, but it is starting to get a bit heated up. Here is a list of some companies with cobalt exposure, but in most cases it is co-primary.

      Cobalt Stocks


    Feb 04, 2017 04:16 PM

    Mining Stocks – Rules of the Game
    by FI FIGHTER on FEBRUARY 3, 2017

      Feb 05, 2017 05:39 AM

      Excellent read. Buy low, sell high, and be mindful of position sizing! It would be a shame for anyone to lose money during a bull market.

        Feb 05, 2017 05:52 AM

        Jay is a smart guy, and made a number of great points in that piece he posted on his site.

        I agree with his points about blocking out the criticisms and nonsense circulating around mining shares from the mainstream media investing “experts” and “pundits”. They don’t get it (and will never get it) when they pull up 5-10 year charts and see mines as terrible investments because they don’t gradually move up consistently like the general stock markets they love so much. Also, very few pay a dividend (there are a few). However, his point is that miners provide the ability to make multi-bagger returns consistently over shorter durations (months not years).

        I really concur with this passage and overall point he was making about buying miners based on shorter duration time horizons, trimming winners on the surges, and selling when you’ve made your investment goals (date them, don’t marry them). he encourages people not to hold on to winners, that make a full return back down, washing away those gains, and then plunge into losers….. Yet for some reason there are investors that continually do this because they are playing by the rules of the general stock markets, and not the game-plan and strategy that works best around mining shares.


        From that piece by Jay (Fi Fighter) up above when looking at B2Gold:

        “But like I always preach on this blog, you’ve got to approach investing (and life) with an open mind! In this case, the beloved “Buy and Hold Forever” model crumbles apart and doesn’t work at all for BTG (or basically the majority of mining stocks)…

        Stop trying to force-fit a square peg into a round hole!

        I repeat — Buy and Hold Forever doesn’t work for mining stocks at all… But what about “Buy and Hold… Rentals”?

        In other words, don’t make a lifelong commitment to these investments (they will never love you back or keep you warm at night like a good spouse), but instead treat them as disposable razorblades… You know, once the task at hand is complete, you discard them…”

      Feb 05, 2017 05:58 PM

      Gerald Appel,”Technical Analysis” shows in his book where acting on certain signals would have you in the market less than 25% of the time.
      This didn’t pertain to Jr Mining Stocks,but it was an eye opener.
      I agree with Fifighter to a point.If you don’t own them when news hits all you end up doing is chasing. Like AU.V

        Feb 05, 2017 05:40 PM

        Yep. Jr Miners are a different kettle of fish in that they act more sporatically, and due to the extreme volatility inherit in the underlying commodities, and the jr mining sector in general, they will hit highs and lows multiple times in a given year or two.

        These whipsaws often leave generalist investors little to be impressed about by buying and holding, (as he demonstrated using B2Gold but it could be applied to most stocks in the Jr Mining sector). In contrast, for those using technical and fundamental analysis to enter and exit on the runs in the right general areas, then the returns can be staggering.

        * As we’ve discussed on here a number of times, its not typically in investors best interest to completely exit a position during a new bull market or during a bull market in general. It is always prudent to keep a Core Position in place for the unexpected upside surprises that take on more fuel than they even should during a bull markets.

        Having said that, when markets hit extremes do the upside or downside, then trading partial positions is the way to dramatically impact returns, due to the volatility that Jr Miners provide. This is Jay Fi Fighters, point, and the point we’ve made on here many times. The whole reason to expose oneself to the Insanity, Volatility, Heartbreak, and Chaos that is the Jr Mining sector is to latch onto multi-bagger wins. However, to get a multi-bagger, you have to freakin’ sell some of that position or all of that position into extreme oversold conditions for it to be a profit. If you just watch it go up 300% and then watch it fall by 50% (then it’s now only up 150%), and if if falls by another 20-30% then fun ride just took may be smashing into new obstacles that the mining industry get’s throw out it on a daily basis.

        For those investors that trimmed in extremely overbought conditions (like last summer in Gold/Silver stocks or mid January in Uranium stocks), then they have had dry powder to redeploy into these stocks as they pulled back 30-60%. This lowers their overall cost basis in their core positions, or may have allowed new entries into other miners as they pulled back (utilizing the profits from trimming into the strength when things got over-heated).

        It is interesting to me how few investors were discussing buying in Dec 2015-Feb 2016, and how many waited until May-June of 2016 to get on board. Then when discussing trimming stocks back in July/August, people acted like you shot their family pet. (It was the right time to lighten up though if you just followed sentiment readings). The end of last year from Nov-Dec was the right time to be buying Gold, Silver, Uranium, Lithium, etc… yet few were. Most were selling for tax loss purposes, and wise investors were gobbling up their shares that were on clearance sale.

        JohnK – as to your last point, the great part about miners, is that they give you multiple chances to get back into them, because the herd all rushes into the stock pushing it to staggering heights, and then rushes out of it with their knees shaking thinking it’s the end of the world. AU.V is a great little company, but for it to go up that much on grab samples only is silly. Sure, it could just keep charging on enthusiasm, but it looks a little overly enthusiastic at this point, until the drilling starts bringing the truth to the surface. I’m sure there will be other times to enter on pullbacks, when investors with a nice profit take a few chips back off the table.

          Feb 05, 2017 05:51 PM

          Ex, I couldn’t agree more with some of your comments. Those that took some profits last year on some of these stocks are now able to get in at lower prices with more shares from their profits. This gold bull is still in the first inning but I now am a long term holder since I believe we’ve entered a trading range for a lot of these. Your comment on AU.V is right on—I’ll tell you right now that you’ll probably be able to buy shares when all the hype is over at about 60-70cts.

            Feb 05, 2017 05:23 PM

            My point wasn’t that Au.V was such a good stock,what I’m saying is that if you can see ,say a year in the future and accumulate shares before everyone gets a clue what is going on, then sell to them when the stock hits the radar.
            Everybody has their own investing style,over time you will develop a “feel” for the market. Those who continually listen to others and act on their info are nothing more than sheep waiting to get sheared IMHO.

            Feb 05, 2017 05:18 PM

            Thanks Doc – Good thoughts, and yes that was a fun first inning, and while we are in a trading range, it will be time to buy on the dips. If there is an exaggerated move to the upside then I may lighten up on a few positions, but plan on keeping core positions in my favorite companies. Your thoughts and insights are always appreciated.

            Feb 05, 2017 05:23 PM

            Good points JohnK. Yes, the time to position in Jr miners is when you spot a good company, making good progress or turning operations around… BEFORE every newsletter in town is plugging it. (haha!).

            People that are buying many newsletters for their stock picks are often buying into the end of the uptrend, and often those same publications are selling their shares to the new bag holders at the top of a parabolic move. However, there are a few quality newsletters that spot trends earlier on and explain why a particular company or deposit may be a gamechanger.

            Yes, there is a “feel” one gets for trends that are developing, or area plays that are lighting up, or commodities that are getting hot, etc… Better to be early to those parties than late to dance…..

          Feb 05, 2017 05:20 PM

          You said that you have to sell some of that position,or all of that position into extreme oversold conditions for it to be a profit. Did you mean Overbought?
          Also it was the right time to lighten up though you just followed sentiment readings. What kind of sentiment readings are you talking about?

            Feb 05, 2017 05:10 PM

            Yes, I meant overbought, not oversold. (Thanks 🙂 )

            Some of it is watching indicators on the weekly and monthly charts (like the MACD, Commodity Channel Index, TRIX, and how the RSI and Slow Stochastics are lining up with those).

            One of the better indicators I keep in the arsenal of technical data is the breadth indicator (BPGDM) – The Gold Miners Bullish Percentage Index.

            *You’ll notice on the chart below that the (BPGDM) made trough lows to oversold conditions in Nov-Dec 2014, right before the early 2015 rally, and then made lows in Jan of 2016, right before that epic rally last year, and then it hit 100 in July/Aug which is as overbought as possible. So that was a clue to take some chips off the table. Then you’ll see that in Nov & Dec of 2016 that things had gone down and double-bottomed as too oversold, so that was a good time to buy….. etc…..



            GOLD MINERS BULLISH PERCENT INDEX – [from Sunshine Profits Dictionary]

            “The Gold Miners Bullish Percent Index ($BPGDM) is a gauge of overbought and oversold conditions for the gold mining sector. It is a breadth indicator based on the number of stocks with Point & Figure buy signals (a Point & Figure chart emphasizes strong moves while ignoring small ones) within this index.

            The Gold Miners Bullish Percent Index’s range varies between 0 and 100. Generally, a reading below 30 indicates oversold conditions in the gold mining stocks sector, and a reading above 70 indicates overbought conditions. This indicator is used as a tool to decide when to buy or sell gold mining stocks, but since gold stocks very often move in tune with gold or silver, it can be a useful tool when determining the direction of the entire precious metals sector. The index can be used in conjunction with a gold price chart, or multiple other tools, to watch for additional confirmations of a trend.”

            Feb 05, 2017 05:14 PM

            The Ultimate Tool To Predict Price Swings In #Gold And #Gold #Miners
            Jan. 11, 2013 – Katchum’s Blog – Seeking Alpha

            “To confirm that the gold price is nearing a bottom, we can look at the daily sentiment index for gold miners on the site The ticker is $BPGDM (Chart 3). As you can see, the gold mining sentiment is approaching a bottom under 30 and this should be a positive indicator for the gold mining industry.”

            “To prove that the correlation works I will compare Chart 3 with the gold miners ETF Chart 4. We notice that each time the index goes below 30 on BPGDM, we have a short term bottom in the GDX. Every time the BPGDM index goes above 70, we have a top in the GDX. At this moment you should buy the GDX and GLD with both hands as both have an index at 30.”


    Feb 04, 2017 04:35 PM

    You might want to check out e Cobalt.ECS.TO.
    ECS.TO formerly Formation is the 100% owner of the Idaho Cobalt Project.
    The only advanced stage,near term environmentally permitted cobalt deposit in the United States.
    Interesting enough they overcame environmental problems with the endangered Bull Trout.
    The project has been on care and maintenance since 2013 due to depressed prices.
    The stock has seen major gains lately,but could get interesting with a good pullback.

      Feb 05, 2017 05:50 AM

      Agree…..have it and fortune minerals as my cobalt plays..

      Feb 05, 2017 05:29 AM

      Thanks for the heads up JohnK, I pulled the trigger on another silver/cobalt stock on Friday, I don’t stay with anything too long these days. I feel the best option for now with all this volatility is to be The Italian Stallion. DT

        Feb 05, 2017 05:18 PM

        I like your thinking D.T.The last time you posted your stocks I pretty much figured that out.
        Technically a lot of mining stocks have been hugging the upper Bollinger Band which has proved very profitable.
        I have a few core positions and I am trading the rest.
        I use to own a bunch of ECS.TO back in the day when they were Formation Capital.
        Like many of my previous stock picks,I wish I would have hung on to a few shares.JK

    Feb 04, 2017 04:12 PM

    I agree Doc. Im certainly no expert but I think your prediction of a trading range playing out for a while regarding pms makes sense. Only time will tell I guess.

    Feb 05, 2017 05:04 AM

    Take a look at SGT report and First Mining Finance, where first drilling on Pickle Grove mine revealed visible gold in the core. First Mining is a phenomena all on its own 8 acquaiito9ns and 12 projects in 2016 meaning that 2017 stands to be every bit as busy and profitable as last year. With the stock at 81c Canadian now is a great re-entry point for those still not invested.

      Feb 05, 2017 05:19 AM

      Arch, I’ve been watching the technicals very closely and will probably add a “tad” in the next week or 2.

        Feb 05, 2017 05:50 PM

        Easy now.

    Feb 05, 2017 05:47 AM

    ‘Cowboy Bill’ may rethink his technicals:
    “The period which began with the Gold bottom of December 2015 and its retest bottom of December 2016 is the first time since the century began that we are on the right-hand side of such a nascent secular Bull Market in Gold. Those methods developed and refined since the 2011 high have been heavily influenced by the severe downtrend into late 2015, and some adjustments may be required.”

    Feb 05, 2017 05:58 AM

    Hey Ex.Looks like some people are wising up to the royalty play that is abitibi…..I have been waiting patiently for the agnico annual which is February 15th.Figured it would be when we got an update on odyssey and with how gzz has traded this past week I’m not the only expecting news soon.I see abitibi getting to $30’s eventually when all is said and done.

      Feb 05, 2017 05:18 PM

      Absolutely Wolfster.

      Both Abitibi Royalties (RZZ) and Golden Valley Mines (GZZ) are benefiting for all the work Agnico Eagle and Yamana are doing to unlock the value in that deposit.

      As we’ve discussed here on the KER dozens of times now – Golden Valley Mines is the better way to play all of this, and it has really out-performed Abitibi Royalties over the last year, and will continue to do so if investors evaluate things correctly.

      Golden Valley Mines (GZZ) is the company that spun out Abitibi Royalties in the first place, to Rob McEwen’s protege — Ian Ball. So often when I discuss royalty companies or prospect generators with other investors , and we get on to Abitibi, very few realize that Golden Valley was the mother ship, and retains 49% of their company. Basically they own HALF.

      Ian and the Abitibi team have done a good job of finding other opportunities (like their pickup of the Red Lake royalties from another company I’m following Frontline Gold (FGC) and the McFaulds Lake Property with Zinc/Copper/Silver targets).
      GZZ owns 49.4% of Abitibi Royalties (RZZ-TSXV); RZZ owns royalties on parts of the Canadian MalarticMine
      -RZZ has 3% NSR in MalarticCHL Property, located contiguous and immediately East of the producing Canadian MalarticMine and main open pit; NSR royalties include the Odyssey North Zone, Jeffrey Zone and portions of BarnatEast Zone
      -RZZ also has 2% NSR on portions of the GouldieZone and Charlie Zone
      -AEM / YRI recently indicated that the previously established $13.5 million budget for the 2016 exploration program on Odyssey has been increased again (originally set at $8 million)*
      -A total of 113 holes (89,774 metres) has been completed by Agnico-Eagle and Yamana, with drilling expected to continue through year-end *
      -An initial inferred mineral resource estimate for the Odyssey is expected early in 2017

      * The fact that Golden Valley mines (GZZ) owns 5,605,246 shares of Abitibi Royalties (TSXV:RZZ) (49%) of all these activities makes it the way to get exposure to this.

      IN ADDITION, to that (GZZ) has a number of other irons in the fire, that make them the superior play.

      -GZZ owns 4,148,374 shares of SiriosResources Inc. (TSXV:SOI)
      -2.5 –4% NSR on the CheechooProspect

      ** Active Joint Ventures

      —> (GZZ) currently owns 100% of Lac Barry Prospect (working it with BonTerra)

      -GZZ granted an option to BonTerra Resources Inc. (TSXV:BTR) to acquire an 85% interest in the Lac Berry Prospect (deal announced March 11, 2016)
      -To earn 85%, BonTerramust complete the following:
      -Issue to GZZ a value of $200,000 of BTR common shares (issued)
      -Incur expenditures of $2 million over 3 year period
      -Upon exercise, GZZ will retain a 15% free carried interest (“FCI”) and a 3% NSR, with 1% of the NSR being subject to a buyback for $1 million

      *** Share ownerships
      -49.4% of RZZ -60% of KZZ(7,763,634 shares)
      -4% of SOI-22.4% of VZZ.H (4,170,910 shares)

      Golden Valley recently granted an option to Uranium Valley to acquire a 100% interest in 62 of its grassroots properties
      -Uranium Valley must incur $4,000,000 of exploration expenditures on the properties before December 31, 2021 ($500,000 before December 31, 2018; $750,000 before December 31, 2019; $1,000,000 before December 31, 2020 and $1,750,000 to be incurred on or before December 31, 2021)
      -Uranium Valley will issue 10,000,000 common shares to Golden Valley at $0.20 per share for ($2 million value)
      -Uranium Valley has granted Golden Valley a 1% NSR on the 62 properties

      Golden Valley Mines – Corporate Presentation

        Feb 05, 2017 05:23 PM

        1 year Line chart of (RZZ) and (GZZ) showing the outperformance of Golden Valley Mines [and rightfully so, as it has so much more exposure to other projects like Bonterra, Sirios Resources, Nunavik Nickel Mines, and Uranium Valley Mines].,GZZ.V&p=5&O=011000

          Feb 05, 2017 05:24 PM

          Great summary Ex….there has also been chatter about gzz having a cobalt play within there many land packages.I haven’t been able to find anything about it as of yet and my only fault with the company is never being able to contact them for an update and emails never get a reply.

            Feb 05, 2017 05:52 PM

            Yes – Here is Golden Valley Mines property with cobalt exposure.


            Cobalt-Nickel-Silver project located in the Abitibi Greenstone Belt, Kirkland Lake-Matachewan, Ontario Region


            Feb 05, 2017 05:06 PM

            Thanks Ex I had seen that in the past but guess in my head I was assuming they were doing something actively somewhere.

    Feb 05, 2017 05:40 PM

    Bob Moriarty: There Are Some Extraordinary Opportunities Out There Right Now
    by Ceo Technician FEB 5th, 2017

    Bob Moriarty:

    “I’m not a big believer in news causing market moves. Sometimes we can look at a specific news event such as a company releasing big drill results and say “that’s why people bought that stock that day!” but there are many more instances in which markets move around a lot and trying to explain the moves is a fool’s errand.

    Just look at the election night when Trump won everyone was saying gold was going to go up $100 on a Trump victory and gold ended up getting clobbered. Also look at what happened with Mexico, Trump said we’re going to build the wall with Mexico and the meeting with the Mexican President got cancelled and the Mexican Peso went up! I don’t worry about news. It’s noise, not signal.

    I don’t know if the Dow and S&P have topped, I’m not seeing the kind of extreme bullish sentiment that we see at major market tops yet. I think the market could go a little bit higher. Meanwhile, in December we had the best sentiment for gold (if you’re a contrarian) in 29 years and I think we had a major bottom. Everybody is still talking about how much gold is going to go down, that it’s due for a correction, yet we’ve had a bigger rally this year than we had last year at this time and nobody has noticed….”

    Feb 05, 2017 05:33 PM

    Watchlist material…

    @Allan If they don’t like $TUD they are the schtupids and obviously can’t tell what a serious gold exploration company looks like.

    @Allan nobs, you stick with $TUD, them and $PVG will be the big winners in the Golden Triangle. Rest are pretenders.

    @marketwired Tudor Gold Corp. Retains Mr. Jeff Kyba, P. Geo. @marketwired/tudor-gold-corp-retains-mr-jeff-kyba-p-geo $TUD $TUC Mr. Kyba is best known for his work with the British Columbia Geological Survey where, together with a fellow geologist, he carried out one of the most important and influential studies of the geology of the Golden Triangle.

    Feb 05, 2017 05:35 PM

    Extreme Vetting, But Not For Banks

    Authored by Matt Taibbi, originally posted at RollingStone

    Donald Trump, the man who positioned himself as the common man’s shield against Wall Street, signed a series of orders today calling for reviews or rollbacks of financial regulations. He did so after meeting with some friendly helpers.

    Dimon, Schwarzman, Fink and Cohn collectively represent a rogues’ gallery of the creeps most responsible for the 2008 crash. It would be hard to put together a group of people less sympathetic to the non-wealthy.

    Feb 06, 2017 06:35 AM

    Got PRETIUM anyone, miner and stock of this decade

    Feb 06, 2017 06:56 AM

    Matthew, rather proud to say I bought the bottoms in PRETIUM within $.08 in 2013, 2014,2015 & 2016

      Feb 06, 2017 06:58 AM

      You should be proud of that. Congratulations.

    Feb 06, 2017 06:59 AM

    And within a penny low made in December 2016 on PRETIUM, $6.83

    Feb 06, 2017 06:00 AM

    Hi Matthew!
    Im tempted to add some Bbb Brixton for the potential silver ride and wonder what support and resistans looks like for BBB?
    It has fallen really hard since late summer. I hope it can come back to the old high above 1 cad and longer term to 3-4 cad😄

      Feb 06, 2017 06:17 AM

      Hi Blue, I have no doubt that it will go much higher and have been a buyer from .20-ish all the way up to the current level. My average price is .2811 (Cdn).

      If you are bullish silver in the near term, I think you can accumulate it at today’s level. Otherwise, I would wait for days when the whole sector is down.

      It is probably due to its 175% run off of its recent low, but it does not look as good as some of its peers, at the moment.

      Compare each indicator including the price as it relates to the Bollinger bands and KAMA…