The charts continue to point to strength in gold and silver
To kick off today with Rick Ackerman we focus on the charts of the precious metals. Rick is looking for higher levels which he shares with everyone. We also address the fact the open interest has been steadily climbing, the metals have been preforming well when the US markets are open and the metals are hanging up today in the face of a move up in the dollar. All of these factors are showing the overall strength for the sector right now.
Click download link to listen on this device: Download Show
SGE currently gold $1242.53 and silver $18.44
All my Uranium stocks up.
Yes sir, a nice move today in Uranium Stocks.
Uranium Energy Corp Issues Shareholder Letter and CEO Presentation
February 7, 2017 – $UEC Uranium Energy Corp is pleased to provide the following letter to its shareholders from President and CEO, Amir Adnani. A corner is turning in the #uranium market. You can see this in the improving price for spot uranium which is up over 40% in just two months. Several factors are contributing to major change.
• “On the $supply side of the #uranium market, in late 2016 the uranium price dropped to a 12-year low and made many industry analysts question when we would see more production cuts by major producers. It didn’t take long, and in early January 2017 the world’s largest uranium miner, Kazatomprom, Kazakhstan’s national uranium company that produces 40% of the world’s annual supply, announced a 10% reduction in uranium production. This single action will reduce global output by approximately 4%, and comes on the heels of previous production cutbacks announced by other uranium producers in 2016.
• On the $demand side, the global growth in #nuclear power capacity is clear with 60 reactors under construction worldwide. Over 20 mega-cities in Asia are facing serious air pollution crises which cannot be resolved without emission-free baseload electricity generation that only nuclear power provides. Additionally, US utilities are expected to significantly increase their spot market and long term contracting in 2017 to fill their near-term and long-term uranium requirements. The last major contracting cycle occurred in the 2005-2010 period, with many of those contracted commitments rolling off today. That period saw the uranium price react strongly and reach all-time highs….”
http://www.uraniumenergy.com/news/releases/index.php?&content_id=619
From that release from Amir:
“I believe the best place to start is a video link, provided below, to a short presentation I recently delivered, addressing the latest positive developments in the uranium market as well as UEC’s strategy, current activities and milestones.”
Bad news a few days ago for Scorpio Gold.
Notice that the market hardly reacted to that news? Considering the very recent 123% gain with overbought readings followed by technical daily chart sell signals that came days before that press release, such news could have easily caused a larger than warranted plunge. One of the main reasons that it didn’t, might be that it’s the Keystone-Jumbo Project of the Goldwedge deposit that has captured speculative interest. That is the case for me.
Whatever it is, the lack of selling in response is a very good sign.
Regarding that press release, I believe the Custer deposit will prove to be economic at current prices.
Agreed. Also, they found gold at both the Drinkwater Highwall and Mary LC at the Phase 4 target, but not enough grade to be economic at current prices, but indicated more drilling would be needed. Some of the prior drill campaigns in 2012 and 2015 indicated higher grades and that these were more prospective. As they further drill out some expansion and definition drilling, they’ll better understand if they can expand into those deposits in the short term or hold them as an optionality factor.
Yes, good point on the Cluster deposit. That could be their next big deposit to feed the mill.
I’m in for the long haul and sold nothing. I still think they are sitting on a lot of reserves but are just being conservative. (;-)
PPP is now .92, up 25% since I got it last week after Matthew and Doc said they’d been buying.
This article just came out about two hours ago:
Thanks Matthew. if PPP wins its tax case ad gold goes to 5k Just imagine how high PPP could go!
Yes, that would take it to mind-boggling levels. 😮
Bonzo Barzina – If gold ever does go anywhere close to $5K (The McEwen Level) then all the Gold Miners would be up in the stratosphere.
Personally I’m just looking to see the high $1300’s taken out in Gold for starters. 😉
Gary Savage has also said gold will go to 5K, and Pierre Lassonde is very bullish too, though I’ve forgotten exactly what he predicted.
I stand corrected $5K Gold is the “McEwen/Savage/Lassonde/Schiff” Level then.
Regardless, I’d still be thrilled in 2017 to get up to a level above the high from 2016, and then in 2018 to get to level higher than in 2017, etc…..
For now I’d be thrilled to get back up above the 200 day SMA @ $1266 and then take out $1338.30 (the election results spike then drop), and then finally $1377.50 the high from 2016.
http://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=2&mn=0&dy=0&id=p65208630348
Anything above that is gravy…..
Nice,Matthew 🙂
Spanky is so happy he’s been speechless!
I hope he didn’t sell too soon after that comment!
No, still long. Haven’t sold anything. If I can live through that drawdown, I will get through just about anything now. I am one of those people speculating that the Barons gold mining index is headed to new all time highs after building a 40 year base. But my god that last correction tested my will.
That’s great news, Spanky. This is going to be a fantastic year and I strongly believe that the gold miners are eventually heading to new highs and beyond.
I have refrained from cheerleading because I don’t want to jinx us. Needless to say I am power-lurking kereport and am watching the markets like a hawk.
We’re glad your lurking and posting here Spanky. (BTW – thanks for not jinxing Gold). 🙂
Good for you, Spanky, and good for all of us I hope. Congrats all around, with special mention to a few standouts that have helped so many of us.
The almost universal high RSIs for mining shares seem to project slower price rises in future.
Gade is still Kiung, though, as percentage rises are roughly correlated with grade.e.g. Pretium, Continental gold,….
Assume, I own any stocks I mention are stocks I own….I probably do. I am rotating my portfolios all the time; out of some energy into gold at the moment.
Excellon Reports Materially Improved Offtake Terms for 2017
(Marketwired – February 07, 2017) –
“Excellon Resources Inc. (TSX: EXN) (OTC: EXLLF), Mexico’s highest grade silver producer, is pleased to report on the Company’s recently negotiated offtake arrangements for 2017. The Company’s recently completed tender process for 2017 offtake of its lead-silver and zinc concentrates had numerous interested parties. The final terms agreed with two purchasers are materially better than terms seen in recent years and represent an approximately 60% reduction in treatment and refining charges relative to 2016 based on budgeted tonnage for 2017 and at current metal prices.”
High Grade Silver, Lead, and Zinc. Great off-take agreements. Solid performer.
Why is this stock not double or triple where it is trading today?
Ex, I’m loaded up with beaucoup shares of Silver Bear, thanks to my son, average $.174.
Marty – Yes Silver Bear has had quite a run. The convertible debt that LPG brought up had me very concerned, but they’ve done a few things to mitigate the dilution, and shareholders seemed to have responded positively.
The Top 10 Reasons Investors Should Look at Cobalt
JEFF DESJARDINS on January 23, 2017
“Every once in a while, a previously underappreciated metal rises to prominence.
Several factors can cause this to happen: new technology, changing consumer preferences, supply constraints, or skyrocketing demand can all bring an unknown metal to the forefront of discussion.
Cobalt could be the latest metal that fits this description. It’s a crucial metal to the boom in lithium-ion battery demand, but it also has an increasingly precarious supply chain that could be very volatile moving forward….”
http://www.visualcapitalist.com/top-10-reasons-investors-cobalt/?
Check this out, I drew the arrow on the following chart on Nov. 26 and the price has been following it perfectly for weeks:
http://stockcharts.com/h-sc/ui?s=%24HUI&p=W&yr=7&mn=3&dy=0&id=p20250146945&a=489738088
Hey Ex. Broker buddy sent me this. No idea where it’s from but sums things up nicely on gzz.
Just ahead: what could be fresh drill assays that double the size of likely economic gold from Abitibi Royalties’ royalty-producing Odyssey Zone, adjacent to Agnico-Eagle and Yamana Gold’s Canadian Malartic mine and mill in Quebec. The Odyssey zones are just a tad east of the massive gold mine and mill’s main open pit.
Geologists in Quebec say Odyssey alone could add as much as 10,000 metric tons daily to the mill. Abitibi Royalties’ 3 percent net smelter return on that zone alone will spark a bidding war for RZZ if assays show 2 percent-per-gram-gold and a possibility of 3 million or more ounces. Possible bidders: Osisko Royalties, Yamana, Agnico-Eagle, Franco Nevada, Sandstorm, others.
RZZ is Abitibi and GZZ is 50 percent (higher with board member’s ownership) RZZ owner Golden Valley Mines (GZZ in Canada). This time — remember Canadian Royalties of Val d’Or some six years ago in that China-inspired takeover? — this time there will be no change of control of RZZ or GZZ at engineered and hostile discounts to market, I think.
Absolutely. I believe the recent run up in share price in GZZ and RZZ is in anticipation of the Odyssey Zone exploration by AEM and AUY.
Also for GZZ – the good results from Sirios Resources, and interest in Bonterra has been helping the cause as well.
Yeah all the pieces are falling in place…..that commentary was the latest from Thom btw.lol
Ha! I didn’t catch the tongue-in-cheek intro about “no idea where it’s from…”
Well, I agree with Thom about the Odyssey upside potential leading both stocks higher.
Thanks
Just as i felt gold was due to turn around because of the overbearishness in December, now Im wary as it feels too many are becoming over bullish. Im not judging those in the bull camp as I am ultimately in the same camp. Just being cautious is all
https://www.youtube.com/watch?v=Jrvr2v8fNIs
IRA Epstein open summary