Factors keeping the markets levitated
There are always a number of reasons to sell the markets but there are a few examples that explain how the markets are staying levitated. Doc and I discuss how increasing margin, ETF inflows, and the fact that the last quarter was the quietest for the Dow all contribute to market valuations.
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BOB…..Toilet Paper . Thats what you want to be invested in when the US market pops,afterall when it happens , a lot of people will be ******* themselves……….haha
TP is one commodity we don’t want to see supply crunch or a short squeeze on….
Doc, if record complacence is going on at this point, do you think May will bring increased volatility? Do you still see silver going down to $16.50- 17.00 and what is the time frame?
Pardu, here’s my “gut” based on technicals. May is a huge month for the conventional market. If the market moves up strongly we’re probably in another leg up. However, if the MACD on the monthly chart starts to turn sideways, I believe this is indicative of the beginning of the end of the run for the conventional markets. I still believe the rest of spring and summer will see a gradual deterioration in the PM bullion prices. We certainly should not challenge the low seen in late 2015. I think silver’s odds of going down to $16.50- 17.00 is still very high. I’ve backed off to adding to my PM stock positions accept for instances of bottoming since I believe I’ll have a better chance in the coming weeks.
Shandong Gold buys …50% of Barrick Mine…….any comments……?
I’ll just repost some comments from yesterday’s blog related to these big JVs between the Majors on Gold/Copper plays:
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On April 6, 2017 at 12:09 am,
Excelsior says:
Here is another example of Barrick partnering with other companies, and I have to say the collaboration makes a lot of sense and is very encouraging. It would be wise if many companies teamed up like this to move things forward rather that smaller entities struggling under a debt load, or spread over to many jurisdictions to effectively manage on their own. Good for the whole sector.
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Barrick Announces Strategic Cooperation Agreement with Shandong Gold
– As a first step, Shandong Gold will acquire 50 percent of the Veladero mine
– As a second step, both companies will explore joint development of Pascua-Lama
– As a third step, Shandong will evaluate further opportunities with Barrick
Gwen Preston: Goldcorp-Barrick Deal Spells Great Things for Mining Sector
Beneath The Surface – Apr 5, 2017
(Gwen also mentions some of the Kinross properties and the Exeter takeover in how this new giant 3 Copper/Gold deposit JV between Goldcorp and Barrick all fits together).
On April 6, 2017 at 12:02 am,
Excelsior says:
I actually thought The Resource Maven brought up a good point as it related to the larger companies “going BIG” on those Copper/Gold projects. She is right that we haven’t seen bigger deals like that in a while.
The other point she made in her comparison of Kaminak’s takeover by Goldcorp at a 30% premium (similar to Lake Shore Gold’s takeover or Crocodile Gold’s takeover or Calico resources takeover premiums) — versus the Exeter takeover at 60% is a valid point.
We used to see 50%-80% premiums on takeovers, so it is nice to see more of a premium going to the Jr miners again so that current shareholders get rewarded when positioning in a company that gets acquired. It does shine a good light on the sector and this recent Goldcorp & Barrick JV is a pretty good bell-weather deal for the industry.
Copper is in A Bull Market
by @Goldfinger on April 5, 2017
oops…..sorry I missed your report…….Ex……..
No worries….. I didn’t get that all posted until later on Wednesday, so it was hopefully helpful to some Copper & Gold investors to have it re-posted. Cheers!
Update on Gold toll mining company in Peru, will likely put a floor under this one, so I’m adding a bit here.
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Inca One Gold Corp. Announces Private Placement And Strategic Investor
April 6, 2017 – INCA ONE GOLD CORP. (TSXV: IO) (INCAF)
“Inca One is a Canadian-based mineral processing company. The Company’s activities consist of the production of gold and silver from the processing of purchased minerals located in Peru. Peru is the 6th largest producer of gold in the world and the Peruvian government estimates the small scale mining sector accounts for a significant portion of all Peruvian gold production, valued at approximately US$3 billion annually. The Company purchases its minerals from government registered small-scale mining producers from various regions and processes it at its Chala One milling facility located in Chala, Southern Peru.”
http://incaone.com/news/news_releases/index.php?&content_id=192
I’ve been watching this one for a while and it’s long descent down, but it appears to be putting in a bottoming pattern here in March, and now they are cashed up to expand their operations. The PP was at $.15 CAD so the market responded in kind with it at $.15 CAD.
Most of the downside is gone now, but it may wobble a penny or two on either side of this $.15 over the next month or two. However, by year’s end I could see it doubling, and by 2018 I could see Inca One (IO) being a 3x-5x bagger.
As a toll miner, this one will be a gradual creeper — Slow and stead wins the race.
PS. – I do realize it’s April now btw….
stead = steady
( I really should proof read my responses before hitting submit, and apologize for the grammar and spelling errors)
Ex; that chart does look good—I might purchase a “tad” of that stock.
They already have their processing center built, permitted and processing Gold & Silver for other smaller mining companies that are properly licensed with the Peru government. What I like is that they have nice margins in place, but if the metals do rise in later 2017 and 2018 then their margins will improve (but they aren’t blowing the money drilling or with heavy machinery). It will have nice leverage to a rising metals price, but has been mostly forgotten about by the industry.
Their current valuation is quite low and I see $.30-$.60 as more realistic once things ramp up.
Inca One Gold – Corporate Presentation:
http://www.incaone.com/_resources/presentations/IO-Corporate-Presentation-March-2017.pdf
GAP POWER: Dollar-Yen Volatility on FED Minutes Day!
http://www.trendlinemagic.com/2017/04/gap-power.html
Long TGTX
The Commercials, re the COTs, are at massive shorts on the conventionals, gold, silver, copper and oil aren’t they?
That makes me very nervous.
I don’t think that there are other markets to invest in globally because if/when the US markets pop then they will take the rest of the world down with them. They always do.