Minimize

Welcome!

Peter Brandt – Gold, Silver, Oil, Bitcoin

Cory
May 5, 2017

It is always great chatting with Peter Brandt from Factor LLC. This interview is a bit longer than normal but we cover a number of different markets from precious metals to oil to bitcoin. Peter has some interesting comments regarding the PMs not being in a bear market but also not being in a bull market.

Click download link to listen on this device: Download Show

Discussion
53 Comments
    May 05, 2017 05:02 AM

    Junior Mining Update From Gwen Preston – Resource Maven
    04/26/17

    JORDAN ROY-BYRNE CMT, MFTA – THEDAILYGOLD PODCAST

    https://thedailygold.com/junior-mining-update-from-gwen-preston/

    May 05, 2017 05:04 AM

    Mining industry sentiment more positive in Q1: Outotec
    London (Platts)–4 May 2017

    “In Q1, gold, aluminum, copper, and zinc projects were most active, with customers in the Middle East, Central and South America and Russia continuing to lead the way in terms of investment, the company said.”

    Looking ahead, “investments in minerals processing are expected to follow the industry’s production levels, providing continued opportunities for process improvements, smaller equipment deliveries, and services,” Outotec said.

    “Gold and copper projects are likely to continue being most active, but other base metals projects are also showing increased activity,” the company added.

    https://www.platts.com/latest-news/metals/london/mining-industry-sentiment-more-positive-in-q1-26728076

    May 05, 2017 05:12 AM

    Sarama Resources Reports Final Q1 2017 Drill Results for Karankasso Project in Burkina Faso
    (Marketwired – May 05, 2017) –

    Sarama Resources Ltd. advises that Savary Gold Corp., the operator of the Karankasso Project Joint Venture between Sarama and Savary, provided an update on May 4, 2017 of the balance of drill results from the Q1, 2017 drill programs. ”

    S-Nosa Zone
    HE-RC-17-084 15m @ 1.34 g/t Au from 70m (including 7m @ 2.43 g/t Au from 80m)
    HE-RC-17-085 4m @ 13.05 g/t Au from 95m
    HE-RC-17-089 3m @ 4.32 g/t Au from 81m

    Kueredougou West Trend Zone

    HE-RC-17-02 7m @ 2.96 g/t Au from 20m (including 3m @ 6.45 g/t Au from 21m)

    http://www.marketwired.com/press-release/sarama-resources-reports-final-q1-2017-drill-results-karankasso-project-burkina-faso-tsx-venture-swa-2214416.htm

      May 05, 2017 05:14 AM

      Red Eagle Exploration Expands

      Bob Moriarty for The Gold Report (5/3/17)

      http://www.streetwisereports.com/pub/na/red-eagle-exploration-expands

      Tad
      May 05, 2017 05:15 PM

      13g/t AU is good isn’t it? I can’t tell.
      Sarama shares need some good news for sure.
      Terranga not looking too clever either at the moment. May have to top-up that one; it’s at 12 month lows.

        May 05, 2017 05:25 PM

        That’s a great grade by today’s standards but there’s much more to economic feasibility than grade alone.

        *I’m not familiar with Red Eagle.

          May 05, 2017 05:34 PM

          Matthew – That grade was on Sarama Resources. It is an Exploration company operating in West Africa right next to Teranga, Endeavour Mining, Roxgold, and Semafo. They are in JVs with Savary Gold (another Exploration company with Ross Beaty involved). Both Sarama and Savary will get acquired due to their strategic positioning on the South Houde Belt as West African Gold miners continue to consolidate.

          For anyone interested, my buddy Nick the “MiningBookGuy” has a great video out overviewing the strengths of the company.

          ________________________________________________________________________

          Sarama Resources – Incredible Value/Location as Gold Miners Consolidate in Africa
          MiningBookGuy – Jan 26, 2017

          https://www.youtube.com/watch?v=RaANyHF1Yd8

          May 05, 2017 05:38 PM

          As for (R) (RDEMF) Red Eagle they are the newest Gold Producers in Colombia and have a very nice operation that started up over the last year (despite all the worries about mining in Colombia). Their team is solid, their operations are solid, and their future looks very constructive. The shares have sold off a great deal and this is an excellent time to bottom-fish this company IMO.

          ____________________________________________________________________

          MIF January 2017: Red Eagle Mining Corporation
          Beneath The Surface – Metals Investor Forum – VIDEO Corporate Presentation

          https://www.youtube.com/watch?v=hNJ7QLyU7tY

            May 05, 2017 05:41 PM

            For clarity, the Red Eagle Exploration that Bob M was discussing above is the exploration subsidiary (XR):

            Ian Slater – the CEO of Red Eagle mining put out this blurb today on ceo.ca:

            ______________________________________________________

            Ian – “Moriarty wrote about $XR, $R’s exploration subsidiary with the California and Vetas projects (formerly $CBJ). Otto’s good news on $R was referring to the Colombian federal government’s current pro mining push which uses $R as a positive example. Liberty and Orion are not selling and you can verify on sedar as they are over 10%. Van Eck was never a $R shareholder.”

            https://ceo.ca/r?0502195fd48e

            May 05, 2017 05:44 PM

            (R) (RDEMF) Red Eagle Mining – Corporate Slide Deck – May 2017
            Colombia’s Premier Emerging Gold Producer

            http://www.redeaglemining.com/_resources/presentations/corporate-presentation.pdf

            May 05, 2017 05:57 PM

            I’m not familiar with Sarama either. 😐

            May 05, 2017 05:01 PM

            Watch Mining Book Guy’s video. It’s the next Gryphon Minerals 🙂

        May 05, 2017 05:57 PM

        Tad – (TGZ) Teranga has been snared up in the $GDXJ selling, but they are also doing a 5:1 reverse split, so that will take them up to a $3 stock, and attract more institutional investors. While I generally don’t like reverse splits, this one is strategic to tighten up the share structure (my main gripe with them) and get a different class of investors involved.

        Teranga is one of the most undervalued mid-tier gold producers (only surpassed by Primero at present), and they are one of the best run companies in West Africa (only surpassed by Endeavour Mining). They are one of my favorite Gold producers on the planet, and when the dust settles from the share rollback, I’ll be buying with both hands.

        ______________________________________________________________________

        Glutton For Punishment
        May 5, 2017 – by Peter Grandich

        “TGCDF – Unlike NSU (Nevsun), the sharp decline in Teranga’s share price has not come from poor handling of corporate matters by management (In fact, management is doing a great job). While some of the retreat in the share price could be over the coming reverse split next week, by-in-large, I suspect most of it has taken place due to an ETF’s need to unwind tens of millions of Teranga shares (along with many other companies shares) due to an adjustment in the fund itself. This selling, and likely still a fair amount of overhang, has given shorts “easy pickings” (especially with gold under short-term pressures).

        But like adversity always creates opportunity for someone, buyers of the company’s stock today ($.48 pre-split or $2.40 after reverse-split next week) appear to have mostly opportunity going forward at today’s share price entry point. While its natural to think the stock will retreat after the reverse as most do, most companies who do reverse split, do so just to start over. Teranga has never been in a better corporate position and should be one of those few that greatly profits from the reverse over time. They’re treated like a penny stock despite performing on the corporate side of things like an emerging blue chip mining company.

        Sometime between today and the day the rebalancing ETF will have completed its restructuring (mid-June), should mark the new leg up in Teranga’s share price, and a new more institutionally driven shareholder emerge.

        Given the fact that both companies fundamentals have never been better IMHO, yet their share prices are way off their highs, the biggest challenge for them both could be staying independent. Both have a key shareholder or two that own a hefty minority stake, so I don’t see a hostile bid succeeding unless it was made in the near-term and for at least 100% higher than today’s share price. That could clinch enough sellers and quite frankly, I think I would end up one too. But don’t be a shareholder for this. Be one with expectations of owning it for the next 1-3 years for potential superior capital gains from here.”

        http://www.petergrandich.com/glutton-for-punishment/

    May 05, 2017 05:11 AM

    Matt
    seeing that the Canadian insane housing bubble in conjunction with higher levels of household debt than the U.S had in 2007. Marc Cohodes started shorting Home Capital at $60 and it is now under $7. He sees piles of corruption within that company and also within the whole Canadian banking system. If the contagion from Home Capital spills over to the greater Canadian housing market, won’t the Loonie be headed to the low .60 level? I’m lad I own real gold.

      May 05, 2017 05:29 AM

      I really don’t know how significant the housing market is to the loonie’s fate nor how much of such a scenario is already priced-in.

      I have to stick to the charts for my opinions, in this case.

    May 05, 2017 05:12 PM

    The loonie got through the light resistance that had capped it for most of the day:

    http://stockcharts.com/h-sc/ui?s=%24CDW&p=D&yr=1&mn=5&dy=0&id=p77873164553&a=521484960

    b
    May 05, 2017 05:37 PM

    Who the heck is this guy to say gold may not go to the moon?
    About time he got “run off” isnt it?

      May 05, 2017 05:44 PM

      b…don’t disagree with the gold and silver bugs or the rocks will come out…

        May 05, 2017 05:03 PM

        Ain’t that the truth. Gold isn’t considered a bull market until it closes above the downtrend line from 2011. And we haven’t seen the final washout yet. The good news is, it’s coming soon! ( the washout and the bottom that is )

          May 05, 2017 05:35 PM

          Chartster, looking forward to your August lows—I don’t think that it’ll get down to your price but it would be nice if we see the low then.

            May 05, 2017 05:56 PM

            It all depends how and when gold hits the 1150-60 level. There’s nothing but air underneath there. If it’s just a low or a new bottom, I’m good with either one. After that, we should be seeing some nice moves north…🙂
            I’m certain that August will be the turn tho.

        May 05, 2017 05:28 PM

        You guys are funny. I haven’t noticed any criticisms of Brandt’s comments. What you really have to watch out for is disagreeing Trump bugs, those poor guys are clueless.

          May 05, 2017 05:57 PM

          Yeup, Trump exposes everyone.

            May 05, 2017 05:08 PM

            watch it …..pedo gate is still on the agenda………. 🙂

            May 05, 2017 05:50 PM

            Yes, he has exposed that most of the right is nearly as clueless as the left.

      May 05, 2017 05:07 PM

      To the MOON……..and BEYOND……………..

        May 05, 2017 05:14 PM

        To the moon ..and…beyond….!
        – Buzz Goldbug

    May 05, 2017 05:28 PM
    May 05, 2017 05:40 PM

    From a big picture standpoint, Michael Oliver characterizes the action we’ve seen lately in gold and silver as “noise” and he is correct.

    http://kingworldnews.com/gold-silver-carnage-look-at-this-special-report-just-sent-to-the-big-money/

    May 05, 2017 05:31 PM

    All things considered, it was very encouraging to see the strength in the miners today when the metals were down most of the day and only barely managed a sliver of a gain by the close. Here are Silver stocks that had a nice Green day.

    #Silver Stocks % Chg

    $SIL 1.83 11.59%
    $AXU 1.40 10.24%
    $BTT 0.22 10.00%
    $KTN 0.29 5.45%
    $CDE 8.67 5.35%
    $GRG 0.60 5.26%
    $SVB 0.12 4.55%
    $AG 7.48 4.47%
    $SVE 0.49 4.26%
    $HOC.L 245.00 4.26%
    $FRES.L 1,419.00 3.96%
    $PAAS 16.24 3.51%
    $GPL 1.19 3.48%
    $DV 0.60 3.45%
    $NIM 0.16 3.33%
    $IPT 0.64 3.23%
    $GGD 0.64 3.23%
    $BHS 0.16 3.23%
    $HL 5.30 3.11%
    $EXN 1.39 2.96%
    $SLW 19.48 2.91%
    $MMG 0.36 2.86%
    $SVM 3.99 2.84%
    $FSM 4.25 2.16%
    $CSR 0.28 1.85%
    $SSRI 9.19 1.72%
    $TAHO 8.60 1.65%
    $LVN 0.41 1.23%
    $USAS 2.65 1.15%
    $MAG 15.47 0.91%
    $ASM 1.46 0.69%

      May 05, 2017 05:32 PM

      Small Gold producers shrugging off low metals prices for a Green Day:

      Small #Gold #Producers % Chg

      $MLN 0.74 17.46%
      $GG 0.06 9.09%
      $WDO 3.20 7.02%
      $EXG.AX 0.04 7.32%
      $BLK.AX 0.31 6.90%
      $AMI.AX 0.21 5.00%
      $MTO 0.91 4.60%
      $CGN.AX 0.02 4.35%
      $WPG.AX 0.05 4.17%
      $IO 0.13 4.00%
      $TMM 0.60 3.45%
      $R 0.61 3.39%
      $GGD 0.64 3.23%
      $GORO 3.38 3.20%
      $MOY.AX 0.22 2.38%
      $PG 2.61 1.95%
      $RED.AX 0.04 2.33%
      $SMC 0.28 1.82%

        May 05, 2017 05:33 PM

        Here are some Gold Development stage companies that closed in the ~Green today:

        #GOLD #Developers Price % Chg

        $SFEG 0.12 12.92%
        $NVO 0.76 8.57%
        $TRX 0.50 7.51%
        $ORE 0.59 7.27%
        $MAX 0.76 7.04%
        $TSN 0.40 6.76%
        $THM 0.48 4.30%
        $MAE 0.13 4.17%
        $NEE 0.52 4.00%
        $PGM 0.51 3.03%
        $AGC 0.36 2.90%
        $ICG 0.76 2.70%
        $XRA 1.62 2.53%
        $SA 10.25 2.50%
        $AAU 1.38 2.22%
        $AGB 1.39 2.21%
        $EGI 0.45 1.96%
        $PVG 8.85 1.96%
        $AVK 0.27 1.92%
        $GOM 0.30 1.69%
        $LYD 0.33 1.56%
        $PZG 1.57 1.30%
        $GSV 1.57 1.29%
        $CNL 2.74 1.11%
        $PLG 0.46 1.10%
        $BGM 0.97 1.04%
        $NG 3.96 1.02%
        $DCN.AX 1.55 0.98%
        $OLA 1.20 0.84%
        $SBB 1.60 0.63%
        $VGZ 0.96 0.37%

          May 05, 2017 05:33 PM

          Here are the Gold Mid-Tier Producers that had a nice ~Green Day:

          #Gold Mid-Tier #Producers Price % Chg

          $BAA 0.12 9.26%
          $AKG 2.24 6.67%
          $EDV 21.33 5.80%
          $ACA.L 398.90 5.50%
          $MML.AX 0.40 5.26%
          $HGM.L 139.25 4.90%
          $DRD 3.87 4.59%
          $SLR.AX 0.49 4.26%
          $BTG 2.25 4.17%
          $IAG 3.76 4.16%
          $CEE 2.82 3.68%
          $DRM.AX 0.29 3.57%
          $PRU 0.30 3.45%
          $AGI 6.39 3.23%
          $EGO 3.42 3.01%
          $AR 2.01 2.55%
          $KLDX 3.25 2.52%
          $BDR.AX 0.22 2.38%
          $RIC 6.80 2.26%
          $TXG 21.40 2.05%
          $PPP 0.48 1.97%
          $CG 7.30 1.96%
          $MND 0.54 1.89%
          $DGC 16.70 1.83%
          $PAF.L 15.25 1.67%
          $GUY 5.82 1.22%
          $OGC 4.28 1.18%
          $GCM 1.44 0.70%
          $ASR 1.99 0.51%
          $NST.AX 4.23 0.48%
          $MUX 2.68 0.37%

    May 05, 2017 05:10 PM

    How can you talk about Bitcoin without talking about China when 98% of bitcoins are traded in China? Bitcoin serves it’s purpose. It is all about getting money from country to country or out of banks without being traced or paying fees. It can be a money launderers dream. I think if the Chinese ever stop trying to get money out of their country, Bitcoin will collapse.

    May 05, 2017 05:14 PM

    I think Bitcoin is extremely vulnerable to a Chinese government crackdown. If I want a worldwide money separate from governments, I would rather own gold. A related article…

    http://www.zerohedge.com/news/2017-01-13/chinas-next-time-bomb-look-inside-insane-world-chinas-bitcoin-traders

    May 06, 2017 06:03 AM

    On February 14, 2017 at 3:52 pm,
    Excelsior says:

    For a sector to mark a bottom requires terrible sentiment, in late 2015 you could tell it a number of ways. Frank Homes (Mr. Commodities) started an airline ETF waiting on the sector to recover, there were less resource sponsors and traffic on most of the main mining websites (including here at the KER), and mining conference attendances were down in the toilets. Very few except a few of the rogue contrarians here on the KER were even discussing buying mining stocks back in December 2015 tax loss selling season. If you remember, we were joking on this blog about “holding our noses and buying more Silver miners.” It was fairly grim.

    Technically speaking, for it to be a bottoming pattern then the rally off of those lows needs to take out the recent prior peaks, and Gold and the miners absolutely delivered last year. Gold took out 3 higher peaks as well as the 2013 spike low, on massive volumes, and it paired up precisely with the lows and then move to record highs on the Gold Miners Bullish Percentage Index. (more on that in the next post)

    _________________________________________________________________________

    First let’s review the double bottom move down to $1445.40 that gold put in during mid to late December 2015. I had remained more reserved, because I had said since the rally in the first quarter of 2015 that I wanted to see the prior peak at $1346.80 (~$1347) taken out definitively on a closing basis. If you recall, the rally in early 2015 had fizzled out at $1307.80 and not made it past $1347. It was a bummer back in early 2015, and as a result, moving forward $1308 became first resistance, that had to be taken out to eclipse the rally from 2015. $1308 was referred to as “The Matterhorn”, (he mentioned $1309 in the article – same basic level). However, $1208-$1309 was significant, but to me it was only the first of several challenges Gold must overcome.

    It was Dragonite that reminded us all of the major spike down trough to $1321.50 from the spring of 2013, which had started the several years of sideways to down consolidation. Upon going back and looking at that again, it became very clear that this $1321.50 was a severe downturn in 2013 and defining moment in the Gold Bear. There was even a show here on the KER where the speakers had postulated that $1321 was “The Bottom” way back then. The point was that for the Bull market to be back on then Gold absolutely needed to put in a close above $1321.50.

    Well, look at the chart below of the past and what has happened this year and you’ll note that Gold took out $1307.80 (the Jan 2015 peak), $1321.50 (the 2013 spike down low trough, that did serious chart & sentiment damage), and Gold also took out $1346.80 (the next higher peak from the summer of 2014). When those levels ($1308/$1321/$1347) were taken out, then I was finally comfortable with the fact that it was not just a counter-trend rally, but in fact the beginning of the new bull in gold.

    Lastly, when Gold spiked up to $1377.50 this summer, it also took out a lessor peak of $1361.80 (from the autumn of 2013). Typically the summer is more bearish for the metals, so for Gold to have taken out so many prior peaks was uncharacteristically bullish. We mentioned in discussions on here a few times that Gold had borrowed from the normal Fall rally by going so high into the summer, and that we’d have a dip down into November.

    That’s exactly what we’ve seen play out thus far, and so far coming out of late Dec 2016 to early 2017 the metals have rallied a bit and technically made a “Higher Low”. Honestly, unless Gold goes all the way down and breaks below that $1045.40 Dec 2015 low, then in my opinion we are still in the new Gold bull market.
    ________________________________________________________________________

    Here is the Chart that goes with all those Gold peaks & troughs. It’s easier just to see it:

    http://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=5&mn=0&dy=0&id=p21742695491

    ___________________________________________________________________________

    On February 14, 2017 at 3:53 pm,
    Excelsior says:

    Based on the Gold chart it sure looks to me like the Dec 2015 low of $1045.40 and the Dec 2016 low of $1124.30 form a “W-shaped Double bottom”. Also that $1045.40 formed a mini-double-bottom back in Dec 2015 to kick off that $1045.40 level as the lower low.

    In addition, note how Gold blasted up through the 144 week EMA, 233 week EMA, and the 377 week EMA. In particular, Gold had sunk down through that 144 week EMA in 2013 and hadn’t broken back up through it until last year’s rally. That is pretty significant in my view.

      May 06, 2017 06:35 AM

      Yeup. Different people require different evidence to feel confident and the herd needs a LOT of evidence because it, as a whole, doesn’t know anything. I didn’t care about the Matterhorn a year ago and still don’t, now. We have a new cyclical bull on our hands.

        May 06, 2017 06:59 PM

        I am more stubborn of course, so for me it was seeing the Matterhorn from 2015 taken out (which back in 2015 it was the first time I thought Gold may have reversed with a shot at ending the bear). Obviously Gold fizzled there in early 2015, and for me I needed to see that level taken out at a minimum if Gold was really in a new bull, and it would make a higher high from 2015 to 2016. We definitely got that.

        However, it was really taking out the spike down low from 2013 of $1321.50 (that had started the whole 2 1/2 year sideways to down consolidation) which ended up being the clincher for me.

        Then continuing to move up so strong in the spring and summer (which is typically bearish to neutral for metals/miners) was another tip off. When it took out that next peak of $1346.80, then it sealed the deal that a new bull was underway, and the bear had rolled over. Gold even took out the next peak at $1361.80.

        I’m most interested in seeing significant prior peaks and troughs taken out, than any other technical tool, because it is the most basic method in TA and lets price action dictate uptrends or downtrends. Trendlines, Moving Averages, BBs, Forks, Frans, Fib retracements or extensions are all important, but much more subjective in their relative importance in a move. However, making higher highs and higher lows or lower highs and lower lows is the most primal form of Technical data we can hope to pull off a chart.

        Obviously Gold & Silver and the Miners took out a number of Moving Averages that they hadn’t in years and this was just one more confirmation that the worm had turned.

        Despite the fact that Gold took out 4 significant prior peaks and troughs, several moving averages that took years to reclaim, and there remains in place the pattern of higher highs and higher lows….. some still think we are in a Bear market.

        Of course, nobody can rule that out 100%, it seems very unlikely at this point. The only way we are still in a Bear market for Gold is if we break below the Dec 2015 low of $1045.40. PM investors are acting like all is lost and the Bears are getting cocky again, and Gold is at $1228. We’re $183 away from that low, even after all the selling we’ve seen recently. I could see the case for $1180 Gold, but not a break below $1045.40 over a year 1/2 later. We’ll know soon enough.

        Personally I still feel like the seasonal rally that usually occurs in Aug/Sept/Oct will allow us to take out intermediate peak from earlier this year, and by Nov/Dec we should have taken out last years high of $1377.

        We’ll see how goes….

          May 06, 2017 06:27 PM

          And it’s a good damn thing that some still think we’re in a bear market. Not only is that just what a bull market needs, but, paradoxically, it supports our view.

            May 06, 2017 06:56 PM

            Good point and yes, it is good that many are waiting for $1400 gold and $25 Silver for confirmation.

          May 07, 2017 07:28 PM

          I think gold is in trouble if it goes below about $1150 and breaks the current uptrend, marked by the $1045 and $1124 lows.

    May 07, 2017 07:24 PM

    Cory: Did we see a market put in a bottom then 1.5-2 years later retest it?
    Me: Yeah, gold in 1999 and 2001! Almost a double bottom.
    $253 to $336 and then back to $255.