Fundamental charts: US Markets and US GDP
These 2 chats below were sent to me by our friend Ronni Stoeferle. The two charts are presenting different hard data but all together they outline just how streched US equity markets are compared to US GDP. Take a look and let us know what you think.
I apologize for the lack pf postings today. It was a full day on the Rye Patch properties. We will provide full coverage on this weekend’s show.
Back in the day, when fundamentals used to matter… pic.twitter.com/yJcBk8Ybnh
— D.Schrottenbaum, CFA (@David_Schro) June 20, 2017
groundhog day? The Atlanta Fed’s GDPNow forecast for the second-quarter growth (green line) fell below 3%. pic.twitter.com/xSHtV6ubRj
— Ronnie Stoeferle,CMT (@RonStoeferle) June 20, 2017
Great interview with Rick Rule on the Sprott Conference, the Commodities versus the General Markets, the low Volatility environment, and Uranium & the South Korea news.
Precipitate Gold trenches 16 m of 1.1 g/t Au at Ginger
2017-06-20 11:11 ET – News Release
Mr. Jeffrey Wilson reports
GINGER RIDGE EAST ANOMALY RETURNS 16.0 METRES OF 1.1 G/T GOLD PRECIPITATE’S TRENCH SAMPLING AT GINGER RIDGE EAST ANOMALY RETURNS 16.0 METRES OF 1.1 G/T GOLD
Precipitate Gold Corp. has released results from its recent hand-trench sampling program within the Ginger Ridge East zone at the company’s 100-per-cent-owned Juan de Herrera property .
Precipitate would be doing much better if Strategic Metals hadn’t been liquidating shares regularly over the last few weeks.
JAGUAR ANNOUNCES ACQUISITION OF STRATEGIC LAND POSITION EXTENDING ROÇA GRANDE MINE CONCESSION BY 1,000 HECTARES; PROVIDES GROWTH EXPLORATION UPDATE
Jun 21, 2017
“Jaguar Mining Inc. (TSX:JAG) is pleased to announce that it has acquired a strategic Mineral Exploration License located 4.5 km west of the Caeté mill operations where the Company currently processes ore from its Pilar Gold Mine and its Roça Grande Gold Mine. The Company is also pleased to provide a Growth Exploration Update on its operations including the Pilar Mine and the Turmalina Gold Mine, located in Minas Gerais, Brazil.”
“Mr. Rodney Lamond, President and CEO of Jaguar Mining stated; “The awarding of this new strategic Mineral Exploration License to Jaguar is another outstanding achievement by our vigilant operations team, who were able to apply for the License area when it became publically available in mid-2016. It is a very difficult task to maintain an attentive watch for available concessions in a highly sought after mining district. The new License further consolidates and considerably expands the total RG concession adjacent to the RG mine and mill operations. The new License area is also highly prospective, containing a number of old Portuguese workings, and over 7.5 kms of mapped, contiguous BIFs including a potential gold-bearing BIF hinge in the west-south-west quadrant of the License area. These BIFs form part of the continuity currently hosting the RG mineralization which make up the entire RG complex. During the second half of the year, Jaguar plans to carry out an exploration campaign on one of the historic targets, Morro da Mina, to confirm previously identified gold occurrences in and around the target.”
Beautiful Jaguar Roar
At this stage of the bull market, this is more like it:
Near the end of the bull market:
+2 Matthew
Oh ho ho, If they could just manage to pin this on Clinton! But my guess is that they’re going to do what they’ve done with everything else, stonewall turning in any documents.
Chart of the Day: Will the FED Rate Hikes Kick-Start Inflation?
June 20, 2017 – The Hedgeless Horseman
“No one could have escaped hearing financial media pundits talk about how bad rate hikes are for gold. What is interesting is the fact that since the start of FED’s latest hiking cycle in late 2015, gold has actually rallied right after each hike (Potentially with the exception of this latest hike).
So ,what gives…?
It may be because the market believes the FED is making a mistake and that each rate hike takes us closer to the end of the tightening cycle and the beginning of more aggressive forms of “helicopter money”.
It may also be because the market believes something may be about to change in regards to money velocity, which has been trending down for about 10 years(!), and thus kept a lid on inflation no matter how much money the FED prints:”
“If that horrible downtrend was a bout to turn up, it might lead to an inflation shock given how much money is slushing around in the system. And for it to turn up, rate hikes are perhaps exactly what the doctor ordered:”
“Notice that these lines track each other pretty well, and that as of last quarter, both lines has been going up together (again). If M2 Money Velocity starts to really pick up, helped by FED rate hikes, we could see inflation rear it’s “ugly head” again. Much to the chagrin of every day people, but not so much to the precious metal investors. Add in more geopolitical turbulence in the middle east, leading to a spike in oil, and we could see a perfect storm in terms of shock inflation.”
http://www.thehedgelesshorseman.com/gold/chart-day-will-fed-rate-hikes-kick-start-inflation/
Ex, The Fed is raising rates to reduce the volume of credit out there and to force up the price of money for speculative purposes, this after years of quantitative easing and forcing money into the markets. This won’t work, all we have seen with their past policies are the rich becoming richer with their bubble blowing machine. Deflation sits on the horizon waiting for the next disaster to bring it on in full force. Meanwhile AI or artificial Intelligence is in full swing sapping all jobs across the board, witness Amazon entering the grocery market, food suppliers will now get the heavy fist to give Bezo’s team the lowest prices while whole foods is robotized. The food industry is about to become sucked dry and jobs will disappear fast. This is huge and part time jobs will now be lost to the technology boot. DT
I believe Mr T has been the most accurate where we have a blend of creeping inflation in certain areas, but barely any growth in a flat lifeless economy with low to zero inter-rates and negative to neutral real interest rates (with some deflationary pressures)….. and thus we get STAGFLATION. 🙂
HAYWOOD RESEARCH: Hawkish Fed Continues to Weigh on Gold/Gold Equities
The Weekly Dig – June 16, 2017
by Mick Carew, PhD, Emma Boggio, MSC, CPA and CA, and The Haywood Mining Team
Here is an interesting chart and visual from Macquarie on the Commodities direction projected over a 2 year period.
http://cdn.ceo.ca.s3-us-west-2.amazonaws.com/1cki9nf-Macquarie_commodity_cycle.png
Since I was a bit uncharacteristically bearish on Nuclear power yesterday, let me balance it with at least one good news release.
Here is a little ray of sunshine for US Nuclear Energy.
______________________________________________________________________________
House passes tax bill to boost Nuclear Power
by John Siciliano | Jun 20, 2017
“The House passed legislation on Tuesday to expand the use of tax incentives for new nuclear power plants well into the next decade.
The bipartisan nuclear tax bill passed by voice vote, and had 32 co-sponsors at the time it was approved.
“Without this legislation, the nuclear power industry may cease to exist as we know it in this country, which is exactly why passing this bill now is more important than ever,” said Rep. Tom Rice, R-S.C., a lead sponsor of the bill. “We need to give these plants the certainty of these tax credits, just as Congress intended.”
http://www.washingtonexaminer.com/house-passes-tax-bill-to-boost-nuclear-power/article/2626565
Looking on the sad side of the issue, and the idea that the “deep state” might want to NUKE us, and set all the power plants off at the same time…………..The US does not have a stellar record for no accidents……Longmile Island comes to mind….. But, then again my mind is wondering…….. 🙂
the warmongers can not make any money on Green Peace…… 🙂
While anything is possible….. Really, the US has plenty of stockpiles of enriched Uranium and Plutonium to use for weapons if they need them, but they’ve been doing the opposite and selling all of that into the spot market for the last decade, and they are finally scaling that back some. It seems far less likely that they’d want to weaponize the Uranium or the Power Plants themselves in a false flag attack.
What seems very likely to me is that this administration is trying very hard to get recognized for championing bringing more jobs in the Energy sector, and keeping the jobs in place that currently exist.
This administration has been vocal about bringing back Coal jobs, but maybe a few people have consulted the administration officials and mentioned… “PS… ladies and gentlemen, you’re about to lose a whole sector of energy jobs if you don’t do something to assist the Nuclear sector.” It is a good thing for the Nuclear sector to see the Tax Incentives for nuclear expanded & extended out a reasonable amount of time.
I think you have to look past the administration……..the administration you think of has been taken over…….jmo
Just look back in history………THE FED is the prime example………jmo
My point was the Obama’s administration dumped tons of Uranium onto the spot market when the “Megatons for Megawatts” program was supposed to officially end in 2013. There are Dept of Energy limits to what the federal government is advised to sell into the spot market and they were ignored. Lastly, the prior administration backed all kinds of Solar scams and flushed billions down the toilet subsidizing solar companies that went out of business or are still floundering, but they ignored Nuclear the entire time as it was not in vogue.
I’m just happy to see these tax incentives expanded and extended by the current administration, as it is the right approach and about dang time.
Most Uranium stocks are up today on the news of this Tax Bill passing that expands and extends the tax incentives for the Nuclear industry. Baby steps….
Here is an interesting perspective to mull over, whether one agrees or disagrees.
__________________________________________________________________________
Dear Mr. President, Be Careful What You Wish for: Higher Interest Rates Will Kill the Recovery
Posted on June 11, 2017 by Ellen Brown
Noticed it on 321gold
New Saudi King…… the Prince has moved up in power……suggesting that Iran might be the next hot spot……..zerohedge
I guess the new arms deal with the US….should have told us in advance what was about to happen. The new Kings likes to be aggressive, as seen with his action with Yemen.
Looks like another hot spot is about to get even hotter…………better stock up on GOLD…. 🙂
Report from 456 goldy locks……..
Silver looking lousy………we might see $15.99 again………wash and rinse once again.. 🙂
Santacruz Silver Announces Agreement to Consolidate 100% Ownership of the Veta Grande and Minillas Mineral Properties
June 21, 2017
“The Veta Grande and Minillas properties together with our Zacatecas properties represent one of the largest and most historically important land packages within the Zacatecas mining region, and we are very pleased to have this agreement in place which gives us the opportunity to consolidate our mineral interests in the area.” stated Arturo Préstamo, President and CEO of Santacruz.
Starting on the Initial Payment Date, the Company will be entitled to 100% of the cash flows generated from mining operations conducted on the Veta Grande and Minillas properties. In the event that the Option agreement is terminated, the 40% NPI will revert to Contracuña from the date of termination.
—-
Corporate goal for 2017:
– Continue ramp-up to 800 tpd by early Q1 2017, 1,500 tpd by end of
2017. Commercial Production to be achieved in near-term.
http://www.santacruzsilver.com/s/news_releases.asp?ReportID=793384
Nice response today from Santacruz Silver.
Kitco……….Frank G. dappling in Bitcoin………….
maybe he is going to sell it to Russia…… 🙂
Good one.
dabbling……..not dappling……although Frank has a spotted past….. 🙂
Maybe a little dabbling and dappling then…..
Gold Is ‘Managed’ by Wall Street and The Fed – Frank Giustra
Jun 20, 2017
“Canadian mining maverick and entrepreneur, Frank Giustra does not mince words. While the mining mogul and philanthropist is involved in a vast array of projects ranging from an olive oil venture in Italy to Thunderbird, the film production company behind the upcoming Blade Runner sequel, it is truly when his first love – gold – is brought up that he gets passionate. This January marked a return to the resource sector for Giustra, who took a half-decade hiatus during the commodities downturn. His latest undertaking is Leagold Mining Corp., a mid-tier gold producer based in Mexico, which bought the Los Filos mine from Goldcorp Inc. for US$350 million. ‘Wall Street has done a good job of talking down gold and labeling it a barbaric relic,’ he said during his interview with Kitco News. And while Giustra stops short of using the word ‘manipulated’ in conjunction with gold, he does not shy away from using the word ‘managed.’ ‘I think gold is managed by policymakers that need to keep confidence in a system when the system starts to go sideways,’ he explained.”
Gasoline demand down………Trump blames illegals for staying home……. 🙂
Illegals are afraid to drive , they might get pulled over.
“DOW Top? – Restraining the DOW: Will it be different this time?”
http://www.trendlinemagic.com/2017/06/dow-top.html
Getting close… to something.
GLD at support-turned-resistance:
http://stockcharts.com/h-sc/ui?s=GLD&p=D&yr=1&mn=0&dy=0&id=p19341329103&a=521457207
Yup. Note the difference in our support lines.
Go Gold! (Long JNUG).
Yes, I’ve got a similar chart for gold – which varies somewhat from GLD:
http://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=0&mn=9&dy=0&id=p74405183102&a=530213544
A plunge is coming to GDX:GDXJ (seniors priced in juniors):
http://stockcharts.com/h-sc/ui?s=GDX%3AGDXJ&p=W&yr=7&mn=3&dy=0&id=p97627118717&a=527904195
“GOLD GAP CLOSED”
http://www.trendlinemagic.com/2017/06/gold-gap-closed.html
Now what?
FCC and CSK halted could this be the beginning of consolidation in Cobalt North. DT
If so there are another few juniors that could be snapped, crackled, and popped. DT
I just hope none get Honey Smacked….
Yes, quite often when a stock is halted the news is bad, someone has been selling CSK in droves for about a month so if the news is good it will only be good for the buyer. Then they will turn around and tell the investors that they are getting a 60% premium from yesterday’s close at 11 cents. That leaves almost all the shareholders bagholders, markets can be very cruel. DT
Price of cobalt is up, now at $26.54 /lb.
Cobalt is key for battery tech so it makes sense.
I’m interested to see how Brixton (BBB) does with their exploration drilling for Silver and Cobalt this season. #FingersCrossed.
Silver-Cobalt Project Summary
* The Langis Mine (past producer of high-grade silver) Project is located near Cobalt in eastern Ontario, 15 km north from Temiskaming shores and 500 km north from Toronto. Highway 65 runs through the property and many secondary roads are established providing year round access. Power, railways, mills, a permitted refinery and assay lab are located in or near the site.
The Langis Project represents unique opportunity to a silver district that has not seen much modern exploration techniques applied. New discovery potential is high and a strong possibility exists to generate mineral resources from extensions to historical workings and new exploration.
The Langis Mine has produced historically over 10.4M oz Ag with a recovered grade of ~25 oz/t Ag from shallow depths and 358,340 lbs of Cobalt. (see production history)
** The Hudson Bay Mine has produced historically 6.4M oz of Ag at 123 opt silver and 185,570 lbs of Cobalt from 58,000 tons.
http://brixtonmetals.com/properties/langis-silver-cobalt-project/
News is out, FCC has signed a non binding letter of intent to buy CSK, there is no deal yet but this stock is underwater. DT
First Cobalt Proposes Friendly Merger with Cobalt One
by @marketwired on June 21, 2017
https://ceo.ca/@marketwired/first-cobalt-proposes-friendly-merger-with-cobalt-one
BRIXTON METALS TO SELL ITS NON-CORE MINING CLAIMS IN THE COBALT CAMP, ONTARIO
June 7, 2017
$BBB Brixton Metals Corporation is pleased to announce that it has entered into an asset purchase and sale agreement with $FCC First Cobalt Corp., to sell 100 percent interest in Brixton’s non-core mineral claims located in the Cobalt Camp, Ontario, Canada. The 22 claims cover approximately 848 hectares. The agreement provides that $FCC First Cobalt will pay $BBB Brixton $325,000 cash.
Chairman and CEO of Brixton, Gary R. Thompson stated, “These non-core claims were not contiguous to Brixton’s Langis or Hudson Bay properties. The divesture of these claims allows Brixton to focus on our wholly owned Langis and Hudson Bay past producing, high-grade #silver – #cobalt mines within the Cobalt Camp.”
TLT:GLD is approaching resistance:
http://stockcharts.com/h-sc/ui?s=TLT%3AGLD&p=W&yr=6&mn=9&dy=0&id=p40348383609&a=518122837
If I had any long term treasuries I’d swap them for silver.
I agree. Silver is far more appealing than gold right now.
+1
Protesters block access to Tahoe’s Escobal silver mine in Guatemala
Cecilia Jamasmie | 2 days ago
http://www.mining.com/protesters-block-access-tahoes-escobal-silver-mine-guatemala/
They were probably put up to it by entities looking to get long. 😉
You never know……
Maybe Soros wants to take a large position in Tahoe and organized a protest 😉
The loonie is finding a little fork support right now on this 2 hour chart:
http://stockcharts.com/h-sc/ui?s=%24CDW&p=120&yr=0&mn=3&dy=0&id=p52690593668&a=528220282
Both the Schiff and modified Schiff forks have now failed so a steeper Andrews fork is now in play.
GLD is also at a declining fork resistance (you can see that the path depicted by my arrows weeks ago was a little too optimistic but was accurate initially):
http://stockcharts.com/h-sc/ui?s=GLD&p=D&yr=1&mn=1&dy=0&id=p06779743438&a=527851584
Gold steadies as oil plunge dampens U.S. rate hike expectations
Reuters – June 21, 2017 – By Peter Hobson
https://finance.yahoo.com/news/gold-edges-five-week-lows-010658505.html
When the MSM talks down rate hike expectations, you can count on more rate hikes!
lol – likely so…. “Do the opposite”
This passage at the end is what tipped me over the edge to post that Gold article from Reuters, but mostly because of the Palladium comments. I remain shocked that hardly anyone has discussed the run in Palladium over the last year.
_________________________________________________________________________
“In other precious metals, silver was down 0.3 percent at $16.41 an ounce, just above a six-week low hit in the previous session, while platinum was up 0.2 percent at $920.50 an ounce.”
“Palladium was 1.3 percent higher at $879.25 an ounce, its second day of gains after it fell back from a 16-year high on June 9 of more than $900.”
“The metal used for emission-controlling catalytic converters in petrol vehicles is benefiting from a shift away from diesel cars, said Natixis analyst Bernard Dahdah.”
“I think there is going to be a correction to closer to $780, but that doesn’t mean that we are not bullish,” he said.
https://www.youtube.com/watch?v=PhknCYNPXTQ
sgt report
World’s top coal producer to close 37 mines
Coal India said the closures would save the country around $124 million.
Cecilia Jamasmie | about an hour ago
http://www.mining.com/worlds-top-coal-producer-close-37-mines/
“At the same time that solar becomes cheaper, the cost of coal power is rising in India as local mines face mounting costs and tougher environmental regulations, a report by Bloomberg New Energy Finance said earlier this month. Falling demand is also an issue.”
“India’s solar-generation capacity is expected to touch 8.8 gigawatts (GW) this year (a jump of 76% over 2016) to become the third-largest solar market in the world, according to renewable energy consultancy Bridge To India (BTI). At the end of 2016 India had just 7.5 gigawatts.”
“The nation has set itself some of the world’s most ambitious targets for installing new solar power capacity, with prime minister Narendra Modi aiming for 100 gigawatts of solar power by 2022.”
Drain the swamp alreadsy….
METANOR ANNOUNCES INCREASE TO $ 5.9 MILLION IN BROKERED PRIVATE PLACEMENT
“Metanor Resources Inc. (TSX-V: MTO) is pleased to announce that it has entered into an amended agreement with Sprott Capital Partners to act as lead agent on behalf of a syndicate of agents including Red Cloud Klondike Strike Inc. , pursuant to which the Agents will sell by way of private placement, up to 5,250,000 flow-through shares at a price of $1.13 each for maximum aggregate gross proceeds of $5,932,500.”
“It is anticipated that the private placement will close on or before June 29, 2017…”
** Here’s a nice map showing the lay of the land in this Area Play by Metanor, Osisko, Bonterra, and Beaufield:
The miners are looking good…
http://stockcharts.com/h-sc/ui?s=%24GDM&p=D&yr=1&mn=0&dy=0&id=p64951934109&a=528708013
Today’s action was very bullish. GDXJ provided 5 to 1 leverage to the price of gold while SIL performed even more bullishly relative to silver. SIL gained 1.39% while SLV lost .19%.
https://www.youtube.com/watch?v=Rsk0Jr6kSFc