Doc is back! Let’s chat Gold and Silver
I am happy to report that Doc is back and should be with us on a bit more regular basis! Today I get Doc’s updated opinion on the precious metals. We chat about the physical price and the underlying stocks. Doc is not changing his views but he does provide some updated targets.
Click download link to listen on this device: Download Show
Rate Hikes are Historically Bullish for the Gold Sector
David Erfle – Friday June 23, 2017
Erfle is correct but the myth will live on.
YEAH…Nice to hear you again ..”DOC”
+1
Now we have the Trifecta.
Jordan calling for a decline in GDX,GDXJ
Mr. T’s E mail calling for near term weakness in Gold due to the rebalancing of the MSCI Emerging markets.
And now Doc calling for 13-14 Silver.
I will take the opposite side of the call and say that one month from now Gold will be at a higher price and the same with Silver.
I will also take the opposite side of the call and say that Gold and Silver will be at a higher price than today two months from now.
Welcome back Doc.
GDX turned perfectly, so Doc your going short to take advantage of a possible 20% decline in silver ? or your not that sure of your call?
Tim Wood thinks gold will make a new bear market low (below the 2015 low).
The recent action has been good (so far) so I’m bullish here (the miners look a lot better than gold). The situation could break down but that’s not at all what I expect.
http://stockcharts.com/h-sc/ui?s=%24GDM&p=D&yr=1&mn=0&dy=0&id=p08202032388&a=528708013
Gary S. is looking for GDX and Gold to fall over the next 6-8 weeks, so he seems to be in agreement in weakness, but not as bearish as falling below the 2015 low.
GOLD ICL STILL 6 TO 8 WEEKS AWAY
Gold’s intermediate cycle low is still 6 to 8 weeks away. Trader sentiment, technical conditions and price targets for both gold and miners are discussed.
June 20, 2017
https://blog.smartmoneytrackerpremium.com/2017/06/gold-icl-still-6-8-weeks-away.html
Gary Wagner is a bit more optimistic:
Gold Stages an Impressive Recovery
June 23, 2017 – by Gary Wagner
https://thegoldforecast.com/video/gold-stages-impressive-recovery
The loonie also looks better than it has in a long time and that’s good for the miners.
http://stockcharts.com/h-sc/ui?s=%24CDW&p=W&yr=3&mn=7&dy=0&id=p50347011566&a=529054473
I like docs view partly due to confirmation bias……Doc is bullish from 2018. I actually believe we are in a neutral price environment and that will continue until the fed decides to stop increase rates/admit reality. More QE or fiscal spending will be in place to counter the deflationary pressures should another downturn occur. (Which will balance out the potential downward pressures in gold price. The best way fed can create inflation is to spends its way out…fiscal policy is without doubt the way they can do it, and if they want it to be successful they can make it successful via crediting peoples bank accounts, getting banks to provide loans that are longer duration without a prepayment facility etc. I agree with those who say we have deflationary pressures due to demographics/high debts, however I don’t agree with the rhetoric that it can’t be controlled. It can with 100% certainty…but it will need to be done in co-ordination with BOE, ECB, JCB etc…. so no one currency gets out of control and turns into venezuela.
Hi Doc, do you think team USA can defeat the Kiwis in the America’s cup races? I fear our naval abilities have declined so much under Obama that a tiny nation of just 4 million can whip us. I hope Trump can turn things around…
Doc, stately Barzini Manor was built before WWII when labor and materials were plentiful and cheap. It was built to last and I hope never to remodel even though the closets and bathrooms are small by today’s standards. Welcome back!
Welcome back Doc, always good to hear your perspective.
Cory,
I had to chuckle at myself, as I was one of those people hoping to hear from Doc P.
I greatly enjoy hearing from everyone on the KER team, as well as your excellent guests.
And Doc, thank you for taking some time for us. Good luck with the home reno’ !
Xriva
The case for 100 percent Renewables rested on a lie. Here’s what it teaches us about energy and the environment
June 22, 2017 – by Michael Shellenberger
“Over the last several years, Al Gore, Leonardo DiCaprio and Mark Ruffalo and many politicians have pointed to Stanford scientist Mark Jacobson’s modeling as proof that we can quickly and cheaply transition to 100 percent renewables.
What is the lie? That we can increase the amount of power from U.S. hydroelectric dams ten-fold. According to the U.S. Department of Energy and all major studies, the real potential increase is just one percent of that.
Without all that additional hydroelectricity, Jacobson’s entire house of cards falls apart. That’s because there’s no other way to store all of that unreliable solar and wind energy, given the shortcomings of current battery technologies.
The authors diplomatically call Jacobson’s lie an “error,” but it is in fact a lie and everyone — Jacobson included — knows it.
In his response, Jacobson writes, “Increasing hydropower’s peak instantaneous discharge rate was not a ‘modeling mistake’ but an assumption.”
What is an assumption? It is “a thing that is accepted as true or as certain to happen, without proof” [emphasis added].
But what have Jacobson, Gore, DiCaprio and politicians around the world been insisting for years? That Jacobson’s study proves not only that we can power the world with renewables-alone, but also that doing so would be cheaper and more environmentally friendly.
Upon the big lie rest others.
For example, around the world, politicians and renewables advocates seeking to close nuclear plants justify their actions by claiming Jacobson’s work proves that nuclear plants are not needed as an alternative to fossil fuels.
Jacobson himself told the audience during our debate at UCLA last year that California would replace our last nuclear plant, Diablo Canyon, entirely with renewables — and at a lower cost than keeping the plant running.
Jacobson says these things even though he knows perfectly well that everywhere in the world nuclear plants are closed, fossil fuels are burned instead.”
“As a result, if solar and nuclear waste from producing the same amount of electricity were stacked on football fields, the nuclear waste would reach the height of the Leaning Tower of Pisa (52 meters), while the solar waste would reach the height of two Mt. Everests (16 km).”
“The reason for the difference is obvious. Sunlight is diffuse and so a large number of collectors (panels), as well as the land they take up, is required to generate enough electricity. Because nuclear fuel is so energy-dense, very little is required in terms of materials or land….”
The #Uranium space quietly having it’s best day since April. Very refreshing to see. Here’s a recap of the companies that had a positive Green day to close up the week.
#Uranium Stock Symbol Company Name Chg % Chg
$UEC Uranium Energy Corp. +0.22 +15.71%
$PBM Pacific Bay Minerals Ltd. +0.005 +12.50%
$CLE Clean Commodities Corp. +0.005 +10.00%
$FCU Fission Uranium Corp. +0.05 +9.26%
$DNN Denison Mines Corp. +0.04 +8.93%
$ARY Anfield Resources Inc. +0.005 +8.33%
$FUU Fission 3.0 Corp. +0.01 +7.69%
$URG UR-Energy Inc. +0.04 +7.14%
$URRE Uranium Resources, Inc. +0.10 +7.04%
$MGA Mega Uranium Ltd. +0.01 +5.88%
$DYL.AX Deep Yellow Limited +0.01 +5.45%
$UEX UEX Corporation +0.01 +5.26%
$URA Global X Uranium ETF +0.56 +4.49%
$UUUU Energy Fuels Inc. +0.06 +3.95%
$SNR Senator Minerals Inc. +0.04 +3.48%
$NXE NexGen Energy Ltd. +0.09 +3.41%
$AZM Azimut Exploration Inc. +0.01 +3.13%
$CCJ Cameco Corporation +0.23 +2.52%
$LEU Centrus Energy Corp. +0.11 +2.33%
$PWM Power Metals Corp. 0.00 +1.82%
$PLU Plateau Uranium Inc. 0.00 +1.33%
$U Uranium Participation Corporation +0.05 +1.28%
$ERA.AX Energy Resources of Australia Ltd 0.00 +1.03%
The Appalling Delusion of 100 Percent Renewables, Exposed
by ROBERT BRYCE – June 24, 2017
“The National Academy of Science refutes Mark Jacobson’s dream that our economy can run exclusively on ‘green’ energy…”
So, gold is going nowhere……..at least for the summer. That’s fine, nothing new. But uranium may make up for the doldrums we find ourselves in. Nice jump today for UEC (included in the Russell 4000). whoops…….beer time.
Silverdollar. Nice! Those posts showing how well UEC did today hit in tandem.
Synchronicity at its finest.
Hopefully, this bump in the uranium stocks is predicting the potential double bottom in uranium spot prices at this time.
Yes, most of the Uranium sector investors are watching to see if we get a double bottom here (7 months after the Nov 2016 lows). If that is the case, then this could be a good area of support $18-$20 Uranium spot price, where things may trend higher on a move-forward basis.
Having said that, I also don’t see any imminent drivers of higher spot prices either. Really it will take utility companies coming in as buyers and longer term off-take agreements to get negotiated at prices closer to production that provide a little margin for the companies to grow.
Could be hot money looking for a new sector too.
Agreed Dan, calgary.
SOMEWHERE CHEAP TO HIDE
by Kevin Muir — on Uranium , URA , U 23 Jun 2017
“So here we are again. A cheap, unloved sector, that can’t seem to get off the mat.”
David Cates (of Denison Mines – DNN) puts in black and white the problem with the uranium industry:
“With uranium at $19 to $20, the price is too low to be rational. The lowest cost mine in the world, operates in an all in basis to breakeven of 21 to 22 dollars. I don’t lose sleep about whether the price will stay at $18 or $20. It’s fair to believe that price will not sustain itself.”
______________________________
“I don’t think there is any rush to buy. Yet for me, this is a perfect uncorrelated value story. Somewhere cheap to hide while the rest of the crazy extended market swings around.”
First Cobalt Reveals Plans to Consolidate Ontario’s Historic Cobalt Mining Camp
June 22, 2017
(this is on the 3 way merger that is going on right now in the Cobalt space to consolidate the land and the mills and prior producing land package. It is a wild and interesting transaction even for those not following the Cobalt space).
We will see what the details are that FCC is offering, they have done a poor job of communicating and I believe we will see a few other bids for Cobalt One, and Cobalt Tech, before any agreement is finalized. FCC is not going to walk away from these negotiations without putting itself in harm’s way. DT
First Cobalt Signs LOI with CobalTech
marketwired on June 22, 2017
https://ceo.ca/@marketwired/retransmission-first-cobalt-signs-loi-with-cobaltech
First Cobalt Proposes Friendly Merger with Cobalt One
marketwired on June 22, 2017
* The proposal delivered to Cobalt One includes the following elements:
> Cobalt One shareholders would own 60% of the merged entity and First Cobalt shareholders would own the remaining 40%, prior to giving effect to any subsequent equity issuances by either company;
> The merged entity would be based in Toronto, a five-hour drive from the Cobalt mining camp;
> First Cobalt would maintain its TSXV listing and seek to obtain a secondary listing on the ASX of CHESS Depositary Interests
> It would be a condition of the transaction that the Board of Directors of the merged entity would include Cobalt One Chairman Paul Matysek, Cobalt One CEO Jason Bontempo as well as Bob Cross and some or all of the current First Cobalt Board members. ”
https://ceo.ca/@marketwired/retransmission-first-cobalt-proposes-friendly-merger
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.”
Merger and acquisition on First Cobalt’s playlist
Cobalt explorer out to consolidate historic camp properties 5
Jun 21, 2017 – by: Northern Ontario Business Staff
“First Cobalt is proposing a merger with Australia’s Cobalt One (formerly Equator Resources) to consolidate the two largest land packages in the historic Cobalt camp into one entity with more than 10,000 hectares.
Under the proposed agreement, Cobalt One shareholders would own 60 per cent of this entity with First Cobalt shareholders owning the remaining 40 per cent.
First Cobalt would become the sole owner of the Yukon Refinery in North Cobalt. Previously the two companies had signed an option agreement on June 1 to become 50/50 joint venture partners in the mill. ”
“First Cobalt announced it has signed a non-binding letter of intent (LOI) to acquire all of the issued and outstanding shares of CobalTech.
Only weeks ago, CobalTech had threatened to sue Cobalt One over the failed sale of the Yukon Refinery to CobalTech.
CobalTech has 11 former mines near the town of Cobalt, including its flagship Duncan Kerr project, eight properties in Quebec and its Werner Lake East Cobalt property near Kenora in northwestern Ontario. The company also owns a 100-tonne per day mill in town.
CobalTech inherited almost 6,600 tonnes of silver and cobalt-rich crushed material left behind on surface when it acquired the former Kerr and Lawson silver mines last fall.
In a statement, Mell said CobalTech’s property and mill assets complement his company and should provide value to shareholders of both companies.”
Nemaska Lithium Delivers Battery Grade Lithium Hydroxide to Johnson Matthey and Provides Phase 1 Plant Update
“”We are very pleased to have delivered a high quality lithium hydroxide product that meets the stringent specifications of Johnson Matthey, a large and globally recognized cathode manufacturer for lithium-ion batteries,” commented Guy Bourassa, President and CEO of Nemaska Lithium. “The Phase 1 Plant installation and commissioning has gone very well as evidenced by this delivery of product. We look forward to sending other customers lithium salts this summer for evaluation.”
http://www.nemaskalithium.com/en/investors/press-releases/2017/6342f326-f344-4b04-afd9-c018d60c4c26/
Don’t worry, Doc. I’ve been filling in for you. I’ve been telling everyone “sideways to down”. You’re welcome!
Nothing year……..Doc is correct ……….welcome back, and tell the contractors you will give them a tip on metals, for a discount on the work.
or maybe a lead on a weed stock might be better…….. 🙂
Silver stealers. com………would be a good read……jmo
Buffett partner Charlie Munger says Al Gore is ‘an idiot’ but became rich with this strategy
Tae Kim – June 23, 2017
https://finance.yahoo.com/news/buffett-partner-charlie-munger-says-135509218.html
Charlie is right about one thing………..
LYNCH……under investigation…….Hilly could be next…….
How big is bitcoin, really? This chart puts it all in perspective
Published: June 22, 2017 – By Sue Chang
“Bill Gates’s net worth still beats bitcoin’s entire market cap”
SILJ outperformed the other gold/silver mining ETFs today and SIL was runner-up. This action tends to be a bullish sign for the sector.for the sector.
http://stockcharts.com/h-sc/ui?s=SILJ&p=D&yr=1&mn=0&dy=13&id=p32004079550&a=531116124
Hi ho Silver…… Away!!
Gold Summer Doldrums
Adam Hamilton – Jun 23, 2017
“Gold’s summer-doldrums lull marks the best time of the year seasonally to deploy capital, to buy low at a time when few others are willing. Gold enjoys powerful seasonal rallies that start in August and run until the following May! These are fueled by outsized investment demand driven by a series of major income-cycle and cultural factors from around the world. Summer is when investors should be most bullish, not bearish.” — Adam Hamilton
DOC!!
Welcome back sir. You’ve been missed. Hope the remodeling went well.
Good thoughts as always sir.