Are Gold Stocks In For A Double Bottom?
On today’s editorial Doc and I look at the discrepancy between the move in some specific gold stocks and the ETFs that follow the sector. Some of the major miners are breaking down but GDX and GDXJ are still well above the early 2016 lows. Overall what we are seeing is money rotate within the sector and no new money enter the stocks at this time.
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DT. Thanks for alerting me to that chart. It appears strongly that PDS is bottoming. the most important chart is the MACD on the monthly chart which shows the red directional line of the ADX (bearish strength directional line) turning down while the green directional line (bullish strength directional line) turning up. If this continues the next 2-3 months (which in all probability it will), it is signalling the worse is probably over for this stock with very little downward movement likely. The odds are moving in favor slowly for this stock. I hope this helps.
DT, I’ll amend that to say the most important chart (indicator) is not the MACD but the ADX.
Thanks Doc. DT
Doc, what do you think about Balmoral resources, Auryn and Klondike? Are they poised to go up from here or are they some of the stocks you see going down in the near term, but higher next year? What are some of you favorites to start accumulating in the near term?
Pardu, not investment advice but I’ve started to purchase Balmoral and Auryn. I believe that Auryn may have one more leg down and so I’ve limited my purchase—I’m waiting for that one more move down and then will get more serious. I also own Klondike and have for some time. I bought it way back when and is one of the stocks I decided I would hold on and was willing to ride down. I’m not that much in the negative since l bought it early. I am planning on adding to my position sometime in the future—probably January. I think that it will possibly make its’ way a little lower. I like the stock for what it’s worth.
Gold Fundamentals Not Bullish Yet
by @TheDailyGold on November 28, 2017
https://ceo.ca/@thedailygold/gold-fundamentals-not-bullish-yet
Question will be…..how long will the fed keep buy the bonds……..every time bonds have sold off, they have been bought up…..Gregg Mannorino has been pointing this out for months……….
That’s a good question relating to bonds. Honestly, I’m amazed it’s gone on as long as it has.
(TK) (TKRFF) Tinka more than doubles Zinc and Tin resources at Ayawilca
Richard Quarisa November 29, 2017 – The Northern Miner
http://www.northernminer.com/news/tinka-doubles-zinc-tin-resources-ayawilca/1003791747/
“Tinka Resources (TSXV: TK) has doubled the resource at its 100% owned Ayawilca polymetallic sulphide project, located 200 km northeast of Lima in Peru’s Department of Pasco.”
“The four zinc zones and one tin zone are located on the larger Ayawilca property at altitudes between 3,800 and 4,300 metres, with the zinc resource open in several directions. In the report, Tinka uses a US$55 per tonne net smelter return cut-off rate for both the zinc zones and the tin zone.”
“The new estimate includes an additional 15,000 metres drilled in 2017. Tinka now estimates the zinc resource at Ayawilca contains 42.7 million inferred tonnes grading 6.0 % zinc and 0.2 % lead with 17 grams silver per tonne and 79 grams indium per tonne. Its previous estimate pegged the resource at 18.8 million inferred tonnes grading 5.9 % zinc and 0.2 % lead with 15 grams silver per tonne and 74 grams indium per tonne.”
(KS) (KLSVF) Klondike Silver Announces Proposed Private Placement
“Klondike Silver’s Royalty Free SILVER LEAD ZINC land package (100 km2) is located in the SLOCAN MINING CAMP (Southeast British Columbia – 138 km North of Teck’s Silver Lead Zinc smelter (Trail B.C.)). Based on the British Columbia MINFILE mineral database, sixty eight (68) of the one hundred and seventy three (173) past producing Silver Lead Zinc mines in the Slocan Mining Camp are located in the Klondike Silver land package. Klondike Silver has created the first real opportunity to invest in and properly explore a sizeable portion of one of the most historic mining camps in British Columbia. Klondike likes to think of the Slocan as the last best under explored Silver Lead Zinc camp in Canada.”
https://ceo.ca/@thenewswire/klondike-silver-announces-proposed-private-placement
What a day…………Alligator teeth
http://www.zerohedge.com/news/2017-11-29/bitcoin-plunges-back-below-10000
I think the only way for the “Bear market” to end would be for the big 3 major gold companies to simultaneously shut 10-20 of their mines immediately. I think they call it a “gentleman’s agreement” if you were a SilyCon valley billionairess (see Geroge Lucas-Steve Jobs anti-trust wage-fixing-scheme for reference).
Confused:
And you are. There is a 70 year supply of gold above ground. If every gold mine in the world closed today, how long would it take for demand to have an effect. And since gold has gone from $252 to the current $1280 or so, what tells you it is in a bear market?
Yes, the Apple man is dead
but his companies practices are not
I’m disappointed to hear the PM stocks have so much more time to struggle yet. My patient is wearing thin. But, what else is as unloved to invest in?
Uranium stocks are even more unloved than PM stocks. The bear market in the Uranium miners has been far more brutal and protracted.
Doc,
What we are seeing regarding the PMs and related stocks is necessary. All this stuff will get hit when the general markets get hit. Look for the deep state spook stocks like Google, Amizon, face plant and tesla to get smoked and lead the way to a crash.
I’m still liking the industrial commodities and emerging markets… All is well with that stuff.
Good read on things, Doc and Cory!
Hi Doc, Do you still follow precision drilling, if so would you be a buyer or a holder at this point, I see it’s at a bottom but what’s your take? I would appreciate your input. DT