David Erfle - Gold Market Commentary – Tue 4 Dec, 2018

Silver – Bottom or Bear Flag?

When looking at the silver chart there are two different scenarios that could play out. The bullish scenario is that the metal is forming a double bottom from the December 2016 lows. The bearish scenario is that a bearish declining wedge and bear flag is forming. David Erfle, Founder of The Junior Miner Junky joins me to outline this set up. He also compares the 20 year silver chart to the 2 year bitcoin chart, there are a lot of similarities.

Please comment or email if you would like David and I to comment on any junior companies you either like or have questions on. Through his newsletter David follows a wide range of companies and will be very honest with his assessment.

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Comments:
  1. On December 4, 2018 at 12:47 pm,
    Jason says:

    I am trading NUGT and JDST and they both are stopped dead in the water. No volume. What’s up with the lock up in miners today?

    • On December 4, 2018 at 12:56 pm,
      Marty says:

      A V shaped recovery in the $USD OFF ITS EARLY SESSION LOW

  2. On December 4, 2018 at 8:53 pm,
    Laurence says:

    David you are one of only a few people to say The FED has to raise interest rate, re Pensions Funds. ZIRP is a huge problem for them

  3. On December 5, 2018 at 9:59 am,
    Excelsior says:

    I posted this last week, but there are still a few Silver miners that will make money at current prices with Silvercorp being the standout in the sector:

    _________________________________________________________________

    (SVM) Silvercorp is still making money at current prices and is the lowest cost Silver equivalent ounce producer due to their large Zinc & Lead co-credits. I expect them to still keep blazing on as well, and if the metals prices move up for Silver, or Zinc & Lead, then I could see them just taking over (NUAG) New Pacific Metals.

    http://silvercorpmetals.com/_resources/presentations/corporate-presentation.pdf

    • On December 5, 2018 at 10:01 am,
      Excelsior says:

      Most companies should be envious of such good profit margins at SVM. They don’t do a lot of marketing or fanfare or newsletter writer hype, but they deliver quarter after quarter.

      _______________________________________________________________

      Operations of $21.0 Million

      November 7, 2018

      > Q2 FISCAL YEAR 2019 HIGHLIGHTS

      – Sales of $48.1 million, up 1% compared to $47.5 million in the prior year quarter;
      Sold approximately 1.9 million ounces of silver, 1,000 ounces of gold, and 19.4 million pounds of lead, up by 17%, 25%, and 15%, respectively, compared to 1.6 million ounces of silver, 800 ounces of gold, 16.9 million pounds of lead in the prior year quarter while zinc sold was 4.9 million pounds, down 12% compared to 5.6 million pounds in the prior year quarter. The ending inventories of silver-lead concentrate were 3,732 tonnes (containing approximately 0.4 million ounces of silver and 4.3 million pounds of lead), a decrease of 34%, compared to 5,650 tonnes of silver-lead concentrate inventories as at June 30, 2018;

      -Gross profit margin of 47% compared to 54% in the prior year quarter, with the decrease mainly due to lower metal prices;

      – Net income attributable to equity shareholders of $8.0 million, or $0.05 per share, compared to net income attributable to equity shareholders of $11.1 million, or $0.07 per share in the prior year quarter;

      – Cash flow from operations of $21.0 million, up 1% compared to $20.7 million in the prior year quarter;

      – Cash cost per ounce of silver, net of by-product credits, of negative $3.37, compared to negative $5.16 in the prior year quarter; All-in sustaining cost per ounce of silver1, net of by-product credits, of $2.54, compared to $2.26 in the prior year quarter;

      – Paid $1.1 million withholding tax at 10% rate for dividend distributed out of China to the Company, compared to $nil in the prior year quarter; and,

      – Ended the quarter with $123.9 million in cash and cash equivalents and short-term investments, an increase of $9.1 million or 8% compared to $114.8 million as at June 30, 2018.

      http://silvercorpmetals.com/news_and_media/news/index.php?content_id=744

      • On December 5, 2018 at 10:07 am,
        Excelsior says:

        Also, as (USAS) (USA) reduces costs on Silver equivalent ounces, using their large Zinc & Lead credits, they’ll be bringing their AISC down to around $4-$6 over the next few quarters, so they’ll be doing fine at $14 Silver, and they are currently plowing revenues into their acquisition of Pershing Gold, but will also be announcing a financing soon to fast-track that Relief Canyon deposit into production.

        ______________________________________________

        “The fourth quarter of 2018 started on a strong note as the Company produced approximately 600,000 consolidated silver equivalent ounces in October from its operations making October the best month so far this year. The San Rafael mine led the way as mill throughput steadily increased through the month to over 1,700 tonnes per day with this consistent performance continuing into November. The strong showing combined with steady performance from Galena have the Company on-track for its best production quarter for the year.”

        “The Company is in discussions with numerous interested parties on the financing of the Relief Canyon project. An update will be provided to the market as to the status of the financing process following the close of the transaction in January 2019. The Company expects to have sufficient funding to support the newly-merged company through to the completion of the Relief Canyon financing.”

        https://www.americassilvercorp.com/news-releases/2018/americas-silver-provides-pershing-gold-transaction-and-general-corporate-updates/

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