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Traders On Hold For The Fed Meeting And A Look At Oil

Cory
March 18, 2019

Chris Temple joins me today to outline the expectantly slow markets as we all await the upcoming Fed statement on Wednesday. We also touch on the ongoing trade talks for the US and China as well as Europe. Finally oil, which had a strong weekly close, is disused. As the energy stocks have continued to lag the question is how this couple impact the broad averages.

Click here to visit Chris’s site for more market and individual stock commentary.

Discussion
59 Comments
    Mar 18, 2019 18:26 AM

    Chris:
    Anything new with International Frontier? Seems like they are a full time punching bag of the speculators.

    Mar 18, 2019 18:11 PM

    Operations are doing much better than share price suggests. Most have bailed chiefly due to continued uncertainty over AMLO policies which are not as bad as initially feared (among other things, no challenge coming to any PAST deals with private companies; thus no threat to IFR’s project.)

      Mar 18, 2019 18:50 PM

      Chris:
      Thanks for the update. The more they beat it down, the more beer money I throw at it.

      Mar 18, 2019 18:47 PM

      Mexico will not revoke mining concessions, wants Canadian miners to be ‘clean’

      March 18, 2019 – Reuters

      “Mexican President Andres Manuel Lopez Obrador (AMLO) said on Monday that he will not revoke concessions for mining companies, but called on Canadian firms to adhere to the same standards that they follow in their home country.”

      https://ca.reuters.com/article/businessNews/idCAKCN1QZ1W9-OCABS

        Mar 18, 2019 18:51 PM

        Ambassador warns of more scrutiny of Canadian mining companies

        Saturday, March 16, 2019

        “President López Obrador has been very public about this, that we really want a strong, profitable mining sector – and Canadian mining companies are large investors in Mexico – but we expect them to operate in this country with exactly the same standards as they do in Canada,” Juan José Gómez Camacho told reporters in Mexico City.”

        “About 70% of foreign mining companies operating in Mexico are based in Canada, according to Canadian government statistics, and in 2015 they held assets here totaling almost US $20 billion.”

        “But Canadian companies’ presence in the Mexican mining market hasn’t been without problems.”

        “Indigenous residents in the Puebla municipality of Ixtacamaxtitlán are currently pursuing legal action against the mining operations of a Mexican subsidiary of Canada’s Almaden Minerals.”

        https://mexiconewsdaily.com/news/ambassador-warns-of-more-scrutiny-of-mining-companies/

    Mar 18, 2019 18:16 PM

    EBO……..here is one for you…….check out the first 5-7 min…….AOC is a look alike for Abidene (hilly’s sect) sister…….
    https://www.youtube.com/watch?v=WO9Pm0gkrSY

      Mar 19, 2019 19:24 AM

      I tell ya, Jerry…I thought AOC was a monitor. Heck, I got one 5 years and hooked it up to a ‘puter. I wish we could go back to the days when AOC was just a monitor.

    Mar 18, 2019 18:23 PM

    BEST PRECIOUS METALS INVESTMENT AND TRADES FOR 2019

    March 17, 2019 – Technical Traders Ltd

    #1 SILVER

    “The number one precious metal to own in 2019 and beyond is silver. Based on the previous high in 2011 and looking at the current price of silver there is a potential upside gain of 226%. Also, notice how silver is putting in a potential double bottom from the 2015 lows it also goes all the way back on the chart to 2006 through 2010 as a key support zone. Much like platinum, silver is at support and could very easily start a new mega-rally at any time.”

    https://www.thetechnicaltraders.com/best-precious-metals-investment-and-trades-for-2019/

      Mar 18, 2019 18:25 PM

      Darren Blasutti, (USA) (USAS) Americas Silver: Don’t Expect Silver M&A Until Prices Move

      InvestingNews – Interview conducted at PDAC on March 5, 2019.

      “With M&A activity on the rise in the gold space, will the silver market be next? Not until prices rise, says Darren Blasutti, CEO of Americas Silver, in this PDAC interview.”

      https://www.youtube.com/watch?v=igvlKR3vBTw&list=PLllOkTmDUdh8A0uDrao1gYfeFE0eGVwzO&index=24

        Mar 18, 2019 18:52 PM

        Thanks for the post Ex. USAS is a coiled spring season that seems poised for a breakout.

          Mar 18, 2019 18:23 PM

          Agreed Charles. I expect a nice re-rating in USAS USA over the next 1-2 years.

          Their biggest upcoming catalyst will be getting the Relief Canyon Mine that they acquired from Pershing Gold financed, constructed, and into production over the next 12 months. This will effectively bring their precious metals output up from the current 25% of the overall production mix to 65% as Darren outlined in that interview above, but in a metal that is actually profitable at present.

          http://www.pershinggold.com/

          I’m also thrilled that Americas Silver is not blowing out their high grade silver reserves at $15 Silver (like most silver producers are doing at present), and instead they are wise to produce at much lower costs blending their low grade silver and mostly base metals mix.

          When the worm turns in Silver prices and they get up near $20 again, then they’ll switch from a Lead/Zinc concentrate to a Copper/Silver concentrate and capitalize on the margins from the high-grade silver still in the ground.

          This is a brilliant strategy over the next few years to go from a more Base Metals focus, to increasing Gold focused, and then finally more Silver focused when it actually makes economical sense to do so.

          Darren also made a great point regarding it not making sense for aggressive Silver miner acquisitions right now.
          > Why would they want to buy a smaller silver producer or Silver development project that isn’t economic at today’s prices and sit on it for years as a boat anchor?

          I agree with him that Gold prices are fine at current pricing for any company with a reasonable asset and a good operations team to make money. Why buy other silver properties now, when their own silver stopes are mostly paused from production, when instead they can buy the gold project for pennies on the dollar and make money over the next few years?

          In their case, they picked up Pershing Gold for a great deal after other companies & stakeholders sunk all the cash into it to explore and develop the property over years at the exact wrong time in the metals cycle and flamed out. Now they have grabbed a great asset on the cheap and they actually have the experience and knowledge to produce gold profitably at current prices.

          That is precisely why most of the “Silver” companies like Hecla, Coeur, SSR mining, Tahoe, Fresnillo, and others have been buying Gold companies the last few years. Heck, even Great Panther Silver changed to Great Panther Mining and are now branding themselves as an “emerging intermediate gold producer”. Even Impact Silver is now out exploring for Gold and putting more emphasis on it due to current economics.

          Shifting the focus over from Silver to Gold for most of these companies is one of the strategies that has been deployed to survive the Silver price environment, but USAS is also blessed with abundant Zinc, Lead, and moderate amounts of Copper as further kickers.

          Eventually these “Silver” companies will need to refocus on exploring/developing/production Silver when the price incentivizes it, and that will be when things really get exciting in the sector once again.

          Cheers!

            Mar 18, 2019 18:28 PM

            Americas Silver (USAS) (USA) – Corporate Presentation:

            https://www.americassilvercorp.com/site/assets/files/5020/presentation20181105.pdf

            Mar 19, 2019 19:42 AM

            Thanks again for your thoughts Ex. I knew about their zinc deposits and were focused there for the time being. I thought about investing in Pershing some years ago and glad I didn’t. It will be interesting to see if they can build the mine as quickly as they expect and get it into production. Do you know if there is much exploration upside with that asset?

            Mar 20, 2019 20:51 AM

            Yes and yes. No mining company anticipates all the speed-bumps along the way into production, so I expect small delays or snags as standard procedure, but the team at Americas Silver has the experience bringing mines into production. Pershing had been out there waffling around for a long time, and I anticipate USAS will get more done in 12 months than the prior teams did in a decade.

            I’m sure there is room for exploration upside as well, but there is a point where an exploration or development company needs to quit drilling for new and get their economic studies & permitting finished. that is where it was when Darren & team picked it up, and I’m sure once they get it in in production over the next year or two, that they’ll start exploring and expanding it again.

      Mar 19, 2019 19:39 AM

      Lawrence Lepard – Gold and Silver Will Head to New Highs

      by @PalisadeRadio on March 19, 2019

      https://ceo.ca/@palisaderadio/lawrence-lepard-gold-and-silver-will-head-to-new-highs

    Mar 18, 2019 18:26 PM

    from jsmineset……..
    We are the lucky ones, we just may not know it because we are dealing with a group of criminals who have circumvented media truths with lies, and have taken over the political arenas of many nations all at once. What better place is there, when the world is awash in debt while Silver and Gold are obviously manipulated? Realizing how great it is to be here now, is truly rare and precise, how about ordained? Regardless, we remain positive because we have knowledge from people who understand the game we are in, and they are willing to tell us, if we only sit to listen. We do, and that is why we remain vigilant, as we wait for the inevitable washout of fiat. Have a great day, keep that smile on your face and a positive attitude in the head, and as always …

      Mar 18, 2019 18:14 PM

      Good post OOTB. This a great group with so many wonderful contribution from people far smarter that me. It has been.a great education for me in the relatively short time here. It will be a great place to find support and relevant information when the proverbial SHTF. I applaud the efforts os Al and Cory in keeping the site going like a well oiled machine.

        Mar 18, 2019 18:57 PM

        Charles………thanks………I have been here maybe 13-14 yrs……time flies when you are surrounded by great guys and having a little fun……We may not always agree on the subject matter, but, for the most part the group is great and friendly…..but, some times we need to rant and vent,….and that is just life…. best and glad you have joined us……OOTB

    Mar 18, 2019 18:55 PM

    Nunes sues Twitter, some users, seeks over $250M alleging anti-conservative ‘shadow bans,’ smears

    https://www.foxnews.com/politics/nunes-files-bombshell-defamation-suit-against-twitter-seeks-250m-for-anti-conservative-shadow-bans-smears

    CFS
    Mar 18, 2019 18:45 PM

    The Fed admits its between a rock and a harder place.

    https://www.zerohedge.com/news/2019-03-18/fed-insider-comes-clean-everything-bubble

    As I have been stating for many months: “If it can’t raise interest rates, it won’t”.
    The U.S. will follow the Japanese model, keep interest rates low, and sooner or later resort to printing money, when they can’t borrow anymore.
    Eventually the world economy will, alas, probably be collapse into the real “greatest depression”.
    All because politicians corruptly prefer to delay pain as long as possible, rather than behave rationally and sensibly. The whole world is in for one hell of a deep long depression, when the everything bubble finally pops.

    Mar 19, 2019 19:30 AM

    China’s primary school students to learn how to avoid stock market pitfalls
    Lily Kuo in Beijing – Mon 18 Mar 2019

    “Chinese primary school textbooks may soon include definitions for terms like “price-to-earnings ratio” or “buy and hold” as the country embarks on a campaign to improve investor awareness.”

    https://www.theguardian.com/world/2019/mar/18/chinas-primary-school-students-to-learn-how-to-avoid-stock-market-pitfalls

    Mar 19, 2019 19:35 AM

    Equinox Gold Increases Aurizona and Mesquite Mineral Resources, Files Mesquite Technical Report

    by @newswire on March 19, 2019

    – Equinox Gold’s consolidated Proven and Probable (“P&P”) Reserves increased 470% since year-end 2017 to 5.5 million ounces of gold
    – Aurizona Measured and Indicated (“M&I”) Resources (exclusive of reserves) increased 50% to 692,000 ounces of contained gold
    – Aurizona underground Inferred Resources increased 115% to 1.1 million ounces of contained gold
    – Mesquite M&I Resources (exclusive of reserves) increased 61% to 1.9 million ounces of contained gold
    – Mesquite technical report shows net present value (discounted at 5%) of $203 million and demonstrates mine life extension potential

    https://ceo.ca/@newswire/equinox-gold-increases-aurizona-and-mesquite-mineral

      Mar 19, 2019 19:37 AM

      (OSK) Osisko Windfall Infill Drilling Continues to Intersect High Grade

      by @nasdaq on March 19, 2019

      88.0 g/t Au Over 4.1 Metres in Underdog

      131 g/t Au Over 2.1 Metres in Lynx

      59.9 g/t Au Over 2.6 Metres in Zone 27

      9.56 g/t Au Over 12.6 Metres in Caribou

      https://ceo.ca/@nasdaq/osisko-windfall-infill-drilling-continues-to-intersect

        Mar 19, 2019 19:10 AM

        Excelsior: Thanks for the post.
        These drill results look pretty good. I have missed hearing about this one. I noticed that KL has been a buyer in the past. It looks like a buy. Anyone own it or have an opinion.?

          Mar 19, 2019 19:21 AM

          I have exposure to Osisko’s neighbors at Windfall == Bonterra. They took over Metanor last year when Osisko took over Beaufield, so there is an exciting land rush and consolidation in that area play.

          Eric Sprott had a position in Metanor and now in Bonterra. I could see his involvement with Kirkland Lake and interest in Bonterra steering KL that direction and setting up shop next to OSK.

          All 4 companies (Metanor, Bonterra, Beaufield, and Osisko mining) had nice exploration results in the past. Now, post mergers, it is Bonterra vs. Osisko, but in a year or 2 it may be KL vs OSK.

            Mar 19, 2019 19:45 AM

            Thanks Excelsior. I had Bonterra at one time, but moved it to something else. I will go back and look at those you mention.

            Mar 20, 2019 20:56 AM

            Well the good news is now Bonterra also owns all the Metanor assets (including their producing mill), and Osisko owns the Beaufield assets now. There are other ancillary players around the fringes, but BTR and OSK are the 2 big players now.

            My thesis is that they both have well-endowed ground and assets, but that Kirkland Lake may move on BTR first, and maybe down the road have a go at OSK as well. Until then, I’m looking to see how some of the new exploration programs go with Bonterra this year, and how they do producing with the prior Metanor assets.

            Mar 20, 2019 20:02 AM

            Eric Sprott Announces Holdings in Bonterra Resources Inc.

            by @newsfile on March 18, 2019

            “Eric Sprott announces that he beneficially owns and controls, directly and indirectly 5,189,467 common shares (shares) and 3,128,500 share purchase warrants (warrants) of Bonterra Resources Inc., representing approximately 8.1% of the outstanding shares on a non-diluted basis and approximately 8.8% on a partially diluted basis assuming exercise of the warrants. ”

            https://ceo.ca/@newsfile/eric-sprott-announces-holdings-in-bonterra-resources-ca297

            Mar 20, 2019 20:07 AM

            Interesting thought from a poster over at ceo.ca about how Osisko may make a run at Bonterra first….

            ____________________________________

            @goldpan – “$BTR Interesting about $OSK is though they may have most to gain, with the obvious Mill being updated, they are not the biggest fish in the sea. Nice if we saw at least one or even two more mergers and acquisitions. I am sure you noticed no warrants attached to the pp. And if $OSK is the first round after BTR I wonder what kind of share exchange in a merger with OSK?”

            ” 2 or 3 OSK shares / 1 BTR share? 2 @ around $3.50 / share OSK would be $7 times around 60 million shares, equating to roughly 420 million market cap. And 3 would become $630 million. I don’t think the under $100 million market cap will work once the RE is well above a million ounces (thinking above 2 million ounces) plus an Updated Mill. Kinross, KL, E. Sprott etc. would like fair value, as they would gain that way as well.”

            “They did not invest heavily for nothing. OSK saving years on permitting and building a Mill, also the $$$$$$. And all the ounces with BTR as well as the Mill.”

            — from @goldpan, 19 Mar 2019, 03:58

            https://ceo.ca/btr?1c87a56e6eb5

            Mar 20, 2019 20:20 AM

            @goldpan – ” In my opinion, the updated RE and the updated Mill has not been priced in $BTR. Another way to look at it, the current market cap is not much over what MTO was merged into BTR at. So in that sense, Gladiator has not been priced in. And as you know the old RE for Gladiator was 273000 ounces. And yes, I agree that a buyout opportunity is definitely there. And Moroy has never had an RE. And Barry has not for underground. So lots for the market to absorb.

            — @goldpan 19 Mar 2019, 14:53

            https://ceo.ca/btr?1c87a56e6eb5

    Mar 19, 2019 19:08 AM

    Cannibal Restaurant

    A cannibal was walking through the jungle and came upon a restaurant operated by a fellow cannibal.
    Feeling somewhat hungry, he sat down and looked over the menu…

    *Tourist $5

    *Broiled Missionary $10.00

    *Fried Explorer $15.00

    *Baked Democrat or Grilled Republican $1000.00

    The cannibal called the waiter over and asked

    “Why such a price difference for the politicians? ”

    The cook replied, “Have you ever tried to clean one?
    They’re so full of sh-t it takes all morning………..”

    Mar 19, 2019 19:35 AM

    What is Happening in Vinny Land………..Seems not what we think, but, maybe for those who think…the same old game with take overs….for the Rich Elites……JMO
    https://www.zerohedge.com/news/2019-03-18/guaido-most-hated-man-venezuela-ground-caracas-versus-media-spectacle

      Mar 19, 2019 19:39 AM

      Either Trump is a con man……..or he got the wool pulled over his eyes…..
      Because we know for sure Old Bolton is a con man…..South American take overs for rich connected people…..All about the Oil Baby……..Imperialism with few benefiting…..JMO
      RANT OF THE DAY……. 🙂

      GH
      Mar 19, 2019 19:11 PM

      Even if the locally grown politician is a disaster (and who knows what the truth is), who wants one appointed by Daddy Yankee?

      I don’t know if Chavez was sincere or not, but if he was then it’s a darn shame he didn’t have better ideas about how to turn around Venezuela. Not an easy task.

      I don’t know if their oil reserves are actually the biggest and/or most valuable, but they are certainly up there. The Globalist mafia doubtless intends to control it, one way or another.

      Interesting place, Venezuela. I lived for 9 months there about 15 years ago, and have been somewhat watching it ever since, but I’ve never been able to get a clear idea of the reality. Crazy city, Caracas. If you want to see all the insanity compressed into 2 hours, look for Secuestro Express. Not for the faint of heart or those who prefer not to see the seedier and more violent side of life. This would have been made before the deepening of the current crisis. Also look for a documentary on the 1989 Caracazo.

      Chossudovsky is worth a listen on Venezuela, as he has long first-hand experience there. I read Chossudovsky’s ‘The Globalization of Poverty’ twenty years ago, that explains the role of the international financial system (World Bank, IMF, GATT/WTO, etc.), and his explanations, as I recall them, have held up as I’ve learned a lot more.

      https://www.globalresearch.ca/venezuela-from-oil-proxy-to-the-bolivarian-movement-and-sabotage/5667366

        GH
        Mar 19, 2019 19:33 PM

        but r.e. the globalist mafia, I guess that’s the question, isn’t it? What about the Chinese and the Russians? Don’t they have interests there? Or is the seeming conflict between the ZioAngloAmerisphere and Russia and China just a charade? Seems to me that the same crowd conquered all three in the 20th century, although I need to learn more about China…and granted, a lot of time has passed…maybe they have liberated themselves?

          GH
          Mar 19, 2019 19:42 PM

          Who’s got the gold? London.

          Who’s going to want to keep gold reserves in the ZioAngloAmerisphere now?

            Mar 20, 2019 20:43 AM

            The Queen is locked in her castle with the key to the vault…….lol

    Mar 19, 2019 19:22 AM

    NOW WE KNOW…….Palladium being CORNERED BY PUTIN……………
    https://www.zerohedge.com/news/2019-03-19/palladium-panic-bid-record-highs-putin-corners-market

      Mar 19, 2019 19:25 AM

      Black Market for Mufflers………on the Way……….

        Mar 19, 2019 19:26 AM

        Even as auto sales in key markets slow around the world, Bloomberg reports that demand for the metal – mainly used in auto catalytic-converters in gasoline vehicles – has remained robust as manufacturers scramble to get hold of palladium to meet more stringent emissions controls, particularly in China.

        “Though there are concerns that auto sales are falling, the supply deficit problem is offsetting it,” said Ajay Kedia, director at Kedia Commodities in Mumbai, adding the market is highly overbought.

        The metal’s rally is even stirring debate about whether automakers can make the switch to cheaper platinum to help control their costs.

        “We remain bullish on palladium since the physical palladium market remains tight and it will take years to substitute,” analysts at Citigroup Inc. wrote in a March 19 report.

        “However, at these higher prices we are acknowledging the increase in downside risks relating to potential substitution headlines.”

    Mar 19, 2019 19:23 AM

    The metal’s rally is even stirring debate about whether automakers can make the switch to cheaper platinum to help control their costs.

    Mar 19, 2019 19:25 AM

    Hey boys, AIPAC

      Mar 19, 2019 19:28 AM

      …is coming to town.

      Better get ready to open up your wallets…as your corrupt politicians get bought yet again…to give even more of your money away…and better not say anything negative about Booboo Nuttyyahoo or the Israeliars…

      AIPAC Is Coming to Town – Again!
      http://www.unz.com/pgiraldi/aipac-is-coming-to-town-again/

        Mar 19, 2019 19:33 AM

        Dang.

        Just what the world needs, yet another Israeliar pac to vacuum up the money of the American taxpayers and give it to the Israeliar goooberment and other Israeliar special interests.

        How much more of this sh*t will we put up with?

        The answer is to never pay taxes…and you know what your corrupt gooberment will do to you then.

          Mar 19, 2019 19:39 AM

          Remember , only the little people pay taxes………Bezo paid “0”……lol

            Mar 19, 2019 19:40 AM

            One of the biggest scams going…….

            Mar 19, 2019 19:55 AM

            I tell you Jerry, we got to be nearing the end of all of the bread and circuses…Just heard a baseball player will be getting a 430 million dollar contract…in a couple years I guess they will be getting a half billion to hit a ball with a stick…of course the owners wouldn’t be paying that with the welfare they get from taxpayers…

            Mar 19, 2019 19:56 AM

            with to without

            Mar 19, 2019 19:15 AM

            Yes, I read that the other day….a couple more getting $300million…..when in 1968, the highest paid similar contract was..$205,000……….WHAT A JOKE…

        Mar 19, 2019 19:34 AM

        And where the heck is Whit??? We aren’t keeping our whits about us today…

    Mar 19, 2019 19:08 AM

    EBO this is for you………..
    Just interesting on the VP and Ryan….and the funeral
    https://www.youtube.com/watch?v=b3VloxdbJjs

      Mar 19, 2019 19:09 AM

      Hey Chartster give me some commentary on the above….Thanks OOTB