Richard Postma - The Doctor Is In – Mon 24 Jun, 2019

Doc’s thoughts on gold breaking to 6 year highs

Doc joins me today to share his thoughts on the breakout in gold. We look at the moves in gold, silver and the gold stocks.

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Comments:
  1. On June 24, 2019 at 1:02 pm,
    OOTP says:

    I think we are still kind of stuck in normalcy bias. Gold has been like molasses for so long, it seems reasonable to think that an 8 year gold bull market might move in measured advances.

    I’ll go out on a limb and say that we are approaching so many breaking points, there is NO WAY gold will climb gradually for 8 years.

    • On June 24, 2019 at 1:40 pm,
      OOTB Jerry says:

      Not OOTB J…… 🙂

      • On June 24, 2019 at 2:00 pm,
        RICHARD/DOC says:

        Yes, OOTB; I realize you have faith to move mountains. OOTP has to learn to listen to the doctor’s prescriptions.

        • On June 24, 2019 at 7:04 pm,
          OOTP says:

          I feel so misunderstood. What, I’m saying is that gold will wildly outperform Richard’s “measured advance” theory.

  2. On June 24, 2019 at 1:25 pm,
    RICHARD/DOC says:

    “O Ye of little faith”

    • On June 25, 2019 at 11:10 pm,
      Rubber says:

      Doc – any thoughts on EGO / ELD?

  3. On June 24, 2019 at 1:38 pm,
    bonzo b. says:

    Doc, something came over me today and I decided to sell my SLB after a 10% gain in 6 days. Let me know when you decide to buy it.

    • On June 24, 2019 at 2:02 pm,
      RICHARD/DOC says:

      BB; what came over you may have been the spirit. SLB looks like it might run a little more but I don’t think you will get hurt by that decision. I’ll try to remember to keep an eye on it. Update me periodically.

      • On June 24, 2019 at 3:05 pm,
        Excelsior says:

        Equinox Gold Completes Conditions for Investment by Mubadala Investment Company

        by @newswire on 24 Jun 2019

        “Equinox Gold Corp. (EQX)(EQXFF) is pleased to announce that the Company has completed all conditions pursuant to the previously reported strategic investment by Mubadala Investment Company, and the remaining US$10 million of the total US$130 million gross proceeds has been released to the Company.”

        https://ceo.ca/@newswire/equinox-gold-completes-conditions-for-investment-by

  4. On June 24, 2019 at 2:44 pm,
    Ryan says:

    I’m not going to give Doc a hard time. He did say this is the year you should be accumulating, but once again was a little late to pick the final low.

    Doc.. You’re right GORO is still cheap and hadn’t moved that much yet. It usually tracks with CDE. It’s got some catching up to do.

    • On June 24, 2019 at 3:19 pm,
      RICHARD/DOC says:

      Ryan, thanks for reminding me about GORO again—I lost track of that puppy. I hope I’m wrong but this bull may make one more attempt to come back into the monthly BBs—time will tell. As I mentioned gaps have been left all over the landscape.

  5. On June 24, 2019 at 2:57 pm,
    Excelsior says:

    Gold is still gaining today, bringing prices near the highest level since 2013 with bulls ‘back in control’

    Bloomberg News – Financial Post – Ranjeetha Pakiam & Rupert Rowling
    June 24, 2019

    “Prices extended their advance above US$1,400 an ounce, near the highest level since September 2013, after the Federal Reserve and other central banks turned more dovish on monetary policy. This, combined with planned U.S. sanctions against Iran, as well as the coming meeting between the American and Chinese presidents, is creating a raft of bullish factors for the precious metal.”

    “Gold bulls are back in control,” Edward Moya, senior market analyst at Oanda Corp., said in a note, adding the metal remains supported by rising expectations of a 50 basis point cut at the Fed’s July meeting. “The question is no longer will the Fed ease, but by how much? The Fed historically likes to kick on an easing cycle with a bang and a 50 basis point cut should become the base case.”

    “Fed Chairman Jerome Powell is due to speak at the Council on Foreign Relations in New York Tuesday where he’ll discuss the challenges facing the U.S. economy.”

    https://business.financialpost.com/commodities/mining/gold-is-still-gaining-today-bringing-prices-near-the-highest-level-since-2013-with-bulls-back-in-control

    • On June 24, 2019 at 3:00 pm,
      Excelsior says:

      “Jerome Powell is due to speak at the Council on Foreign Relations in New York Tuesday ….”

      ie…. The Fed waterboy is going to his handlers, the Deep State, to see how to proceed.

      Just a secret handshake, a wink/nod, and kiss of a masonic ring, and they’ll line him right out on how to proceed. Then they’ll do a little arranging of the cards in the deck globally to play their next hand…. Rinse and repeat.

      • On June 24, 2019 at 3:02 pm,
        OOTB Jerry says:

        ditto……..

  6. On June 24, 2019 at 3:15 pm,
    B-Man says:

    Look at the charts of gold and silver. Gold started the run at the beginning of the 2000s – about 3 YEARS before silver so patience is the by-word here.

  7. On June 24, 2019 at 3:22 pm,
    George says:

    Looks like palladium was the canary in the gold mine after all.

  8. On June 24, 2019 at 3:26 pm,
    cfs says:

    off topic: Trump on healthcare.

    https://youtu.be/hcvztRBsViU?t=979

  9. On June 24, 2019 at 3:51 pm,
    cfs says:
  10. On June 24, 2019 at 4:03 pm,
    Excelsior says:

    Gold at $1427 in after hours trading. Let’s see how things go in Asia later this evening.

    https://www.bloomberg.com/quote/GC1:COM

    • On June 24, 2019 at 5:55 pm,
      Excelsior says:

      Gold now at $1431 in overseas trading, just 3 buck away from the 2013 peak of $1434.

      Here is a longer term chart showing that peak at $1434, and then there isn’t much resistance until the $1520’s.

      http://schrts.co/pIGDCktM

      • On June 24, 2019 at 6:19 pm,
        Excelsior says:

        It may be that If Gold gets knocked down a bit at this resistance level, and that would make sense as it is getting overbought, but it wouldn’t really bother me.

        The larger trend was confirmed once Gold broke out last week.

        • On June 24, 2019 at 11:01 pm,
          Excelsior says:

          I’m seeing $1427 Gold for futures on Yahoo & Bloomberg:

          https://www.bloomberg.com/quote/GC1:COM

          Gold may have poked it’s head slightly above the $1434 resistance level to $1438-$1440 very briefly, but it does look like it’s stalling here and getting swatted back down below resistance.

          It is the logical place for it to happen, and it likely needs to knock a bit of overbought froth off the top. It’s still at a nice place for the miners to make a profit, so maybe they can gain a bit more ground during this pause that refreshes.

          It will be interesting to see where the open/close are tomorrow during normal market hours.

      • On June 24, 2019 at 8:28 pm,
        Ozibatla says:

        Golds now looking quite impressive. The follow through uptrend so far this week has been quite productive. It would not surprise me if we now get a correction. However wih the price now hovering around $1430, the correction hopefully goes no lower than the previous resistance zone of $1360-$1380. If that were to be the case, then that paints an increasingly positive technical picture for the yellow metal. Essentially what was previously stubborn resistance then becomes stubborn support…. Fingers crossed!

        • On June 24, 2019 at 9:31 pm,
          Matthew says:

          A drop would make sense at any time now but it could just as easily extend its spike first when you consider the dollar’s near-term prospects:
          https://stockcharts.com/h-sc/ui?s=%24USD&p=W&yr=3&mn=3&dy=0&id=p39937808451&a=672280269

          • On June 24, 2019 at 10:31 pm,
            Excelsior says:

            Yeah, if that Dollar keeps rolling over and heading lower, it is just going to amp up the move in the PMs and also bring a bit of life back to the commodity sector in base metals, grains, and Oil.

          • On June 25, 2019 at 2:07 am,
            Ozibatla says:

            So true!

  11. On June 24, 2019 at 4:10 pm,
    cfs says:

    Italy is bankrupt andusing MMT to continue on.

    But Salvini knows that only works for a while. With bank interest negative, Italians have been intelligent enough to withdraw cash and put it in deposit boxes.
    Salvini is now suggesting a one-time tax of opening up all deposit boxes and taking 15%

    Who says taxation is not outright theft? Government mafia?

  12. On June 24, 2019 at 6:56 pm,
    Matthew says:

    UUP:GLD is arriving at a couple of supports so a countertrend move might be imminent for the dollar or gold or both:
    https://stockcharts.com/h-sc/ui?s=UUP%3AGLD&p=W&yr=5&mn=6&dy=0&id=p02932639921&a=672334249

  13. On June 24, 2019 at 7:06 pm,
    markedtofuture says:

    OPUS 163 Corrupt Abbas

    Ready to Negotiate??! Yeah, I think so. Palestians never misuse an opportunity to mess up. Seriously, people…get sum leadership that cares ’bout you!

    https://www.youtube.com/watch?v=_qSFsv_EjPQ

  14. On June 24, 2019 at 7:09 pm,
    Matthew says:

    Gold could pull back sharply at any time but I am not selling anything or hedging in anticipation. When it comes, it might not be shallow but I do expect it to be brief.
    https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=8&mn=5&dy=0&id=p05775019853&a=642512939

    • On June 24, 2019 at 7:53 pm,
      buzz says:

      GSV sitting there like a bump on a log

      • On June 24, 2019 at 8:07 pm,
        Matthew says:

        I see that. It could look a lot worse but it doesn’t “energetic” at all. I wonder if there’s a big capital raise coming. I don’t follow it.

        https://stockcharts.com/h-sc/ui?s=GSV&p=W&yr=5&mn=1&dy=0&id=p20127440214

        • On June 24, 2019 at 11:26 pm,
          Excelsior says:

          There are plenty of investors thoughts, SEDI updates, and editorials posted in the GSV room:

          https://ceo.ca/gsv

          I’ve noticed most of the development stage companies have been bumps on a log lately. Actually Sabina (SBB) had a nice 9+% move up today, but they’re the highest grade open pit developer out there, and likely getting juiced on the higher metals prices.

          I see both GSV and SBB as the kinds of deposits that will be mines in the next cycle, and possibly takeover candidates from one of the larger mid-tiers or majors.

          All in due time…

        • On July 7, 2019 at 2:58 pm,
          JMiller says:

          Yeah, and I see that you are just a turd.

  15. On June 24, 2019 at 10:34 pm,
    Excelsior says:

    What do to in a Gold Bull?

    The Hedgeless Horseman – June 22, 2019

    “Well, the first thing that usually seem to happen bearish sentiment turns into bullish sentiment is that banked success gets revalued first. What I mean by that is the fact that ounces in the ground and projects with economic studies in black and white seem to “re-value” first. I view this as the return of rationality. I mean a solid project trading for half its NPV during a time of depressed sentiment is not rational. It’s akin to the market leaving money on the table, or a “free lunch” if you will. When sentiment turns, and the mindset goes from “mining stocks/projects are worthless no matter what the facts say!” to “My bad, of course they are valuable!, then the mining companies with tangible “facts” will re-rate the fastest. They simply have the smallest “courage threshold”. You don’t have to be a raging gambler to muster up the strength to buy something that is worth perhaps twice as much on paper.”

    “At the same time, the producers will start to move, especially the known ones. Why? Well, they are even more tangible and everyone knows that if a company’s product goes up in value the company will make more money, all else equal. Furthermore the best known names will be the easiest ones to buy and the easiest ones to find.”

    “Imagine you have no clue about mining or mining stocks and you read a headline that says “Gold is rocketing to multi-year highs and gold mining companies are screaming higher”. What are the odds that you, in a greedy rush, will take the time and have the courage to buy some obscure junior with no revenue or even an economic study done? Slim to none I would say.”

    https://www.thehedgelesshorseman.com/gold-silver-stocks/what-to-do-in-a-gold-bull/

    • On June 24, 2019 at 10:38 pm,
      Excelsior says:

      I agree with Erik here, and that is why I’m more heavily weighted in small and mid-tier producers and developers with more advanced economic studies and proven reserves for the initial part of this next impulse wave higher in the PMs.

      Once more of these stocks get rerated, then I’ll move more money downstream in to earlier stage developers, exploration companies, and prospect generators. I’ll likely trim off some of the winnings later in the cycle and put them royalty & streamining companies as profit dumpsters.

      Until then…. Ever Upward!

  16. On June 25, 2019 at 6:29 am,
    OOTB Jerry says:

    92.89………..wow………gsr……….hello…….

    • On June 25, 2019 at 7:04 am,
      OOTB Jerry says:

      92.91…………

  17. On June 25, 2019 at 6:50 am,
    OOTB Jerry says:

    Just a note………..

    Sprott Asset Management is the world’s LARGEST money manager in the precious metals industry. Their CEO speaks with investors off all kinds; from retail clients who invest their savings, to billionaires who want to hedge their exposure to higher interest rates, even to hedge funds and pension funds, which are focused on diversifying out of the general markets.

    Over the decades, it has been the retail investors – individuals concerned with inflation, rising geopolitical risk, and currency wars that has pushed up the price of mining stocks and the silver spot price.

    Sprott’s CEO just did an interview with Bloomberg in Canada, and one of his core messages has been that it is the billionaires and the family offices that are entering the sector at this time, not the retail investors.

    • On June 25, 2019 at 6:51 am,
      OOTB Jerry says:

      High Light…………..it is the billionaires and the family offices that are entering the sector at this time, not the retail investors.
      I think this is what most have been waiting for……JMO

  18. On June 25, 2019 at 7:34 am,
    Snowy says:

    What are Rick Rule’s favorite picks? Might as well jump on his train if he is consulting all these people

    • On June 25, 2019 at 11:52 am,
      Excelsior says:

      His favorite picks are the ones he got free long-duration full warrants in that he can unload them to retail investors when the time is right and then hang onto the remaining shares. That doesn’t mean those are the best companies longer term for investors. (think Northern Dynasty)

  19. On June 25, 2019 at 7:59 am,
    Matthew says:
  20. On June 25, 2019 at 8:33 am,
    cfs says:

    Bullion storage…..

    https://youtu.be/084VRZ-MIFI?t=35

  21. On June 25, 2019 at 8:52 am,
    OOTB Jerry says:
    • On June 25, 2019 at 8:53 am,
      OOTB Jerry says:

      As the gold market powers to a six-year high, it’s prudent to examine longer-term charts to gain an important perspective on where prices have been and where they may be headed. The monthly continuation chart for nearby Comex gold futures shows prices are trending up and have just pushed above what were stiff technical resistance barriers at the highs scored in recent years. That upside “breakout” from those resistance areas gives the bulls much more power to achieve their next upside price objective on the longer-term chart. That would be chart resistance at the $1,530.00 area. The power with which the bullish upside breakout has occurred suggests the $1,530.00 level will be reached this year, and possibly by the end of the summer.

  22. On June 25, 2019 at 9:00 am,
    OOTB Jerry says:

    https://www.zerohedge.com/news/2019-06-25/10-charts-capture-markets-confused-zeitgeist
    2. Gold: this best way to “short the USD” is the most inversely-correlated asset to US short-term real yields in the past 20 years.

    • On June 25, 2019 at 9:03 am,
      OOTB Jerry says:

      5. Hedge fund faith in stocks (or lack thereof): The equity long/short hedge-fund universe “beta to the S&P” is testing multi-year lows, in the 2.3% percentile since 2003 as nobody believes this fake rally.

  23. On June 25, 2019 at 9:09 am,
    OOTB Jerry says:

    https://www.zerohedge.com/news/2019-06-25/americas-adversaries-are-buying-gold-nuke-going-tomorrow
    Demand remains abundant, as Goldman details in its latest note, raising its outlook for gold, countries with “geopolitical tensions with the US” are buying everything:
    Importantly, China just raised its gold purchasing pace from 10 tonnes per month to 15 tonnes for April and May as it aims to diversify its reserve holdings.

    With the Fed and ECB now both likely easing monetary policy, more CBs may decide to add gold to their portfolios as they did between 2008 and 2012 (see Exhibit 12).
    Also, just recently, trade tensions between India and the US have begun to escalate as India retaliated with tariffs on US goods in response to US steel tariffs. Rising tensions with the US often create upside potential to a country’s gold purchases

    Additionally, in case you thought the move was exhausted, Goldman notes that there is about to a pick up in demand as Russia purchases tend to be strongest in Q3…

  24. On June 25, 2019 at 9:46 am,
    cfs says:

    CAPE CANAVERAL, Fla. (AP) — SpaceX launched its heftiest rocket with 24 research satellites Tuesday, a middle-of-the-night rideshare featuring a deep space atomic clock, solar sail, a clean and green rocket fuel testbed, and even human ashes.
    It was the third flight of a Falcon Heavy rocket, but the first ordered by the military.
    The Defense Department mission is expected to provide data to certify the Falcon Heavy — and reused boosters — for future national security launches. It marked the military’s first ride on a recycled rocket.
    Both side boosters landed back at Cape Canaveral several minutes after liftoff, just as they did after launching in April. But the new core booster missed an ocean platform, not unexpected for this especially difficult mission, SpaceX noted.
    “It was a long shot,” tweeted SpaceX founder and chief executive Elon Musk.
    SpaceX did manage for the first time to catch the fairing, or nose cone, in a giant net on an offshore boat. The California-based company is trying to recover and reuse as many rocket parts as possible — rather than letting the pieces sink in the ocean — to drive down launch costs.
    NASA signed up for a spot on this Falcon Heavy, along with the National Oceanic and Atmospheric Administration, the Air Force Research Laboratory, the Planetary Society and Celestis Inc., which offers memorial flights into space.
    An astronaut who flew on NASA’s first space station back in the 1970s, Skylab’s Bill Pogue, had a bit of his ashes on board, along with more than 150 other deceased people. Pogue died in 2014.
    Musk said it was “our toughest rocket launch ever.” The satellites needed to be placed in three different orbits, requiring multiple upper-stage engine firings. It took several hours to release them all.
    The Deep Space Atomic Clock by NASA’s Jet Propulsion Laboratory is a technology demo aimed at self-flying spacecraft. Barely the size of a toaster oven, the clock is meant to help spacecraft navigate by themselves when far from Earth. NASA also was testing a clean and green alternative to toxic rocket and satellite fuel.
    The Planetary Society’s LightSail crowd-funded spacecraft will attempt to become the first orbiting spacecraft to be propelled solely by sunlight. It will be released next week from its temporary perch on a spacecraft and opened a week later.
    “Our #LightSail2 is up and on its way,” tweeted Bill Nye, the society’s chief executive officer.
    It’s the society’s third crack at solar sailing: The first was lost in a Russian rocket failure in 2005, while the second had a successful test flight in 2015.
    The Air Force Research Laboratory had space weather experiments aboard, while NOAA had six small atmospheric experimental satellites for weather forecasting.
    The Falcon Heavy is the most powerful rocket in use today. Each first-stage booster has nine engines, for a total of 27 firing simultaneously at liftoff from NASA’s Kennedy Space Center.
    The first Falcon Heavy launch was in February 2018. That test flight put Musk’s red Tesla convertible into an orbit stretching past Mars.

    • On June 25, 2019 at 10:17 am,
      OOTB Jerry says:

      There is your $50 Trillion going into air………….