Weekend Show – Sat 17 Aug, 2019

Hour 1 – Featuring Axel Merk, Mike Larson, and an update from Auryn Resources

Full Hour

It was another volatile week for US stocks but the real standout was the continued fall in yields and a quick inversion of the 10year/2year yield curve. Recession fears are on the minds of traders which is helping the safe assets garner a buy. We focus a lot on yields in this hour and also get an update from Auryn Resources.

Please keep in touch by emailing me at Fleck@kereport.com.

  • Segment 1 and 2 – Axel Merk, President and CIO of Merk Investments kicks off the show with a comprehensive look at the markets. Take note of what Axel says regarding money flows into risk off assets being more a hedge right now.
  • Segment 3 – Mike Larson, Editor of The Safe Money Report focuses on the falling yields in the US. We discuss what this means for the Fed and why he continues to like defensive stocks.
  • Segment 4 – Ivan Bebek, Executive Chairman of Auryn Resources provides a full update and answers your questions on the status of the properties in Peru. We also discuss the work just completed at Committee Bay and the possibility of an asset.

Exclusive Company Interviews This Week


Axel Merk
Mike Larson
Ivan Bebek – Auryn Resources

Comments:
  1. On August 17, 2019 at 3:49 am,
    Excelsior says:

    Thanks guys for another great weekend show from the KE Report. Ever Upward!

  2. On August 17, 2019 at 5:36 am,
    Andrew deBerry says:

    Very helpful update on Auryn – thank you Cory.

  3. On August 17, 2019 at 5:37 am,
    cfs says:

    I don’t understand Mr. Merk’s apparent belief that U.S. – China trade should not change, as optimum policy.
    Does Mr. Merk not care that if it continues “as is” the U.S. is destroyed, by loss of money and by loss of intellectual property and manufacturing expertise ?
    If China is allowed to acquire all American knowledge, without having to do the research or pay for the use of American knowledge, then the U.S. will just spiral downwards.

    • On August 17, 2019 at 5:09 pm,
      Nigel says:

      The U.S. will certainly spiral downwards if it relies on intellectual property monopoly powers rather than new innovation, take Apple as a prime example

  4. On August 17, 2019 at 7:29 am,
    bonzo b. says:

    Thanks for the chat with Ivan B. Maybe AUG should merge with Miramont in a stock swap.

  5. On August 17, 2019 at 8:47 am,
    larry says:

    In this equity market I will attempt to short again if another swing high, bullish reversal candle occurs on the 30,120 ,300 minute chart….But on daily we currently have a bottom signal with RSI divergence plus a morning star pattern …lighter than normal summer volume so far…..Vix had rate of change greater than minus 10% so this could be another initiation move…Fall credit crisis?

  6. On August 17, 2019 at 9:08 am,
    Matthew says:

    Three resistance levels came together to stop gold this week:
    https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=7&mn=7&dy=0&id=p39481345615&a=638471359

  7. On August 17, 2019 at 11:34 am,
    Matthew says:

    Peter Hug is right that 18.50-19.00 silver is possible in the short term and I agree with his view that the Fed will do whatever it takes to prevent another 2008 style collapse. That means the dollar will to plunge versus gold.
    https://stockcharts.com/h-sc/ui?s=%24USD%3A%24GOLD&p=W&yr=5&mn=0&dy=0&id=p10810487520&a=682947454

  8. On August 17, 2019 at 5:08 pm,
    Excelsior says:

    Rick Rule filled in for Eric Sprott today, on Sprott Money News Weekly Wrap-Up.

    (Rick starts at 6:38 min mark) $Gold $Silver #AudioInterview

    https://soundcloud.com/sprottmoney

  9. On August 17, 2019 at 5:14 pm,
    Excelsior says:

    Gold’s $1650 Upside Price Target

    Robert McHugh, Ph.D. – August 11, 2019

    “Gold popped out of an Ascending Bullish Wedge. What is nice about this pattern is that it gives us an upside price target, in this case 1,650ish. We also annotated the current Elliott Wave mapping for Gold overlapping this pattern. Gold is now inside wave 3-up. However, in precious metals, the most dramatic moves are wave 5’s now 3’s like we see for stocks. This means Gold will be headed far above 1650 after it pauses around that level.”

    “In previous posts we showed Gold finishing a Bullish Cup and Handle pattern that also gave us an independent third pattern with the same 1650 upside price target. Things are shaping up nicely for Gold Bugs.”

    https://www.gold-eagle.com/article/gold’s-1650-upside-price-target

    • On August 18, 2019 at 12:01 am,
      Excelsior says:

      Gold Price’s Next Target Could Be $1,600 Says Peter Hug

      Kitco News – Friday August 16, 2019

      https://www.kitco.com/news/2019-08-16/Gold-Price-s-Next-Target-Could-Be-1-600-Says-Peter-Hug.html

      • On August 18, 2019 at 12:04 am,
        Excelsior says:

        Whoops. I see Matthew has already posted a link to this video above.

        Sorry for the duplicate link…. but here’s a second opportunity for someone to watch the video. 😉

    • On August 18, 2019 at 9:32 am,
      Excelsior says:

      Why This Is The Go-To Asset When ‘Monetary Policy Lunacy’ Starts Hitting Markets

      Aug 16, 2019

      “Some investors do seem to be playing it safer lately, which brings us to our call of the day from Otavio Costa, global macro analyst at hedge fund Crescat Capital, who is advising they buy gold. “We are entering a period of monetary policy lunacy, and in our view, there has never been a better time to own gold,” said Costa, in emailed comments.

      Central bank easing and perception that interest rates will keep falling, along with jitters over the global economy and trade, have driven gold up nearly 20% this year. “Precious metals are “one of the few pockets of this market offering tremendous value to hedge against extreme monetary policies, bursting asset bubbles, and record global leverage,” says Costa.

      https://www.marketwatch.com/story/monetary-policy-lunacy-means-there-has-never-been-a-better-time-for-this-asset-says-hedge-fund-analyst-2019-08-16

      • On August 18, 2019 at 9:35 am,
        Excelsior says:

        Can A New Stimulus Plan Revive The Eurozone Economy?

        By Daniel Lacalle – Tuesday, July 30, 2019

        https://talkmarkets.com/content/global-markets/can-a-new-stimulus-plan-revive-the-eurozone-economy?post=228909

        • On August 18, 2019 at 10:14 am,
          Excelsior says:

          Interestng perspective on the big money starting to position in Gold as a hedge and how those inflows of capital could affect pricing:

          _______________________________________________________________________

          @HRA-Coffin – “When it comes to the $gold market and the “new” macro attention its getting, it’s all about scale. There are some fairly scary things going on out there, offshore and in credit markets mainly, that a lot of smart large-scale traders are getting quite worried about. Gold is one of two or three potential trades to hedge or offset some of those risks. That’s led to the recent entry into the market by some very, very large money pools that are just starting to scale into the gold market. The gold market isn’t tiny, but we’re talking about accounts now that move tens of billions around. I’m NOT a gold bug in the traditional sense, but I recognize the size discrepancy here. If these new accounts scale up to 5 or 10 percent holdings, they will move the market further than anyone expects. They know the scale they are working at, which is why some of these guys are throwing around gold price guesses like $3000 or $5000/oz. It’s not because they are gold bugs, they’re just looking at the scale of the potential money inflow in relation to the market size.”

          https://ceo.ca/index?39eb908162ab

          • On August 18, 2019 at 10:16 am,
            Excelsior says:

            that was Eric Coffin. ^^

          • On August 18, 2019 at 12:23 pm,
            Excelsior says:

            A good response back from Bryan Slusarchuk – Co-founder, former President and Director of K92 Mining Inc

            _________________________________________________________________

            @bslusarchuk – “Coffin, my sense of the gold space (for gold equities) is that the precious metals funds are finally starting to see very modest inflows and are deploying that capital into names they have already done the work on. And the generalists in the US (and Canada to a smaller degree) are looking to go to equal weight from underweight on golds but havent done the modeling work yet so are relying on sell side for advice. Financings are hard to keep a lid on right now as demand far outstrips supply (the K92 $20M deal went through the book and greenshoe overnight in a matter of minutes and the Turmalima which is a private deal opened and closed a $7m book with $30m+ in interest, …….anecdotal evidence of how hot the space is as to financing). Good deals are attracting capital but we still havent seen PM funds get big inflows and the generalists are still flat footed bit and scrambling for dea/idea flow…….”

            https://ceo.ca/index?d3cdb5ae9ff8

    • On August 18, 2019 at 12:26 pm,
      Excelsior says:

      A Monumental Paradigm Shift Is Underway In Global Financial Markets

      by @Goldfinger on 18 Aug 2019

      https://ceo.ca/@goldfinger/a-monumental-paradigm-shift-is-underway-in-global-financial-markets

      • On August 18, 2019 at 1:06 pm,
        Matthew says:

        The Dow peaked at 23 ounces of gold last October and now trades at 17 for a 24% decline:
        https://stockcharts.com/h-sc/ui?s=%24INDU%3A%24GOLD&p=W&yr=3&mn=11&dy=0&id=p87374881004&a=607342818

        • On August 18, 2019 at 6:19 pm,
          Excelsior says:

          Yes, it looks like the trend of Gold gaining on the DOW is in order.

          That’s one of the reasons I believe that Gold may eventually prosper more as the general equities continue to pull back lower later in the year and moving into 2020.

    • On August 19, 2019 at 9:11 am,
      Marty says:

      I used to like reading Hindenburg Bob & his charts a number of years back. I guess thats when I read everything on gold-eagle.com

  10. On August 17, 2019 at 7:31 pm,
    Excelsior says:

    (PGM) (LRTNF) Pure Gold Reports Second Quarter Financial Results

    @nasdaq on 14 Aug 2019

    “The US$90 million in proceeds from the Financing fully funds the initial capital costs to develop a mine at Madsen Red Lake based on the February 2019 Feasibility Study. Combined with the Company’s existing cash resources, the Financing insures against cost overruns and provides flexibility to continue exploration and advance our new discoveries forward. The callable stream provides immediate cash to the Company allowing development activities to commence while we finalize our permit amendments and can be repurchased once the mine is in production and generating cash flow.”

    https://www.juniorminingnetwork.com/junior-miner-news/press-releases/776-tsx-venture/pgm/65882-pure-gold-reports-second-quarter-financial-results-2.html?utm_source=newsletter_640&utm_medium=email&utm_campaign=junior-mining-news-for-date-b-j-y

  11. On August 18, 2019 at 8:39 am,
    Excelsior says:

    (KNT) (KNTNF)K92 Mining Inc. Releases 2019 Q2 Financial Results, Increases 2019 Production Guidance and Decreases 2019 Cost Guidance

    @nasdaq on 15 Aug 2019

    https://ceo.ca/@nasdaq/k92-mining-inc-releases-2019-q2-financial-results

    • On August 18, 2019 at 8:40 am,
      Excelsior says:

      (KNT) (KNTNF) K92 Mining – Corporate Presentation – August 2019

      Kainantu Gold Mine – Growing Production & Transformative Discoveries

      https://www.k92mining.com/wp-content/uploads/2019/08/k92-august-2019.pdf

      • On August 19, 2019 at 12:41 pm,
        Excelsior says:

        Wow – after all the good work that K92 had been doing and the people and government of Papua New Guinea officially trashed their jurisdiction today.

        I had to bail on KNT after just adding to the position a few days back. It has been quite a run, but I don’t like what is unfolding regarding nationalization at all and they are just shooting themselves in the foot regarding foreign investment for years to come. Very sad to see such a dumb decision by the 18th largest gold producing nation on the planet.

        ________________________________________

        PNG aims to retain 30% of exported Gold, may change currency pegs

        Jonathan Barrett – 2 MIN READ

        https://uk.reuters.com/article/papua-gold/png-aims-to-retain-30-of-exported-gold-may-change-currency-pegs-idUKL4N25F074

        • On August 19, 2019 at 12:44 pm,
          Excelsior says:

          Landowners Want 100 Per Cent Ownership of Porgera Mine

          “Majority landowner representatives are calling on Prime Minister James Marape to extend his ‘Take Back PNG’ campaign by taking back the Porgera gold mine from operator Barrick Niugini Limited (BNL).”

          “Acting through the Justice Foundation of Porgera, 18 out of 24 landowner agents who signed the MOA in 1969, are urging the PM to act on his word by taking back Porgera gold mine from Barrick.”

          “In a recent press conference in Port Moresby, chairman of Justice Foundation for Porgera Mr Jonathan Paraia, claiming to speak for the 18 landowner agents, declared their intention to take 100 per cent ownership.”

          https://ramumine.wordpress.com/2019/08/06/landowners-want-100-per-cent-ownership-of-porgera-mine/

  12. On August 18, 2019 at 11:46 am,
    Matthew says:
  13. On August 18, 2019 at 1:20 pm,
    Matthew says:

    I updated the following chart in February and you can see by my red arrow that I wasn’t bearish enough the 10 year yield:
    https://stockcharts.com/h-sc/ui?s=%24TNX&p=W&yr=7&mn=3&dy=0&id=p0316499141c&a=595476952

  14. On August 18, 2019 at 5:48 pm,
    Matthew says:

    Silver pulled back after precisely touching a fork resistance last week but I am confident that it will soon be heading for $21+…
    https://stockcharts.com/h-sc/ui?s=%24SILVER&p=W&yr=3&mn=11&dy=0&id=p65696159193&a=501194637

  15. On August 18, 2019 at 5:49 pm,
    Matthew says:

    SRSrocco Report on silver:
    https://www.youtube.com/watch?v=uN1VFE2yeRg

  16. On August 18, 2019 at 5:53 pm,
    Matthew says:
    • On August 18, 2019 at 6:37 pm,
      chris swenson says:

      Matthew, if you are comfortable with it, drop me an email. I have a couple of news letters you might enjoy……..or disregard.
      chriswenson@gmail.com

  17. On August 18, 2019 at 7:39 pm,
    Excelsior says:

    Macro overview on speculative sectors for 2019:

    https://pbs.twimg.com/media/EB70IkHWwAEkBEC.jpg

    • On August 19, 2019 at 9:27 am,
      Marty says:

      Thanks guys for all the focused updates.

    • On August 19, 2019 at 9:49 am,
      Marty says:

      Apparently, he forgot about SILVER in Exter’s pyramid on that coffee cup. Thanks , Chris Duane

      • On August 19, 2019 at 12:09 pm,
        Excelsior says:

        Agreed. Hi ho Silver!