Craig Hemke from TF Metals Report – Fri 24 Jan, 2020

The inner workings of how the Fed is monetizing the bond market

Craig Hemke joins me today for a discussion focused on the bond market and how the Fed is now monetizing 2 year notes only days after a bond auction. While not calling it QE the Fed’s balance sheet continues to expand and it is all helping to keep yields low in the US.

Click here to visit Craig’s site – TF Metals Report.

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Comments:
  1. On January 24, 2020 at 2:08 pm,
    cfs says:

    I said back in November there will be two rate cuts this year.The REASON is simple…..it cuts debt carry costs.
    It is clear the U.S. WILL MONETIZE DEBT.
    That is what dying countries do.
    The Fed is simply taking the easiest route…..It is less painful to print than to tax.
    Eventually (much longer away than you think) there will be runaway inflation.
    The U.S. economy is more robust than most other nations, so there does not have to be a monetary collapse, and the U.S. will NEVER run out of money. (well, not in the lifetime of anyone alive today.)
    The stock market will have to correct, but it does not have to collapse under normal circumstances.

  2. On January 24, 2020 at 3:13 pm,
    Excelsior says:

    Brien Lundin talks to Fred Davidson, CEO of (IPT) IMPACT Silver Corp.

    Jan 17-18, 2020 – Metals Investor Forum #VIDEO

    “Fred Davidson CEO of IMPACT Silver Corp. (TSX-V: IPT) and Brien Lundin of Gold Newsletter discuss the company’s significant silver producing mines in south-central Mexico – the Royal Mines of Zacualpan Silver District and the Capire-Mamatla Silver District.”

    https://www.youtube.com/watch?v=As2fK2oXlso&feature=youtu.be

    • On January 24, 2020 at 3:22 pm,
      Excelsior says:

      (IPT) (ISVLF) Impact Silver Corp looking to expand their already successful Mexican operation

      Proactive – Jan 19, 2020 #VIDEO

      Impact Silver Corp President and CEO Fredrick Davidson joined Steve Darling from Proactive at the Vancouver Resource Investment Conference to discuss the operations in Mexico. Over the past 14 years, the company has produced almost 10 million ounces of silver generating revenues of over 178 million dollars.”

      https://www.youtube.com/watch?v=GwMKKHC1zF0

      • On January 24, 2020 at 4:37 pm,
        Excelsior says:

        (MMG) (MMNGF) Metallic Minerals Corp finding success in some very strong mining jurisdictions

        Proactive – Jan 19, 2020 #VIDEO

        “Metallic Minerals Corp CEO Greg Johnson joined Steve Darling from Proactive at the Vancouver Resource Investments Conference to talk about the Vancouver-based company that is developing a high-grade gold and silver project in the Yukon. The primary focus for the company is the Keno Hill Silver district where over 200 million ounces have historically been mined.”

        https://www.youtube.com/watch?v=A8ZH-ZSFl-g

  3. On January 24, 2020 at 3:36 pm,
    Excelsior says:

    $DSV $AYYBF Discovery Metals is well financed and drilling impressive numbers at Cordero Project

    Proactive – Jan 20, 2020 #VIDEO

    “Discovery Metals Corp. President and CEO Taj Singh joined Proactive’s Steve Darling at the Vancouver Resource Investment Conference 2020. The Toronto-based exploration and development are focused on historic mining districts in Mexico, including its 100%-owned flagship Cordero silver project in Chihuahua State, Mexico.”

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

    • On January 24, 2020 at 3:56 pm,
      Excelsior says:

      (LIO) (LOMLF) Lion One Metals strong workflow in 2019 set company up for big 2020

      Proactive – Jan 20, 2020 #VIDEO

      “Lion One Metals (CVE: LIO) Managing Director Stephen Mann joined Proactive’s Steve Darling at the Vancouver Resource Investment to discuss the company that has a project in Figi. The Company’s asset is the Tuvatu Alkaline Gold Project. Lion One is well-financed having raised close to 12 million dollars at the end of 2019.”

      https://www.youtube.com/watch?v=YRQRE0w_pAU

      • On January 24, 2020 at 5:21 pm,
        Excelsior says:

        (PGE) (PGEZF) Group Ten Metals sees positive drill results from their Stillwater West Project

        Proactive – Jan 19, 2020 #VIDEO

        “Group Ten Metals President and CEO Michael Rowley joined Steve Darling from Proactive at the Vancouver Resource Investment Conference to discuss the company’s Stillwater West project. Rowley talked about the work they did last year including drilling and what they expect to happen there in 2020.”

        https://www.youtube.com/watch?v=XnL6youn5tU

      • On January 25, 2020 at 5:10 am,
        Excelsior says:

        Quinton Hennigh, Technical Advisor for (LIO) (LOMLF) Lion One Metals at the Metals

        Metals Investor Forum – Jan 17, 2020 #VIDEO

        https://www.youtube.com/watch?v=MkeH1utfHPA&list=PLyDPcTo-mBNrUCaclCc7frTs3gcRHc8xx&index=32

  4. On January 24, 2020 at 3:43 pm,
    JMiller says:

    Fed’s Repos Drop to Oct Level, T-Bills Surge, But MBS Fall, and Total Assets Decline Further

    https://wolfstreet.com/2020/01/23/feds-repos-drop-to-oct-level-t-bills-surge-but-mbs-fall-and-total-assets-decline-further/

  5. On January 24, 2020 at 4:40 pm,
    cfs says:
  6. On January 24, 2020 at 5:47 pm,
    Matthew says:
  7. On January 24, 2020 at 6:17 pm,
    Excelsior says:

    @Goldfinger “#Gold weekly chart: She’s a beauty folks… ”

    http://cdn.ceo.ca/1f2mvps-Gold_Weekly_1.24.2020.png

    • On January 24, 2020 at 7:47 pm,
      Matthew says:

      She’s a much better beauty with the Bollinger Bands (notice the close above them in addition to the bullish “shape” of the whole picture)…
      https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=3&mn=11&dy=0&id=p52820519746&a=637177264

      • On January 24, 2020 at 7:58 pm,
        Matthew says:

        But wait, it gets better, a lot better. While most focus on absolute moves, gold has broken out of a 4-year-old channel on a weekly closing basis. In addition, the reacquiring of the overbought weekly RSI reading is a good sign that a quick large move might be coming soon. We had a very similar but inverse setup in 2013. Just before gold crashed $400 in 12 weeks, the weekly RSI was an oversold sub-30.
        https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=4&mn=11&dy=0&id=p96056328398&a=716061806

      • On January 25, 2020 at 3:42 am,
        Excelsior says:

        Good point on the break above the upper Bollinger Bands combined with general bullish shape of the BB morphing higher. I’d like to see Gold ride the upper BB for a while and keep pushing it higher, rather than getting deflected back down, but it has been a encouraging move thus far.

  8. On January 24, 2020 at 8:10 pm,
    David says:

    Thanks for all the great updates. Two of interest: ValOre and Millrock. Any opinions?

    • On January 25, 2020 at 3:58 am,
      Excelsior says:

      There has been a fair bit of chatter over at ceo.ca about ValOre as it relates to their PGM properties, and they were well received at the Metals Investor Forum according to a few posts I saw when investors talked with them at the booth. I haven’t done a deep dive on them, as I already have a few Platinum and Palladium irons in the fire that have been off to the races lately.

      As for Millrock, I like them as a Prospect Generator model, the JVs out their properties to keep a strategic stake in them or retain a royalty on the property, but I haven’t seen them make nearly as much progress as their peers like how EMX did enough to become more a royalty play, or Golden Valley Minez (GZZ), Strategic Metals (SMD), Ely Gold Royalties (ELY), or look at Azimut Exploration (AZM) and their surge on recent drill results on one of their properties. I like the properties and partners Millrock has though, and in comparison they seem more undervalued.

      It begs the question of what is the best strategy for these Prospect Generators – Should they do more drilling and win like Azimut or like the homerun that Reservoir Minerals hit when they were a P.G. and then take that project forward as the flagship, or should they work on JVing out their properties to competent operators, keep the G&A low with a small team, and build a basket of Royalties like EMX, GZZ, RZZ, MTA, FISH, or OR?

      For this kind of diversified risk/reward approach, the only Prospect Generators I’ve seen really get reward in a big way were the ones that drilled and made a discovery — Like Reservoir, Mariana, Kaminak, or recently Azimut. It may just be a flash in the pan though, like Evrim that made a discovery back in 2018, and popped up for that year, and then around trip back down again.

      For the same money, I’d rather back a true exploration company as it is the discovery that moved those stocks, or conversely, I rather buy a true Royalties company like MMX, MTA, OR, FISH, GZZ, RZZ, ELY and enjoy the steady appreciation in value as their NSRs start paying with operators that make it to production.

      • On January 25, 2020 at 4:23 am,
        Excelsior says:

        Transition Metals (XTM) is a Platinum/Palladium/Copper/Gold focused Prospect Generator that has been on the move lately simply because the PGMs have been on an epic run the last few weeks. Its kind of a mashup of ValOre and Millrock in that sense. I still like the JV partners Millrock has better, and ValOre’s land may be more prospective, but this conversation just made me think of Transition Metal’s recent interest from out of nowhere. Fun times!

        • On January 25, 2020 at 4:43 am,
          Excelsior says:

          Jay Taylor talks to Jim Paterson, CEO of ValOre Metals Corp at the Jan 17-18, 2020 Forum

          https://www.youtube.com/watch?v=hRfiGsMB2jg

        • On January 25, 2020 at 7:35 am,
          David says:

          EX:
          Wow! Thanks for that response concerning ValOre and Millrock. That really provides great perspective on how to compare various options. Thanks for your time, effort and brain power. That helps a lot.

          • On January 25, 2020 at 8:32 am,
            Excelsior says:

            Sure. Always glad to share ideas, but I certainly don’t know either one deep enough to really that much insight. I looked into Millrock several times, and liked it each time, but never pulled the trigger, opting for other stocks instead, but I still have it on my close watch list for the Prospect Generator subsector. As for ValOre, there is a buzz about it, but I need to spend more time looking into it at one point.

            David – Thanks for bringing them both companies up into the discussion.