Minimize

Welcome!

A true assessment of the trade into risk on assets and out of risk off assets

Cory
June 3, 2020

Chris Temple joins me today to share a high level look at the recent trend of money favoring risk on assets and moving out of the risk off assets. A rotation continues within the US markets, as tech is under performing the recent gains in the Dow and S&P.

We also discuss the moves down in the precious metals and some key levels to watch for support. Silver is one asset that although it was preforming very well could not get to 52 week highs during that recent strong run.

Click here to visit Chris’s site and keep up to date on his market calls and the stocks he likes.

Discussion
35 Comments
    Jun 03, 2020 03:20 AM

    Precious Metals Panel: Seeking risk adjusted returns in precious metals investing:

    Jun 1, 2020 – 121 Mining Investment TV #VIDEO

    Panellists:
    Lawrence Lepard, Partner, Equity Management Associates
    Dan Oliver, Managing Partner, Myrmikan Capital
    Adrian Day, Chairman & CEO, Adrian Day Asset Management
    Chris Mancini, Portfolio Manager, Gabelli Gold Fund

    • Macro conditions impacting the gold bull market – investor views on pandemic fallout, looming recession and government stimulus
    • Sentiment for safe haven physical assets – where do equities stand to benefit from a rebound? Is the situation is anything like 2008?
    • How much should a pension fund for instance have in pysical gold versus equities?
    • Performance of majors and juniors relative to share price
    • Exploration vs M&A – is growth now far off the agenda?
    • How do investors approach silver equities within a diversified portfolio? Are there enough quality projects out there?

    https://youtu.be/OVFojwqVfww

      Jun 04, 2020 04:27 AM

      This really is a good interview with this panel for the Gold sector and it is definitely worth listening to the thoughts from Larry Lepard, Dan Oliver, Adrian Day, and Chris Mancini.

    Jun 03, 2020 03:37 AM

    Gold Miners Under Pressure As June Begins

    by @Goldfinger on 3 Jun 2020 #TechnicalAnalysis #Chart

    “Gold futures are getting whacked for the 2nd day in a row with the August contract trading $1712 as I type these words. The $1700 level will be a key test for August gold, with a breakdown below this level opening the door for a deeper correction across the precious metals sector.”

    “Turning to the daily charts of GDX and GDXJ we are likely to get a test of important technical support levels over the next few days:”

    https://ceo.ca/@goldfinger/gold-miners-under-pressure-as-june-begins

    Jun 03, 2020 03:44 AM

    I’m posting this video from Gary Savage only because his views on the Dollar are somewhat different than Chris. One of them is going to be wrong: http://news.goldseek.com/GoldSeek/1591180207.php
    Chris: You mentioned you have no silver recommendations for your subscribers at this time. Have you had any ownership of the sector since Silver since it’s mid-march low?
    Went long my 1st tranche of SSOX this morning. Could be a place to be for a short time if Chris Vermillion’s views turn into reality. Just sayin’. Sure a great time to be alive! Best to all.

      Jun 03, 2020 03:47 AM

      Correction: SOXS

      Jun 03, 2020 03:14 AM

      Great question SilverDollar. Investors that haven’t had or added to their Silver mining positions since Mid-March missed some of the easiest and most lucrative gains of the year.

      By jumping in with any cash I could raised and actively trading account since Mid March, I not only fully recovered my trading account from the selloff from late Feb to mid-March, but it has spiked up to the highest level it has ever been, and a huge component of that move higher has been the rewarding gains in the Silver miners.

      Ever Upward!

        Jun 03, 2020 03:18 AM

        Patrick Karim, a tech chartist on Palisade Radio. Good listen on silver: //palisaderadio.com

          Jun 04, 2020 04:01 AM

          Thanks for the heads up SilverDollar. I’ll post a link here for anyone interested.

          >> Patrick Karim: Technical Analysis Confirms Major Turning Point in Silver

          Palisade Radio – June 3, 2020

          https://youtu.be/tH_r7t0sGCI

      Jun 04, 2020 04:47 AM

      Not a one, SilverDollar — stuck w/ gold and other areas I had a much higher degree of relative confidence in. Look forward to getting back into silver ETFs and companies when the time is right…it’s just not now, IMO

    Jun 03, 2020 03:11 AM

    US Stock Market Sets Up Technical Patterns – Pay Attention

    by @TheTechnicalTraders on 3 Jun 2020

    “The recent “melt-up” in the US stock market after a moderate downside price move in early May 2020 has set up a number of technical patterns that traders need to pay attention to. This melt-up trend may continue for a bit longer, but price levels and actions are beginning to set up very clear patterns that warn of potential weakness in the future.”

    “First, no matter how we attempt to spin the data, the US economy is very likely to fall into a moderate recession after the COVID-19 virus event has created a world-wide economic event and the recent riots and protests all across the US continue to disrupt and destroy property, businesses, and other assets.”

    https://ceo.ca/@thetechnicaltraders/us-stock-market-sets-up-technical-patterns-pay-attention

    Jun 03, 2020 03:18 AM

    U.S. Shale Producers Begin Restoring Output As Oil Prices Turn Higher

    June 2, 2020 – Reuters

    “U.S. shale oil producers are reversing production cuts as prices recover from historic lows, underscoring shale’s ability to quickly adjust to pricing and posing a challenge to OPEC as it considers extending production curbs.”

    https://boereport.com/2020/06/02/u-s-shale-producers-begin-restoring-output-as-oil-prices-turn-higher/

    Cfs
    Jun 03, 2020 03:25 AM

    Premier Gold Mines Ltd. has provided an update on its delineation core drilling program at the company’s 100-per-cent-owned Mercedes mine, located in the state of Sonora, Mexico. The 2020 delineation drilling campaign is focused on expanding and confirming higher-grade mineralization in several areas including Marianas and Diluvio West. Highlights from first quarter 2020 drilling include:

    Diluvio West returns multiple high-grade intercepts that include:
    84.7 metres of 6.31 grams per tonne gold and 23.19 g/t silver (UG-DI20-096);
    73.5 m of 6.38 g/t Au and 13.65 g/t Ag (UG-DI20-095).
    Marianas delineation drilling expands high grade in multiple horizons with:
    5.2 m of 11.67 g/t Au and 55.72 g/t Ag (UG-MR20-056);
    11.3 m of 9.74 g/t Au and 16.07 g/t Ag (UG-MR20-059).

      Jun 03, 2020 03:54 AM

      Once again I am reminded how fortunate we are to have the commentary of Mr. T.
      This mornings thought was “Every morning recently the conventional markets are up.
      The conventional market doesn’t reflect the reality in the economy, but rather is the reality.
      The ISM Non-Manufacturing PMI put in it’s sharpest drop since 2009.
      U S Companies shed 2.7 million jobs.
      The DJIA is up 424 points.
      Down is up and up is down, and oh my God, there’s the ground.
      Kinda like flying in the clouds with no instruments.

        Jun 03, 2020 03:07 AM

        “Kinda like flying….” Falling and Flying: https://www.youtube.com/watch?v=LTYyS8bxV78

          Jun 03, 2020 03:13 AM

          Astronauts often describe a powerful ‘overview effect’ when gazing at Earth. Here’s what it is and why it may be essential to space missions.

          Dave Mosher – Business Insider – 3 hours ago

          “The overview effect [is what] astronauts typically achieve when they accomplish their first spaceflight and look back at the Earth,” Behnken told CNBC during a NASA media event. “You see that it’s a single planet with a shared atmosphere. It’s our shared place in this universe. So I think that perspective, as we go through things like the pandemic or we see the challenges across our nation or across the world, we recognize that we all face them together.”

          https://www.businessinsider.com/astronauts-describe-overview-effect-seeing-earth-from-space-emotions-feelings-2020-6

            Jun 03, 2020 03:18 AM

            Peter Schilling – Major Tom Music #VIDEO

            4, 3, 2, 1
            Earth below us
            Drifting, falling
            Floating, weightless
            Calling, calling, home

            https://youtu.be/OMDbX1zksgI

          Jun 03, 2020 03:20 PM

          Thanks for that SilverDollar.
          First time hearing it.
          “Getting back to being me”
          Sometimes easier said than done.

    Jun 03, 2020 03:06 AM

    (EXK) (EDR) Endeavour Silver Intersects New High-Grade Gold-Silver Mineralization on the El Curso Property at the Guanacevi Mine in Durango, Mexico

    @nasdaq on 2 Jun 2020

    > 1,085 gpt silver and 3.25 grams per tonne (gpt) gold over 10.0 meters (m) true width in hole UCM-27 (1,410 gpt or 41.1 oz per ton (opT) silver equivalents (AgEq) over 32.8 feet (ft) at a 100:1 silver:gold ratio)

    > 762 gpt silver and 1.87 gpt gold over 5.1 m true width in hole UCM-26 (949 gpt or 27.7 opT AgEq over 16.7 ft)

    > 986 gpt silver and 1.43 gpt gold over a 4.8 m true width in hole UCM-25 (1,129 gpt or 32.9 opT AgEq over 15.7 ft)

    https://ceo.ca/@nasdaq/endeavour-silver-intersects-new-high-grade-gold-silver

      Jun 03, 2020 03:24 PM

      (LIO) (LOMLF) Lion One Appoints David Tretbar to Board of Directors

      @newsfile on 3 Jun 2020

      “Mr. Tretbar is currently Vice President, Exploration and Mineral Resources of Denver-based Summit Mining International, a 100% owned subsidiary of Sumitomo Corporation of Japan, where he is responsible for developing exploration programs, implementing exploration and resource development strategies, and providing technical support in all aspects of mine and mill production at Minera San Cristóbal in Bolivia. He also performs project due diligence for strategic alliances and joint ventures, and executive support functions within Summit Mining and its parent Sumitomo Corporation.”

      https://ceo.ca/@newsfile/lion-one-appoints-david-tretbar-to-board-of-directors

        Jun 03, 2020 03:28 PM

        This is a very bullish endorsement if Sumitomo is putting their point person for strategic alliances on the board of LIO Lion One.

        Lion One is likely sitting on a monster alkaline deposit and Sumitomo knows it, and they want to be first in line if that is what starts becoming more evident when they drill deeper and wider in their now 100% owned 7 KM diameter land package inside that caldera.

        Sumitomo is also involved with other Q.H. companies like Novo & Irving, so it has been a good partnership for them to become strategic stakeholders in these companies. One day Sumitomo may be one of the most envied companies on the planet as these mega projects move forward into mega mines.

    Jun 03, 2020 03:10 AM

    (SBB) (SGSVF) Sabina Gold & Silver Announces $55 Million Bought Deal Financing Closed

    by @nasdaq on 3 Jun 2020

    https://ceo.ca/@nasdaq/sabina-gold-silver-announces-55-million-bought-deal

      Jun 03, 2020 03:47 PM

      Here is yet another acquisition and merger of projects, building on the M&A theme discussed yesterday.

      (FF) (FFMGF)First Mining Signs Definitive Agreement with (TML) (TSRMF)Treasury Metals to Combine the Goldlund and Goliath Gold Projects in Ontario, Canada

      by @accesswire on 3 Jun 2020

      Treasury Metals will acquire all of the issued and outstanding shares of Tamaka Gold Corporation, a wholly-owned subsidiary of First Mining that owns the Goldlund Gold Project. Combining Goldlund with Treasury Metals’ adjacent Goliath Gold Project creates a district-scale, multi-million ounce gold project positioned for advancement towards construction in a favorable mining jurisdiction.”

      https://ceo.ca/@accesswire/first-mining-signs-definitive-agreement-with-treasury

        Jun 03, 2020 03:52 PM

        (TML) (TSRMF) Treasury Metals to Acquire Neighboring Goldlund Project, Consolidating an Emerging Canadian Gold District

        by @newswire on 3 Jun 2020

        – Consolidation of two adjacent gold assets, allowing for numerous potential co-development opportunities within an infrastructure-rich area of Northwestern Ontario.
        – Combined resource base of 2.0 million ounces of gold in the Measured & Indicated (“M+I”) categories, plus an additional 1.1 million ounces of gold in the Inferred category, solidifying the Goliath-Goldlund project as among the largest undeveloped gold assets in Canada.
        – Enhanced focus on near-surface resources in tandem, including a +140% increase in M+I resources amenable to open pit mining methods.
        – High probability of future operational synergies, with only a 2 km distance between property boundaries.
        – Treasury’s Goliath project has received environmental assessment approval by the Federal Government of Canada, and provincial permits are advancing.

        https://treasurymetals.com/news/treasury-metals-to-acquire-neighboring-goldlund-pr-122704/

          Jun 03, 2020 03:01 PM

          #CorporatePresenation out recapping the #Acquisition by $TML of Goldlund from $FF

          https://treasurymetals.com/site/assets/files/3968/tml-goldlund-proj-acquisition.pdf

            Jun 03, 2020 03:26 PM

            Looks like they are combining 169+ mil shares of Treasury and adding to 130 mil of FF and doing a 3:1 reverse split to end up with 99+mil shares which is something like 55/45 % Treasury/FF or so distribution…maybe. So I haven’t looked a share price but Treasury up today.

            Jun 03, 2020 03:17 PM

            I’m a shareholder of Treasury Metals and was sold on just their Goliath project being worthy of a takeover by a larger company, but now this asset combined with First Mining’s Goldlund is quite the combo meal. TML has their permits to proceed on their property so it will likely be much easier to get those extended to Goldlund as well.

            It looks like a winning strategy to me, and maybe now that is north of 3 million ounces combined (2 Million measured & indicated + 1 Million inferred) that will get a few of the big boys interest peaked for a potential buyout to move those assets into their development pipelines.

            Jun 03, 2020 03:18 PM

            I also own Treasury and haven’t been following it much because it has maintained being green. I think this is a Dave Kranzler recommendation. I know I didn’t find it on my own. He thought it was a take over possibility also. Good timing fir whatever form it takes. Should mive up if metals move up.

    Jun 03, 2020 03:44 AM

    Added to my positions today..crossing my fingers I get one more lot order filled tomorrow with a nice spike reversal.

    Jun 04, 2020 04:52 AM

    Treasury starts the day at 12% +. Someone other than Ex likes the deal.

      Jun 04, 2020 04:30 AM

      🙂 The deal makes sense and is the right kind of transaction we should be seeing more of in these markets.

    Jun 04, 2020 04:42 AM

    Here is another deal that seems to make sense:

    (HUM.L) (HUMRF) Hummingbird Resources plc – Earn-in agreement with ARX on the Dugbe Gold Project

    June 4, 2020

    “Hummingbird Resources plc (AIM:HUM) is pleased to announce that it has entered into a conditional earn-in agreement with ARX Resources Limited (“ARX”) in respect of the Company’s Dugbe Gold Project, located in Liberia, which requires ARX completing a Definitive Feasibility Study, carrying out a significant exploration programme and covering all Project costs over the 2 year earn-in period. The Earn-in entitles ARX to earn up to a 49% interest in the Project, and is subject to various conditions, including the payment by ARX to Hummingbird of a non-refundable deposit of US$2m. ”

    Dan Betts, CEO of Hummingbird, commented:

    “As anybody who has been involved with, or observed, Hummingbird since 2007 will know, the origin of the Company is in exploration in Liberia and particularly the Dugbe Gold Project. Hummingbird was the first mover into eastern Liberia, pioneering exploration in a region that had never been mapped and the geology was not known at all. It is to the immense pride of all who have been involved in that journey that we were able to discover not only the significant mineral resource at the Project but what we believe to be a district scale gold province of potentially global significance.

    “Equal to that pride has been our frustration. Ultimately the Project was seen by many as too large, and ultimately too big for a junior to develop. I am proud of the fact we were nimble enough to change direction and acquire the Yanfolila project in Mali. Subsequently we have developed, financed, built and operated Yanfolila – and in the process we have learned a great deal about what our strengths and weaknesses are.

    “Whilst we continue to believe completely in the potential of the Dugbe Gold Project we also realise that it is a very different project to what we are focused on at Yanfolila. In order to unlock its value, it needs a large investment of capital and management time in both the DFS and to further showcase its exploration potential which was demonstrated when the first 164 holes we drilled all intersected mineralisation.

    “We are delighted that ARX has committed to invest significantly in the project to help us to finally start to unlock the value at Dugbe, while keeping the project under our control. We are confident in a highly effective collaborative partnership. This confidence is evidenced by making our own individual investments in ARX and that Ernie and myself will join the ARX board once the deal is consummated. ARX is not only committing significant risk capital up front but comes with a proven management team with significant west African experience. Our partnership with ARX will provide fresh eyes, fresh energy and fresh thinking to a project we have been looking to unlock for some time and we are truly excited about how the project will progress.

    “Additionally we have secured the opportunity to consolidate the land package with the option to acquire the Central licence. This licence has always been of potentially significant importance in our goal to fully explore the mineralisation of the region and we are excited to see how this may enhance the Project.

    “I look forward to updating the market on our progress in partnership with ARX at Dugbe with the objective of progressing the Project towards a significant mine which will benefit all stakeholders.”

    https://polaris.brighterir.com/public/hummingbird/news/rns/story/r73eyzx

      Jun 04, 2020 04:45 AM

      While I’ve viewed Dugbe as a big piece of the upside for Hummingbird that they have not been getting any credit for, it really was a bit too large for them to move forward on their own, so I see this earn in from ARX as a nice plus.

      I’m hoping this will free up the Hummingbird team to potentially make a new acquisition and it makes sense for them to go after (CVB) Compass Gold due to the proximity of their projects to Yanfolila.

    Jun 04, 2020 04:56 AM

    (ANX) (ANXGF) Anaconda Mining: Digging Into The Q1 Results

    Jun. 2, 2020 – Taylor Dart

    “Anaconda Mining reported its Q1 results in late May, reporting quarterly gold production of 5,000 ounces, up 20% year over year.”

    “While all-in sustaining costs climbed in the quarter, the company has maintained its guidance for operating costs of $800/oz at the midpoint in FY 2020.”

    “Fortunately, the average gold price more than offset the slight jump in costs, with the company posting a near-record quarter for operating cash flow.”

    “The key to unlocking significant long-term value for Anaconda is getting Goldboro into production, but at below 3x FY 2020 operating cash flow, I see Anaconda Mining as a Hold currently.”

    https://seekingalpha.com/article/4351423-anaconda-mining-digging-q1-results