A focus on the downtrend in gold and the downbeat reaction to strong earnings out of Kinross
Craig Hemke, Founder of TF metals Report joins me to share a chart outlining the downtrend in gold and one key resistance level. It’s all part of a larger discussion on attitude of investors toward to the gold sector. We also note the disappointing action in Kinross stock after a strong earnings report.
Click here to visit Craig’s website for more precious metals commentary.
Craig Hemke – Silver Squeeze: Buy Silver Bullion & Precious Metals Will Explode
ILoveProsperity – Feb 10, 2021
“In this video we speak with Craig about the silver squeeze. He talks about buying silver bullion, and how buying physical silver is the most important thing. He talks about his price predictions for both gold and silver in 2021, and why it’s important to invest in precious metals.”
I’m a bull on both Silver and Uranium, for completely different trends, but in my opinion, it is silly to suggest Uranium may be the new Silver (as the title of the attached webinar does). Silver is a monetary Precious Metal and an Industrial Metals used in fabrication and has a completely different market than the Energy Metal Uranium. Yes both are commodities that have traded below their cost of production, and both sectors have miners to explore, develop, and produce/extract the product from the ground. Both are volatile, but that is about the end of the connections.
It is as silly as asking are Crypto miners the new Gold miners? They are completely different markets, assets, and sectors. I just don’t like the trend in media to state that Asset XXX is the new Asset YYY. It reeks of Bitcoin is the new Gold, or Pink is the new Black, or statements to that effect, which pits one group of fans against another group, instead of just looking at the sectors on their own merit. One can own both Bitcoin and Gold without one replacing or supplanting the other. One can wear both Black and Pink together or separately, without one being “cooler” than the other. One can invest in both Silver and Uranium separately or own both, for different reasons, and be bullish on both.
Having said that, I’m a big fan of Chris at Arcadia Economics, and a shareholder of UEC, and think the interview was worth the watch and engaging.
_____________________________________________
Is Uranium The Next Silver?
Arcadia Economics – 3,130 views • Streamed live 7 hours ago
“One of the reasons why silver always seemed so fundamentally undervalued, was that only a few years ago, the price was actually below what it cost most miners to dig it out of the ground!”
“And as the old adage in the financial markets goes, the cure for low prices can be low prices.”
“But now that the silver price has risen, could there possibly be another asset that fits that same pattern? Where the price is actually below what is the costs most companies to bring it to market?”
“To find out, Scott Melbye of (UEC) Uranium Energy Corporation joined us for an update on uranium, and whether it might be the next silver.”
For those investors that like Silver/Gold and Uranium, I’d recommend checking out @SilverChartist. He has a free email newsletter where he sends out his thoughts on those sectors, with some fundamentals, but mostly #TechnicalAnalysis and #Charts.
He also teams up with fundamentalist investor Jeff Clark, and technical analysts Patrick Karim (@BadCharts) and Kevin Wadsworth (@NorthStar) for his weekend updates.
Sprott backs junior Goliath (GOT) (GOTRF)
Mining Journal – Feb 11, 2021
“Goliath Resources has welcomed Eric Sprott as “a new and significant shareholder” as the junior prepares to kick off its fully-funded, inaugural drill program at its Surebet gold-silver discovery in British Columbia.”
https://www.mining-journal.com/capital-markets/news/1404551/sprott-backs-junior-goliath
(GSV) Gold Standard C$30M bought deal for South Railroad
Mining Journal – Feb 10, 2021
“Gold Standard Ventures has announced a C$30 million bought deal financing led by BMO Capital Markets to obtain funds for development, permitting and exploration activities at its South Railroad gold project on the Carlin trend in Nevada, USA.”
(SLV) SilverCrest Metals to raise $120M in stock offering
Feb. 11, 2021 – By: Khyathi Dalal – Seeking Alpha
“Net proceeds to be used for expanding the Las Chispas resources and reserves through further drilling, to optimize the mine and processing plant design, to explore regional targets, and for general working capital purposes.”
(HIGH) (HGGOF) HighGold Mining Reports 1,800 g/t Silver from New Vein Field at DC Prospect, Johnson Tract Project, Alaska, USA
Feb 11, 2021
Speaking of (HIGH) I bought some more HighGold Mining today, along with starting a position in the pot stocks ETF (MJ) since it finally pulled back over the few days. I also picked up a new tracking position in Integra Resources (ITRG), and added to my Vox Royalties (VOX) position. As for selling – trimmed back Discovery Metals (DSV) to pull some profits, and sold my Argo Blockchain and Hive Blockchain to lock in the gains, before a long weekend.
PGM rebound on the cards for 2021
Mining Journal – Feb 10, 2021
“The supply-demand balance for platinum-group metals (PGMs) will recover to pre-pandemic levels in 2021 as COVID-19-related market disruptions ease, Johnson Matthey says.”
https://www.mining-journal.com/pgms/news/1404518/pgm-rebound-on-the-cards-for-2021
@aghead https://postimg.cc/kVqDRKp8
Now verified Maximum Saturation (7/7).
Morning gold update!
Exactly what I wanted to see in my pattern is working to perfection.. which is really assuring ladies and gentlemen.
November low will be broken and it’s going to trigger massive selling in the miners. They know it and the charts have painted it in. I’ve now updated my thoughts over night to “possibly” 5-7 days for gold to put in its final low from what I gather. If anything changes I will let you know but so far so good..
February will paint a monthly red putting us into April “ spring” docs low range…
Just get ready to buy “if” this pattern holds. And if it does let me know how you feel about my calls?
As titanic said “ is there anyone out there lol””
Best of luck guys and be safe..
We will soon be turning up!
Glen
Hey Glen……….thanks for the note of concern…….
I just got out of the Ker Jail….lol…….so, I now might be able to
respond to some of your input, which has been very GOOD, the last several weeks, just to let you know. Keep up the great work.
Welcome back Jerry, I hope you had your own cell the KER Jail! 🤭
Thanks Matthew……Owl, cut off the heat for awhile, …but, the solitude was what I needed…. lol…… 🙂
Me, myself and I make great company. 😉
Good one Matthew… 🙂
Cfs……..no comment… 🙂
Good one Matt lol…that is my favourite as well!!
Cfs lol
Jerry,
I’m really happy you back and ok that was my concern. You always think of possibly the worse because your a staple here and admired by all.
Thanks for your very kind words and all having my back and encouraging me as well as supporting me. Not that I need it but it humbling and I feel the same towards you.
We are going to have our day very soon with gold. Sometime a little hurt before the reward.
Glen,
Again thanks Glen,
for the reply.
We all need a little encouragement from the strong willed… 🙂
and especially, those who have done their homework, and may have done a lot of
homework around here…. 🙂
Glen:
Looks like the downturn continues as you mentioned could be a possibility. What bothers me looking at Craig Hemke’s chart above is that every time the chart approaches or goes above the line there is a massive dump of contracts or quick series of dumps that gives the impression the markets are man made and criminal. It never ends.. of course it would if someone went to jail.
David……….there is now way anyone in the administration of Crooks is going to Jail…..
The entire system is rigged, and has been, as you should already be aware.
Just play along. Buy the dips, …think Long term…..and hang in there….JMO
Hi Jerry, you needed a break from all the stress, now I expect you will get back to being our number 1 poster boy. DT
Thanks DT………..As long as Owl does not fall asleep, and roll over on the delete button, I should be safe from the KER JAIL…. lol…..
My wife and kids, did say,…..I need to cut back a little…. lol 🙂
OOTB – Welcome back sir! We were wondering if the deep state cabal had kidnapped you, or if you were just out panning for gold in a quiet mountain stream. IrishT gave us the update though that you had been put into the KER slammer, and were just watching cable TV and getting 3 square meals a day in jail. 🙂
Glad to see you back posting again amigo!
Ex….thank you kind sir…..
Owl, cut the cable and heat…..was a hell of a stay… 🙂
I’m glad you are breathing the free air OOTB – The Claw, The BOOT.
I almost called Frank from Moscow to come and break you out. 😉
____________________________________________
This 4 min clip is my favorite scene on breaking out of jail, and I’m imagining that this is how it felt…
The Shawshank Redemption (1994) – Escape Part 2 scene
Kind of hard for the blood hounds to pick up the scent… 🙂
Haha! Agreed.
00TB:
Where have you been? Wandering in the woods, contemplating the meaning of life and summarizing the destiny of the Universe in 3 words or less?
LOL……….three words……… 🙂
Dang , that was hard to do… 🙂
I was at Walden Pond…. lol
Gotcha…gone fishin
Gold’s drop has allowed GLD to fill Monday’s gap. Today’s low for GLD so far is still 7 cents above last Friday’s close.
https://stockcharts.com/h-sc/ui?s=GLD&p=D&yr=0&mn=7&dy=22&id=p60376956233&a=897953598
I’m still impressed with how well the gold miners are holding up considering the drawdown in Gold recently.
Craig is still one of the best IMO at explaining the intricacies of how the gold price is effected by various forces. Cory, your discussion on the interest rate is pertinent and the most important, once again, IMO. Thanks.
Agreed SilverDollar. Craig is spot on that the most important driver for Gold has not been the Dollar, or Stock Markets, or Covid, or any of that noise, but really it has been the inflation-adjusted interest rates. Last summer when 10 year treasury rates were at 0.55% was where Gold peaked, and then as interest rates rose (while the bogus government stats claimed inflation stood idle), then the yellow metal has pulled back in tandem with real rates getting less negative.
I completely agree with the 2 scenarios Craig laid out that will move gold higher:
1) A rise in inflation is registered, while 10 year treasury rates stay in the same basic area, causing real rates to go more negative than they currently are
2) A fall in 10 year treasury rates, while inflation rates stay constant, causing real rates to go more negative than they currently are.
In either scenario, it will cause Gold to break above that trendline. In the short term, rates may still rise a bit more pressuring the yellow metal, but as Craig mentioned, there is only so far they’ll be allowed to rise, before the Fed steps in to temper that rise, in effect, controlling the yields.
EX……..
Spot on……Greg Mannorino, is always talking about watching the 10 yr.
+10 Thanks OOTB.
🙂
I notice MUX is up 5% today after first selling off some. FWIW, their short interest is 16.4% of the float and 39% of MUX is owned either by insiders or institutions. I like that mix and personally, wouldn’t be shorting it. Think Doc mentioned a few days ago he fore saw it getting into the double digits again. If so, I think everything will be tumbling again so I’m maintaining my holdings of MUX. 3rd biggest position.
I had pulled some profits on MUX at $1.47 on that Silver short-squeeze Monday Feb 1st, and trimmed a little more this last Monday at $1.19 (but now wish I hadn’t have since it is up to $1.24), but I still have 70% of the position in place for the voyage onward, and plan on just holding that. If MUX does dip back down closer to a buck again, then I’d consider adding back the shares I trimmed earlier this month.
Nothing wrong with taking some profits………….although, in some cases one gives up future profits. However, we can’t have it all, can we? Appreciate your comments.
Have you listened to Nate Fisher on Palisade? It’s on silver and my type of discussion! Recommend it highly: https://palisadesradio.ca/
Yes, agreed, nobody ever got hurt taking a profit, and I have already rolled them into other opportunities that I feel may have more upside, and did keep a core position in MUX for the ride higher.
Thanks SilverDollar, and I appreciate your comments as well. No, I hadn’t seen that Nate Fisher interview on Palisade, so thanks for posting it and I’ll check it out.
Cheers!
Hi jerry, how was the grub in Al’s jail? I bought more ESKYF today.
Hello bonzo……..
Owl, cut the rations back, cut out the cable and heat, ….but, besides that,
no comment… 🙂
After 10 Years of Underperformance, Commodities Are Set to Boom. Here’s How to Play the Rally.
By Andrew Bary – February 1, 2021 – Barron’s
“The recovery in commodity prices, Goldman Sachs analysts say, “will actually be the beginning of a much longer structural bull market” that could rival that of the 1970s, when gold rose 25-fold, and the mid to late 2000s, when oil peaked at over $140 a barrel.”
“Commodities are set up for a significant period of outperformance after such a long period of underperformance relative to other asset classes,” says Roland Morris, commodity strategist at VanEck. “There is a lot of fiscal and monetary stimulus being applied globally, and the dollar may fall as global growth rebounds. There are supply constraints and new demand drivers for industrial metals from the electrification of the world.”
Cryptos are growing, billions are going into them where as previous that coin would have gone to PMs, so, could this “boom” we are set up for be muted?
There may be some speculative hot money being siphoned off by the cryptos, but I don’t believe it will impact the longer term investing thesis or bull market in Gold & Silver. It’s more likely impacted the speculative money in the miners more than the metals. Conversely, there is a whole new group of investors in the cryptos that is getting educated on the issues and problems with Fiat money, and that want to get out of the banking cartel circles, so some of them will also be finding their way into the precious metals markets.
Many investors simply hold positions in both asset classes, and there is plenty of room to hold positions in Gold and Bitcoin, or PM miners and Crypto miners.
Cryptos have nothing to do with accounting for dollar weakness. Gold will keep doing its thing as usual. Big money tends to be smart money and smart money knows the difference between cryptos and gold.
In periods of high and rising inflation, countless asset classes will “siphon” money away from gold, as they should! I wouldn’t dream of buying gold now except for insurance or portfolio rebalancing purposes. Silver and the miners (especially the miners) look much better.
Yes, agreed, that for gains Silver and the miners, (especially Silver miners), look much better that parking money in Gold, which as you mentioned, is more an insurance position in one’s asset portfolio.
Bitcoin Holds Record Highs As JPMorgan Co-President Admits “We’ll Have To Be Involved”
TLTFF Theralase:
Up 12% with no news. Has been dragging bottom for awhile. News expected but news never received well. Just strange . I think Doc still follows it and I think Chris Temple. Cancer and possible Covid research. Canadian based and tied to credible research hospitals. Just strange activity for this stock.
TLTFF: Now + 18.87% on Schwab. ???
TLTFF ended up just under +21% and still no news. However, someone on Stockhouse said the Premier of Manitoba made some announcement about Theralase to receive funding for Human Trials for the Covid part of their work. Maybe a PR will come out at 2:00 AM on the weekend…I do not know, but +21% is as good as mystery meat in a sandwich.
If China has taught The West anything it is that we must be able to secure the commodities needed to build our future and not allow other countries to corner critical and or rare earth supplies. In the future commodities will be more important to where insustry is located, if you can’t control supply your industry will be severely curtailled or shut down completely. DT
Brixton is up 17% on good volume:
https://stockcharts.com/h-sc/ui?s=BBB.V&p=D&yr=1&mn=0&dy=0&id=p23718410744&a=875260720
David it is frustrating,
Now I don’t know if she holds here but like I said I think November low will be broken. The shorts are desperate and caught big time at lower levels they are pulling out all the stops and the chart or trend I’m watching is telling me that.
Buying opportunity
Glad I added more to my Brixton position yesterday, as mentioned to Charles on Wednesday’s blog, after our discussion about BBB. (hat tip to Charles for the discussion that led to action).
Brixton. This time I bought at .22, so I am waiting for it to be on the + side before adding.
David – Have you looked at Brixton today. It’s trading at $.27 so it is already getting + sized.
David is probably talking USD terms.
Oh. Good point.
I have Brixton at .2086 US on Schwab. Hasn’t busted .21 yet when I was watching. But it is up at the top performers of the day. I have added to Azarga 3 times this week and it is also up today. Was going to add to Palladium One, but decided I had enough shares. It has been dropping against Palladium/Plat price after being one of my better gainers. It may be next to add or maybe Brixton. Azarga and Brixton about the same price.
Good trades David. I still haven’t added to Palladium One, as I’ve felt well allocated with Group Ten, Platinum Group Metals, Generation Mining, Grid Metals, Jubilee Platinum, and until the crazy move earlier this week I had New Age Metals. Palladium One is still one I’m considering though.
When you mentioned Azarga – do you mean Azarga Metals or Azarga Uranium? I have a small position in Azarga Uranium (AZZ), and have considered Azarga Metals (AZR). I’m thinking you main the uranium company, but just wanted to double-check.
Azarga Uranium. I went into it planning on it being the first. But, it went up, so I kept adding.
OK – Thanks David for the clarification. Yes, Iike Azarga Uranium’s ability to climb higher as the anticipation for more US supply heats up, and they have an easier time of moving their development projects into ISR production, similar to what Ur-Energy is doing, and what UEC is proposing doing.
OK. Added a few to Brixton under .21.
Hi Jerry:
Welcome back.
Bought my first Gold note while you were locked up.
Thanks John……..which one did you get……..?
1922 $20 VF30
Good note……..I have a couple of $1906’s……….Was trying for a 1905, but a little salty
I sold a 1922 ….$100 gold note a couple of months ago….still have a 1882….that I am hanging on….My kids have no interest in my collection….so , I am sell off some stuff,
that I know they will get screw on
dang…..sorry for all the misspells , ….I am a little rusty, being gone so long… 🙂
I had some uranium last year, but they didn’t move. I think Azarga and Denison were two of them. I decided that with the US having some changes in policy, that I would start with an US one first.
Makes sense David, and I had responded back to you up above regarding Azarga, and how they have a good path forward from development to in-situ production in the US, and there is a lot of focus for domestic supply from the US DOE.
Other good US Uranium plays are URG/URE Ur-Energy (in-situ producer) and UUUU?EFR Energy Fuels (hard rock producer and in-situ producer, developer, and they can also produce both Vanadium and Rare Earth Elements at their White Mesa Mill).
Yes, Denison is a good Canadian based U play, and has it’s fingers in many yellowcake opportunities. DNN/DML has both it’s proposed in-situ project, and also traditional hardrock mines, it has part ownership in the McClean Lake Mill (that processed Cameco’s Cigar Lake ore), an environmental mine remediation division, and they are the custodians of the Uranium Participation Fund (U.TO), and get a paid a fee for that. In addition, Dension owns about 25% of GoviEx shares, because they spun their African assets out to them when GXU was created.
One of the best undeveloped Uranium mines on the planet is held by NXE NexGen, and it likely going to get acquired or partner up with one of the big boys, but it’s valuation has swelled a lot recently in the anticipation on higher uranium prices.
I recently took a flyer on Standard Uranium, because they are exploring in the Athabasca basin on trend with NexGen and Fission, and so have quite prospective land for drilling.
Thanks. That gives me a road map. I think I have your summaries in my notes from last year also. Thanks and thanks.
There are other exciting Uranium stories not mentioned above, like I also hold (UEC) Uranium Energy Corp which is a US based in-situ developer, getting permitted for production at one point, and they have a lot of liquidity.
Other stocks that have really ratcheted higher lately are Encore Energy, Global Atomic Corp, Laramide, Deep Yellow, the old Paladin that is trying to get up off the mat, and there are many explorers of note like IsoEnergy (a NexGen spinout where NXE still holds about half the shares), and all the other Athabasca drill plays like Purepoint, Standard Uranium, UEX corp, ALX Uranium, Canalaska, U308 Corp, Fission 3.0, Skyharbour, etc…
Jim Rogers: Stock Market Blowup in April Not Crazy Talk, Tips for Surviving Worst Bubble Ever
Stansberry Research – Feb 11, 2021 #Video Interview
“Best-selling author of “Hot Commodities” Jim Rogers speaks with our Daniela Cambone about trending topics, chiming in on Tesla’s Bitcoin buy and how hedge funds were wrongly depicted during the Reddit craze.”
Discussing the stock market, the renowned investor says that experts’ April crash prediction may in fact come to fruition. “I have seen this movie before and it all plays out the same way; in the end, it always pops. This will be the worst bear market in our lifetime,” he warns, claiming that “some stocks will go down as far as 80–90%. ”
https://youtu.be/8Rsl_suImxY