Updated comments on gold – The bulls are not going like to hear what Doc has to say
Doc joins me to share his outlook for gold. As the title says, if you’re a gold bull and think gold will be testing out the highs from last year anytime soon, you’re not going to like what Doc has to say. The positive is that we are nearing a bottom for the metal.
Gold price now at 2021 low, will it fall further? Rising yields is main threat – Lyn Alden (Pt. 2/2)
Kitco News – Feb 17, 2021
“Gold is not purely an inflation hedge, but more of a hedge against real interest rates, and rising bond yields that have outpaced the growth of inflation expectations has been weighing down on the precious metal,” said Lyn Alden, founder of Lyn Alden Investment Research.
“What gold really does is it protects you from an environment where inflation is much higher than the bond yields, and that’s what we’ve seen in 2020 is that gold over the past couple of years had a pretty big appreciation because it was protecting against that. Now, since about late summer 2020, negative real yields have been roughly flat,” Alden said.
Galway Metals drills 34 m of 4.8 g/t Au at Clarence
2021-02-16 18:23 ET – News Release
Mr. Robert Hinchcliffe reports
GALWAY METALS INTERSECTS 4.8 G/T AU OVER 34.0M, 23.0 G/T AU OVER 7.4M, & 4.9 G/T AU OVER 20.35M, AT CLARENCE STREAM
Galway Metals Inc. has released drill results from holes in the western and northern extensions of the George Murphy Zone (GMZ) at the Clarence Stream gold project in southwest New Brunswick.
Loncor drills 12.45 m of 8.11 g/t Au at Imbo
2021-02-18 13:41 ET – News Release.
Mr. Arnold Kondrat of Loncor
LONCOR ANNOUNCES SIGNIFICANT GOLD MINERALIZATION AT DEPTH FROM ITS FLAGSHIP ADUMBI DEPOSIT
Loncor Resources Inc. has released further significant assay results from its drilling program within its 84.68-per-cent-owned Imbo project in the eastern part of the Ngayu greenstone belt in the Democratic Republic of the Congo. The deepest borehole drilled to date at its flagship Adumbi deposit.
CAMECO PLEASED AS SUPREME COURT DISMISSES CRA LEAVE TO APPEAL
The Supreme Court of Canada has dismissed Canada Revenue Agency’s (CRA) application for leave to appeal the June 26, 2020, decision of the Federal Court of Appeal. The dismissal means that the dispute for the 2003, 2005 and 2006 tax years is fully and finally resolved in Cameco Corp.’s favour.
The Tale of Two Silver ETFs:
iShares Slver Trust (SLV) is down 1.1% today.
Sprott Physical Silver Trust (PSLV) is up .2% today.
One of these “trusts” stores 100% silver bullion. The other stores a combination of silver bullion and silver derivatives. I bet you can guess which is which.
SLV…….changed it’s rules…….no longer required to have phyz…..per L.Zang….., posted that a couple of days ago…..Might want to check it out…
Vs….Sprott has the phyz….in and above ground…..
I had posted this over on the Excellon Resources thread today, but it’s along the same subject.
Silver tightness spreads to London, while ETFs add “short squeeze” language into prospectuses
Arcadia Economics – (02/17/2021)
“While the mainstream media continues to report how the #silversqueeze was just a passing fad, anyone who looks for the truth finds a much different story…Which we dig into and explain in tonight’s show.”
I like PSLV but it isn’t an ETF. In fact, because it is not an ETF, it is currently trading at a 1.33% premium to NAV which is precisely the amount by which it is beating SLV today. In other words, it is not tracking silver any better, it is simply enjoying the market’s willingness to pay extra for the privilege of owning it.
Last year I bought a ton of PSLV at less than 6 at a discount of 3% to spot silver. Now it’s at a premium which should rise in a bull market.
That’s how you do it. On January 9th, 2012, it reached a premium of 34.22%!!! Lots of suckers out there.
Hey Matthew, you should tell that to Wolfster! LOL! DT
Uh oh, what did I miss?
the last time silver went to $50 the shares of PSLV traded at a 20% premium to its value.
I am hoping for a repeat. Silver eagles are now selling @37, a $10 premium to an oz of Ag.
Near the end once, Doc: “… if we live long enough.”
Almost fell off my chair laughing. Always good stuff.
Matthew, in another post you said you bought 1.3m of Galleon Gold.
Would you please share why you bought it? What do you see in it and what’s your target?
Cheers
I’ve got 1.351m to be exact and I bought it because I think it’s got the the goods and has a lot more to be discovered. The West Cache Gold project is in a great neighborhood with good gold grades and is politically very safe. The Idaho property is good too.
This year will have plenty of news flow and the company is cheap compared to most of its peers. It has a good shot at going up 3-4 times within a year and much more is possible based on many variables. Years out, who knows? Maybe it’s the next Kirkland Lake. Ok, probably not, but you never know.
https://galleongold.com/projects/west-cache-gold-project/
Thanks Matt! You never disappoint.
Do you have other gems you’d like to share with us? Except for BBB
Well, I don’t have what Matthew’s got into this one, but I’m an owner too.
Matthew regarding GGO… Interesting!!! Does the share count concern you at all?
It doesn’t concern me but is also not my first choice. The market cap is currently Cdn$35.8M. Fully diluted at the current price it becomes 54.8M. I can live with that and it helps a lot that only about 13% of the unexercised paper consists of options. The rest are warrants which will cash the company up when they are exercised.
The company has real size potential and that also helps a lot.
As always…. much appreciated..
Cory, THE PROVOCATEUR. GOOD FOR YOU,
Newmont ( NEM)has the largest reserve holder of Silver @ 600 million oz, as well as paying a 3,8 – 3.9% dividend
If Ag breaks above 30 and stays, NEM IS GOING TO TRIPLE FIGURES, as the largest RESERVE holding of all miners, A 20year mine supply @ 30 oz / year
Silver corp is interesting.
R Kyosaki had a mine he owned in China “confiscated”.
With the americans pressing for war in china imo silvercorp has “extra” risk.
Conversly, China could be resticting or stoping rare earths going to the west, they are positioning for that anyway.
Rare earth mines in the west could go parabolic.
Having said all that, I like silvercorp.
I like SVM Silvercorp as well b, and China just renewed their mining permits for a very long time, and Silvercorp just acquired a new project that they won in a Chinese auction out of receivership, so even though they are a Canadian company, they are doing well with the Chinese government, providing good jobs, and giving back to their local communities.
SVM has the lowest all in sustaining costs per ounce of Silver equivalent production of any miner on the planet, due to their amazing Zinc & Lead credits, paired with their unique corporate social media app and real time video conferencing at all areas of their operations used for real time communication and micro-adjustments to the process on the fly.
In addition, Silvercorp owns about 28% of NUAG New Pacific Metals, an up and coming advanced Silver explorer in Bolivia, and 20% of Volcanic Gold in Guatemala.
If people are bullish on Silver and base metals like Zinc & Lead, then Silvercorp is a fantastic company to keep tabs on.
_____________________________________________________________________
(SVM) Silvercorp Receives Mining License Renewal and Extension
Feb 9, 2021
ilvercorp Metals Inc. announces that the Tieluping-Longmen Mining License for the TLP, LME and LMW mines in the Ying Mining District has been renewed and extended for a period of 20 years (expiration February 26, 2041) by the Department of Natural Resources, Henan Province, China.
(SVM) Silvercorp Won Auction to Acquire the Zhonghe Silver Project in Luoning County, Henan Province, China
January 21, 2021
As mentioned above, Silvercorp is expanding inside of China, and outside of China in Bolivia, Guatemala, and now Mexico.
_______________________________________________
Silvercorp Subsidiary Acquires the La Yesca Silver Project, Nayarit State, Mexico
February 2, 2021
Good info EX.
They could get big, recall they bought alot of their own shares a few years ago.
Some bs acusation was made and their share price dropped.
I forget what it was tho.
Something about their truck tires not being low or high enuff.
Either way it was bs and as you posted, its a well run and expanding company.
The only knock on them as far as I can tell is they’re in china.
SSRM is being taken to the woodshed—-a little more drop and it will be very interesting.
Doc,
Re: SSRM I’m stuck with this dog that I purchased at $22. I’m reluctant to buy more bec i think it could drop even lower like $12-13
Cali, I believe you’re right on in your thoughts—-this stock when bottoming should not just move right back up—when it consolidates for awhile laterally you can then make a decision whether to cost average. Right now you’re at risk of catching a “falling knife”.
I don’t think SSRM is a dog. I like it a lot, but I bought mine@ $8 and think it’s a keeper.
Just an alert to what I consider to be significant today. Silver for the first time in a long time underperformed to gold—in the after hours as well.
That goes with the charts:
On February 18, 2021 at 7:38 am,
Matthew says:
Silver is now weekly overbought versus gold and just ran into resistance that might be significant:
https://stockcharts.com/h-sc/ui?s=%24SILVER%3A%24GOLD&p=W&yr=2&mn=7&dy=0&id=p51774760468&a=899985381
On February 18, 2021 at 7:39 am,
Matthew says:
Short term resistance, too:
https://stockcharts.com/h-sc/ui?s=%24SILVER%3A%24GOLD&p=D&yr=0&mn=11&dy=0&id=p16003009318&a=770101950
Evening special gold/silver update!
* I sound like infomercial lol
Silver has a date as mentioned with $24 at least.. my charts are screaming this..
Gold doing exactly what I wanted it to do as far as my pattern goes.. we’re head lower today after that mini fools bounce.
Low target anywhere between $1740-$1745 is one pattern or possibly $1750-$1754 closing red for the weekly candle..
get ready to buy boys and girls.
glen
Glen, interesting; on one of my past conversations with Cory, I mentioned that I wouldn’t be surprised to see silver hit a low of $23.00.
What do you bet that WallStreet is on the short side of most all trades…who runs the algos and controls the charts?
Scorpio Gold (SRCRF) traded more than 200,000 shares today
Latest: https://ibb.co/0hrz693
Work in process. Getting closer.
Since no one has mentioned ucore and it’s nice pop today I’ll safely guess no one else bought it
Wolfster I was up late and got up a bit later than usual, and the markets were already roaring, and I was dealing with Uranium and PGM stocks. By the time I checked on Ucore, it had already leapt up greatly, and as I checked it during the day it seemed to just keep ratcheting higher, and I couldn’t chase it once it was up 20-30% on the day.
Great job nailing it with your position in Ucore amigo. Well done!
The metals look weak! $1750 gold appears certain. Silvers looking stronger but that wont last long if gold continues to slide. Its been a frustrating start to the year for PMs. Interesting to note that gold is back around the November lows yet the US dollar is significantly lower compared to the same time. This is not a good sign as it illustrates gold weakness so far this year.
Gold’s weakness has much less to do with the US Dollar movements, and much more to do with rising 10 year yields, as they moved up from 0.55% last August at Gold’s peak at $2089, to 1.29% today, with Gold closing at $1775.
As the rates rise, relative to inflation staying more flat (at least on the bogus US government CPI numbers), then if moves real rates less negative. If inflation were to start to rise relative to rates, or if rates were to fall, then real rates would start falling and gold would move higher.
Rates may have topped, with some big gaps below.
Ucore is at Chapman Wave E (F to come before a pull back).
It has strong Saturation, with a likely MaxSat 7 coming, maybe today.
UURAF is at CW(E) from its ATL (All Time Low) of .68.
The pull back mentioned is from that perspective.
Expect an interim pull back, and then CW(F).
Maybe a pull back to 1.78-1.84 with a pop to 2.55-2.71 (minimum).
Featured: https://ibb.co/FXdxM9V
Target dates plus/minus one day.
Erratum: The ATL is .53 (not the recent .68). Target zone now 2.44-2.70.
Hahaha…..I may be the one who’s unsuccessful at kissing all the girls and then some but I’m also the early bird ……..normally to early or the wrong location and no worms to be found…..seriously tho, this year has started off even better than last year went so I’m getting nervous. Can almost throw darts and hit winners and that’s never a good sign. Correction must happen eventually
(HL) Hecla Mining Company 2020 Q4 – Results – Earnings Call Presentation
Feb. 18, 2021
DXY: https://ibb.co/8ML3XWY
Covering of low gaps continues.
Usually four 2hr candle bodies.
Is the small one at 90.23 next?
Doc if gold bottoms over next couple months will this be the last time we see these prices for several years and we finally get the gold bull push to 3K plus over next 3 years? Will we see inflation and dollar collapse that will provide the catalyst needed for gold and miners to sustain gold’s bull mkt.