What will it take for the Fed to do something?
Ed Moya, Senior Market Analyst at OANDA to discuss what markets or sectors or data it will take to make the Fed do something. Powell spoke to the Senate yesterday and to the House today but so far continues to state that the Fed is remaining on the sideline. However long term yields are at key resistance, US markets might be starting a correction, and inflation expectations are rising. Will any of these factors make the Fed change course anytime soon?
Click here to visit the OANDA website and read over Ed’s daily note. It’s a great summary of markets, gold, and other important market moves.
Gold should be $34,000 plus……in 1913 standards…..humm
Makes you wonder……..Bitcon….at $50,000……..humm
The evil cabal invented bitcoin to draw away attention from the PMs. Yet, I strongly believe they can crash it any time.
Bitcoin in Pole Position, but Gold’s Pent-Up Demand About To Be Unleashed
Stansberry Research – Feb 23, 2021
“Investors frustrated that gold has been unable to regain historic highs last seen in the summer of 2020 should fret not, according to Peter Marrone, Executive Chairman for Yamana Gold. “I’m not surprised by this correction. Since last year I was saying that gold was ahead of itself, but I would be stunned if the economy does not overheat,” he tells our Daniela Cambone. “Rely on history more than you rely on economics; there is an emotional component to gold that does not always follow an economic model.” Referring to previous periods of pent-up demand, Marrone explains that “when demand is unleashed, we go into an inflationary cycle, which historically has been exceptional for gold prices.”
Gold is not ahead of itself………Gold needs to be way lot more than $1800…..,
That is a joke of a statement….JMO
Could not agree more Jerry. Gold should be where rhodium is.
OOTB – I believe Peter Marrone, Chairman of Yamana Gold, was stating that Gold was getting a little ahead of itself last year on the massive move up from $1450 to $2089, and thought it needed to take a little rest to digest those gains. Obviously, running one of the major gold producers, he’s likely still quite bullish on Gold longer term.
Ditto……Norrareal 1968…….
Ex, don’t you think that not being bullish would be pretty stupid of him?
Norrareal1968. Yes, that was precisely my point. OOTB mentioned his statement about Gold getting ahead of itself was a joke statement, but clearly he is bullish as the head of one of the big boy gold producers. He was correct that Gold had had moved up really fast from $1450 to $2089 last year and needed a break, and Mr Market confirmed that opinion, with the last 7 months of a corrective move in the Gold price.
Ex, I do not believe there is such a thing as Mr Market. The evil banking cabal are the market makers and they can drive the price of gold to $50.000 in just a few months if they only wish so.
Everyone is entitled to their own opinions. I just trade mining stocks relative to the prices we actually see in the market, and that is fine for my investing strategy.
Ex, I agree
The issue I have with the statement the “pent up demand about to be released”
is we have been hearing that for over a decade at least, especially concerning silver.
All the screaming about silver shortages was all bs, still is.
On the other hand, its always nice to read what I like to hear. 😉
b…..how long they been printing money……..hell of a long time..
and they will continue…….
oop……….Fed in trouble…. out of printer paper….
https://www.zerohedge.com/crypto/fed-down
OOTB – I’m not sure about $34,000 gold, but Michael Oliver is calling for $8,000-$9000 Gold. 🙂
_________________________________________
Gold $8-9k/oz or Higher in Next Two Years says Analyst Michael Oliver
MiningStockEducation – Feb 23, 2021
“Analyst Michael Oliver sees $8,000 to $9,000 per ounce gold and silver over $200 per ounce in the next couple years. In fact, he said it would not surprise him if gold goes much higher because “this is not just another gold bull market.” Michael also sees a topping and dropping in the broad markets occurring slowly and deceptively rather than sharply via a popping bubble. This bear market will cause the Federal Reserve to ramp up the injection of liquidity to prop up equities which will result in gold and silver soaring. Gold and silver miners will outperform the metals.”
We’ve heard calls for $5,000, or $8,000, or $10,000 gold since 2011, and maybe one of these days those folks will be correct, but honestly, I’d prefer to see people focus on where the next rally could take us in the reasonable near term.
It would be fantastic to see Gold gather the strength in the next big move higher to take out the recent all-time high at $2089, and get up into the $2,200-$2,300 level. At that point the Gold producers would be printing money like crazy, and the quality development projects would sky rocket in valuations based on improving economics.
And the FRAUD FED……has Played every stupid trick it can…..and everyone believes them…. what a joke….
Ex, aren’t gold producers printing money with gold at 1800 and that hasn’t taken their valuations anywhere?
Norrareal1968 – Yes, Gold producers are doing quite well operationally, and generating free cash flows at $1800. I’d submit they’ve done good, but haven’t had quite the leverage to rising metals prices that they did in previous cycles.
If you look at where they were trading back in late 2018 or mid 2019 to present, they’ve moved up quite a bit as general rule. Obviously, north of $2000 (like the $2,200 to $2,300 comment I made) would be better, and likely bring back in more generalist investors, and new capital flows.
However, if you look at where the gold miners were trading back in 2011 at these same prices, then I agree that they still have a lot of catching up to do in valuations.
I normally do consider owning the biggest but now they are incredible bargains that are in fantastic financial shape. You’d have to go back at least four decades and probably more like eight, to find a similar situation. 2001 to 2011 was NOT similar.
Correction: I normally do *not* consider owning the biggest…”
Matthew, I sincerely hope you are right. I still have my share certificates and hope to sell them for a profit one day.
Norrareal1968, even the biggest miners are going to grow by a factor that would seem unbelievable today so make sure your prep yourself to be psychologically able to sell when you should. That will be far more difficult than you can imagine now.
Matthew, you are a wise man. I hope you will eventually be correct.
“We’ve heard calls for $5,000, or $8,000, or $10,000 gold since 2011, and maybe one of these days those folks will be correct”
! day these prices will be correct, absolutely.
And bread will be $20 or more a loaf.
That 10k gold is not a happy prediction, gold will simply be doing what it always has done, preserving purchasing power.
Actual profit should be in shares.
I’m not looking forward to $20 bread, but agreed.
Oliver will still be behind….. 🙂
Not this Oliver
https://m.youtube.com/watch?v=NSQVVHyvOZU
They certainly look alike
Wolfster — That was Hilarious!! That Oliver in the commerial is the “Cash Man”.
I love it!! 🙂
The world’s central banks hold gold reserves of 1.07 billion ounces. US M2 money supply was almost $20 trillion when it was DISCONTINUED last summer. At $1800 gold, the value of those reserves is just $1.926 trillion. So, gold “should” be about ten times higher IF M2 hasn’t grown since June, and of course it has, and probably dramatically, hence its discontinuation. “Should” is in quotes because it is foolish to suggest that it “should” be any given price at any given moment. You guys don’t know what it should be and neither does Bill Murphy or myself. As the sheeple herd wakes up to their lifelong fleecing, gold will continue to rise but that is far from the only factor to consider. We can only say that gold should be at least ten times higher right this minute if the conversation is about returning to a gold standard in which all the bankers’ debt currency is fully backed by gold.
Btw, I used global gold reserves above because all other currencies are really dollar derivatives in the same way that the dollar used to be a gold derivative. Banks used to issue their currencies against their gold but now they’re issued against their dollars, since the dollar replaced gold as the world’s senior reserve currency. So, if we want US M2 backed only by US gold reserves (claimed to be almost 260 million ounces), it would require gold at $80,000 last June.
Considering……….there is still , according to Fitts/Skidmore…..$100 TRILLION missing at the pentagon…..and there are no accounting rules…..everything is FAKE.
Gold is WAY UNDERVALUED….and the cabal know it….why, they keep rearranging the contracts…at the protection agencies…CFTC, CME,…still a joke.
Bought more Newmont, Barrick and Galleon today and my Golden Star is about 13% off of Friday’s low.
Buffit is out, and Matthew is in…… I did not know you were in the big boyz….
interesting, I must have missed any mention of your attachment, to the bigs….
I thought you were only in the penny guys…( no disrespect meant in any way)
Jerry, the big boys were simply never appealing. Now they are extremely appealing so they can be bought aggressively and in size.
Thanks for the reply…..
Matthew, you might find NEM’s monthly chart interesting. The pricing, RSI, and MACD are almost a carbon copy of the gold monthly chart.
I does make sense that a large and well-run gold miner with projects in safe jurisdictions would have a high correlation to gold. Luckily, it also outperforms gold. As of May, it had more than tripled versus gold since the bear market bottom in 2016 and is currently still up about 156%.
The monthly is interesting…
https://stockcharts.com/h-sc/ui?s=NEM&p=M&yr=50&mn=0&dy=0&id=p33292587168&a=908782686
Three Penny (Higher Low): https://ibb.co/7nxQ9wp
NEM Wedge: https://postimg.cc/LhLhc96t
Having posted the above, NEM must hold here!
Considering Dollar weakness, Gold is lethargic.
The Treasury Yield Stress Point
Feb. 22, 2021 – Lyn Alden Schwartzer
“If Treasury yields continue to rise that may pose a problem for growth stock valuations.”
“However, the Federal Reserve always has the option to intervene and suppress yields, for which the release valve is the currency.”
“Since the third quarter of 2020, most of the global economy has been in a reflationary cycle, meaning that we’re getting rising economic activity, rising inflation, and rising long-term Treasury yields from very low levels.”
“Most asset classes have benefited from it, but going forward if this trend continues, rising Treasury yields would put pressure on overstretched growth stock valuations and financial assets across the board more generally.”
Silver Junior Miners Leading The Way
Patrick Karim (@BadCharts) – #TechnicalAnalysis
“It has started… On the smallest of time frames… the seeds of the future are growing”
https://www.tradingview.com/chart/SILJ/WuXCB3Lq-Silver-Junior-Miners-leading-the-way/
So far today, Summa and Blackrock are leading my silver stocks today ahead of the few producers I have. So Karim’s charts may be right…at least this week.
Group Ten finally woke up with Platinum and Palladium having a good day. It was one of those “tap on the screen” days, that finally moved.
Agreed. Nice to see (PGE) Group Ten plowing higher with solid Platinum & Palladium & Nickel & Copper prices.
(SBSW) Sibanye, their big boy neighbors at Stillwater, are likely watching Group Ten with keen interest. 🙂
https://grouptenmetals.com/site/assets/files/3597/location_map_2019-12.943×0-is.png
Speaking of Platinum, Palladium, Nickel, Copper….
I picked back up a position in New Age Metals (NAM) today in the late morning, as I had sold out of it on that pop on Feb 10th, and got in at a better price. In addition, I picked up a volatility position in (VXX), and third tranche of Aris Gold this afternoon. The only thing I sold today to harvest gains, was my (FIL) Filo Mining into the raging Copper strength of late.
Hi David – Yeah, I saw Blackrock Gold up bigly in my account today, but couldn’t see a particular driver for it other than the Jr Silver miners being peppy today. I don’t hold Summa Silver, but if memory serves they are exploring for Silver right near Blackrock Gold in Tonopah, Nevada. Right?
It is curious to see both of them go up so much in sympathy with one another.
Bayhorse Silver has really run nicely this week as well, up double digits the last few days.
The vast majority of the Silver producers are up today, but it is nice to see the Juniors gaining ground on the Seniors, as that is bullish action.
One of the ceo.ca sites referenced an article about Nevada being the place to be for silver, although I didn’t read the article and maybe Summa and Blackrock jumped into everybody’s head. And yes, and they are near one another. On Summa, I think Michael Konnert is involved. Might be the Perry people, but Konnert is CEO of Vizsla and he seems to be a straight shooter.
I have sold a few of my New Age but kept most as they are in the green. Palladium One keeps dragging along despite announcing a financing with one of the Sprott group and somebody else. But Group Ten I have been increasing the share count. Just picked up Denison in the last couple of days after a slight pull back and it is moving up again. Atico and Trevali have been quietly moving and Silver Viper which I need to go back and read about as I forgot who they are. Also reacquired Irving. I had moved it to Novo as it was progressing faster than Irving. Might have caught Irving back at a good time but things happen slowly in Japan. Bayhorse I sold for the 3rd or 4th time as got tired of waiting, and of course it moved. Now I don’t trust that it won’t go back down.
But, today was encouraging and maybe the week will end well.
Yes, even though Nevada is often thought about as a gold friendly area, it is actually the “Silver state” and quite prospective for silver. Yes, Michael Konnert from Vizsla is part of the Inventa Capital group (Vizsla, Tarachi gold, Gold Bull, Surge Copper, Iso Energy, Outbacks, etc…). As for New Age, I was out, but now I’m back in, and as for Palladium One, I still don’t have a position, but it is on top-of-mind awareness.
Denison is a solid company, and has really ripped higher recently, just like many of the Uranium Stocks. I added a little more URG Ur-Energy yesterday, but am mostly holding the core Uranium positions, after trimming them back some over the last few weeks.
As for Group Ten, it’s a stellar company, and I’m invested for the medium to longer term. I believe they’ll get acquired.
As for Silver Viper, that is the Cope brothers from the Belcara group, and I’ve never had a position but its one I’ve considered. Those guys are involved with REX Orex minerals, and used to be the prior team over at Dolly Varden.
As for Irving, I’ve always appreciated their fantastic exploration results, but been a little leery of a project making it into production in Japan. Still it’s been a name to consider.
As for Bayhorse (BHS), it has finally started moving on the news about their offtake agreement and desire to start producing concentrates from their upgraded ore.
Fun Times!
(SIL) (SILV) SilverCrest Announces Initial Drill Results for El Picacho Property; 21 Drill Hole Intercepts Average 4.1 Metres (ETW) Grading 660 gpt AgEq
@newswire on 24 Feb 2021
https://ceo.ca/@newswire/silvercrest-announces-initial-drill-results-for-el
Ex……..thanks for all the comments above……all good stuff…….
OOTB — 10-4 Good buddy. Right back atcha man!
This is the 3rd straight day I have sold RDS.B at higher prices and bought more NFGFF, ESKYF, and IRVRF. I hope Matthew will make a ton on the NEM he bought today as that is my biggest gold holding after receiving NEM shares for my old FNV and GG. The cost basis for my NEM is $17 and I hope to sell it for $500 when gold gets to 8K.
Bonzo, I’m getting ready to take my first position in Irving for the first time—do you recommend it?
Doc, earlier this month Said I had bought more IRVRF@1.40 and you told me it might drop down to between 50 and 75 cents. I said I doubted it would drop below last March’s low of $1. It is one of my and Moriarity’s and Erik’s favorite stocks. So if I did not own any I would get some now, knowing it could drop to 1.50 in a weak market. But it could be a 10 bagger too.
Doc:
Irving was one of BMs favorites at one time and I think still likes it. Of course, Q Hennigh in middle of it and I believe Newmont is involved, and maybe Sumitoma. They are slow in getting things drilled because Japan has had their mining activity shut down for years and their experience level is low. Irving has wanted to expand the drilling program to bring in experienced teams but Covid restrictions have made that difficult. I just reentered after some decent drill results but they were slow in coming. BM thinks they have yet to find the good stuff. I don’t know if BM does interviews here anymore but it would be interesting how strong he is on Irving currently…he has been into Novo again and wrote a new book on them. The Hedgeless Horseman is a follower of QH and may be able to rank it among the QH projects. Irving has been moving up and hit $1.79 today. Japan just slow and lost most of their experts requiring a lot out country expertise. But, historically some good stuff we t on there.
I missed the obvious…QH on all the time. Ask Cory to ask QH where Irving fits into the scheme if things.
Bonzo, NEM has never looked better fundamentally. You’re going to do extremely well with it long term regardless of what happens in the next few weeks or even months.
Right now, it is at clear support that needs to hold. A single close below the red or green lines would be enough reason for defensive action (selling/hedging) for those so inclined.
https://stockcharts.com/h-sc/ui?s=NEM&p=D&yr=1&mn=1&dy=0&id=p24312395756&a=832562811
DID SOMETHING JUST HAPPEN AT THE FED>…………..
https://www.zerohedge.com/crypto/fed-down
Out to Lunch………and Out of Printer Paper…. 🙂
Clif High…….live….
https://www.youtube.com/watch?v=Rkpk5Vwn4GQ
You liked the “cash man”. He’s a late night tv commercial icon in Toronto. Been doing ads for years on local cable channels.
Now for my serious post for today. Here’s a quick write up on Ucore.
https://thedeepdive.ca/ucore-rare-metals-developments-could-prove-positive-for-company/
It’s time for the Cash man to move over to CNBC.
Agreed. I like to see Oliver “Cash Man” team up with Cramer for the day. 😉
+1 Wolfster. I’m very happy that you and Doc Jones have kept Ucore top of mind the last few weeks, as I got 2 tranches in place, as mentioned to you last week on the 19th, and as I mentioned to David yesterday (23rd) for my 2nd tranche. It is nice to see it climbing higher again today, and other than Energy Fuels ability to process Rare Earths at their White Mesa Mill, Ucore is one of the REE companies most poised to take advantage of the higher prices, and desire to procure supply from North America over China. Also, Ucore’s abiltiy to process many types of metals and minerals gives them a unique position in some of the downstream market as well.
Australian Strategic Materials Ltd (ASM.AX) has really been on a tear the last 6 months as well. I believe that was the rare earths deposit that Alkane Minerals used to have, but they spun it out to just stay focused on their gold production. That really allowed ASM.AX to sail in the current higher priced Rare Earths market.
Avalon is another rare earth situation that has perked up a little—-it’s been sitting in my portfolio for nigh unto 20 years.
Doc – Now there’s a blast from the past – Avalon. They were a REE market darling back in the last cycle 2010-2012, and I used to own them as well. For some reason, I was thinking they shifted focus and got into Lithium back in 2016 or 2017. Didn’t they switch gears?
Another big REE company in the last cycle was Tasman Metals, and their Norra Karr deposit was acquired by Leading Edge Materials (LEM), which also has a developed Graphite project and processing center. They’ve been on the move lately as well.
I mentioned the other day that another throw back to the prior REE boom, that has stuck with it and is getting closer to development/production in Australia is (ARU.AX) Arafura Resources.
It appears the Rare Earths are finally back en vogue again.
What was that guys,….name who use to be on 13 yrs. ago…..Rare Earths was his specialty……. Dan?….He use to advertise…..
Ray….. something….
Rey Mysterio
https://vignette.wikia.nocookie.net/smackdown/images/d/dd/Rey_Mysterio_(WWE_2K19).jpg/revision/latest/scale-to-width-down/2000?cb=20181114111602
https://vignette.wikia.nocookie.net/smackdown/images/d/dd/Rey_Mysterio_(WWE_2K19).jpg/revision/latest/scale-to-width-down/2000?cb=20181114111602
Speaking of rare earths, they may be “perking up” due to Chinese threats of reducing or eliminating supplies.
China is considering it due to american interference and war footing.
Wed……. $1805……..recovered…..next is down the tubes…..,counting coins….20 in a tube… lol…. 🙂
SHAD…Pop over to the political page….Jerry & me..are up to our old tricks…………lol
I noticed that IrishT. I posted a pic of an Owl with the purse-strings…
I’m a fan of your new crypto coin as well.
🙂
mirasol resources is breaking out—had some good exploration reports.
Humm…Monday Up….Tuesday down….Wed up…Thurs futures down.. hummm. what channel…
What became of the Crow?
February 23, 2021 – Jay Taylor
“Robert Moriarty & Dr. Quinton Hennigh return. An early settler in NW Australia, James Withnell aided by a nasty crow, first discovered gold in Australia’s Pilbara in 1888. For reasons spelled out in Robert’s book What Became of the Crow? Inside the Greatest Gold Discovery in History”gold mining was largely confined to weekend hobbyists who were clueless regarding the scale of conglomerate gold deposits under their feet. Not until Quinton’s theories of how the great Wits deposit in S.A. was created led him to explore this vast region did anyone on earth except Quinton himself begin to fathom the amazing scale of wealth that Novo is about to mine. Quinton will update us on Novo’s path to production and his vision for the future. Bob will share a very colorful story of the players led by Quinton & an Australian prospector named Mark Creasy to make what may well be the greatest gold discovery in history.”
https://www.voiceamerica.com/episode/128723/what-became-of-the-crow
US Debt clock……..at approx $27.9 TRILLION…….add the $1.9 Biden Blessing..(lol)…..and we are at about
$30 TRILLION……. got gold…