Is the inverse correlation between yields and gold coming to an end?
Craig Hemke, Founder of TF Metals Report joins me to discuss the relationship between yields and gold. Even since the August high in gold yields and gold have been almost perfectly inversely correlated. Over the last few trading sessions correlation has come to an end, but there are some key factors that could be causing this.
I can’t help but think of Wrong Way Feldman when you post a comment.
Reflation? 😂 Try INFLATION.
Bonds and gold might remain correlated for another intermediate cycle, possibly two, but then gold and interest rates will rise together just like they did in the 1970s.
https://www.youtube.com/watch?v=O8Ugyx-bBQw&ab_channel=HaleyChatman
It’s reflation.
I can’t help thinking how many times gold found a bottom in the last six months (according to you😂)
And gold will continue to drop.
Nonsense. I’ve been open to a low at the place where one should be. NEM and other seniors are up significantly since I said that NEM could be bought in size. Meanwhile, every single one of your nutty calls on gold have been off by hundreds if not a $1,000+ and your delusions always remain unscathed.
Actually the last few days, interest rates have moved higher in tandem with gold, because the market is anticipating more inflation indeed. Craig also made that point in the editorial above, and as long as inflation starts outpacing the rise in yields, then the inflation-adjusted “real rates” will start trending back negative again, and that is very constructive for the PMs.
The market is forward-looking and it is starting to prepare for a nice bump higher in inflation metrics, and we should see that reflected in the data next month.
FYI:
https://www.youtube.com/watch?v=Zej5QHGPs3s&ab_channel=PeterSchiff
Of course I doubt that Peter can cut through your faith-based analysis. lol
I could not resist and bought more NULGF today. It will be grand if they find another Post-Betze this year. Then I can buy a schooner and sail away to Australia to visit Novo’s holdings,
with stops along the way at Fiji to see Lion One, and Japan to visit Irving.
Wow bonzo – that is quite a trip you have planned on that schooner to Fiji for Lion One, Japan for Irving, and then Novo in Australia.
Do you have room for a stowaway passenger on your grand voyage?
Ex, I will need someone who knows how to sail. Maybe I can stop in Bolivia to visit Eloro, Peru to visit Condor, and Equador to visit Aurania before crossing over to Tahiti and Fiji.
Bonzo – well, you’re in luck then. Greta Thunberg has been absent the media as of late and she’s quite a sailing savant… Maybe you could bring her into your crew. 🙂
https://i.pinimg.com/originals/ef/81/a0/ef81a0ce1fe112f1a143e377f257a536.jpg
I’m sure it would be a blast to bring Greta to a bunch of mining sites with you. Haha!
Great would spoil my trip, but the Hedgeless Horseman is a Swedish viking who might be a good sailor and raconteur.
I don’t think you should take Greta along since she might fall overboard during a particular egregious squall and I hear she is a lousy swimmer.
Good point guys… wouldn’t want to see her fall overboard in an egregious squall…
Oops!!
Bonzo, speaking of The Hedgeless Horseman…
Did you check out the interview posted on yesterday’s blog with Erik? I’ll repost it here:
_________________________________________
From Online Poker to Gold Stocks, Top Value Stock Picks
Soar Financial – March 17, 2021 #VIDEO
“#SFLive Ep 148 with Erik Wetterling, The Hedgeless Horseman, he discusses his online poker past, his views on the market, attractive business models, and his top stock picks. ”
Erik brings up Lion One briefly as an example of great opportunity at current valuation, considering their 6 planned drill rigs on their 7 km caldera Tuvatu project in Fiji.
I agree that (LIO) offers a compelling risk/reward value proposition at present pricing, and aside from their potential for more bonanza grade drill results, they also have a pathway to production outlined. Moving toward smaller scale initial production allows them to grow organically, and then increase the production profile over time, as they simultaneously grow the deposit larger.
(LIO) (LOMLF) Lion One Metals
https://liononemetals.com/wp-content/uploads/2021/03/LIO-PPT-MAR-2021-2.pdf
yes, Ex, I heard the interview with Erik yesterday and agree with all he said. Greta would never make it to Fiji. I’m sure she would turn up missing one morning. No woke demons or social justice warriors are allowed on my schooner.
The Hedgeless Horseman should change his name to “The Viking”. DT
Yeah, Erik the Red was from Norway, but that isn’t a good color for investing.
https://en.wikipedia.org/wiki/Erik_the_Red
How about The Hedgless Horseman goes by: Erik the Green
Erik is from Sweden, and is focused on pillaging Jr mining stocks and making a green profit. 🙂
Gary Wagner – End of gold’s pain? What Fed Chair’s ‘aggressive’ outlook means for markets
Kitco News – March 17, 2021
“The Federal Reserve has announced that the Fed Funds rate will remain low until at least 2023. Both gold and the equity markets rallied in response to Fed Chair Jerome Powell’s dovishness, but can the turnaround in prices last? Gary Wagner, editor of TheGoldForecast.com analyzes the next key price levels.”
0:00 – Fed’s outlook on economy
4:15 – Inflation
7:27 – Yields
10:15 – Another Taper Tantrum?
11:30 – Yield curve control?
12:40 – Real yields
14:11 – Gold’s next key levels
The Truth About Junior Mining
by @Goldfinger on 19 Mar 2021
$1744………humm
Based on
Hyper BS +++++++ on steroids
I’m now on hiatus. 🤚
Hi Jerry////// $ 1744…….humm……I agree i would never pay that for a burger……….
Where you talking about burgers ? .
Hello Irish………….Just for a Whopper………. LOL 🙂
Hope all is well with you…Another week and what a week…..
I’ve been buying into Sokoman, they are situated next to New Found Gold near Gander Airport in Gander Newfoundland. Great speculation in the newest gold rush bonanza era! All the right players are there, Quinton Hennigh, Bob Moriarty, Eric Sprott, and Dick Tracy!
WOW…DT…I would never have thought that those names would be into …POKOMAN
Haha! Good one IrishT.
DT – I was invested with Sokoman briefly last year, and need to take another look, so thanks for bringing it back on the radar. I believe David that posts here follows it pretty closely as well.
Yes. I doubled my holding after Bob Moriarty’s comments. They have generally reported good grades and Sprott has been in it for awhile. I also saw where they picked up an additional property in the area. I seem to recall Sprott in an interview a year or so ago said his only concern might be there resource. Don’t know where he is on that as haven’t heard anything lately. The price move has been better.
There = their
There is a lot of interest in Sokoman, I picked up some more shares today after the drop in the news about Sprott’s financing. By the end of the day it closed higher which tells me that there could be news out real soon maybe Monday. The additional property they just picked up is near one of Anaconda’s holdings. DT
I thought you were already in Ex and were aware of their drilling results, not much escapes your eyes. DT
I was in Sokoman twice last year for profitable swing trades:
> From 07/16 – 09/21, and then from 10/01 – 10/08
At the time I was still unsure if they were going to find the source of the mineralized boulders they found on their property, and went off chasing other shiny objects 😉
Now I’ve missed quite a move higher in Sokoman, and feel like a schmo, but it happens. We can’t dance with all the pretty girls.
Regardless, thanks for the heads up DT, and my eyes will be watching more closely now.
A bit of a straw poll……………………………..
Who on here thinks that the high of $2,076 on Aug 6th 2020 gold price , will be surpassed on the 6th of Aug. 2021 !!!!!
ME, Me, Me,…… 🙂
Just warming up for the next gospel choir…. 🙂
Just try buying a $20 Liberty Gold piece MS 63….for the above price NOW…. 🙂
Jerry, I thought you were going to write a juicy gossip column and present it on The Ker Report. Something along the lines of reality TV. You have a lot of experience to draw off! DT
Jerry, we would like to read something searching and innocuous but honest, I will be your agent when it comes to negotiating money with Big Al. Of course if you are a Methodist I can understand you not wanting to be paid in which case I will put your money in a trust fund self directed by me. LOL! DT
DT…….Good one………..You may be my agent.
Just for the record…..Not Methodist….But XBaptist….Now just Christian… 🙂
I dropped the club membership… lol 🙂
Interesting Jerry, most of my Brothers also dropped their past Club Memberships. That is an interesting subject to discuss.
Yes Owl……..it would be a great topic of discussion….. JMO of course… 🙂
/ BBSRF /
Bluestone Announces Additional Drill Results Including 127 Meters Grading 3.5 G/T Gold And 21.6 Meters Grading 12.9 G/T Gold, And Grants Stock Options
Newsfile Corp – Thu Mar 18, 4:02PM CDT
Vancouver, British Columbia–(Newsfile Corp. – March 18, 2021) – Bluestone Resources Inc. (TSXV:BSR.VN)
A quietly significant development today in the zinc space.
Nexa Resources (TSX: NEXA; NYSE: NEXA) – one of the largest zinc producers in the world – has acquired a 9% stake in Tinka Resources (TSXV: TK; US-OTC: TKRFF), which is developing Ayawilca, one of the largest zinc projects in Peru.
Nexa owns Peru’s only operating zinc smelter as well as three underground base metals mines in the country, and according to Wood Mackenzie was among the top five producers of mined zinc last year.
Thanks for the heads up blazesb. I had missed that and sold out of Tinka in Dec of last year to apply the tax loss against other gains, but this is a positive signal from Nexa starting to get positioned in TK. I may have to start nibbling at Tinka again.
I’ve taken a small position. Great asset. Mgmt team is another story. Didn’t refinance a few years back when share price was .80. Have not advanced the project.
The World Will Need 10 Million Tonnes More Copper To Meet Demand
Bloomberg News | March 19, 2021
“The copper industry needs to spend upwards of $100 billion to close what could be an annual supply deficit of 4.7 million metric tons by 2030 as the clean power and transport sectors take off, according to estimates from CRU Group. The potential shortfall could reach 10 million tons if no mines get built, according to commodities trader Trafigura Group. Closing such a gap would require building the equivalent of eight projects the size of BHP Group’s giant Escondida in Chile, the world’s largest copper mine.”
“Increasing technical complexity and approval delays could lead to a dearth of shovel-ready projects in 2025-30,” Bloomberg Intelligence analysts Grant Sporre and Andrew Cosgrove wrote this week in a report.
https://www.mining.com/web/the-world-will-need-10-million-tonnes-more-copper-to-meet-demand/
Ex, are you aware of GSP Resource,(GSPR-V) they own the Alwin Copper Mine in British Columbia. Bob M talked about them recently, they have only 18.5 million shares and their property is surrounded by Tech. At 32 cents CDN with a market cap of less than 6 million it looks compelling to me. DT
Takeout, takeout, Yeah Baby, and I don’t mean skip the dishes! LOL! DT
Yes, DT, I’ve been reviewing GSP Resources along with a number of copper stocks, and haven’t finished building out my portfolio of red metals yet, but was waiting to see if some of the copper stocks would pull back a bit more before deploying any more capital to the sector.
Matt Geiger: Boom Years for Gold, Silver, Copper & Nickel – Top Stock Picks
Soar Financial – Mar 15, 2021
“A #SFLive Ep 146 with Matt Geiger of MJG Capital Fund out of San Francisco to discuss the Commodity Supercycle and boom in Gold, Silver, Copper & Nickel prices. What is he buying right now? ”
Brian Leni Book Review – The Most Important Thing, By Howard Marks
Junior Stock Review – March 16, 2021
Sandstorm Gold Royalties (SSL, SAND) – Growing Pains But on the Path
Crux Investor – Mar 16, 2021
0:00 – Introduction
1:38 – Company Overview
2:14 – Nolan’s Background
2:44 – Downward Trend in Share Price, What’s Going On?
4:10 – Mining 101: Definitions for Royalty & Streaming
5:06 – The Royalty Game: Models & Multiples
8:00 – Timing, Portfolio, & Lessons Learned from Silver Wheaton Corp.
13:16 – Reading Between the Lines: Portfolio Analysis & What to Look for
16:51 – Business Plan, Strategy & Risk Mitigation
22:07 – What’s Got Investors Concerned About Turkey?
25:03 – Breakdown of the 200 Royalties: Stages & Progression
27:02 – Smoke & Mirrors: Value Propositions & Damage to the Industry as a Whole
31:18 – Solving Problems & Reducing Investor Concerns
33:37 – 2021 Goals: Diversification & Organic Growth
37:42 – What’s Going to Move the Dial on the Share Price?
Interest Rate Spike to Burst the Everything Bubble? | Nolan Watson & Rick Rule
“Nolan Watson, CEO of Sandstorm Gold Royalties, joins Rick Rule, Director on Sprott Asset Management, and Liberty and Finance host Dunagun Kaiser for a panel discussion on the unprecedented challenges and opportunities, as interest rates appear poised to spike and threaten to burst the “everything bubble” of stocks, bonds, & real estate.”
“Nolan and Rick also reveal why royalty companies are uniquely positioned to profit, no matter which direction the gold price moves during this volatile time, and to answer viewers’ questions about what comes next.”
Good summary of SAND value proposition by Nolan Watson. Thanks for posting Ex!
10-4 good buddy.
(SMT) (SMTS) Sierra Metals Reports 2020 Consolidated Financial Results Including a 49% Increase in Adjusted EBITDA To $97.0 Million
by @businesswire on 18 Mar 2021
https://ceo.ca/@businesswire/sierra-metals-reports-2020-consolidated-financial-results
Yields up, gold down.
Reflation will continue.