Big picture comments on Inflation Data and what’s driving US Markets, Bonds, USD, and Metals
So, the markets were pretty boring this week. It seems like summer has come early. However there are some noteworthy short-term trends in interest rates and the USD that should be noted.
I spend this Weekend’s Show with 2 guests, taking a big picture look at why markets have slowed and what’s going to be the next main driver.
Please continue to email me at Fleck@kereport.com to share any questions you have for our guests and any of the companies we have featured over the last week.
- Segment 1 and 2 – Marc Chandler, Managing Partner at Bannockburn Global ForEx kicks off the show with a wide ranging discussion starting with the currency markets, bond market, and commodities. We discuss what’s driving the inflation data and what it means for US markets and commodities.
- Segment 3 and 4 – Jeff Christian, Managing Partner at the CPM Group shares his insights on the precious metals markets. We start with the concept of seasonality, then move to inflation data, and wrap it up with price levels the CPM Group is expecting through this year.
Exclusive Company Interviews This Week
- Minera Alamos – Updates on the Santana Mine construction, time frame for the Cerro De Oro Project construction, and Fortuna Project exploration
- Torq Resources – Exploration starting at the Margarita Project, news targets identified, and a new Property acquisition
- Hemisphere Energy – An overview of this high-margin, small scale oil producer
- Tier One Silver – Commencing trading on June 9th, exploration updates, and Peru election comments
- Thor Explorations – Updates on the First Gold Pour At The Segilola Mine and The New Makosa Tail Target in Senegal
- US Gold Corp – Provides Updates On The 3 Exploration Projects
- VanGold Mining – Name change coming to Guanajuato Silver, new $7.5mil loan facility, and a production timeline update
- Newcore Gold – A dive into the PEA for the Enchi Gold Project showing profitability and near term growth
- Montage Gold – Recapping the PEA for the Koné Gold Project and further exploration and development plans
- Elemental Royalties – Commissioning of the Karlawinda Mine and an update on other royalty project developments
- Fosterville South Exploration – An overview of the land package around the Fosterville Gold Mine and exploration plans
- Fury Gold Mines – Recent high-grade gold results and a regional exploration update
- Organto Foods – Q1 revenue of $4.7million, Q2 estimate of $7.2million, where this growth is coming from.
- VOX Royalty – More information on the most resent royalty acquisition, the Rancher Royalty
- Aurcana Silver – A focus on the exploration potential at the Revenue-Virginus Mine and an update from the Shafter Project
- Heliostar Metals – High grade silver results from Mexico and a drill program underway in Alaska
- GR Silver Mining – Recapping the 10,777g/t AgEq drill result at the Plomosa Project and move towards a resource estimate
- Gold Mountain Mining – Beginning Construction on its 100% owned Elk Gold Project in British Columbia, with full production this year
Thanks to all the KE Report contributors to another full week of daily editorials, company updates, great insights and investable ideas on the blog, and another solid weekend show.
Ever Upward!
We had a very large number of company interviews on the KE Report this week, which Cory provided links to up above.
There is lots of interesting work being done in the mining sector right now as companies are cashed up, drilling, developing, and a 4 of the companies on that list are getting ready to go into production imminently. We also featured a food company and an oil company. Please let us know if you have any follow up questions for any companies we talked to, and if there are other companies you’d like us to work on getting on the show. Sometimes it takes a while to connect and get everything scheduled, but we really do our best to respond and consider the emails we get back from the audience.
What about interviewing some upcoming lithium companies?
I think for lithium is a good time now, after the pull back this year. Not sure if lithium is something you and Cory want to go into. Lithium is one of the hot mining topics with many new mines coming online over the next years.
What about interviewing some upcoming lithium stories?
Is this something, Cory and you would look into?
Hi Thomas. Yes, we are interested in bringing a few Lithium stories on the show, and I’ve reached out to some but it is sometimes difficult to connect, match schedules, explain our show dynamics etc… (which some see overly focused on just Gold & Silver companies). We’ve been trying to branch out this year by bringing on more Copper, PGM, Nickel, Uranium, Oil, and sectors outside of resources; like food, tech, and defense that have been featured thus far to expand the reach of the show a bit.
As for Lithium, we have brought on both Portofino Resources and Forum Energy this year, and have a few more we are working on. Some of the larger quality ones that are in production like Orocobre/Galaxy, or Pilabara Minerals, SQM, Livent, Albamarle, or Lithium Americas have been more difficult to connect with.
Are there any companies in particular you’d like us to try an get on specifically?
We’ve also been working towards bringing more Uranium stocks on, and we’ve recently had on Standard Uranium, Forum Energy, and Baselode Energy for starters, and working on a number more companies a bit further up the foodchain of development and production.
I think the larger ones are not so interesting for this forum – you also not interview Barrick or Newmont -:)
I would like to better understand the DLE stories
– Standard Lithium
– Vulcan Energy
– Lake Resources
– E3 Metals
What are the challenges?
What are the benefits?
Where DLE can be applied?
Thanks for the questions and lithium topic considerations Thomas.
Just to confirm, you mean digging in a bit more to the advantages/disadvantages of the direct lithium extraction methods. Right?
yes, with DLE a third of the global lithium supply actually might come from California
Some call it already white gold rush in California
https://www.thinkgeoenergy.com/california-sees-white-gold-rush-for-lithium-from-geothermal/?amp=1
Yes. Basically a sideways week as, as mentioned.
Minera Alamos buy target: https://tinyurl.com/392zsfpx
Thanks BDC. Based on that OTC chart for MAIFF, would you be looking to that 38.2% fib retracement at around $.53, or would you be more inclined to wait until a potential pullback to the $.5156 level before adding?
I’ve already got a healthy position in Minera Alamos and I’ve just been holding it for the longer term story to unfold, but have considered taking more concentrated positions in the quality stories and would feel comfortable adding on a bit more.
Ex: My ‘Fibo Ladder’ is for general reference only, and it could be that the retracement is already in. If not, a calculated ABCD level will often act as magnet for the new low.
Updated Minera Alamos: https://postimg.cc/YGDsTNcd
In this chart, the top 3 gray lines represent ABC – then D:
Hash Blue is 100% extension.
Hash Navy is 127.2% extension.
Solid Blue is 150% extension.
The Green Hash in the original is a bogey ‘buy’ to work with initially, particularly in reference to the important 26 March high volume bar. It’s the same as Hash Blue above.
Included is a Hash Red “100%” Move of a Move (MOM) line. Such deep pull backs are often really 78.6% – in this case calculated from the late February low to the late May high. Note how it tags the beginning of high volume.
Many thanks for any suggestions you (or anyone else) may have to make these images more useful. – BDC
Hi BDC – Thanks for the breakdown of the various lines.
My only recommendation (to make it more useful) would be to include that key on the chart in some way, as I found myself toggling back and forth to your color coded key here on the blog and then back to the chart a number of times to keep track of each level’s correlation. Good stuff!
Will update later today; but first another project: “Anatomy of a Breakout”.
“Anatomy of a Breakout” does seem like an interesting project. Are you working on a more general piece about what can signify a breakout in any asset on the chart, or are you looking at a specific market that you feel is breaking out or about to break out?
A specific example in this case. Soon.
Done deal (below). Now, to the update.
Something like this?: https://postimg.cc/nMSdhhYC
Hi BDC. Yes, just having the color coded key on the chart like that is very helpful.
I saw your anatomy of a breakout down below. Thanks for sharing your analysis here.
I would like to suggest looking at NFLD (Exploits) and LAB (Labrador Gold). and the Newfoundland gold plays in general. At $12 plus I couldn’t resist selling 2/3 NFG and moving those funds into contiguous Newfoundland plays. Appreciate all thoughts!
Hi FIH – Good suggestion.
We’ve had both NFLD (Exploits) and LAB (Labrador Gold), that you mentioned above, on the show recently to highlight the area play going on in Newfoundland.
__________________________________________________________
Korelin Economics Report (06/04/2021) #AudioInterview
“Roger Moss, President and CEO of Labrador Gold $LAB $NKOSF joins me to recap the news release from yesterday (June 3) highlighting high-grade gold drill results from the Big Vein Target on the Kingsway Project, in #Newfoundland. There was also the presence of visible gold in 4 drill holes.
Roger and I discuss the current 20,000 meter drill program in terms of where the drills are turning, how the Company plans to step-out from the high grade results, and a few other targets that will be tested. I also have Roger outline the cash on-hand for the Company and possibility of expanding on the current exploration program.”
Korelin Economics Report (05/17/2021)
“Mike Collins, President and CEO of Exploits Discovery Corp (CSE:NFLD – OTCQB:NFLDF) joins me to update us on the drill permits, all of which have now been received, and when the drilling is going to start on 5 of the Company’s Properties in Newfoundland. We also discuss the recent $8 million financing that was completed with Eric Sprott and New Found Gold.”
I’m not selling any LAB or NFG till Eric Sprott stops buying more each week.
Or perhaps Sassy resources which has the biggest land position in before the region…….and if in the golden triangle too for another area play…..and nothing special in my username Ex……I’m originally from Germany and have the same first name as Mr Puck of cooking fame or Eddie van Halens sons name
WTF. I had one cider so where did the extra words which have no meaning come from
I don’t see many extra words in your post Wolfster. If there were a few, your points seemed to flow well regardless.
Hi Wolfster – thanks for getting back about the thread we all had going on Friday about the meaning behind the handles for the KER Family.
Ah, I see, Wolfster ties to Wolfgang then. Very nice, and yes a solid German name, (but wasn’t aware it was Eddie Van Halen’s son’s name, so that was an interesting tidbit). Let’s not forget Wolfgang Amadeus Mozart either when thinking of other wolf’s in the musical sphere.
As for Sassy Resources, yes they are involved in 2 different area plays at once – the Eskay Camp in the Golden Triangle, BC, and the currently hot area play in the central Newfoundland gold belt.
Good mention there sir, and as mentioned further down in the blog there are about a dozen companies circling their wagon’s there in Newfoundland (New Found Gold, Labrador, Exploits, Sokoman, Matador, Sky Gold, Metals Creek, Marathon, Anaconda, Zonte, Ethos, Sassy etc…)
Just like other area plays we’ve seen in the past (Golden Triangle, Red Lake, Timmins, Val D’Or, the Carlin Trend and Walker Trend in NV, the Pilbara gold rush 2 years back, etc…) “Many will be called but few will be chosen.” They won’t all find economic deposits that become a mine, but right now during the frenzy, if folks just wave their arms and say they are in Newfoundland they are getting a bid. Gotta love the madness of crowds, and it is refreshing to see a little excitement in the mining sector again. Cheers!
BTW – A BIG “Thank You” to all the folks that responded back on Friday to the discussion on the meaning behind their user handles here on the KER. That was a great aside, and it was very nice to learn more about many of the folks in our community.
Gold & Silver Price Update + Record High Inflation
iGold Advisor – Christopher Aaron – June 11, 2021
Ira Epstein’s Metals #Video (6/10/2021)
Technical Analysis, Gold, Silver, Copper, Platinum
Inflation Soars To 5%, But Investors View It As Temporary
The Gold Forecast – Gary Wagner – Jun 11, 2021 #TechnicalAnalysis #Chart #VIDEO
Gold Stocks: The Rally Resumes
June 11, 2021 – Morris Hubbartt Super Force #PreciousMetals #TechnicalAnalysis #Video
Adrian Day – What Is Driving Gold?
Streetwise Reports (6/10/21)
Uranium’s Atomic Rocket
Wealth Wave – Sean Brodrick | June 8, 2021
“While uranium’s price has been rising slowly… it’s nothing compared to the doubles, and even triples, we’ve seen for some uranium mining stocks since last fall.”
“What’s going on?”
“Well, it’s because investors are seeing down the road. In fact, they see FOUR factors conspiring to light a fire under the uranium market…”
Hedge Fund Behind Amazon-MGM Deal Amasses Big Bet on Uranium
Wall Street Journal – By Joe Wallace – June 10, 2021
Grid Reliability Report Highlights Benefits of Pairing Advanced Nuclear with Renewables to Ensure Power Stays On
#JDSupra – June 10, 2021 – Hogan Lovells (co-authors: Mary Anne Sullivan, Sachin Desai, Stephanie Fishman)
“Many advanced reactor developers are designing their technologies to pair with renewables. A recent report from the North American Electric Reliability Corporation (NERC), the government entity responsible for overseeing America’s bulk power system, underscores the benefits that can be achieved through an advanced nuclear/renewable energy partnership to compensate for the intermittent nature of solar and wind power.”
https://www.jdsupra.com/legalnews/grid-reliability-report-highlights-5714864/
Energy Fuels (UUUU) (EFR) – Uranium Producer Working with US Dept of Energy
Crux Investor – June 5, 2021
“Energy Fuels is the leading U.S. producer of uranium – the fuel for carbon- and emission-free nuclear energy.”
“Energy Fuels is also a major U.S. producer of vanadium and an emerging player in the commercial rare earth business where its work is helping to reestablish a fully integrated U.S. supply chain.”
E.B. Tucker – Inflation is like ‘cocaine addiction’, the Fed is hooked and wants more
Kitco News – June 10, 2021
The government wants higher inflation and is creating policies that would be conducive to higher prices and higher wages, said E.B. Tucker, director of Metalla Royalty.
0:00 – 5% headline CPI
5:30 – Why would government want more inflation?
9:46 – Fed’s next steps?
14:06 – Inflation vs wages
16:09 – Inflation hedges
18:50 – Mining company margins
E.B. Tucker cracks me up, and he is spot on about the FED wanting inflation, which leads to higher prices, higher GDP, higher wages & payroll tax, and ultimately higher taxes for them the government to collect.
He’s also spot on about the inflation in commodities from Coffee, to Sugar, to Lumber, to Copper, to Nickel, to Steel, to Oil, etc…. not being just transitory. Commodities are still at historically low valuations relative to the stock markets, and relative to many other comparable metrics.
When commodities prices rise, when the costs of services rise, when the costs of energy rise, when the cost of freight rises, and when the wages grow, there will be Cost-Push Inflation. Then they touched on the real estate market where home prices are up to insane levels, as is the costs to build homes or repair homes. Sourcing building supplies or getting appliances are now on big waiting lists or are far more expensive than they were a year or two ago, and we are seeing now slow down in this trend.
There has been reckless new money creation for years, but it really has gotten extreme lately. Another key difference we’ve been seeing the last year or so is that the government stimulus checks and the Payment Protection Plan handouts/bailouts to businesses are finally increasing the Velocity of money (something that wasn’t really happening in the prior QE measures).
The inflation we are seeing in CPI may trend back down for a month or 2, but longer term, inflation will persist. Once the inflation genie is let out of the bottle, then it is hard to get it back in. E.B.’s questions to David in the interview were on point, when David said he was just going to wait for food/energy/goods costs to come back down, and he asked “Why would prices start coming back down?” Bingo.
The government and central banks want inflation, to print their way out of the massive debt, but this is a silent and insidious tax on the common people and citizens of the nation that these organizations supposedly serve. For those that have been saving or hording cash, they are going to soon realize their fiat money doesn’t go quite as far, and their buying power is getting eroded by inflation at a much higher rate than what we see in the bogus CPI figures in the first place. Just go to the grocery store or the gas tank and ask if we are seeing inflation.
At this point the goose is cooked… and people need to think about how they are going to preserve their wealth and purchasing power, and that is not going to happen cowering in fiat cash.
Rising prices: What meat, clothing and five other everyday items tell us about inflation
Abha Bhattarai, Alyssa Fowers 1 day ago
“Consumers are paying more for a range of products, including bacon, blouses and used Buicks, as the economy rebounds strongly from the covid-led recession with considerable help from Congress and the Federal Reserve.”
“The overarching question is whether these price increases will stick — and for how long. Fed officials have so far maintained that the hikes will dissipate fairly quickly, though some economists warn the trend could be more lasting.”
“Costs of raw materials, such as lumber, paper, steel, glass and plastic, as well as manufacturing and shipping, are rising in line with rebounding demand. A widespread microchip shortage is adding to retailers’ struggles by making it harder to automate supply chains and keep operations running smoothly,” said Greg Portell, a partner in the consumer practice at consulting firm Kearney.
“You have inflationary pressures from two sides: The cost of materials is going up at the same time that demand is rising,” he said. “Typically you have one or the other but now you have both, which is creating the crunch.”
Does any of that sound merely “transitory” ?
Fed Coin, El Salvador Coin are coming, say goodbye to privacy – E.B. Tucker (Pt. 2/2)
Kitco News – June 11, 2021
Cryptocurrencies represent the opposite of privacy, due to every transaction’s provenance being traceable, governments will use this to their advantage when they issue central bank digital currencies, said E.B. Tucker, director of Metalla Royalty.
0:00 – Bitcoin is a bubble
5:15 – El Salvador adopting Bitcoin as legal tender
10:29 – Crypto mining
Many thanx for attention & info! on Newfoundland plays. NFG Market Cap almost 2B! NFLD market Cap .1132B, just over 5% NFG MC! LAB Market Cap .1266B roughly 7% MC NFG. It just seems to me that NFG ahead of itself or the other 2 are lagging. KL Market Cap 14.1B for a guidepost.
Sure thing FIH. The Newfoundland area play sure has gained a lot of traction this year, and is on the top of mind of many of the investors we speak to as an interesting phenomenon in the junior mining sector. It is refreshing to see a little excitement back in the sector and this reminds me of the prior area plays that got exciting in years past like the Golden Triangle, Red Lake district, the Carlin Trend and Walker Trend in Nevada, and the Pilbara gold rush. As to which of these companies actually grow enough resources that can be economically mined out of the Newfoundland area play where there are about 10 companies in the mix remains to be seen. Marathon is the most advanced, has economic studies in place and 2 million ounces in the ground (w/ 3 million ounces in Measured & Indicated) and it is valued at $825 Million. How some companies without resource estimates or economic studies can have higher valuations 2 1/2 times more than a company that is years ahead of them in work, met studies, and that actually has proven measured ounces in the ground is a mystery. Either the development plays are undervalued, or the exploration plays are getting a bit ahead of themselves.
Regardless, there are many new entrants trying to make a name for themselves in Newfoundland, and the a few companies that have been at things a while like Marathon, Sokoman, Anaconda, etc… that have also been able to rise with the tide.
As the drill season in many areas progresses with so many junior companies cashed up, I’m hoping we see more area plays take off again (like Timmins, Detour Lake, Red Lake, Val D’ Or, Chibougamau, the Golden Triangle, the Golden Horseshoe, the 3-5 main trends in Nevada, maybe the Pilbara 2.0, etc…)
The Silver belt in Idaho, has also been another area play that is picking up a little attention in the US.
There is also some keen investor interest in the Yukon building over the last 2 years with Alexco going into production, Metallic Minerals next door exploring, Banyan Gold also nearby at Keno Hill, with Victoria Gold moving towards production, and with both Western Copper & Gold and FireWeed Zinc keeping base metals enthusiasts attention. That recent announcement of Rio Tinto taking a stake in WRN Western Copper & Gold was a big vote of confidence from one of the big boys in the Yukon.
Another sleeper are are the gold mining stocks in West Africa. Despite me being displease and a bit bewildered at the takeover of promising gold producer Roxgold by the more established Latin America focused silver producer Fortuna Silver, I still did really well in Roxgold over the last few years, and it does show there are eyeballs on the West African miners from many areas of the globe. We saw that in spades with the takeover of both Semafo and Teranga by Endevour Mining last year, and the Chinese conglomerate that took over Cardinal resources.
There are still fantastic development plays like Orezone, new producers like Thor Explorations, and rising exploration/development plays like with Montage, and Newcore Gold. In addition there are more exploration plays making advances like Awale Resources, Roscan Gold, Sarama Resources, and Predictive Discoveries.
There are also plenty of mid-tiers like B2Gold, IAmGold, Resolute, and the behemoth Endeavour Mining, that could still makes moves on these that are already operating in Africa (in addition to any outside producers diversifying into West Africa like Fortuna just did). I wouldn’t be surprised to see more buying by Chinese mining conglomerates, and more interest from the Aussie gold producers to grab a few of them.
are are – area are, which still isn’t very well-worded.
What I was trying to say in that first sentence is that the gold stocks in West Africa (about 8-10 key countries in focus) is like a larger area play. When things starting popping with one company, the other companies start to wake up a bit and get more investor interest. I’d expect that to continue with so many drills turning, news yet to be reported this season, and a few big takeovers that could be on the table for a the next 12-18 months.
Sorry i had to put this here.
F**KING LYING SKUM BAS**RDS.
https://www.breitbart.com/europe/2021/06/12/no-masks-no-distancing-disgraceful-covid-hypocrisy-of-the-g7-elite/
Irish…… they all know it was a joke……. on the stupid sheeple…..
any politicians die any where on earth…. ?
https://thelibertyloft.com/wp-content/uploads/2021/06/afb061221dAPC-scaled.jpg
(Cookies made at tax-payers expense.)
Macro-picture for commodities.
https://youtu.be/GWF06w8hFBA?t=45
Morning Ex. Matthew and all.!A young lady in her 20’s asked me thru her fatherinlaw the other day how she could participate in “ commodities “ I know… a bit vague..!i haven’t actually talked to her yet. I am assuming .. precious metals.. copper etc..She doesn’t want to buy individual stocks.. but Canadian funds.Maybe tough to answer this question with limited info. but I thought I would try. Thank you all !!!
Hi Ann. Good question about the young lady that wants to get positioned in commodities. For folks starting out, I would not suggest trading futures on the Comex, or trying to keep up with all of them separately (like all the Soft “food” commodities of grains and proteins; or all the various metals)…. That can all be a bit overwhelming.
Instead, the easiest way to invest in most sectors now is through ETFs, so that is the direction I’d steer newer investors in any asset class. For commodities, there are individual ETFs that cater to each commodity specifically or the more diversified basket approach. It would really come down to you asking her more about her goals, why she wants to invest in commodities, and if there are any commodities in specific that animate her interest.
If she’s just looking to get a good commodities basked exposure there are plenty of options, and she can look at their individual holdings and portfolio weightings to pick out the ones that best match her criteria. I’m not sure exactly which Canadian commodity funds would be best, but I’m sure if she did some research there would be a few to choose from.
Ever Upward!
basked = basket
Tell her to buy a basket of gold bullion , and just be patient……. guarantee, she will be happy in a few years…. 🙂
Yes OOTB. Good suggestion.
A basket of gold is a good picnic to go on as well for the journey to come. 🙂
Thanks Jerry….Ex.
Ann,,,the girl has TIME on her side…….
Tell, her to do a lot of studying on the subject, get a clear head, and know the corrupt system she is dealing in…. Know the players, who to take info from, and those to avoid, that comes with time…….JMO
Hans Zimmer – “TIME” (Live in Prague)
🙂
Lithium Americas Thacker Pass project seems to take longer
Yes, LAC is taking a bit longer to bring their Thacker Pass operations online, after environmentalist lobbyist groups keep putting up challenges. Ironically, these are probably the exact same environmentalists that rage against fossil fuels like Coal, Oil, Gas, and constantly demand from the electricity they are consuming on their computers for people to find a different path, and then they simultaneously block a
key domestic Lithium project that would help with batteries for electric cars, ebikes, ebuses, and energy storage.
While both projects are important, the key project for Lithium America is still their Cauchari-Olaroz in Argentina, moving towards going into production next year.
Anatomy of a Breakout
Candlesticks are great. A powerful tool. However, they often mask the poetry of patterns, whereas simple bars may enable an entire pictorial to be revealed.
Marathon Gold: https://postimg.cc/m1LBHVrZ
Here developed is a stagger-noted Expander Pattern, accentuated by the break-through of an established uptrend resistance line, with an incomplete pull back to the established uptrend support line (X5), but which matched the January High Volume Bar top. Very bullish.
A(X1) B(X2) C1(X3a) C2(X3b) D(X4) E(X5) = F(X6)
Expander Pattern: A-B-C1-C2-D-E = F Breakout!
How far? Begin with the most recent viable ABCD:
A(X3b) B(X4) C(X5) = D(X6)*
D extensions, as if shown:
Hash Blue (100%): 3.00
Hash Navy Blue (127.2%): 3.18
Solid Blue (150%): 3.33
X3a or even X1 could become more accurate as A. In reality, other methods are better suited to handle the happiness of higher prices.
January’s volume will likely continue as reference for any future pull back. For now, it dominates Marathon Gold charting.
Comments and suggestions are welcome.
*The Hash Bright Blue shown is 27.2% ‘expansion’ of AB, a minimum.
As for the Gold price, which closed at $1979.60 on Friday, it would be ideal to reclaim the KAMA this week (currently at $1896.17), to get things moving in a better upwards direction, but it has already dipped below the KAMA, so a continuation of weakness would not be a surprise.
In addition, on the daily, both the MACD and the TSI have already crossed bearishly a week back, so a bit more trading sideways to down would be just a be continuation of that trend for a bit longer.
There really isn’t a strong trend either direction right now though, and the RSI is coming down to a neutral reading of 55. Maybe the Fed meetings on Tue/Wed will give the gold market a jolt, but it has been rather subdued in the PM sector for the last few weeks.
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>> Daily Gold Chart:
Correction: That should have said the Gold price, which closed at $1879.60 on Friday.
(not $1979.60)
Here I moved that Gold Chart over a few bars so it is easier on the eyes, and for looking at the spread between Gold at $1879.60 and reclaiming the KAMA (currently at $1896.17, but obviously an evolving moving average).
Again, with the close down through the KAMA, and with the bearish crosses in the MACD and TSI a week or so back, I’d expect there to be a bit more downside pressure in the near term. Waiting to see if the Tue/Wed Fedbabble is anything of substance mid-week that will move the markets more.
For the bullish case, it is possible that Gold has just put in a flagpole, and the recent consolidation has been forming a pennant compression triangle, closing in around the same area as the KAMA around that the $1890 area. If it was to get close and then break decisively higher from there there, that would get things moving.
>> Also, incidentally, if one looks at the March double bottoms as 2 legs, and the arc above it as a back, combined with the recent run higher as a neck, then it kind of looks like a Brontosaurus or a Giraffe, with this compression pennant being it’s head. I have no idea what that means, or if this creature is hungry. 🙂
https://cdn-ceo-ca.s3.amazonaws.com/1gcdaks-Gold%20Pennant%20Compression%20Triangle.JPG
I just wanted to also lay out the potential for what the short-term bullish case could look like, but all kidding around aside, I believe the prior mentioned chart, that indicates a shorter term bearish case, is the more probable outcome.
Looks like someone fell asleep at the switch, and the mombo line took off without them
https://www.youtube.com/watch?v=HUAPXZv7jEs
Haha! OOTB that is a wild Mambo Italiano Line Dance. Thanks (I think)…
Maybe , it should have been one of those …line dances…. lol 🙂
Fed walk down already started. Maybe the stocks will ignore the fraud system and break away. Enough is enough.
Joe….doing a number on the G7…..gold down $7
Monday morning markets closed for Queen’s Birthday (bullshit) and HK closed for Dragon Boat(bullshit). What am I going to do with myself here in Guangzhou? If I were a drinker, I’d be reaching for that bottle of Scotch.
Hi Terry – It could be a good day to work on your watchlist of stocks to trade down the road?
When markets are closed I find getting outside for some fresh air and taking a walk or a hike somewhere is good for the body, mind, and soul.
If you want a market to trade that is open 24/7, then there are always the cryptos. 🙂
Speaking of the cryptos… They are up again, on news that Elon Musk stated Tesla will accept Bitcoin in the future when the crypto miners are using renewable energy as their source.
These are the funniest markets of all time…
Ditto…….on funniest market of all time…….Wacko Times….
Housing is going Wacko……. Blackrock, Blackstone….with $120 Trillion to buy all the real estate around… Things are not looking good…..
The $120 TRILLION MISSING AT THE PENTAGON has found a HOME…. 🙂
Double Ditto… on the Wacko Times….
OOTB, I guess the Times… they are changing….
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The Byrds – “The Times They Are A Changin'” – 10/4/65
Where is BIG HOSS……..
Nearly Two-Thirds Of Millennials Have Homebuyer Regrets, New Survey Says
USA Today – Sudiksha Kochi – June 11, 2021
“According to a recent Bankrate survey, 64% of millennials aged 25 to 40 are facing regrets after buying a home compared with 33% of baby boomers aged 57 to 75. The survey found that the older the buyer, the less likely they were to have homebuyer regret.”
“About 21% of homebuyers listed high maintenance costs as their biggest regret, and that number jumped to 26% among younger millennials aged 25 to 31.”
“Mark Hamrick, senior economist analyst at Bankrate, explained that as home prices have been rising nationally, there’s a risk that people have less flexibility with their finances, and the only way to mitigate that is to avoid paying too much or have sufficient emergency savings.”
Bought too much home……. too much debt……. realtors do a lousy job on educating the public today……
This should make every citizen MAD…………Housing SCAM
https://www.zerohedge.com/economics/wealth-redistribution-blackrock-and-other-institutional-investors-buying-entire
Elon Musk Says Tesla to Accept Bitcoin Transactions Again if Enough Clean Energy Usage Confirmed
Christina Zhao (06/13/2021)
“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions,” Musk wrote in a tweet.
Clean Energy is a sector that was hot in 2020 and early 2021, but that has really pulled back substantially. I’d love to get anyone’s thoughts on this sector. Are folks currently invested or looking to invest in any of the “clean energy” companies?
–> [Wolfster I believe you have mentioned Greenlane and Xebec, and I still need to look into those. Thanks for those names.]
I’ve spent the last few weeks entering this sector for the first time in years and have been purchasing the Solar ETF (TAN), the WilderHill Clean Energy ETF (PBW), Altius Renewable Royalties Corp. (ARR), Algonquin Power & Utilities Corp (AQN), and Array Technologies Inc (ARRY).
Those Clean Energy stocks seemed to have pulled back down by 30-50%+ in most cases, and look to be at more attractive valuations now, so I put a few fishing poles in that pond as of late.
I’ve also been buying up Battery stocks lately like HPQ Silicon, Pyrogenesis, Electrovaya, and Eugana as they’ve also pulled back nicely and seem more attractive down at present levels. Unfortunately I missed the big move higher recently in Neo Batteries Materials, but it looks to have run higher and hotter than the others at this point. I guess they tie into that Clean Energy sector to some degree.
Anybody else have any Clean Energy or Battery stocks they are liking?
>> Also: Is anyone here into the Hydrogen Fuel Cell companies like Ballard Power Systems, Fuel Cell Energy, or Plug Power? I believe Dragonite had mentioned Ballard Power systems in the past. They got hot, and now they are not, so the contrarian in me wonders if they are at a good spot?
I’ve been trading Chinese clean energy stocks in HK this past year but they flatlined about a month or two ago. They have been coming to life recently so I’ll have another look after seeing these posts.
Yes, please keep us posted if you see any Clean Energy stocks, Battery stocks, or Hydrogen fuel cell stocks worth noting.
3 Tips to Survive Coming Economic Meltdown (Not What You Think!) – Steve Penny
I Love Prosperity w/ Jake Ducey – June 12, 2021
“In this video, Steve breaks down some uncommon ways to prepare yourself for what is coming. inflation is rising, the economy is failing, and there’s a lot of things you must do to prepare yourself. So in this video, Steve talks about a lot more than just Gold and Silver. ”
Run for Cover: Utter Financial Chaos Is the Only Guarantee Warns Doug Casey
Stansberry Research – Jun 10, 2021
“New York Times best-selling author Doug Casey speaks up about the dire state of the economy. “There is only one guarantee, and that is utter financial chaos,” he tells our Daniela Cambone in this candid conversation.”
You Need an Escape Plan and Untraceable Wealth ASAP Warns Robert Kiyosaki
Stansberry Research – Jun 09, 2021
“Robert Kiyosaki, best-selling author of the Rich Dad Poor Dad Series, outlines his plans for financial survival during these turbulent times. “Now more than ever, you need untraceable wealth,” he tells our Daniela Cambone. Kiyosaki explains why gold and silver are his favorite investment choices over other assets, including Bitcoin. He also details his escape plan when the incoming chaos hits.”
Inflation Woes: Will the ECB Be Closely Tracking the Fed’s Next Move?
Stansberry Research – Jun 10, 2021
“Ahead of the European Central Bank policy meeting on Thursday, our Daniela Cambone speaks with Ivo Pezzuto, professor of global economics over at the International School of Management. Pezzuto talks the ECB’s strategy when it comes to inflation and whether they are closely examining the Federal Reserve’s next move.”
Inflation ‘Time Bomb’ And Invisible Wealth Destruction
Kitco News – Jun 12, 2021
Gold’s $1,900 an ounce level remains a high hurdle to breach, but analysts still expect more gains for the yellow metal this summer.
With U.S. inflation now running at an annual pace of 5%, the attention is turning to the Federal Reserve meeting next week. The key question is whether the Fed will continue to ignore rising prices or start hinting at tapering.
Here’s a look at Kitco’s top three stories of the week…
GDX Enigma: https://postimg.cc/Y4ZVtP9s
Thursday Bullish Engulfment. Friday Bearish Harami.
Hi Ann
Here are two very good etf’s bothers Canadian one with Ishares And the other with bmw. Bothe track a number of top mining companies and both are In about 85% North America jurisdiction.
What your friend will notice is annually on a percentage return that had not fared well after 2011 but since that 2015 bottom they both of been I credibly amazing and as well all believe the tides are about to turn. I believe either one of those two will be a safe bet and good return.
Now here is one finally Canadian very safe etf and like the two abound that follow golds movement, this one is 100% bullion base so tracks the commodity itself hence what Jerry was saying. This is a much more conservative approach then the above but in reality very similar movements but a bit less percentages then the other two. I think any of these three I personally would be safe.
Disclosure I do not own and of them as I own I dividían companies as yourself but I would not be opposed one bit. The etf I have plates is the 2x beta pro bull which is much more volatile. This I would not consider for your friend in fact I use it here and there.
Hope this helps.
All the best to your friend
Glen
Bothers=both
BMW=bmo
I really should spell check before I hit submit
Gold update
As discussed previously I’m more content to have this correction play itself now and this week if need before heading back up. A good retracement to that 61.8% fib is all I want and get it over and done with as quick as possible.
We discussed prior that my target is $1764 and I can’t see us going below that number or it would not be good. That number holds a bit of significance to me in a resistance level and key level but a $1775-$1802 print would work just as fine. If we can get this to happen quickly and reverse up I really like the setup. Then on our way to that $1950-$1960 area
I think we close out this month right at that $1960 area the July is going to be fireworks and will create the top imo. Then back and fill like the guest said the other day creating a nice inverse head and shoulders pattern.
I’m guesstimating a top gold around $2025-$2045 on this intermediate uptrend.
I’d really like to the the miners hold and diverge from this push down in gold at least start to show more strength.
Hi Glen,Thanks very much.I think to start I am going to suggest she maybe spends some time on this site.Possibly to start,reading the comment section,and skipping the podcasts,company updates etc.
Some of the podcasts from the generalist experts that come each week also discuss where the commodities are trending, so those may be helpful, in addition to the comments sections.
For example, on this weekend show Jeff Christian discussed both Silver and Gold fundamental drivers, and Marc Chandler discussed how the moves in the currencies may affect the general markets, bonds, and commodities.
Last week Steve Penny and Christopher Aaron had technically focused segments but both got into price levels for Gold & Silver, and Christopher had a whole section about how the commodities sector was priced relative to the TSX-V from a larger term perspective. Jordan Roy-Byrne was also more technically focused (which may not be of interest to her) but he a made a number of good points about inflation, the US Dollar, and where markets could head in short to medium term. John Rubino discussed the housing market, inflation, and commodities in his section last week.
2 weeks back Dana Lyons focused more on the Emerging Markets trade, just to cover the global outlook, but normally he’ll focus part of his section on the commodities markets, and if anyone had been following along with his comments over the last year, they’d have noticed the moves in the soft commodities like sugar, coffee, and corn, in addition to the industrial metals, and he often discusses when he feels the PMs are a buy or a sell.
Brien Lundin had a section titled “What’s Driving The Commodities Pullback?”
Mike Larson, from the Safe Money Report, had a section on called “A discussion on investing for income while playing the uptrend in commodities”
We bring these folks on, and ask them questions we think the audience can benefit from or learn from, because they are some of the thought leaders in this sector, or they are fund managers, and they all have large audiences following their work.
The whole reason the show and the podcasts exists is to help new and old investors be better informed, so I’d recommend new or old investors listening to those sections here at the KE Report.
As for the company interviews, those are more for investors that want to learn about specific stocks in the resource and energy sectors that we think have quality teams, quality projects, and are doing quality work, so they may not be as relevant for a generalist investor.
Yes.Good points Ex. I find the U tubes you and others post on the comment section highly informative.CSF posts some great stuff here and on the political site.. so a big thanks to him also
Yikes!!!! MeantCFS
Thanks Ann. Yes, those are good sources of information as well for sure, and yes, CFS has been posting great content for years as well.
We just work hard to bring good content onto the KE Report, and while the company updates are more geared around folks that invest in the individual stocks, but the generalist interviews we producer are content to help everyone be better informed as investors.
The site is growing, and there are about 150,000 clicks per month, and upwards of 20,000 unique users each month that are listening in on the podcasts through the website, in addition to the thousands of podcasts that get downloaded each month to listen to stand alone. This is all in addition to the radio audience for the weekend show that goes airs on 25 stations. The vast majority of the audience is most keenly interested in the podcasts that are produced, and rightly so, but the comments sections here have some amazing contributors, and some great content posted as well, to compliment all the interviews and daily editorials.
CFS = Cash For Silver (Ex, I think you were wondering about that the other day.)
Matthew – Yes! That was it. CFS = Cash For Silver. Thanks, I knew it had silver in it but couldn’t remember the acronym. Cheers!
100% Ann
Took a few Sokoman profits and bought new Big Ridge Gold. This is a Newfoundland trade off. Doc Jones generated pop I think. He mentioned he picked up a starter position based on its location versus value of other Newfoundland at the moment.
Energy Metals Expert Chris Berry Gives A 2021 Update
Jun. 14, 2021 – Matt Bohlsen – Seeking Alpha
– Chris shares his views on the EV metals sector right now.
– Chris shares his order of preference and views on lithium (hydroxide and carbonate), cobalt, graphite, nickel, manganese, NdPr, and copper. He also gives his view on vanadium and VRFBs.
– Chris gives his view on Biden’s US$2.25T American jobs and Infrastructure plan. Chris discusses his favored themes in the energy metals and energy space right now.
– Chris gives some tips for new investors getting into the EV and energy metals space.
The conflict in the infrastructure bill is over what is good for Corporations. Let’s see how it works out.
Since the government is supposedly there to serve it’s citizens, it would be nice if the debate was about how the infrastructure bill would help the citizens, not the corporations, but alas, the corporations, special interest groups, think tanks, and lobbyist groups took over control of the government long ago.
Honing in on how it relates to the investment side of things, it is most key to ascertain what kinds of infrastructure projects are going to be included, and how this buildout may affect the resources and energy sectors (roads, bridges, dams, communications, EV charging stations, etc…).
Yes and yes.
Easiest and best way play for EV metals is copper. No technology will change that unlike all the other metals
Next month RFK’s new book on THE REAL ANTHONY FAUCI COMES OUT. Sounds like a great summer read.