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Has China put a long term top in the Crypto market?

Cory댊
June 21, 2021

Ed Moya, Senior Market Analyst at OANDA joins us to discuss the US markets resilience last week in the face of a wide range of selling and the continued weakness in Bitcoin. With more of a focus on Bitcoin we look at China’s recent moves to limit/eliminate Bitcoin from its system.

Click here to visit the OANDA website and read over Ed’s daily market note.

Upcoming Webinar – The next webinar is Wednesday at 12-noon PT. I will be hosting TriStar Gold. Nick Appleyard, President and CEO of TriStar will join me to recap the Castelo de Sonhos Project in Brazil and the work that is planned to de-risk (through a Pre-Feasabilty Study) and grow the current 2.2million oz gold deposit (indicated and inferred).

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Discussion
30 Comments
    cfs
    Jun 21, 2021 21:17 PM

    Ely Gold Royalties to be acquired by Gold Royalty

    2021-06-21 10:04 ET – News Release
    Mr. Trey Wasser reports
    GOLD ROYALTY AND ELY GOLD TO COMBINE TO CREATE A LEADING GROWTH AND AMERICAS-FOCUSED PRECIOUS METALS ROYALTY COMPANY
    Gold Royalty Corp. (GRC) and Ely Gold Royalties Inc. have entered into a definitive agreement, dated June 21, 2021, pursuant to which GRC will acquire all of the issued and outstanding common shares of Ely Gold by way of a statutory plan of arrangement under the Business Corporations Act (British Columbia).

      Jun 21, 2021 21:34 PM

      Yep, that was the big news in the Royalty space today, and there was a nice pop in Ely Gold as a result (of course, I wish it was a larger one though). 🙂

      I had posted this at the bottom of Doc’s editorial blog today, but will repost my royalty rant again here since the news on Ely was posted here as well.

      _____________________________________________________________

      I would have preferred if Ely had not comingled with Gold Royalty, and instead had itself acquired some of Sailfish Royalties Nevada royalties instead (and grown larger keeping it’s Nevada focus), but it is nice to finally see some consolidation in the smaller royalty companies.

      It is still very likely that Sailfish get’s acquired as well, and maybe some of the other smaller ones (like Orogen, Trident, Empress, Abitibi, Golden Valley, Riverside, Globex, etc…), get swallowed up by some of the mid-tier royalty companies like (Maverix, Metalla, Nomad, Elemental, Vox, EMX, Altius, etc…)

      Some of these other mid-tier royalty companies really missed out on a great Nevada-focused royalty package, with some royalties already in production from Ely Gold Royalty (ELY). I’m a bit surprised that one of the Mid-tiers like a Metalla, Maverix, Nomad, EMX etc… didn’t consider merging with Ely Gold Royalty, instead of letting their good assets get scooped up into Gold Royalty Corp., who didn’t have nearly as attractive of a basket of assets as the others aforementioned.

    cfs
    Jun 21, 2021 21:42 PM

    https://www.youtube.com/watch?v=U67oR1TJUZU

    First Mining Gold
    Keith Neumeier giveaway.

    Jun 21, 2021 21:50 PM

    Ex,
    It would be great to have some discussion on the show about the Ely Gold Royalty merger. Perhaps have Jayant on, he loves talking about arbitrage opportunities. The either or choice of cash or shares is a bit confusing to say the least.

      Jun 21, 2021 21:04 PM

      That’s a good idea Jetty.

      We can also bounce the Ely Gold/Gold Royalty Corp merger off a few of the generalists or PM sector guys we bring on the show, to see if they have any specific thoughts on the merger. We do that quite often with big news in the sector, but sometimes the guests don’t follow the company closely or have much of an opinion on things.

      Yes, if we can get in touch with Jayant Bandari soon, then we’ll ask him, because as you mentioned — he is the takeover arbitrage king.

      Keep the great suggestions coming everyone, as they are appreciated. We can’t always facilitate each request, but we do try and do discuss each idea we receive from everyone. Cheers!

        Jun 21, 2021 21:24 PM

        Thanks Ex!

        Jun 22, 2021 22:33 PM

        I like that suggestion too. I was very heavy into Ely, so clarification is always good. Which of the ones does he see as better than hamburger plays… do that perspective align with your own view? Also, does he see more of this within the royalty plays, and if so, which ones might be on the hit list, and why…. never hurts to ask. thx.

    Jun 21, 2021 21:08 PM

    Basel III is not a game-changer for gold prices and will lead to higher costs and lower liquidity – Bank of America

    Neils Christensen – Kitco – Monday June 21, 2021

    “Many gold analysts have been getting excited about the prospect of strong physical demand coming to the v market as banks holding the precious metal will have to meet new funding ratio requirements under the Basel III agreements.”

    “However, commodity analysts at Bank of America are not expecting the new regulations to increase gold demand. Instead, the bank sees costs in the gold market going up and liquidity falling.”

    “Gold held in unallocated accounts, similar to currency deposited, can be used by banks for their normal conduct of business. As such, unallocated gold is fungible and can be used to clear and settle physical metal transactions. Because of this, it provides the liquidity essential for the clearing and settlement system,” the analysts said.

    “Under the new Basel III rules, banks that hold unallocated gold will have to have a Required Stable Funding (RSF) factor of 85%.”

    Bank of American said that “faced with the new funding requirements, bullion banks are more likely to either increase transaction costs or reduce their exposure in the precious metal sector.”

    https://www.kitco.com/news/2021-06-21/Basel-III-is-not-a-game-changer-for-gold-prices-and-will-lead-to-higher-costs-and-lower-liquidity-Bank-of-America.html

      Jun 21, 2021 21:36 PM

      I don’t know who Bill Stack is but here’s what he had to say on the subject:
      https://www.usgoldbureau.com/news/basel-iii-and-gold

        Jun 21, 2021 21:39 PM

        It remains to be seen what the effects of Basil III will be, but June 28th will kick things off. As OOTB and I discussed last week, it will be more of a process than an event, and as adoption happens over 6-12 months, then in general it looks like a positive for the physical metals sector, in particular gold.

          Jun 22, 2021 22:19 AM

          Ditto………. 🙂
          thanks for the mention… 🙂

            Jun 22, 2021 22:21 AM

            One more comment……….. BITCON and CHina……….. I THINK THIS IS A GAME CHANGER FOR ……….GOLD…………. 🙂

            Jun 22, 2021 22:06 PM

            Yes, if China keeps cracking down hard on Bitcoin and the cryptos, and if this starts a chain reaction where other countries do the same thing, then it could be a tipping point for many of those investors out of the cryptos and into the precious metals as their store of value outside of the fiat system.

    Jun 21, 2021 21:52 PM
    Jun 21, 2021 21:09 PM

    Two standard deviations above the 200 day EMA served as support for USERX twice in May and today USERX finished precisely at that level again but this time coming from beneath it. A lower finish tomorrow might be the start of a 3.3 percent drop back to speed line support…
    https://stockcharts.com/h-sc/ui?s=USERX&p=D&yr=1&mn=0&dy=0&id=p42406114447&a=951094953

    Jun 22, 2021 22:58 AM

    Matthew,

    That $1764 bottom I throughly the other day nothing magical just a fib 61.8 retracement has held strong came within 2-3 bucks from that target. I personally didn’t think we would retrace to that level was thinking more in line with 38.2 or 50 at the most but did disregard it why I mentioned it.

    Now looking at the setup and what I was thinking and what you have said, I’m seeing almost exact same thing as you maybe slightly off but same parameters.

    If that was not the final low then an undercut low of the 61.8 retracement which you mentioned is possible and if that did happen I would place the low coming in Thursday per say.. it’s either one or the other and in any case the low could be already in and an explosive move off this bottom will catch everyone by suprise.

    Glen

      Jun 22, 2021 22:00 AM

      I need a SURPRISE………. 🙂

    Jun 22, 2021 22:58 AM

    Throughly=Throughout

    cfs
    Jun 22, 2021 22:53 AM

    UNE 22, 2021
    Labrador Gold Intercepts 50.38 g/t Over 1.85 Metres Including 160.42 g/t Over 0.55 Metres at Big Vein, Kingsway Project, Newfoundland.

    Sprott owns about 20% of each of the four companies exploring Labrador.

    cfs
    Jun 22, 2021 22:55 AM

    Great Bear drills 0.5 m of 400 g/t Au at Dixie
    2021-06-21 07:40 ET – News Release
    Mr. Chris Taylor reports
    GREAT BEAR PROVIDES ASSAYS ACROSS WIDTH OF LP FAULT ZONE, DRILLS SEPARATE INTERVALS OF 400.00 G/T GOLD OVER 0.50 M AND 2.23 G/T GOLD OVER 77.40 M IN SAME HOLE

    cfs
    Jun 22, 2021 22:00 AM

    Angold Resources drills 301 m of 0.71 g/t Au at Dorado
    2021-06-22 09:21 ET – News Release
    Mr. Adrian Rothwell reports
    ANGOLD UPDATES DRILLING AT DORADO INDICATING NEW GOLD ZONES
    Angold Resources Ltd. has received further assay results from the Lajitas area at the company’s Dorado project in the Maricunga belt of Chile.

    cfs
    Jun 22, 2021 22:05 AM

    Talisker drills 106.75 m of 1.17 g/t Au at Bralorne
    2021-06-22 07:22 ET – News Release
    Mr. Terry Harbort reports
    TALISKER INTERSECTS 1.17 G/T GOLD OVER 106.75 METRES OF INTRUSION-HOSTED MINERALIZATION IN THE PIONEER BLOCK AT BRALORNE
    Talisker Resources Ltd. has released complete and partial drill assay results from its continuing 100,000-metre drill program at the Bralorne gold project in British Columbia.

    cfs
    Jun 22, 2021 22:07 AM

    Discovery Silver drills 66 m of 258 g/t AgEq at Cordero
    2021-06-22 07:11 ET – News Release
    Mr. Taj Singh reports
    DISCOVERY INTERSECTS 258 G/T AGEQ OVER 66 M AND 120 G/T AGEQ OVER 143 M AT CORDERO
    Discovery Silver Corp. has released results from 12 diamond drill holes targeting bulk-tonnage mineralization at its flagship Cordero silver project located in Chihuahua state, Mexico.

    cfs
    Jun 22, 2021 22:09 AM

    Silvercorp drills 0.91 m of 6,455 g/t Ag at LME
    2021-06-22 07:05 ET – News Release
    Mr. Lon Shaver reports
    SILVERCORP INTERSECTS VEIN LM5 WITH 0.91 METRES TRUE WIDTH GRADING 6,455 GRAMS PER TONNE SILVER AND 10 GRAMS PER TONNE GOLD AT THE LME MINE, YING MINING DISTRICT, CHINA

      Jun 22, 2021 22:31 PM

      I wonder about SVM relationship with Chinese government. It looks like their management are a bunch of Chinese guys transplanted in Vancouver. Any comments on this?

    cfs
    Jun 22, 2021 22:11 AM

    VIZSLA’S NAPEOLON VEIN WIDENS TO THE SOUTH, HITTING 898G/T SILVER EQUIVALENT OVER 8.36 MTW AT PANUCO
    Vizsla Silver Corp. has provided the results of an additional 14 drill holes from the Napoleon prospect at the Panuco silver-gold project in Mexico.

    Jun 22, 2021 22:15 AM

    CFS…………some really good info. on a couple of those listed above…….
    Some are not worth mentioning…… UNLESS THEY HAVE SOME BIG HIT, ..just wasting the copy space………… JMO
    Going into the final stretch…..some producers are not worth the time to look at… JMO

    Jun 22, 2021 22:29 AM

    Battery Change……. I see an opportunity…. 🙂
    https://www.zerohedge.com/markets/porsche-signs-jv-make-high-performance-battery-cells-germany
    The new Porsche cells will allow charging in less than 15 minutes