The shift to a defensive trade – USD, Gold and bonds all up, US markets, oil and copper all down

July 6, 2021

Robert Sinn, better known as Goldfinger at joins us to breakdown the moves this morning after the July 4th long weekend. A potentially major shift away from a risk on trade from the market open as we are seeing US markets, oil and copper all down and off their highs. There is a rotation of money back into the defensive trade today but how long will it last. We also address the move higher in gold but gold stocks moving down. To wrap up the interview Robert shares some news out today from a sponsor company of his, Newrange Gold (TSX.V: NRG; OTCQB: NRGOF).

    Jul 06, 2021 06:59 AM

    Eloro drills 56.12 m of 114.96 g/t AgEq at Iska Iska
    2021-07-06 09:44 ET – News Release
    Mr. Thomas Larsen reports
    Hole DSB-10 returned 29 reportable mineralized intercepts over its entire 1 km length including 114.96 g Ag eq/t over 56.12m and 80.71 g Ag eq/t over 74.39m

      Jul 06, 2021 06:19 AM

      Eloro- unimpressive AgEq oz, and who really cares about tin this early on. With as little drilling so far seen , CRESCAT built a 30%-40% premium with Quentinโ€™s hype.Whereโ€™s the beef?

        Jul 06, 2021 06:31 AM

        8-10x normal volume on NRGOF, WEโ€™ll revisit .125 this summer. Thanks for the volume, ROBERT

          Jul 07, 2021 07:07 AM

          NGROF, down 13%, here comes $.125

        Jul 06, 2021 06:43 AM

        I’m very interested to see the Tin in Eloro’s drill results at depth, as those Silver/Tin systems in Bolivia can be massive, and it may mean they are onto a monster deposit, so I would not be so quick to dismiss the relevance of the Tin. It could be a big deal, and I added more ELO today on the selling pressure, as the retail market only gets animated about high grade silver intercepts, even if they are narrow from most companies. While the Silver eq grade is not sexy at 115 g/t, it was also a much longer intercept that we see in many Silver deposits at 56 meters. It still looks like they may be vectoring into a much larger system, which could be full of beef, even if the fickle resource investors don’t get it yet. Quinton was sure excited about the Tin being present when they released their last trenching results, because he understands what that could mean for the whole system at depth and in size.

        Jul 06, 2021 06:22 PM

        We need a lot more information on tin……….. for our TINFOIL HAT CLUB…. ๐Ÿ™‚

    Jul 06, 2021 06:00 AM

    Sun Summit drills 87 m of 1.13 g/t Au at Buck
    2021-07-06 10:20 ET – News Release
    Mr. Bob Willis reports
    Sun Summit Minerals Inc. has released the final assay results from the first phase of its 2021 exploration program on its Buck property in central British Columbia.

    Jul 06, 2021 06:24 AM

    What is Bonzo buying today? FFOXF and BCMRF. Anyone else own those?

    Jul 06, 2021 06:59 AM

    The setup now is simply the inverse of the setup last August. It’s not surprising or unusual but it is trying people’s patience. Despite all the red at the moment in the gold/silver space, nothing has really happened to call last week’s low into question. Gold simply pulled back about $25 to return to the area of last week’s high and hasn’t even reached its 1783 settlement.

    GDX:SPY just filled its opening gap:

      Jul 06, 2021 06:10 AM

      To trap the early morning buyers and quash the rally. Then make them puke their shares and possibly trap the shorts. It’s been playing out since last week, works clockwise.

      Jul 06, 2021 06:27 AM

      What’s frustrating is how the S&P 500 keeps climbing relentlessly despite all the bearish fundamentals. The two major gold bull markets occurred during poor s&p 500 performance. Maybe a bear market in stocks is what finally sends gold, gdx higher? The miners have performed poorly despite making tons of profit.

        Jul 06, 2021 06:43 AM

        I don’t know if we’re about to get a bear market in stocks but I am confident that an intermediate decline is imminent and that will be great for the gold space.

          Jul 06, 2021 06:48 AM

          Don’t want to see a crazy sell off. Gdx will sink with the rest of the market.

            Jul 06, 2021 06:58 AM

            I wonder if silver’s weakness is due to “price managers” using stock market weakness as cover for their activities or if it really is due to stock market weakness because clueless investors think it is an industrial metal more than a monetary metal.

            Jul 06, 2021 06:42 PM

            True – silver and juniors need to take off soon and correct with GSM from much higher levels. I don’t want to see 21 silver again. If we are starting a bear maket in GSM best case scenario for PM market would be a rounded top with money slowly flowing into the PMs. But I am afraid that with current price levels stretched so far above long term MAs volatility event is unavoidable.

      Jul 06, 2021 06:46 AM

      Good comments Matthew. I was on the buy today in a number of stocks with some of my remaining dry powder, as it looks like a good risk/reward set up in a number of the miners.

        Jul 06, 2021 06:53 AM

        The buy side is the place to be, at least for now!

          Jul 06, 2021 06:01 PM

          It’s easier to buy for me when I see the continued weakness in companies making good progress on their projects.

    Jul 06, 2021 06:03 PM

    I like Rick Ackerman but it is interesting that no one calls those with ridiculously low targets “yahoos” like they do those with high targets (which make more sense, frankly).
    1200 gold, Rick? Not gonna happen…

      Jul 06, 2021 06:12 PM

      WOW! 1200? He used to be a regular here. Highly unlikely imo.

        Jul 06, 2021 06:19 PM

        His hidden pivot method is as legitimate as can be, just like Michael Oliver’s momentum work but both should be careful with their personal opinions.
        What I do is not at all on full display in the charts that I post and 1200 gold would be a long term catastrophe in my strong opinion.

          Jul 07, 2021 07:23 PM

          Agreed guys. I don’t see that $1200-$1300 Gold as likely, and it would be a long term catastrophe indeed.

          Really I don’t want to see the recent “higher low” of $1673 breached, or it would set up a “lower low” and do significant chart damage.

          As an ultimate line in the sand, I would not want to see that $1450 pandemic crash low breached, or my concern would be the bull market would be broken to some degree. This seems quite unlikely though, so I’m not losing any sleep worrying about that.

      Jul 06, 2021 06:21 PM

      Have you noticed, when gold “corrects” everyone and their neighbor turns bearish and comes out with their crazy targets? Same thing when it gains $100 and the whole cabal jumps up and down, why this time is different narrative blah blah? It just baffles me that every single GURU joins the bandwagon where the wind is blowing. These experts are what you see on tradingview who provide analysis.

        Jul 06, 2021 06:42 PM

        Exactly. All seem to have a very narrow range of expertise in addition to being influenced by the financial mainstream more than they realize. Remember when gold hit 1045 and virtually every one of these guys (excluding Harry Dent!) were calling for 800 and change?

          Jul 06, 2021 06:48 PM

          On a related note, I wonder how many realized what a bullish thing it was that gold bottomed just above its 2008 high of 1033 (or that last year’s high represented a 100% rise from the 2015 bear market low of 1045).

      Jul 06, 2021 06:24 PM

      RICK MUST BE WORKING FOR >>>>>>>>>> BASIL one, two , three and your out like a light…

      Jul 06, 2021 06:56 PM

      Heh that would require spx to complete “jaws of death” at ca 2000 or two decades of real rates above 5% ;).

      Jul 07, 2021 07:32 PM

      Rick podcasted on Howestreet 7/06 fo 20 minutes

    Jul 06, 2021 06:35 PM

    Great interview with Goldfinger. You guys covered a lot of ground and current concerns. Thanks.

      Jul 06, 2021 06:56 PM

      Thanks David. Goldfinger is a sharp guy and it is great to have him coming on the KER to share his fundamental and technical outlook. Cheers!

        Jul 06, 2021 06:45 PM

        We can use all the help we can get……… ๐Ÿ™‚

    Jul 06, 2021 06:23 PM

    Well, it’s only one day, but the PM stocks as a whole traded very poorly.

      Jul 06, 2021 06:09 PM

      One positive is that SILJ fell the same amount as SLV. To confirm bearishness, it should have provided significant downside leverage.

      Jul 06, 2021 06:10 PM

      Barrick had a great day and many stocks seemed to complete reverse HS bottoms today

    Jul 07, 2021 07:08 AM

    Robert mentions seasonality for gold/miners seldom seeing summer being a take-off point. Let’s not forget seasonality averages are created by events on both sides of the median. June 1-2, 2019 is a great example. I remember the pundits saying gold at that time was going nowhere. Check your charts to see how wrong they were! Just sayin’.