International Impacts on Precious Metals and Company Updates

January 28, 2017

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This was a busy week for resource investors in Vancouver. I attended and spoke at the Cambridge House Vancouver Resource Investment Conference on Sunday and Monday. My goal was to find new companies and get updates from stories that are ramping up in 2017. I recorded a couple interviews (see segments 7 and 8 of this week’s show) but have many scheduled for the next couple weeks. The optimism at the shows from both investors and company management was undeniable. All the sector needs now is for some good drill results… Higher metals prices help too!

We also have an upcoming webinar with Sean Brodrick from the Oxford Club this Tuesday January 31st at 12-noon PST. Click here to sign up – Space in limited.

  • Segment 1 & 2: Byron King kicks off the first two segments with a look at the metals sector and a discussion of a couple stocks he likes.
  • Segment 3: Chuck Provini, CEO and President of Natcore looks ahead to what the Company is planning to achieve in 2017.
  • Segment 4: A daily contributor to the KE Report Chris Temple, Founder and Editor of the National Investor dives into the situation in China and the repercussions that could be felt around the world.
  • Segment 5: Another daily contributor to our site Richard Postma, better known as Doc shares his outlook on the precious metals for this year.
  • Segment 6: Introducing a new company to everyone that I think is in a very positive and unique situation I chat with President and CEO of Barsele Minerals, Gary Cope.
  • Segment 7: Recorded live from the Vancouver Resource Investment Conference, Jayant Bhandari provides a look inside India and the ongoing issues with its currency.
  • Segment 8: Recorded live from the Vancouver Resource Investment Conference Brent Cook and Joe Mazumdar from Exploration Insights discuss the opportunities they see for investors in the resource sector.

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    Jan 28, 2017 28:21 AM

    Thanks for the show as always fella’s.
    Cheers !

    Jan 28, 2017 28:23 AM

    Dang, you’re back Skeeta!! Yes, thanks guys! A

      Jan 28, 2017 28:59 PM

      Yes, finally back home from O/S.
      The family trip to the USA was awesome as always,
      But there’s nothing like walking through the front door, dropping the suitcases, greeting the dogs.
      Then walking out the back, kicking off the shoes & socks & walking around on your own grass barefoot.
      Its only then that I realise how lucky I am to live here.
      Cheers mate (this time next year I’ll be in your Country for a Pint or two).

        Jan 28, 2017 28:29 PM

        There’s no place like home….. there’s no place like home……

        Jan 29, 2017 29:20 AM

        Cor blimey Skeeta, you mean to say that your dogs were house sitting in your place all that time!! You’re right home is where the heart is. Look me up in you’re in the Midlands for that pint! A

    Jan 28, 2017 28:58 AM

    Craig Hemke: Upside Surprise For Gold And Silver In 2017

    By Rory Hall and Dave Kranzler

    To date, the price of gold and silver have followed a very similar trading path that was taken by the metals in early 2016, with gold and silver bottoming in mid-December and staging a strong rally through mid-January. Technically, as our Shadow of Truth guest Craig “Turd Ferguson” Hemke point s out, all of the stars were aligned for a take-down of the gold price using paper derivative gold.

    These “stars” include: January contract trading expiration, February options contact expiration, an “overbought” technical condition and the upcoming FOMC meeting and employment report next week….

      Jan 28, 2017 28:15 AM

      I would beg to differ with Craig since many of the technicals are looking totally different then last year—the variables are many such as the volumes in this move.

    Jan 28, 2017 28:10 AM

    Natcore – I assume they have an ‘energy storage’ solution between the solar output and the grid. If so what solution(s) are they using, batteries ? And if so what company(ies) are the best of breed for energy storage batteries ?

    Jan 28, 2017 28:23 AM
    Jan 28, 2017 28:32 AM

    GDXJ has closed above the 50 week MA for the last four weeks but GDX hasn’t done so since October. That is bullish.

    Jan 28, 2017 28:50 AM

    Maybe whats going on in India is more than currency destruction, maybe its intended to depopulate as well.
    I wonder where the banks go next.
    S. Africa,Brazil?

    Jan 28, 2017 28:38 AM

    I went into Intel on dips this week. Bought some large under performers like Pfizer, KO, Verizon, Qcom. Energy stocks have been drifting lower for many weeks and I have been underweight in them from very overweight last year. Hard to judge which way oil is going now. It might be making lower highs from 55 down or making a base to launch higher. Keeps shifting between buy and sell signals on the hourly. Holding my large At&t position and sometimes trading it.

      Jan 28, 2017 28:59 AM

      Paul, I believe oil is in a “gentle” move sideways to up and will gradually move up to 60 and then bide its’ time to ultimately take out the 200 week SMA which should start to get people’s juices flowing. The monthly chart is forming a very nice inverse head and shoulder’s formation.

    Jan 28, 2017 28:40 AM

    Some ratings:
    Date Symbol Brokerage Current Previous Pr. Target Price Target
    27 Jan 2017 US INTC Morgan Stanley Equalweight Underweight N/A
    26 Jan 2017 US QCOM BMO Capital Market Perform Market Perform $60.00
    25 Jan 2017 US VZ RBC Capital Markets Sector Perform Outperform $51.00
    25 Jan 2017 US VZ FBR & Co. Market Perform Outperform $52.00
    23 Jan 2017 US QCOM Nomura Neutral Buy $70.00

    Jan 28, 2017 28:43 AM

    Close Update: Stocks Wilt on GDP Miss But Pull Off Positive Close for the Week

    04:48 PM EST, 01/27/2017 (MT Newswires) — Stocks traded fractionally lower Friday as underwhelming fourth quarter earnings coupled with disappointing fourth quarter economic growth weighed on Wall Street. All three benchmark averages, however, closed the week higher with the Dow Jones Industrial Average closing out the week nearly 100 points above the 20,000 milestone.

    Markets were underwater most of the day largely due to a much lower-than-expected GDP growth rate of 1.9% and a decline in durable goods orders, both of which signaled a slower pace of economic growth at the end of 2016. The Dow and S&P 500 straddled the flat line for most of the day on losses in the financial and energy sectors, while the Nasdaq stayed positive on strength in the healthcare and technology sectors.

    The blue chip index never broke below 20,000 but failed to gain any additional mileage and remained wedged in a razor-thin range for the majority of the day, but ending the week 1.3% higher.

    The Nasdaq was up 1.9% from last Friday, while the S&P closed with a gain of 1.0%, but below 2,300.

    Jan 28, 2017 28:50 AM

    World bank has an 1150 gold average for 2017.

      Jan 28, 2017 28:00 AM

      I believe they’re a little pessimistic but not far off the mark

    Jan 28, 2017 28:09 AM

    I have posted this before, please excuse that fact, and the religious source, but….

    I believe this discussion is very important;
    in that it will divert many resources, if correct.
    Thus it has significant bearing on investments.

    Jan 28, 2017 28:27 AM

    September of 2016 ,Kuroda and the Japanese Central Bank introduced a new policy with the JGB 10 Year Bond. He said they would maintain a zero interest rate to induce inflation. The latest print of the Japanese 10YR Bond was .091. Wishful Thinking?

    Jan 28, 2017 28:34 AM

    It was with sad feelings I listened to Jayant Bhandari’s comments about the dire future of India.
    I spent 2 years of my life in ’64-’66 as a Peace Corps Volunteer in Bengal and Uttar Pradesh working in Irrigation and community development. Many of us left with the feeling that in our small way, we had improved the lives of those we met. Fifty years later an Indian National suggests it’s not a good place to invest.
    I’m sure Jayant knows what he’s talking about. My concern then shifts to the reality that India possesses nuclear weapons as does it’s Muslim neighbor Pakistan. The future of that portion of the world has to be as dangerous as anywhere in my opinion. I’ve little hope other than to cross my fingers FWTW. Sad.

      Jan 28, 2017 28:04 PM

      Silver, thanks for that info

    Jan 28, 2017 28:14 PM
      Jan 28, 2017 28:49 PM

      Wolfster – thanks for posting Adam’s thoughts on Silver. Good stuff!

    Jan 28, 2017 28:26 PM

    with a 1.9% GDP for Q4 I can’t see another interest hike for this year. It looks like we are almost going into a recession.

    Jan 28, 2017 28:16 PM

    Gloomy potash outlook not shared by Muskowekwan chief

      Jan 28, 2017 28:43 PM

      Thanks Pete. Very timely based on our conversation the other day. Encanto is one of the dozen potash companies I’m watching more closely.

    Jan 28, 2017 28:53 PM

    This is a great YouTube Video of my buddy MiningBookGuy on West Africa mostly focused around ((SWA) Sarama Resources, but it touches on a number of different Gold miners working in the vicinity: Savary Gold, Endeavour Mining, Acacia Mining, Teranga Gold, RoxGold, Nexus Gold, Orezone, etc…. Lots of good maps showing how things are unfolding on a district scale in BurkinaFaso….

    #SouthHoundeBelt $SWA $SCA $EDV $ACA.L $SMF $ROG $ORE $TGZ $NXS

      Jan 28, 2017 28:41 PM

      Ex, I noticed Sarama had a big share volume on Friday, this might be worth buying a small position so I remember to keep watching it. DT

        Jan 28, 2017 28:46 PM

        Oops! I got Sarama mixed up with Sama resources, SYL-SME! DT

          Jan 28, 2017 28:52 PM

          Oh. Gotcha. That’s more a Base Metals play versus Gold play, but I’ll need to revisit that one again now that you mention it.

        Jan 28, 2017 28:49 PM

        I bought shares in Sarama on Friday.

        I mentioned it on the blog when discussing Burkina Faso and West African Gold miners with Bob M. 🙂

      Jan 28, 2017 28:47 PM

      BTW – Mr T – You may like this:

      SolGold – Casabel Update (SOLG.L( (CGP)

      The AngryGeologist is hard to please and he is long their Ecuador project and stated: “I own shares in SolGold as I think it is one of the best porphyry projects currently being explored.”

        Jan 28, 2017 28:13 PM

        In retrospect, I should have posted this Ecuador update in a different area as the rest of this thread got focused on Africa, but regardless, this story has been hot lately, and Chris Temple has done a great job of getting folks in on the front end of this area play.

        Brent Cook is also on the trail now……

        Mining Analyst Brent Cook Investigates a Promising Find in Ecuador – SolGold

      Jan 28, 2017 28:00 PM

      That’s a great video. What’s your upside ‘finger in the air’ target for Sarama’s share price rolling forward a couple of years Ex?
      Think with $1500 gold, and this great deposit, we could be looking at C$2?
      Unfortunately, it’s probably my worst timed purchase in history at .50c
      I’d have to quadruple my holding to bring down the average cost to .25c OUCH!
      Not sure if I wanna do that….

        Jan 28, 2017 28:02 PM

        C $1-$2 range – takeover by whatever surfaces from new combined Endeavour/Acacia as they are moving towards a potential merger, or Teranga may be a suitor.

          Jan 28, 2017 28:05 PM

          Yep. Agreed. Maybe I’ll just sit tight and forget about that one for a while….

            Jan 28, 2017 28:13 PM

            Yeah, that’s my plan. I feel this is one I’ll just add to over time and hold onto as it doesn’t have the volume or liquidity for trading. Most people have no idea who they are, for now…. but that is how Gryphon Minerals was as well, and that has worked out splendidly for me after they were acquired by Teranga Gold .

            I also watched True Gold’s success in getting acquired by Endeavour Mining, and Amara got acquired by Perseus, and Merrex just got acquired by IAMGold. It would not surprise me at all to see Asanko or Roxgold get acquired by a larger company either that wants to diversify into West Africa.

            So that begs the question of which exploration or development companies are next to get gobbled up. That is my main rationale for positioning in Hummingbird Resources and Avnel Gold and why I decided to grab Samara.


            Jan 28, 2017 28:16 PM

            Sarama Resources…. not Samara. Sorry DT’s Sama Resources has me all mixed up now. (ha!)

          Jan 28, 2017 28:08 PM

          Savary Gold will likely get taken out as well, but like MiningBookGuy pointed out, Sarama has exposure to their project, and the one with Acacia, and their own project, and have a killer land position around a number of other projects. I’ve been watching both companies, but Sarama just looks cheap to me compared to others in the area, and that video inspired me to add it to my portfolio. I wanted an exploration company in West Africa to go with my producer Teranga Gold, and Developers – Hummingbird Resources and Avnel Gold. I feel like I’m good in West Africa Gold miners for now, and will be beefing up other jurisdictions. I’m good on US and Canadians as well, so I may look to Europe, Asia, and South America next….

            Jan 28, 2017 28:54 PM

            I don’t know why but I have always been looking at Teranga gold to be the producer in West Africa to be take over candidate.

            Jan 28, 2017 28:41 PM

            Teranga Gold is one of my favorite Gold producers on any continent. It is well run by a solid management team, they have good costs, a rising production & development profile, and it is still quite undervalued relative to it’s peers.

            Teranga very well could be a great takeover target for a larger Major or big Mid-Tier, however they’ve been the ones doing the acquisitions. Last year they moved on Gryphon Minerals and that was a brilliant transaction. Once they get their Banfora project moving, then I could see them picking up one of the other exploration companies making progress in W. Africa. There are about a dozen smaller Jrs I’m keeping tabs on, but at this point, I could see Orezone, Roxgold, Asanko, Avnel, and Hummingbird getting grabbed first.

            Jan 28, 2017 28:15 PM

            West African Resources is another company I could see getting nabbed.

            Jan 29, 2017 29:48 PM

            Teranga Gold Achieves Strong 2016 Operating Performance
            (Marketwired – Jan. 29, 2017) –

            Teranga Gold Corporation (TSX:TGZ) (ASX:TGZ)

            – All-time High Production and Record Low Unit Costs for 2016
            – Banfora Feasibility Study on Track for Mid-Year

            “We achieved record-breaking operational performance in 2016 and are entering 2017 with a strong balance sheet and a focused plan to deliver on our vision of becoming a diversified mid-tier West African gold producer,” stated Richard Young, President and Chief Executive Officer of Teranga. “In just one year, we have reduced the operating risk at Sabodala, multiplied our prospects for growth and increased our optionality with the acquisitions of Gryphon Minerals and a large prospective land package in Côte d’Ivoire. In 2017, our focus will be on proving the value of these new assets and fast tracking the completion of a feasibility study required to develop the Banfora gold project.”
            Added Mr. Young, “I am proud to say that all of this was accomplished while extending our long running health and safety record, which has now topped three years without a lost-time incident, and while earning international recognition of our corporate social responsibility program.”

            2016 Highlights

            – Achieved record high production of 216,735 gold ounces, surpassing guidance of 200,000-215,000 gold ounces

            – Achieved cost guidance as unit mining and processing costs hit record low

            – Total cash costs(1) are expected to be within the mid-point of our 2016 guidance range of $600-$650 per ounce

            – All-in sustaining costs(1) are expected to be within the mid-point of our 2016 guidance range of $900-$975 per ounce

            – Strengthened the Company’s balance sheet with a cash position at year end of $95.2 million, compared to $44.4 million as at December 31, 2015

            – Completed the Gryphon Minerals acquisition and commenced the Banfora gold project feasibility study

            – Completed the Sabodala mill optimization – under budget and ahead of schedule

            – Advanced our exploration programs in Senegal, Burkina Faso and Côte d’Ivoire

            – Extended industry-leading health and safety record to more than 3 years without a lost time injury

            – Received awards for our corporate social responsibility program from the United Nations Global Compact Network Canada and from the Prospectors & Developers Association of Canada

            2017 Outlook
            The Company’s outlook for 2017 is as follows:

            Production: 205,000 to 225,000 gold ounces

            All-in sustaining costs (excluding non-cash inventory movements and amortized advanced royalty costs): $900 to $975 per ounce. ”


      Jan 28, 2017 28:22 PM

      Thanks Excelsior,
      West Africa and Saramas location is interesting,don´t own it,yet.
      I like,B2, Endeavour,Teranga,Roxgold,(Nexus,thanks,Bob M)
      I think I´m more focused on South America right now.

      BTW,have you heard something about a new mining law coming in Africa?

        Jan 28, 2017 28:31 PM

        Yes, all good companies. Nexus has really taken off, but they don’t have any defined resources at this time, only impressive grab samples. That was the point MiningBookGuy was making in the video above when he compared them is that Sarama has the ounces in the ground.

        I believe the new mining law was for S. Africa and Zimbabwe as far as local majority ownership, but I may not be aware of what the law is you are referencing.

          Jan 28, 2017 28:09 PM

          Yes,Nexus and Cordoba had some impressive drill results,so their charts looks like “the spike of hope “now 🙂
          Ounces in the ground sounds/looks better to me.

          I don´t remember who mentioned the mining law,maybe it was the carbon tax bill,

          “He says that, currently, it appears that a carbon tax Bill will take effect at the end of 2017 or early 2018, and that it will have significant ramifications for the mining industry, as well as the electricity and manufacturing sectors.”

            Jan 28, 2017 28:59 PM

            Thanks for that post and you’ll notice that article focused on S. Africa and the carbon tax.

            The West African countries are a much different climate than Central, East, and South Africa. It’s a big continent and really each country should be dealt with on it’s own merit, just like South America or Asia. For example, Burkina Faso is completely different that Zimbabwe or the Democratic Republic of the Congo or Egypt. Each has their own wild government to deal with, different tax incentives, permitting processes, etc….

            I’m mostly invested in Canada, the US, Mexico, and Australia, but I hold some more exotic jurisdictions, but feel comfortable investing in companies with exposure to West Africa in Burkina Faso, Mali, Ghana, Sierra Leone, Cote d’Ivoire, Liberia, and Senegal.

            For the PGMs I’m forced to deal with S. Africa but the government, labor unions, and policy are wacky down there, and are not an incentive to more foreign mining companies operating there.

            Jan 28, 2017 28:54 PM


            Jan 29, 2017 29:04 PM

            Here’s another recent article pointing out the difficult labor union climate in S Africa:

            admin | January 27, 2017


        Jan 29, 2017 29:08 AM

        We have a little panel on ceo where we post on things related to African mining, just in case any investors are interested in digesting more info:

          Jan 29, 2017 29:11 AM

          Then there is this Africa room on ceo that has some overlap but other posters use it and there are different posts that didn’t get tagged to the ~AUfrica panel.

    Jan 28, 2017 28:31 PM

    Unpredictable and Uncertain, Yet Good for The Economy
    January 27, 2017 – by Gary Wagner

    ** Technical Analysis VIDEO – Gold, the DOW, and US Dollar

    Jan 28, 2017 28:18 PM

    SOLGOLD – what is the spread like in Canada for buying this stock? I have been trying to buy it in the UK on the AIM exchange since Chris Temple’s webinar back in October but the spreads are very high – often 3% to 4% and sometimes higher.

      Jan 28, 2017 28:09 PM

      My main focus in the miners are short base hits of 15-30% or longer term trades of 200%-1000%, so if I like a company, the best thing to do is just start getting a position going when you see good value on a pullback. My philosophy, is missing out on large move because so a 3-4% gap in the bid/ask is small potatoes in the overall movement of a stocks share-price. I’m happy to overpay by 4% if I can make 40% in a short time period. 🙂

    Jan 28, 2017 28:25 PM

    By most historical measures the general markets are high.
    However, if a tax cut is coming they may not be high.
    e.g. If the corporate tax is cut from 35% to 20%, even neglecting the potential for more growth in earnings, the after tax earnings would increase by a factor of 80%/65% or an increase of 23%.
    Thus what appeared over-priced stock prior to the tax cut might now be quite reasonably priced.
    Put another way the Dow could move up on 35% tax cut to 20% to as high as 25,000 before it became over-priced to the same degree as currently.

    Jan 28, 2017 28:49 PM

    John K, get those guys off your property, they all look like a bunch of panhandlers and bums. Here’s what’s next for the world’s biggest mining property. DT

      Jan 29, 2017 29:15 AM

      LOL! You would never know by looking that those guys are some of the most successful investors in The World. DT

      Jan 29, 2017 29:50 AM

      DT :
      Pan the camera 180 degrees and look what you see. You can’t see it but I can.

        Jan 29, 2017 29:17 AM

        DT :
        Thanks for asking me what I thought about IZN. I was going to refer you to Mathew for technicals,and Excelsior for fundamentals, but I got to thinking that if I was wrong or you didn’t agree with me you could use me as a contrarian indicator.

    Jan 28, 2017 28:59 PM

    Good point CFS. The tax cuts together with increased funding to stimulate economic growth throughout could be viewed as kicking the can further down the road. Setting America and the world over to crash and burn when the inevitable crash eventuates.

    Jan 28, 2017 28:24 PM

    I’d be surprised if the miners fall more than 5-7% from here.

    Some GDXJ support/resistance levels:

    Jan 28, 2017 28:59 PM

    Re: Segment 5.

    I’m not a technical analyst, so I have to use volume and momentum for my timing, and that only works in the near term.
    I have great difficulty reconciling the Doc’s numbers with this graph in particular:

    The price of gold, I believe, will return to the norm.
    If you look at the above graph and extrapolate to this current point in time (I know it’s off the graph to the right) then you get a current value for gold of close to $2,400.
    Unless the doc’s projections start to project really significant jumps in price later in this year or 2018, I have a problem. (Especially as return to the norm often is accompanied by an overshoot)

    Jan 28, 2017 28:58 PM
      Jan 28, 2017 28:04 PM

      Thanks Steele. Tjhere were some good embedded charts in that article.

        Jan 29, 2017 29:53 AM

        Yeah, thanks. I should have mentioned the nice charts in there.

        Also, Jeff Kern doesn’t give a specific timeline for non-subscribers, but the Gold Eagle article lines up fairly nicely with what Jeff is seeing.

    Jan 28, 2017 28:01 PM

    $USD likes to top about every 16 years. It looks on target for 2017.$USD&p=W&st=1980-01-01&en=22222-01-01&id=p31276386542

    Jan 28, 2017 28:11 PM

    The dollar is in for a rough year. The action since November looks like a big bull trap to me — and it has sprung…

      Jan 28, 2017 28:27 PM

      Interesting thoughts and chart from Goldfinger:

      @Goldfinger – “SilverSilver poised for upside breakout; above $17.30 I see a quick trip to $18+ Textbook bull flag pattern with impressive relative strength.Bullish. ”

      Jan 29, 2017 29:59 AM


      That chart would make a lot more sense if you used the inverse. I can understand 71-1 but I can’t logically understand your numbers.

        Jan 29, 2017 29:34 AM

        The Silver:Gold ratio chart does show Silver is making headway against gold, and there was a small “W-shaped” double bottom that bounced off the 55 week EMA and then continued to come down and bounce off it a few more times at the end of 2016 as that average moved higher.

        I just took away from that chart that Silver was making steady progress against Gold.

        Jan 29, 2017 29:39 AM

        I can’t make my charts as well as Matthew but here’s the inverse of that chart that shows the same weekly EMA levels but using the Gold:Silver ratio versus the Silver:Gold.

        Jan 29, 2017 29:10 AM

        Robert, I look at silver (or Dow or XAU, etc) priced in gold because gold is the superior money. I also do it to help others avoid confusion about the implications. A bullish silver:gold chart is bullish for the precious metals sector while it is a BEARISH gold:silver chart that is bullish for the sector.

        Perhaps most important, considering your comment, is that the nominal level isn’t what I want anyone to concern themselves with. It’s the price action and “shape” of the whole technical picture that matters.

        The following chart might help to show what I’m talking about…

        Of course, I’m with you when it comes to thinking about the relative valuation. I look at the gold-silver ratio.

          Jan 29, 2017 29:17 AM

          Notice that one look at the first chart (at 8:30 pm) will tell you that silver has been in a long decline versus gold and that the trend has turned in silver’s favor. We don’t need the “price” at the right to see that.

            Jan 29, 2017 29:52 AM

            Absolutely. I liked your chart for what its worth, and Silver for what that’s worth. As you mentioned, it is bullish for the metals sector for Silver to lead Gold to the upside, so I’d like to see more of it.

            In addition, sometimes it is easier to see trends develop on the inverse chart like that, especially when using ratio charts. Go WingNuts!

            Jan 29, 2017 29:19 AM

            Gold/silver goes in a range from 100 to a low of about 17 and over the past 100 years has averaged 53-1. Sell silver above 80-1 and buy gold below 45-1. It’s one of the best and most reliable trades that exist and you needn’t worry about prices going up or down.

            I’ve written about the platinum/gold spread a couple of times and I got into it again at a $330 premium of gold over platinum and it’s now $207 premium to gold. Given that 75% of investors are always going to lose money because they want to buy high and sell low, this is one of the best trades they can ever do.

            Jan 29, 2017 29:39 AM

            What you’re saying is true, Robert, but it is a big picture look and has nothing to do with the reasons I posted the charts above. I’m highlighting shorter term developments. For example, the daily or even weekly charts can turn very bearish even though silver is a relative bargain from a big-picture perspective. If the daily or weekly silver:gold chart is just beginning a bearish period, as it did last July, then we should get defensive or maybe even bearish on the whole sector.

            The more that we are willing (and able) to play the smaller trends within the larger ones, the more money we can make. Those who play only the big trends leave a ton of money on the table.

            Jan 29, 2017 29:14 PM


            There is a balance between safety and profit. If all I had traded was silver/gold over the last 15 years, I could have made probably 25% a year with little risk. Probably all of us keep some physical silver/gold/platinum. I have the ability to trade with very low spreads so I do a lot of it. I’m always going to be in some metal, I just want the cheapest.

            I remember hearing about Bernard Baruch saying, “Buy low and sell high” and I thought it was stupid because it was so simple but it really is that simple. If you buy what is cheap and sell what is dear, you will make a lot of money and it’s not all that complex. My experience in 50 years of investing is that most people overthink trading.

            Jan 29, 2017 29:33 PM

            It is absolutely true that “there is a balance between safety and profit.” When it comes to the metals themselves, I don’t trade much at all. However, the miners are a different story. I trade a lot and am better off for it, without any doubt. When it comes to the miners, nano caps in particular, trading a lot is how I keep risk down. Of course, that also means that I sometimes miss a great move because I was out when good news was released, but it’s been worth that risk.

            When I post the silver-gold or gold-silver ratio, more than 90% of the time, it is because it is a good indicator for the whole sector and not because I want to buy, sell, or trade the metals.

          Jan 29, 2017 29:14 PM

          Thanks for the chart and the info (inspect box).

            Jan 29, 2017 29:39 PM


            You have a rare skill and do your homework. You are never going to be in the 75% of people who always lose. But for those content with a 25% per year gain with little risk, the silver/gold and platinum/gold spreads are easy money with next to no risk if entered correctly. I am in both and lost money about three days max. The rest of the time I have been in profit. I’m lucky if I do that 20% of the time with shares.

    Jan 29, 2017 29:15 AM

    If gold climbs during a flock to safety in uncertain times, will silver see buying as a flow on effect?

    Also if overall fundamentals and favour continue to strengthen in the pms market, will silver outpace gold, considering it is a smaller market and cheaper alternative?

    During the initial period of this bear market in the pms in mid 2013, gold was range bound in the $1150-$1200 region. Whilst silver lingered around the 18-19 dollar area. This would suggest that silver is now a further 15-20% more undervalued than the 2013 time frame previously mentioned going off current prices. Silvers got some catching up to do but i dont know if its going to outpace gold significantly as it just doesnt look as strong at the moment.

    To quote Homer Simpson: “Im sick of playing the waiting game. Lets play hungry hungry hippos.”

      Jan 29, 2017 29:57 AM


      You haven’t read my book or you would’t have asked the question. The silver/gold ratio is about 71 ounces of silver to buy 1 ounce of gold. That’s at the very high end and it means silver is cheap and gold expensive. In my book I keep saying, buy cheap, sell dear and this is exactly what I mean. There is a relationship between the price of silver and that of gold and you are 100% convinced gold is going to go up, you should still buy silver even if you don’t have an opinion about its price. Silver is cheap relative to gold and that’s what you need to know. If you put in a silver gold commodity spread at 71-1, you wouldn’t care if prices went up or not, as long as the spread went back to historical norms as we know it will.

    Jan 29, 2017 29:23 AM

    Hey guys – Cory and Al et al., When all this insanity reaches some sort of normality how say we have a party. Or am I whistling in the wind re the normality bit?

    Jan 29, 2017 29:11 AM

    After going back and watching this talk a second time, it just seemed worth re-posting here on the KER blog. Interesting macro metals recap from Joe.


    Joe Mazumdar – “Entering the Twilight Zone: Where to Put my $$$?”

    MIF (Metals Investor Forum) January 2017: – Jan 23, 2017
    Joe Mazumdar, Co-Editor of Exploration Insights, discusses investment strategies.

    Jan 29, 2017 29:16 AM

    I posted a question on SOLGOLD on Saturday but I must have not hit the SUBMIT button – unless I posted it in another part of the site.

    Anyhow, my question was about the spread on it. I have been watching it since Chris Temple’s webinar back in mid-October but it is hard to buy in London on the AIM exchange and the spreads are often between 3% to 4.5%?

    What is the spread like for it in Toronto?

      Jan 29, 2017 29:34 AM

      Hi Bob UK – I had responded to your post up above about not worrying too much about the wide spreads when you believe there is significant upside in a stock. That matters more for day trading or swing trading. If I overpay by 4% and make 60% or 250% or 700% then it was worth it. 🙂

      Jan 29, 2017 29:52 AM

      Bob UK:

      It’s an AIM stock and they are goofy. Figure out what you want to pay and put in a bid. You can pretty much ignore the bid and the ask spread. It’s not like US and Canadian shares where the price means something. If you think our markets are manipulated, the AIM and Australian markets are ten times worse. The numbers are indications, not offers. You can chase the ask price around the block and they will keep front running you. Put in a bid at a reasonable price and sit. You will get filled eventually.

      Jan 29, 2017 29:01 AM

      Thanks both.

      I will try and buy some this week. Never actually put a bid in for them but I will give it a go and see how it goes. I read on the LSE forum that people have found it hard to buy shares – no proof of that – and they suspect someone is hoovering up the shares.

      Robert – yep, the Wild West of AIM. I have seen some dodgy things on there over the past few years. Lots of ramping of stocks.

    Jan 29, 2017 29:17 AM

    Does anyone have any thoughts or information on Plateau Uranium – it’s stock price, no pun, seems to have plateaued back at the end of December and it has soared since.

    Anyone have any thoughts on this as a longterm hold or am I missing something about it?

      Jan 29, 2017 29:43 AM

      They are making good progress in Peru, but some worry that since there is no history of Uranium mining in Peru that this may be challenging for policy development, resistance from the community, and they are making up the guidelines as they move along. However, I see that as being just as much of an opportunity as a detriment. It could light up that whole Macusani area.

        Jan 29, 2017 29:02 AM

        Thanks Excelsior.

        Do you think it is worth chasing it now? Or has it got ahead of itself?

        (I wouldn’t hold you to it 😉 )

          Jan 29, 2017 29:55 AM

          There is no doubt it’s had quite a run, but many of the indicators look overbought and a bit top-heavy. That doesn’t mean those indicators can’t just stay overbought if this Uranium turnaround really gets going, but personally I’m hesitant to chase the stocks much higher. Plateau’s share prices look like they may have gotten a bit ahead of themselves n a parabolic move up, and normally those will retrace back down. Whether it’s the top or has more room to move is a fool’s errand, because nobody knows, but the chart looks top-heavy to me. Like we mentioned the last few weeks, the whole sector has been so completely bombed out, that any gains made clawing their way back up are warranted, but this thrust up of 50-150% in these stocks may pullback and consolidate a bit before moving again. However, the pullbacks should be bought as institutional money is clearly positioning in these stocks for the longer haul.

          Here is the chart for Plateau. Look at the Slow Stochastics and RSI. There may be room to run just a bit more, but a retracement (likely to a Fib level) would not surprise me in the next month.

            Jan 29, 2017 29:07 AM

            That is a lot of volume coming into the PLU recently though, so it is possible that many of those new buyers won’t be selling, and could just drift sideways consolidating, let those indicators cool down and then make another leg higher.

            It still looks overbought to me, but I’ll concede it doesn’t have to pull back down hard and may just channel down and pop higher.

            It has reacted in tandem with the rest of the Uranium sector, so this is one of the few times where I’d keep an eye on the sector as a whole to see how other Developers are doing, and also the Producers and Explorers for the overall sector direction. If the other stocks all start pulling back, then wait for that pullback to hit support, and then buy that dip. If the rest of the sector keeps charging, then it may do a temporary blow off top.

            Jan 29, 2017 29:16 AM

            Here is a chart you can bookmark that shows recent action in many of the key Uranium stocks and you’ll notice most hit recent highs and have pulled back a bit already. Whether that pullback accelerates to the downside or consolidates for the next leg up should be evidenced by the sector more broadly until the individual stocks start really differentiating themselves from one another.


            Jan 29, 2017 29:25 AM

            Bob UK – You’ll also see how irregular (URRE) Uranium Resources is compared to all the other Uranium companies as a result of its foray into Lithium (still scratching my head on that one).

            * Now you see why I sold out on the Mid January spike up, and why I mentioned it was “unwarranted” for that stock to be that high. Thank goodness I trusted the charts and my gut and sold when I did, and hopefully people took that opportunity to trim or sell as well and avoided chasing it any higher. I know we discussed it a few times here on the blog.

            Regardless, you can see how the rest of the companies have very similar charts and those would be the ones I’d be tracking for the sector.

            Here – I redid the charts but swapped out URRE for PLU. I will say PLU has the most bullish chart of any of those companies, as it didn’t pull back yet like the rest. 🙂


            Jan 29, 2017 29:27 AM

            One thing which is interesting to point out is how closely correlated the candle patterns of Cameco are to Plateau Uranium. That is very unusual and I wouldn’t expect it to continue so closely, but still, check that out.

          Jan 29, 2017 29:40 PM

          Thanks Excelsior. Just saw this before I nip to bed. I will read it all shortly but just wanted to say thanks before I sign off for the night.

          Much appreciated. I will have a good read.

    Jan 29, 2017 29:24 AM

    Bearish Reversal in Gold but Miners Showing Relative Strength

      Jan 29, 2017 29:07 PM

      He’s got it about right.

    Jan 29, 2017 29:27 AM

    Since we are bringing up some uranium talk I couldn’t help pushing for my favourite uranium play, Western Uranium. Heres why I like WUC, an excellent summary of WUC:s great potental.
    👊👊Glasier is a Rockstar 👊👊

      Jan 29, 2017 29:34 AM

      🌟🌟🌟Remember thar its not for the short term its for the long term like 2-5 years until the uranium bull is in full bull🌟🌟🌟
      Buy it and keep it in the coffee can

        Jan 29, 2017 29:00 AM

        Nice thoughts Blue. I have a lot of respect for George Glasier, what he did to build the framework for Energy Fuels to become the company it is today, and have been watching Western Uranium with keen interest for some time. All best to you in your investing!

    Jan 29, 2017 29:32 PM

    So I mentioned a few months back that I’d post a Copper mining list on a weekend show, and never did. Earlier today I worked on it, and while it is still a work in progress, here are some companies with a Copper focus, or a substantial Copper project or credit in their asset mix. I’m sure I missed some, but if a company is mostly Gold first and Copper second, then it’s probably on those lists.

    ** COPPER STOCKS & ETFs **



      Jan 29, 2017 29:34 PM

      Darn – I already noticed Constantine wasn’t on here. That worries me because instead of copying and pasting into my Zinc list, I may have removed some companies with both Copper & Zinc from this list in error. If anyone notices any other ones, please post them below.

          Jan 29, 2017 29:51 PM

          Interesting. I had heard there was a bit of tension at Escondida, but that article really helped unpack the situation. Thanks Wolfster.

        Jan 29, 2017 29:57 PM

        I’ve since realized I missed a number of copper companies like Crown Mining, and Northisle Copper, as well as tons of Gold companies with copper credits (like Mandalay Resources, Exeter Resources, JDL Gold, Mariana Resources, etc…) and companies with many Base Metals like MetalsX or Wellgreen or Noront Resources.

        Oh well, that is plenty of Copper companies to follow up on….

          Jan 29, 2017 29:52 PM

          MUX has a 20 billion pound copper deposit in Argentina.

            Jan 29, 2017 29:17 PM

            Absolutely Bonzo Barzini.

            MUX is tough to categorize, because I have them classified as Gold, but really they have a bunch of Silver and Copper as well. That was my point about there being too many Gold/Copper companies to list, but it is great that you brought that up.

            If you can think of other Gold companies with nice Copper exposure, then let’s keep listing them here.

            How about Balmoral as another Gold company with nice copper projects as well?

    Jan 29, 2017 29:21 PM

    according to fengshui master in HK, this February won’t come along again in our lifetime. this coming February has 4 sundays,4mon,4tues.4weds,4thurs,4fri,4saturdays. this will not happen again for 823 yrs. this is supposed to be fortunate for money in 2017.

      Jan 29, 2017 29:58 PM

      Sounds like a prosperous time….

    Jan 29, 2017 29:49 PM

    So far so good (the recent low was about 73.5):

    On November 24, 2016 at 8:04 am,
    Matthew says:
    I have my doubts about .71 for the loonie.

    (Banks have apparently been expecting .71 )

    Jan 29, 2017 29:04 PM

    So far so good with the miners, too. The path they are on follows the one that I drew a month before they bottomed:

    On November 14, 2016 at 12:59 pm,
    Matthew says:
    Re: gold miners
    This is how I see it:

    Jan 29, 2017 29:29 PM

    Oil has been capped by the same resistance for the last 7 weeks:

    Jan 29, 2017 29:14 PM

    When I said that I picked up UEX at .165 in November…

    On November 14, 2016 at 6:29 pm,
    al korelin says:
    Matthew and Blue, I think that both o you guys are jumping the gun!

    (UEX hit .34 the other day.)

      Jan 29, 2017 29:13 PM

      I’ve been enjoying the ride in UEX for sure amigo and feel it is just getting started. I’m adding more on any pullbacks.

      Jan 30, 2017 30:19 AM

      Off-Scale High-Grade Zone Discovered at Christie Lake $UEX $UEXCF
      (Marketwired – January 30, 2017) –

      “UEX Corporation (TSX: UEX) is pleased to announce that the first drill hole of the 2017 exploration program at the Christie Lake Project has encountered a new high-grade zone of unconformity-style Uranium mineralization along the Yalowega Mineralized Trend, 500 m northeast and along strike of the known deposits.”

      “Hole CB-109 intersected a 7.8 m long mineralized segment with three sections of off-scale massive uranium mineralization exceeding the maximum possible measurement from a hand-held SPP2-NF Series 20 scintillometer…”

    Jan 29, 2017 29:18 PM

    (BHS) (KXPLF) Bayhorse Silver – Jan 24, 2017 – Corporate Presentation:

    Development into near-term Silver Lead Zinc Production – Exploration Upside

      Jan 29, 2017 29:19 PM

      $BHS $KXPLF Bayhorse Silver CEO Graeme O’Neill

      VIDEO Interview with David Morgan – Dec 14, 2016

        Jan 30, 2017 30:00 PM

        Bayhorse Silver – Favorable Ore-Sorting Results On Steinert US Equipment
        Jan 30, 2017

        “Bayhorse Silver Inc. (BHS) has received favorable initial test results from testing run-of-mine silver mineralization from the Bayhorse Mine, Oregon, USA., submitted to Steinert US, manufacturer of state-of–the-art Ore-Sorting equipment.

        The Steinert X-Ray Transmission Ore-Sorter (XSS) effectively identified and discriminated between mineralized and non-mineralized silver bearing material, as well as differentiating higher (above 93 g/t or 3oz/t Ag) from lower (below 93 g/t or 3oz/t Ag) grade mineralization. The XSS rejected 37% from the stream as non mineralized and retained 63% of the run-of-mine stream. The material was sized between 1 inch (25mm) and 4 inches (100mm), and was comprised of high grade, low grade, and non-mineralized material…”

    Jan 29, 2017 29:38 PM

    Junior Mining Network – News Flow for the Resource sector

    Jan 29, 2017 29:11 PM
    Jan 30, 2017 30:34 AM

    Marlin Gold Intersects 5.78 g/t Gold Equivalent Over 9.90 Meters at the Commonwealth Silver and Gold Project in Arizona, USA