What The Canadian and Australian Dollar Are Telling Us About Resources

November 24, 2017

Chris Temple joins me today to look at some currencies we do not normally touch on, the Canadian and Australian Dollars. With these currencies struggling we assess what that means for resources. Combine this with the lack of momentum in resource stocks it’s still a touch grind for this sector. Chris also shares a stock that he is currently recommending.

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    Nov 24, 2017 24:26 AM

    I know currency swings are determined by big money, but having said that, parts of europe are looking very cheap.
    I just bought euros at $1.19 and in Spain I was buying wine at 1.20 euros a litre,
    i.e. Wine at $1.43 a liter. Can’t do that in California. (And meals were a darned sight cheaper in Spain than California; hotel rooms too.)

      Nov 24, 2017 24:11 AM

      Legal kerfuffle in #Spain around #uranium mine environmental assessment
      Valentina Ruiz Leotaud – Nov 23, 2017

      “Spain’s National Audience dismissed a series of allegations presented by Berkeley Energia $BKY.L $BKY.AX $BKLRF against a legal action filed by a group of environmentalists who oppose the company’s Salamanca uranium project.”

      Nov 24, 2017 24:07 PM

      In 1974 I stayed in a pension in Avila for $1 a night and in 1978 I stayed at the Ritz in Barcelona for $28 a night. Xavier Cugat and Charro were there too.

    Nov 24, 2017 24:37 AM

    LCI makes opioids in its product line. Will any crackdown on opioid abuse have any significant effect on LDI?

    Nov 24, 2017 24:54 AM

    I love SPAIN!!!

      Nov 24, 2017 24:50 PM

      I loved the Costa del Sol off and on throughout most of the sixties.
      If I had not retired to California, it would have been somewhere there.
      (Although if I still played gold, the Algarve would also be calling. I never did get portuguese through. (Sorry Mr. J. Taylor) )

    Nov 24, 2017 24:57 AM
    Nov 24, 2017 24:59 AM

    Mickey Fulp talks seasonal trading patterns for gold, TSX venture stocks
    SmallCapPower | about 21 hours ago

    “In this interview with SmallCapPower at the New Orleans 2017 Investment Conference, Mercenary Geologist Mickey Fulp discusses what he believes are the best times of the year to buy and sell gold as well as TSX Venture stocks. He also offers up two resource stock picks, including a zinc explorer in which he “expects good results.”

      Nov 24, 2017 24:56 AM

      Rick Rule: Upcoming Resource Bull Market Could Surprise Everyone
      NOVEMBER 24, 2017

      “Sprott U.S. Holdings Chairman and CEO Rick Rule also explains why he thinks gold investors should look to the GDXJ”

        Nov 24, 2017 24:02 PM

        Rick Rule at The Colombia Gold Symposium (from IKN444)
        11/21/17 – IncaKolaNews

        ” 1) Volatility? Get used to it. More of a reminder than a revelation, all the same a timely one that we’re in one of the most volatile and near-term unpredictable sectors of the whole market. Stocks move down and up by 20% for no reason and in no time at all, they can double or be cut in half rapidly just because sentiment changes, then there’s the way the price of gold (and any other metal you might care to mention) can pull the rug from under our feet at any given moment; that’s when the best stockpicker in the world goes down the same tube as the worst. The message was simple, the way of our sector isn’t about to change soon, so if you cannot stomach taking a 50% loss on a stock before it turns into your envisaged 200% winner, (junior) mining isn’t for you.”

        “2) The gold price looks promising for 2018. Rule was careful to hedge his bets on timing and it might not turn at the precise moment in 2018 he prefers, but his view is that the cycle is now turning favourably towards gold (and the others) and next year will be better than this year for the metal(s). Now for sure he has a vested interest in calling gold higher and as a self-confessed goldbug, wears his heart on his sleeve at moments of speeches such as this. But there are reasonable grounds for being bullish gold today and they’re mostly from North America. For a long time we’ve tracked the close relationship between the gold price and the real rate of interest in The USA using the ten year TIPS yield chart (see below) and it’s still working like clockwork. It’s interesting to note that even though the Fed is jawboning higher base rates now, what really matters isn’t the nominal but the real rate of interest so if inflation starts to notch up in what is still in historic terms a very low interest rate environment (even after the hikes that started last December), TIPS will trend to and perhaps even below zero. And yes it’s happened before and yes, when it does it’s about the best bull signal for gold in the whole armoury.”

        “3) Own quality stocks. According to Rule, now is not the time for optionality. His sense is that the miners are now lagging the metals and the bets way to play the year ahead is via quality mining stocks, be they profitable producers or explorecos/developers (his preference) with strong projects. This of course was music to my ears as the vast majority of my personal exposure to the market, as well as the preferred investment policy of The IKN Weekly, is to go for the quality end and let the dogs wag their tails in their own time. Rule spent quite a bit of time expanding on this point and one of the drivers according to him is the combo of reserve depletion in majors and supply destruction. The majors have tried to ignore the fact that their reserve assets have depleted to current low levels and at some point need to address that. This is of course the same point made sans cesse by Brent Cook and many others, but that doesn’t make it false either. So for Rule’s taste, it’s time to buy and own the stocks that the majors will find attractive down the line because as day follows night, the largest miners are going to time the market as badly as ever and will be forced to pay up for assets they could get at their current discounted levels of today.”

    Nov 24, 2017 24:02 AM

    The GDXJ Breakout: Is It Real?

    Morris Hubbartt – posted Nov 24, 2017
    Super Force Precious Metals #Video #TechnicalAnalysis

    (Double click on the blue links for the video segments & TA)

    Nov 24, 2017 24:03 AM

    The value of the second largest cryptocurrency ethereum has smashed an all-time high of $425.55 on Thursday night, according to data from digital money website Coinmarketcap.
    Ethereum’s market capitalization is approaching $40 billion, and its gains this year have reached 5,000 percent. At the start of 2017, you could buy one token for $8.27.

    Read more
    © Dado Ruvic’Bitcoin is a gift from God to help humanity sort out mess it has made with its money’ – Max Keiser
    The surge came after the news that South Korea has no plans to regulate cryptocurrencies

      Nov 24, 2017 24:17 AM

      Gift From God.
      Rightness and reason. It’s easier to not let go of your invested paradigm.

    Nov 24, 2017 24:21 AM
    Nov 24, 2017 24:32 AM

    Bitcoin $8,306.27 + Bitcoin Cash $1,706.83 =$10,013.10
    That right there is the $10,000 dollar Bitcoin.
    Let the games begin!

    Nov 24, 2017 24:33 AM

    It’s been fun.

    Nov 24, 2017 24:57 PM

    And Novo tanked today…no fun.
    on the other hand potshares are up.

    anyone notice coffee?

      Nov 24, 2017 24:34 PM

      It’s cannabis-induced euphoria as ASX pot stocks double in a month Health
      November 24, 2017 | Rachel Williamson

      Nov 24, 2017 24:43 PM

      Investors believe the Novo news (posted up above earlier) was misinterpreted by some:

      Here’s a good thought from my buddy @zentrarian on the news and reaction:

      @zentrarian – “The wide diameter drilling wasn’t to determine grade so much as structure. It was suspended (probably abandoned) because they couldn’t get a proper core sample in the highly irregular geology. IMO they should perhaps have foreseen this coming, or at least foreseen the market reaction to putting this “news” out on a Friday afternoon.”

      @zentrarian – “The market reaction to this (really not very consequential) news seems to have been: “Oh No! They must have stopped drilling because they weren’t getting good results.” Which is of course hardly the case, but the market is very skittish about NVO because of the current lack of conclusive drilling or bulk sample assay results.”


      This jives with QH’s comments in the press release:

      “We were fully aware from day one that the Karratha gold project is a coarse gold system,” commented Dr. Quinton Hennigh, President, Chairman and a director of Novo Resources Corp. “The fact that numerous prospectors have been detecting gold here since its discovery is compelling evidence. While the ability to recover consistent, quality sample material using large diameter drilling has not yet been accomplished, trenching appears to yield acceptable bulk samples for test work. Bulk sampling at surface will be the most critical means of determining the grade, processing characteristics and viability of this deposit. We look forward to working with Artemis on ways to fast track a bulk sampling strategy at Purdy’s Reward.”

      Nov 24, 2017 24:09 PM

      according to some…………… 🙂

        Nov 24, 2017 24:51 PM

        If you bought 100,000 Bitcoin 7 years ago for .06 cents today you would be worth 823 million dollars, that is some BUBBLE! DT

          Nov 24, 2017 24:58 PM

          The front runners are pushing tax loss selling ahead, some of the buys will be spectacular. There are some stocks I have already purchased but December the 15th is where the sweet spot could be, according to a few experts. I’m ready for whenever it happens, just be vigilante and look for volume that is spiking. DT

    Nov 24, 2017 24:00 PM

    Good Uranium sector post on the technicals from @ValueInvest on ceo:


    @ValueInvest – “The top U stocks are following a predictable and healthy path way:”

    -Breakout over 50-day MA (on high volume)
    -Stop at 200-day MA, and Retrace down to 50-day MA (on declining volume)
    -Stop at 50-day MA, Bullish Reversal Candlestick, Reversal UP and Breakout over 200-day MA (on increasing volume)
    -Retracement down to the 200-day MA (on declining volume)

    “The technical analysis in #uranium stocks are following a perfect path. Maybe a bit frustrating, and that decline may not be over yet, but we are getting ready for another big UP move. It is my opinion that the top U stocks will retrace back to the 200-day MA (on declining volume), but they will not go below that level (which now has become strong Support). At the 200-day MA, another Bullish Reversal Candlestick will form. This point will present a last LONG entry point, because from that point we are going straight up to the 2017 highs.”

    “Volume is one of the best technical indicators as it shows the conviction of the move. High Volume shows high confidence (in the direction of the move) and Low Volume shows low confidence (in the direction of the move). We have seen a perfect display of Higher and Increasing Volume on UP days and Breakouts, and Lower and Declining Volume on Down days and Retracements. This trading behavior around Key Moving Averages is telling us the U stocks are going higher.”

    “U stocks cannot go straight up every day. As frustrating as the decline is right now, it is healthy and necessary, as it is blowing off steam from Overbought Levels and creating another short-term base to gain energy for the next UP move. Next target and stop is the 2017 Highs. $uranium $NXE $GXU $UEC $API $URA $DML $EFR”