Markets And Stock Commentary – Tariffs, Copper, Gold, and US Equities

March 3, 2018

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The week before PDAC is always very busy for metals stocks as management try to get out whatever important information they can before the largest resource conference in the wold. We had a number of Company updates that are included in this weekend’s show. Additional interviews were also posted on our site throughout the week. You can find those links below.

In terms of the broad markets, new Fed Chairman Powell made some hawkish comments that initially sent US markets and gold down. Later in the week Trump presented tariffs on steel and aluminum that further drove markets down but saved the metals from their downtrends. The takeaway from the week is that we are going to continue to see volatile and confused markets.

I will not be at PDAC this year but will be following up with a lot of people at the conference and a number of companies after. Please keep in touch by emailing me at I love hearing about companies and guests you would like to see on the show or get my comments on. I hope you all enjoy this week’s show!

  • Segment 1: Chris Martenson, Co-Founder and Co-Editor at kicks off this weeks show with his comments on the tariffs announced this week.
  • Segment 2: Volatile US markets are the most predictable – Dana Lyons, Fund Manager.
  • Segment 3: We talk copper with Gianni Kovacevic. Potential mine shutdowns and the importance of China in the whole copper complex.
  • Segment 4: We get an update from Revival Gold‘s President and CEO Hugh Argo. This is a Company flying under the radar that has released some recent good drill results.
  • Segment 5 & 6: I chat with Kevin Vecmanis, Found of Vanaurum about the importance of understanding ratios. In the second segment we look at gold compared to a number of other markets.
  • Segment 7: Glen Parsons CEO and President of Awale Resources updates us on the recent drill results. Awale is a Company that holds a large land package in Ivory Coast and continues to drill under-explored land.
  • Segment 8: Managing Director at RBC Wealth Management George Gero wraps up the show with the factors he is watching that could drive gold.

Exclusive Company Updates This week

Segment 1

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Segment 2

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Segment 3

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Segment 4

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Segment 5

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Segment 6

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Segment 7

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Segment 8:

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    Mar 03, 2018 03:28 AM

    Thanks, Guys.
    Hi, Skeeta.

      Mar 03, 2018 03:36 AM

      Cory thanks for producing another great weekend show, considering the recent move, and a wife that is 8 month’s pregnant.

      Good luck on all you have going on in life, and Ever Upward!

    Mar 03, 2018 03:44 AM

    Cararine Austin Fitts on Rense:

    Mar 03, 2018 03:37 AM

    Ira Epstein’s Metals Video (3/2/2018) #VIDEO

    Commodities, Technical Analysis, Gold, Silver, Copper, Platinum, Bitcoin

    Mar 03, 2018 03:13 AM

    Thanks guys for another great show!

    Mar 03, 2018 03:22 AM

    Fed Hikes, Dollar, and Gold

    Adam Hamilton – Mar 02, 2018

    “The US dollar has fallen rather sharply over the past year or so, despite ongoing Fed rate hikes. This persistent dollar weakness has really boosted gold. There’s a fascinating interplay between these two currencies and futures speculators’ expectations for Fed rate hikes. These traders hang on every word from top Fed officials, which greatly influences their trading. So these relationships are important to understand…”

    “That very week I wrote an essay taking an unpopular contrary stance on the euphoric US dollar. In it I warned, “Traders are overwhelmingly betting the dollar’s strong upside will continue. But this greed-drenched currency looks very toppy and ready to fall, which is very bullish for gold.” That generated a lot of flak, but it’s usually the right decision to be bearish when everyone else is bullish near major secular highs.”

    “Shocking traders, late 2016’s epically-overcrowded long-dollar trade indeed collapsed in 2017. That was despite the Fed actually carrying through on hiking three more times as expected. From that euphoric dollar peak in late December 2016 to the recent low, the USDX plunged 14.2% over 13.2 months! By world-reserve-currency standards that’s massive. This helped gold surge 18.1% higher over that same span.”

      Mar 03, 2018 03:26 AM

      Here’s What Gold is Waiting for

      February 27, 2018 – Jordan Roy-Byrne CMT, MFTA

      “Gold was well bid during the equity correction but it could not breakout then and has retreated as equities have roared back. As a result, the Gold to stocks ratio has retraced most of its recent surge. Meanwhile, the US Dollar has rebounded and the oversold and overhated bond market could be starting a rally. The recent rise in long-term bond yields which has benefitted Gold appears due for a pause or correction. Meanwhile, Gold could also correct and consolidate as it waits for a breakout in long-term bond yields which should in turn benefit Gold.”

      “As we noted in One Big, Potential Catalyst for Gold in 2018, Gold is no longer trading with bonds and therefore could benefit from a big breakdown in bonds….”

      Mar 03, 2018 03:00 AM
    Mar 03, 2018 03:38 AM

    Bitcoin heist: 600 powerful computers stolen in Iceland

    by Associated Press – Mar 2 2018

      Mar 03, 2018 03:41 AM

      Stuck in the Stratosphere with Crypto Wars — Issue No. 15

      Your dose of crypto news and analysis from @BTO and @Goldfinger

      March 2, 2018

        Mar 03, 2018 03:42 AM

        Slamming the Door On Your Competition

        by @currencyfrontier on March 2, 2018

        “HIVE Blockchain Inc. (HIVE-TSXv) was very smart to go out and raise CAD$151 million from the capital markets in 2017 when cryptocurrency was in full mania.”

        “As they released their first REAL quarterly on March 1—with real revenue, almost $100 million cash on the balance sheet and fast rising revenues on the immediate horizon as they deploy that cash to get big fast, they showed the Market that crypto-mining is a real business.”

        “This quarterly really separates themselves from any public company competition…for the simple reason that the equity window—the ability of public crypto-companies to raise more money to expand—is now firmly shut.”

          Mar 04, 2018 04:06 PM

          Ex, dated Oct 2017…Stellar XLM should be a mover when things finally fall into place.

          IBM Announces Major Blockchain Solution to Speed Global Payments
          Solution Powered by IBM Blockchain in Partnership with and KlickEx Group
          Collaboration with Banking Leaders to Accelerate Financial Exchange and Settlement Across Currency Corridors

            Mar 04, 2018 04:27 PM

            What is Stellar and is it a Good Investment?

            At the end of 2017, the Stellar network’s cryptocurrency, the lumen, moved into the top ten of the largest cryptocurrencies. Stellar’s market capitalization rose from the $500 million mark to over $12 billion from November to January. In its January 6th peak, one lumen (XLM) was trading at $0.71.

            What is Stellar?


            Mar 04, 2018 04:13 PM

            Thanks for the heads up Markedtofuture and I’ll look into Stellar XLM a bit closer.

            Mar 04, 2018 04:06 PM

            Is there a way to invest in a publicly traded company with exposure to mining Stellar XLM or something along those lines, instead of actually purchasing the XLM ?

      Mar 04, 2018 04:08 PM

      Square, Inc. to possibly facilitate Bitcoin

      Bloomberg•March 4, 2018

    Mar 03, 2018 03:43 AM

    Paul Tudor Jones: Own Commodities & Hard Assets, Avoid Stocks & Bonds

    by @Goldfinger on March 1, 2018

    “Legendary investor Paul Tudor Jones (PTF) offered a bullish view of commodities in a wide ranging, pointed interview with Goldman Sachs. He also made it clear that he is negative on bonds and certainly not a fan of stocks right now as the US engages in deficit spending to fund fiscal stimulus in a low interest rate environment. ”

    “PTJ compared the current policy actions in the U.S. to the late-1960s, when interest rates were low and the government enacted fiscal stimulus measures in order to stimulate the economy and help pay for the Vietnam War. There is a key difference between now and then; the economy isn’t in recession and the U.S. isn’t involved in a massive war effort. Jones believes that “we are setting the stage for accelerating inflation, just as we did in the late ’60s.”

    “If PTJ is correct we should see the CRB Index break-out above 200 over the coming weeks which should lead to a quick 15%-20% in major commodities:”

    Mar 03, 2018 03:46 AM

    The US should have lost it’s World Reserve status when Nixon took the dollar off the gold standard in 1972. Politicians meddling in anything economic always mess up. Look at what Gordon Brown did when he sold Britain’s gold reserves. “What a fool!” When Nixon dropped the gold standard The US had been in decline for about 5 years and now another 45 years has lapsed. The world no longer needs their guidance or currency status. Trump is playing a losing hand with tariff implementation. All of the wars and now tariff and trade problems will turn the spotlight on America’s lack of leadership. The Chinese will now move to back The Yuan with gold. The shift is easy for investors to see but not the general public, they will have to wait for the changes; if Trump implements another war only this time a tariff and trade war. DT

    Mar 03, 2018 03:54 AM

    The U.S. has become a country without moorings–reflected in chaos, devisiveness, and debt. The decline is now unstoppable. The only good potential is that the country will move back to respect the constitution and sound money. We will in all likelyhood be forced into the latter with time.

    Mar 03, 2018 03:33 AM

    And don’t forget the REAL COLLUSION with the Russians:
    Paying for a bogus dossier.
    Selling 20% of US Uranium.
    Allowing classified information to be hacked on insecure servers…..

    Mar 03, 2018 03:40 AM

    And in case you might think my disgust that Hillary is still free is because I am pro-Trump….
    I am surprised a Graduate of Wharton is so ignorant of economics:

    Mar 03, 2018 03:23 AM

    Sarah Westall with Catharine Austin Fitts:

    Mar 03, 2018 03:14 PM

    The world won’t be safe until the government of the United States is committed to an insane asylum

      Mar 03, 2018 03:11 PM

      PCR ain’t much of an economist if he thinks other governments are much better.

        Mar 03, 2018 03:05 PM

        I think his point in that article is simply the american government is insane.

        He is speaking of the american reaction to Putins address.

        “Is Washington Sufficiently Intelligent to Be Trusted with an Independent Foreign Policy?”

    Mar 03, 2018 03:34 PM

    Ex. posted lots of good informational material on this comment page but here’s another good listen:

      Mar 03, 2018 03:17 PM

      Thanks Silverdollar. I always enjoy Collin’s interviews.

    Mar 03, 2018 03:01 PM

    Hyperinflation Unfolds Only When Public Confidence Collapses

    COMMENT: Mr. Armstrong, I read your piece on South Africa and you are the only person to explain that the hyperinflation in Zimbabwe took place after they stole all the land from the white farmers. You really turn over every stone in your research.

    My hat is off to you sir.


    ANSWER: Well I was not aware of that, but it does not surprise me. Everyone attributes hyperinflation to the simple increase in the supply of money. I have stressed countless times that hyperinflation unfolds ONLY when people NO LONGER TRUST THE GOVERNMENT! The Zimbabwe hyperinflation ended the same way as Germany. Once Zimbabwe expropriated white farmers without compensation, public confidence collapsed. Nobody would invest in Zimbabwe after that. This is what South Africa now risks. Nobody will invest in a country that does not respect property rights. This is what we call COUNTRY or POLITICAL RISK!

    Mar 03, 2018 03:14 PM

    MTF, my brother in law has been a mining engineer in South Africa for twenty odd years. I have told him and the rest of my family repeatedly for many, many, years that he should leave South Africa. His house has been on the market for more than two years but he cannot sell it. Not a surprise for me, history is your guide. Most people refuse to look down the road because they will not listen to others or refuse to think that irrational activity can be the norm in what was once a prosperous country. I don’t know whether anyone here knows who Billy Wilder was, but he warned his family to leave Europe in 1932, after Hitler came to power. He was the only person to escape and later became probably the most famous Hollywood Director. DT

    Mar 03, 2018 03:15 PM

    What is the symbol for the copper company Gianni was talking about selling for about 0.10?

      Mar 04, 2018 04:20 AM

      You may be referring to Copperbank Resources Corp. (CPPKF)

    Mar 03, 2018 03:59 PM

    I’m not sure which one he was talking about, but he made great comments about the future of copper stocks.
    Libero Copper looks real good. It’s trading at .09 right now and the 50 is about to move above the 200 day. It’s peaked my interest… (LBC.V)

    Mar 03, 2018 03:45 PM

    Pioneer Resources PIONF

    The Half Yearly Report shows good control of capital and confirms positive moves for going forward. This month of March is a good one for some proving results and information.
    The four business units if you like, for current processes are:-

    • The Pioneer Dome Lithium Project in Western Australia, encompassing the caesium bearing Sinclair Zone.
    Results from the diamond core drilling are expected to be available by early to mid-March. These will feed into detailed pit design work. This will include events where other pegmatite minerals (including lepidolite and microcline) are extracted.

    • The Golden Ridge Project in Western Australia.
    – Bench Test for Cobalt, – Further Drilling for Ni Sulphides ongoing. 16 holes already intersected significant cobalt mineralisation. Wait and see with a lot of interest here.

    • The Kangan Gold Project located in the Pilbara, Western Australia.
    The Kangan Project is located 80 km south of Port Hedland in the emerging western Pilbara gold precinct of WA.
    – polymictic conglomerate identified in the field at this location over an 800m strike length
    – Adjacent anomalous soil geochemistry and rock chips recorded in Technical Reports by previous explorers.
    During the December Quarter, we are told Pioneer continued its review of the Project’s gold prospectivity, which has delivered highly encouraging results, and two reconnaissance site visits have reinforced the project’s prospectivity for gold and lithium.
    Wide-spread gold anomalism was confirmed by Pioneer sampling within the south-western and northern tenements of the Project area, allowing the Company to conclude that the Honeyeater Basalt is prospective for orogenic gold. Limited outcrops of polymictic conglomerate have been mapped.
    It could be considered as prime real estate at present and is being probed by a geology and prospecting team at times and company also seems to be waiting for any nearology success to add value to their project. We await more information on this one as an interesting hold

    • The Mavis Lake JV Lithium Project in Canada

    Mavis Lake Fairservice Pegmatite 6 Prospect, nine diamond core holes for a total of 1,591 metres. ​
    Seven of the nine holes drilled intersected significant mineralisation, including multiple wide intersections of spodumene-pegmatite that have greatly enhanced the Project’s potentiality.
    “Mineralised drill core has been sent for analysis, with results expected by the end of March 2018 whereby International Lithium and PIO ( JV) will further update the Market and describe plans and meaning for future drilling, Mineralisation had not been closed off on last advice.

    A bit to look forward to for all for an upturn. Others may be able to add more.

    Mar 03, 2018 03:00 PM

    Trump seems hell-bent on a trade war….

    WASHINGTON (AP) — The Latest on President Donald Trump, Republicans and trade (all times local):
    1:10 p.m.
    President Donald Trump says the U.S. “will simply apply a TAX” on cars made in Europe if the European Union retaliates against the trade penalties he’s seeking on imports of steel and aluminum.
    The EU is promising retaliation against American exports if Trump follows through — as he says he will next week.
    Here’s what the president is saying on Twitter: “If the E.U. wants to further increase their already massive tariffs and barriers on U.S. companies doing business there, we will simply apply a Tax on their Cars which freely pour into the U.S. They make it impossible for our cars (and more) to sell there. Big trade imbalance!”
    He’s also railing about “very stupid” trade deals by earlier administrations and says other countries “laugh at what fools our leaders have been. No more!”

    Mar 03, 2018 03:06 PM

    And I bet you thought Electrolux was an American brand…..
    (Well, it used to be.)

    NASHVILLE, Tenn. (AP) — Electrolux says its plans for a $250 million plant expansion in Tennessee are on hold, and the Swedish appliance maker is pointing to President Donald Trump’s tariff action as the reason.

    The company’s investment plans, announced in January, included modernizing and adding 400,000 square feet to the plant in Springfield. Construction was slated to begin later this year.
    Electrolux is citing Trump’s announcement of new tariffs on imported aluminum and steel.
    “Unfortunately, this decision gives foreign appliance manufacturers a cost advantage that is hard to compete against,” Electrolux spokeswoman Eloise Hale said in a statement to The Tennessean .
    Hale said the company is still evaluating the recent tariff announcement, but is so concerned about the potential financial impact that it put the Springfield project on hold until Trump’s order is signed and final details are clear.
    All of the carbon steel the company uses in its U.S. manufacturing plants comes from American steel mills, Hale said.
    The company has multiple factory locations in Tennessee, including Springfield and Memphis.
    Last year company officials began a $20 million expansion in Springfield that would simplify operations at the manufacturing plant. It was a project that overlapped a larger $25 million expansion announced in 2016, bringing its local investment in recent years to nearly $300 million.
    Crews are still working on the 2017 project, set to be completed in 2019, but the 2016 project that added 25 jobs and 25,000 square feet to the facility has been completed, Hale said.

      Mar 04, 2018 04:11 AM

      Wow……..25 JOBs………….jump for joy………..not

      Mar 04, 2018 04:09 PM

      I agree with Mannarino. He has the most insight to the current market overall. So far he is the most accurate one I have seen.

    Mar 03, 2018 03:58 PM


    Mar 04, 2018 04:56 AM

    We Interrupt Your Weekend For This Special Bulletin

    Our old friend, The Golden Jackass, reached out last week and suggested that he had some information and analysis that couldn’t wait for the next, three-day weekend podcast. Thus this special audio for your weekend listening pleasure.

      Mar 04, 2018 04:06 AM

      FINALLY>>>>>>>>>>>>DEBT JUBILEE>>>>>>JEWS GIVING UP>>>>>>lol
      So what did Jim want to discuss? Primarily the fracturing global bond and equity markets and how the BIS has been preparing for a “debt jubilee” and gold price revaluation for decades.

    Mar 04, 2018 04:08 PM

    Silver Mining in the Yukon | Alexco Resources (AXU) (AXR)

    motherlodetv – Mar 3, 2018 #VIDEO

    “Alexco CEO Clynton Nauman outlines Alexco’s 2018 plans at Keno Hill Yukon.”

      Mar 04, 2018 04:13 PM

      Yukon Silver | Metallic Minerals $MMG $MMNGF

      motherlodetv – Feb 25, 2018 #VIDEO

      “One quick minute with Metallic Minerals’ CEO Greg Johnson talking about Metallic’s silver exploration program at Keno Hill, Yukon”

        Mar 04, 2018 04:23 PM

        Silver To See New Peaks – Pan American Silver $PAAS

        Kitco News – Mar 4, 2018

        “In order for silver to break out of its current trading range, investment demand needs to return to buffer industrial demand, said Michael Steinmann, CEO of Pan American Silver.”

        Mar 04, 2018 04:37 PM

        Silver in Oregon | Bayhorse Silver $BHS $KXPLF

        motherlodetv – Feb 28, 2018 #VIDEO

        “Using state of the art ore sorting technology, Bayhorse Silver is producing silver in Oregon. CEO Graeme O’Neill looks forward to 2018 production.”

        Mar 04, 2018 04:26 PM

        Metallic Minerals and Group Ten Metals Announce Formation of the Metallic Group of Companies

        by @nasdaq on March 3, 2018

        “Metallic Minerals Corp. (MMG) (MMNGF) and Group Ten Metals Inc. (PGE) (PGEZF) are pleased to announce the formation of the Metallic Group of Companies, a collaboration of two leading precious and base metals exploration companies with a portfolio of highly prospective assets in North America. By leveraging the combined decades of experience of its founders in mineral exploration, finance, capital markets, permitting and community relations, the Metallic Group sees an opportunity to maximize shareholder value for member companies. The Metallic Group also benefits by sharing resources for cost efficiency and providing access to specialized technical expertise and experienced corporate governance and management teams.”

      Mar 04, 2018 04:40 PM

      Fred Davidson, $IPT $ISVLF IMPACT Silver | #PDAC 2018

      InvestingNews – Mar 4, 2018 #VIDEO

      “Fred Davidson of Impact Silver spoke to INN at PDAC 2018 and discussed why 2018 is going to be an exciting year for #exploration. ”

        Mar 04, 2018 04:21 PM

        $BBB $BXTMF Brixton Metals CEO: Moving towards 43-101 compliant resource definition

        InvestingNews – Feb 8, 2018 #VIDEO

        “Brixton Metals Corp CEO Gary Thompson talks about the three important things investors should know about, what makes the company unique, and near-term milestones to watch out for. ”

      Mar 05, 2018 05:08 AM

      (USAS) (USA) Americas Silver Corporation Reports Fourth Quarter and Year-End 2017 Financial Results

      by @businesswire on March 5, 2018

    Mar 04, 2018 04:17 PM

    Nova Scotia Gold | Anaconda Mining $ANX $ANXGF

    motherlodetv – Mar 3, 2018 #VIDEO

    “Anaconda President and CEO Dustin Angelo talks about the 2018 prospects of Anaconda in Nova Scotia.”

      Mar 04, 2018 04:34 PM

      Gold in Mexico | Minera Alamos $MAI $VGMTF

      motherlodetv – Mar 3, 2018 #VIDEO

      “Chris Chadder, CFO of Minera Alamos talks about the coming merger and the company’s development plans for its Mexico gold properties.”

        Mar 04, 2018 04:48 PM

        $ORX $ORFDF Orefinders – TSX C Suite Interview Mar 2018

        Orefinders Resources Inc – Mar 2, 2018 #Video

        “Orefinders CEO Stephen Stewart at the Toronto Stock Exchange on the Company’s 2018 milestones and going forward plans”

          Mar 04, 2018 04:28 PM

          Red Eagle Mining and Red Eagle Exploration Announce Amalgamation
          March 02, 2018 (GLOBE NEWSWIRE) —

          “Red Eagle Mining Corporation (R) (RDEMF) and Red Eagle Exploration Limited (XR) are pleased to announce that they have entered into a definitive amalgamation agreement pursuant to which Red Eagle Mining has agreed to acquire all of the issued and outstanding common shares of Red Eagle Exploration Limited not already owned by it by way of a three-cornered amalgamation.”

            Mar 04, 2018 04:36 PM

            That is an odd move for Red Eagle to buy their exploration arm instead of keeping it separate, but some investors have postulated this may be to consolidate the company and make it more attractive for a takeover. A simpler answer could be that it is just to reduce overhead costs though.

            It is an interesting move regardless, and it would be nice to see them turn things around at the mine and take things forward in Colombia as I love a good turnaround story. However, it may just be tidying up the house so that a big boy will make them offer.

            Definitely a story worth following to see how things proceed. I’m underwater on Red Eagle, but am tempted to average down on this news as this thing has been absolutely smashed in share price and in valuation relative to peers. It is either the beginning of a new chapter, or possibly a takeover target (despite all the challenges they’ve had over the last year or two).

    Mar 04, 2018 04:07 PM

    Just to make it clear, President Trump may have made a bad mistake. This tariff hits US allies the most. China is only 2% of the composition. Canada might be hit the most. We (Canada) are already in deep economic trouble due to commodity slump. Canadian government might the most useless government in the West. The alliance with these countries takes US half century to establish and he may successfully dismantles it in a few years.

      Mar 04, 2018 04:12 PM

      Looks like a war with Venezuela is going to start and Israel is going to attach Iran under US support. You may have elected a doomsday president after all. Russia and China are laughing.

    Mar 04, 2018 04:41 PM

    Congo’s Kabila to meet companies over mining code revision

    Reuters • March 3, 2018–business.html

    Mar 04, 2018 04:01 PM

    Drilling Returns 5m at 20% Zinc; Tinka Resources (TK) (TKRFF) Also Looking for the Source of Ayawilca

    The Critical Investor for Streetwise Reports (3/3/18)

    Mar 04, 2018 04:44 PM

    (URG) (URE) Ur-Energy Releases 2017 Year End Results

    March 2, 2018 /CNW/

    Ur-Energy CEO, Jeff Klenda provided the following on the Company’s 2017 performance:

    “Despite difficult market conditions, which persisted throughout the year, I am very pleased to report that we generated $14.0 million in gross profits and $5.4 million in free cash flows, while at the same time improving our safety performance and not subjecting our shareholders to unwanted dilution.”

    “The Company realized an average price per pound sold of $49.09, as compared to $39.49 in 2016. The increase was primarily due to higher average contract prices in 2017 as compared to 2016.”

    Mar 05, 2018 05:29 AM

    long TEUM, target $5