Two Significant News Events In the Gold Space – A Bidding War and A $100Millon Mining Deal
David Erfle, Founder of The Junior Miner Junky joins me to outline two news events that are a good sign for the overall gold market. We start with the bidding war that is underway for Alexandria Minerals. While Alexandria was a poorly run Company the asset is attractive, which is why we are seeing O3 Mining and Agnico in a bidding war. Next is the news out of B2Gold and Calibre Mining regarding a deal for the El Limon and La Libertad Gold Mines. Click here to read the full news release… We weigh in on our thoughts on the deal.
Click here to visit David’s site and find out more about his newsletter. It is very much worth your time if you invest in junior mining stocks.
Gold is always an indicator of potential turmoil somewhere.
“Gold was the enemy to me” Paul Volker
“Then and now, the gold price is viewed as the inverse price of the confidence in the system.”
$1436…….was looking goood………
Then we have old swifty going bye, bye…..as reported a couple of days ago….
https://www.youtube.com/watch?v=bG09Zrz-oDk
Another problem for the dollar
Any TAs out there? Does the chart of GDX look to have been a breakout of a flag formation to anyone?
Whether it’s a flag or a pennant, that’s a breakout. We’ll know it’s legit if we see more strength tomorrow.
https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=1&mn=0&dy=9&id=p10484074249&a=674222302
Thanks for the comment. Those were my thoughts.
I have to say that I do not agree with Stewart Thomson’s view that “gold could easily pull back to the $1320-$1250 price zone…”
He might have statistics on his side but the current technical details tell me that such a pullback is UNlikely.
I agree. Gold going back to $1250 looks unlikely at this stage. If that were to occur, it would have big ramifications for gold bulls.
Good to see gold react the way it did off the $1380 zone. It appears as though that area is now indeed support, at least for the immedoate future.
New selection ……..Judy Shelton……
https://www.zerohedge.com/news/2019-07-02/gold-surges-after-trump-nominates-gold-standard-advocate-judy-shelton-fed-board
GOLD GOING A LOT HIGHER>>>>>>>>>>
The TRAIN JUST LEFT…….. 🙂
Judy Shelton is author of the 1998 book Money Meltdown; and previously she had concluded that “Central bankers, and their defenders, have proven less than omniscient.”
So why does Trump want Shelton on the board? Simple: she previously said that if appointed, she would lower interest rates to 0% in one to two years. That’s all markets had to known and following the news that Shelton is being nominated to the Fed board, gold spiked $10 from $1,425 to $1,435 in minutes, as Trump’s push for ZIRP (and soon after, NIRP) just took on an added urgency.
Intriguing indeed Jerry! And yes gold has left the station by the looks of it… At least for today anyway.
Looks like the Train….just went around the circle , …just getting warmed up for the hilly ride… 🙂
OFF TOPIC:
It is my belief Trump had been considering a one-off strike against Irans’ primary hidden major uranium centrifuge site.
Today the VP was order back to DC rather than go on a campaign speech in New Hampshire.
The following, I believe, is why…..
My guess is that Trump is not sure whether the drone shot down by Iran was affected by the Soviet GPS jamming, now installed in Iran.
Neither does he know whether the US can knock out the Iranian centrifuges, without GPS guidance, since the MOAB block-buster dropped from a high flying B52 needs guidance.
Oil dropped hard today and that’s great news for the miners.
This fork is working:
https://stockcharts.com/h-sc/ui?s=%24WTIC&p=D&yr=0&mn=9&dy=0&id=p06349576800&a=673801186
My guess is that with potential Middle East problems, despite another increase projected in US oil production, the price of oil is not going to stay low.
Short term, I think it’s going lower but my bet is that it will eventually see the $75 area due to a sharply lower dollar.
GDXJ is trying to turn up vs GDX. Something tells me it will do just as silver finally turns up vs gold.
GDXJ:GDX
https://stockcharts.com/h-sc/ui?s=GDXJ%3AGDX&p=W&yr=3&mn=11&dy=30&id=p25294371110&a=674284946
I saw that Ivanhoe had a good day today so I checked to see if I had a chart it and found one from 2016. Looks like I said it would go higher after it had already quickly doubled:
https://stockcharts.com/h-sc/ui?s=IVN.TO&p=W&st=2013-04-15&en=2017-06-07&id=p34253324683&a=455288069
The closest it came to retesting its .53 low was $2.00 (more than 2.5 years later).
It looks very good once again but I still don’t own it. I gotta wonder about me sometimes.
https://stockcharts.com/h-sc/ui?s=IVN.TO&p=W&yr=5&mn=0&dy=0&id=p58155111657&a=674288999
Matthew, I wonder why you don’t own NSRPF? Is there something you don’t like about it?
No, there’s nothing wrong with it but I sure don’t like that I missed the big move off of the .50-.60 area. Since then, I’ve been focused and committed elsewhere and haven’t thought too much about it. That’s how it goes. There are always many that I should own but don’t.
Well at least you missed the 80% drop from $7 down to 1.40
I may buy more if it drops back to 1.50 this summer.
Just sold some XOM yielding 4.6% and bought twice as many shares of BTI yielding 7.1%
Wonder if I’ll be glad or sorry down the road?
I think you made a good move. BTI looks like it will deliver a significant capital gain before XOM will. Then you can consider getting your some or all of your XOM back.
Here’s a possibility:
https://stockcharts.com/h-sc/ui?s=BTI&p=W&yr=3&mn=11&dy=30&id=p04498737769&a=674406509
Thanks for that chart, Matthew. Maybe when BTI has risen to 46, oil will be down to 50 or lower, and XOM or SLB will be a lot lower. If oil shoots up for some reason and XOM goes to 150, I still have 70% of my XOM and will be crying all the way to the bank. Silver will probably do better than XOM or BTI, but I already have that base covered, and will be crying all the way to the bank if silver goes to 100 or 300/oz
The daily chart looks good so you might see the $40s sooner than you think:
https://stockcharts.com/h-sc/ui?s=BTI&p=D&yr=1&mn=0&dy=9&id=p08849508978&a=674411890
Here’s to crying all the way to the bank! 🍻
Bonzo, you probably know this but, for what it’s worth, I want to add that it is very possible that BTI put in a very long term low in December. If so, the next major top could be many years away.
Silver continues to lag gold but looks good vs the dollar:
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=D&yr=1&mn=2&dy=13&id=p89922258290&a=449326423
Yeah turd, and you continue to have crap coming out of your month.
The HUI is up 28% vs the S&P 500 since the May low:
https://stockcharts.com/h-sc/ui?s=%24HUI%3A%24SPX&p=W&yr=3&mn=7&dy=0&id=p01947576167&a=634918425
Looks like some fork support came into play yesterday for GDX:
https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=1&mn=2&dy=0&id=p31094716683&a=608313428
Having trouble…………….getting gold and their cash……things are heating up…jmo
https://www.zerohedge.com/news/2019-07-03/gold-buyers-are-having-difficulty-getting-their-gold-and-their-cash-jim-willie
Same stuff bin said for years, ya never know, maybe someone hasnt heard it.
Yep…..same stupid stuff……….Phyz , why have some other idiot looking after your money….
Always , like to point these things out, for the newbees………..lol
$1418……gold looking good…….