The Fed Funds rate went negative for the first time ever
Criag Hemke joins me for a quick comment on the Fed Funds rate dropping into negative territory for the first time ever. This helped provide a bump in most asset classes but the precious metals and PM stocks are outperforming.
Click here to visit Craig’s site – TF Metals Report
Upcoming Webinar – May 8th @ 12pm PDT (3pm EDT) – TriStar Gold. The Company owns 100% of the Castelo de Sonhos gold project, located in Pará state, Brazil. The Company has recently completed a US $8 million finance with Royal Gold Inc. with proceeds used to advance the project to completion of a feasibility study in 2020.
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+1 Agreed Marty. Thanks Cory for conducting great interviews day after day.
It is appreciated!
Craig always makes me feel like he’s on my side!
Craig Hemke from TFMetalsReport.com and Chris Talk Metals & Markets
by @TheTechnicalTraders on 7 May 2020
https://ceo.ca/@thetechnicaltraders/craig-hemke-from-tfmetalsreportcom-and-chris-talk-metals-markets
Junior Gold Miners Ready To Run
by @TheTechnicalTraders on 8 May 2020
“Gold, the bell-weather safe-haven asset, initially collapsed when the US stock market started the massive selloff in late February 2020, then recovered to higher price levels near $1785 recently. Since reaching these levels, Gold has stalled into a sideways price flag near major resistance.”
“Silver, on the other hand, is trading near $15.60 and has yet to really recover to anywhere near the levels it had achieved in early January 2020 (near $18.60).”
“Well, GDXJ, the Junior Gold Miners ETF, is suggesting a very strong price rally is taking place that may push both Gold and Silver substantially higher. Key resistance exists near $46.50. Once broken we believe a very strong price rally will take place pushing GDXJ price levels to $51 or $52. After that, a brief downside rotation will potentially retest the $47 to $48 levels before an even bigger upside rally takes place. What is even more important is that we believe this big breakout move could start as early as next week, May 12th or after.”
https://ceo.ca/@thetechnicaltraders/junior-gold-miners-ready-to-run
“Be Careful What You Buy.” Why Gold and Silver Are Good Bets Right Now – Weekly Wrap Up (May 8, 2020)
By Craig Hemke & Eric Sprott #AudioInterview
As coronavirus and containment measures continue to wreak havoc on the world economies, host Craig Hemke and Eric Sprott sit down to discuss all the gold and silver news you need to weather the storm. In this edition of the Weekly Wrap-Up, you’ll hear:
> Why silver is about to pop
> What’s behind the terrific week for the mining shares
> Are negative interest rates coming?
Last week there was a Sprott did a mention of one of my beleaguered explorer/developers (ORX) (ORFDF) Orefinders, which gave it a nice bump this week.
People are finally starting to wake up to Orefinders prospective Gold development properties, in addition to their kickers of 24% interest in (MIS) Mistango River Resources, and their 10% interest in (PORE) PowerOre Inc.
In this episode Eric also gets into Kirkland Lake operational results, the Wallbridge / Balmoral merger completing and their pipeline of projects, and Freeland Gold’s recent exploration success.
Actually ORX is up 15% today, so it’s really starting to move. It has felt good to see my underwater position got to green over the last 2 weeks, as I had almost given up on it during tax loss selling 2019, but I decided to give them until this year to get their act together, and now they are finally getting noticed. Refeshing!!
Nice looking bullish action on the Orefinders chart. Here is one posted by a technician over at ceo.ca.
@fringe_remnant – “$ORX Daily Chart”
http://cdn.ceo.ca/1fbatop-sc%20-%202020-05-08T121100.327.png
I saw Freegold Ventures PR when it came out the other day and was impressed with the drill results. I watched it run big and wrote it off as a miss. Then a tree fell on our house and I got side tracked. The noise was worse than the damage. I noticed would have had several chances to pick it up, but didn’t. Then this morning Eric Sprott said he bought 19.5% of it and the cost of the gold was $1 based on 6 mil ounces with a $6 mil market cap. Then he said that some of the “views” on it think they may have found the source for the other 6 mil ounces. The. He says South 32 out of Australia has bought in for the copper option. So I bought some Freegold Ventures … drum riff ending.
Nicley done David. Yeah I heard Eric’s comments on Freegold and that they may be onto something larger. We’ll see how it goes, but good luck in your position.
Ex:
Thanks. If I say something stupid, feel free to let me know. I don’t want to mislead others.
Any suggestions are welcome. I get bashed all the time on issues I know about. Bashing on things I have lesser knowledge about is a good thing.
I prefer a spirited debate looking at all sides of the issue over bashing. If there are red flags on a project, jurisdiction, management team, etc…, even on a company I like, then I don’t shy away from bringing it up.
As for Freegold Ventures, I don’t know much about it but took a look when DT brought it up the other day. Then I heard Eric Sprott discussing it on that broadcast regarding the number of ounces , but it was that there have been 6.7 million ounces of placer gold found in that area in the rivers and streams, and the prior open pit produced about 7 million ounces of gold. However, I believe they only have 2.3 million ounces of gold in their PEA. Would need to dig a bit deeper, but that is what I saw the first time I looked, thinking (6+ million ounces of gold?? – how’d I miss that? but then saw it was both alluvial gold mining and their old open pit that previously produced that…. big difference).
Still, Alaska is mineral rich, and clearly that Golden Summit area they are in has a history of mining gold, so if they found the source, I believe what Eric was alluding to is that they may have found the “next 6 million ounces”. More exploration work is needed to work on proving out that thesis of course. It looks very prospective though.
I was positioning in HighGold in Alaska but they’ve only got 750,000 ounces at their Johnson Tract project in Alaska, and they have another 2 projects in the Timmins, Ontario region. Now I’m thinking I may have been better off speculating in Freegold Ventures instead.
Alaska projects have really been doing well lately. Even Northern Dynasty has been running once again, on the belief that the Trump administration is speeding up the process for permitting Pebble. We’ve heard that story about a dozen times over the last decade, but they may actually get it done this time, so that’s another thing to keep tabs on (not recommending due to all the false starts, but if it finally goes into development, that will have a lot more people looking at Alaska again).
Ex:
Thanks for the great comments. I had followed the Northern Dynasty thing a few years ago and had actually owned some Bear Creek in Peru. The problems were similar…just different governments. In the end, I just moved along. I am not confident that environmental opposition can be solved by government edict. We will see.
Here’s the next takeover of a Mid-Tier Gold producer (TMAC Resources) that turned into a real dog, and this is very similar to what happened with Primero, where the assets were fundamentally good, but the management of the company ran it into the ground and the share price was just decimated over the last 2 years.
At least another producer is putting them out of their misery finally:
_______________________________________________________________________
TMAC to be Acquired by SD GOLD
by @businesswire on 8 May 2020
“TMAC Resources Inc. (TSX: TMR) is pleased to announce that it has entered into a definitive agreement with Shandong Gold Mining Co. Ltd. (SH:600547; SEHK:1787) , through its wholly-owned, overseas subsidiary Shandong Gold Mining Co., Limited, pursuant to which SD GOLD has agreed to acquire all of the outstanding shares of TMAC at a price of C$1.75 per share in cash.”
“The total equity value pursuant to the Transaction is approximately US$149 million on a fully diluted basis. The Offer Price represents a premium of 52% to TMAC’s 20-day volume-weighted average price as at May 6, 2020.”
SD Gold will be the real winner here, similar to how Silvercorp just scooped up Guyana Goldfields on the cheap after their management team decimated their shareprice over the last 2 years as well.
It is interesting that in both cases it is the Chinese companies taking over the distressed Mid-Tier Gold producers. Last year it was the Australian companies on the hunt.
Regardless, I expect to see more consolidation of the wounded and distressed producers while they are still on sale relative to where they should be with the high gold prices in the $1700s.
Speaking of Mergers…. Wallbridge and Balmoral have officially tied the knot.
(WM) Wallbridge Announces (BAR) Balmoral Securityholder Approval of Arrangement
by @newswire on 8 May 2020
https://ceo.ca/@newswire/wallbridge-announces-balmoral-securityholder-approval
I see where Sprott bought more Balmoral. He must be already loaded up on Wallbridge.
Gold Telegraph ✪ @GoldTelegraph · 1h on Twitter:
“One of China’s biggest gold producers, Shandong Gold, has entered into an agreement to acquire Toronto-listed TMAC Resources for US$149 million”
“It is worth noting China’s Zijin Mining also purchased Continental Gold in March.”
“China rushing to buy gold deposits?”
https://twitter.com/GoldTelegraph_/status/1258766695566581761
Gold Mining Stocks About To Skyrocket? 10-Year Breakout In Play?
by Chris Kimble | May 7, 2020 | Kimble Charting
Luke Gromen @LukeGromen · 21h on Twitter:
“If US rates go negative enough, ~$7T in global USD rsvs will begin bidding for gold. ”
“The world produces ~$120B of gold per year at current prices.”
“US official gold at market price is currently 5% of foreign-held USTs outstanding; that compares to 20% in 1989 & 133% in 1980.”
John J. Hardy @johnjhardy · 21h on Twitter:
“Market pricing negative Fed funds rate for December 2020 – first time negative policy rate price. #FOMC #Dollar”
BoE warns UK set to enter worst recession for 300 years
Central bank predicts 30 per cent drop in output in first half of 2020 but opts against new stimulus
Chris Giles – (05/07/2020) – Financial Times
“In its monetary policy report, the central bank presented rough and ready predictions for the economy, suggesting that output would slip 3 per cent in the first quarter followed by a further 25 per cent fall in the second. This would mean an almost 30 per cent drop overall in the first half of 2020, the fastest and deepest recession since the “great frost” in 1709.”
“The economic projections came with a warning to Britain’s banks that if they tried to stem losses by restricting lending, they would make the situation worse.”
https://www.ft.com/content/734e604b-93d9-43a6-a6ec-19e8b22dad3c
I guess we needed a bad employment #s today to have gold go up. The General Markets did well on their massive profits and bright future. Unfortunately I live in the other universe next to the parallel one, and things don’t make sense over here either.
Thanks Cory, for your day in day out , professional, persistent perseverance.