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Doc’s assessment of the correction in gold – When will the recent highs be reached again?

Cory
August 13, 2020

Doc and I recorded this editorial late in the day yesterday but I wanted to hold off and post it pre-market today. We discuss the correction in gold and how he sees gold trading for the rest of this year. We also discuss how the gold stocks will fair through the rest of the year. Finally a couple comments on other markets to watch as a barometer of risk tolerance.

Discussion
98 Comments
    cfs
    Aug 13, 2020 13:52 AM

    VIZSLA MAKES SECOND DISCOVERY DRILLING 1,245 G/T SILVER EQUIV. OVER 1.5 METRES WITHIN 421 G/T SILVER EQUIV. OVER 6.75 METRES AT PANUCO, MEXICO

    cfs
    Aug 13, 2020 13:54 AM

    Kootenay Silver drills five m of 608 g/t Ag at Columba

    2020-08-13 07:41 ET – News Release

    Mr. James McDonald reports

    KOOTENAY INTERCEPTS 608 GPT SILVER OVER 5 METERS WITHIN 229 GPT SILVER OVER 22 METERS AT COLUMBA PROJECT, MEXICO

    cfs
    Aug 13, 2020 13:56 AM

    Silvercrest drills 1.7 m of 73,595 g/t AgEq at Chispas

    2020-08-13 07:15 ET – News Release

    Mr. N. Eric Fier reports

    DRILLING SUCCESS CONTINUES AT LAS CHISPAS, BABI VISTA VEIN TAKES CENTRE STAGE, NEW RECORD DRILL HOLE: 1.7 METRES GRADING 635 GPT AU, 26,004 GPT AG OR 73,595 GPT AGEQ

      Aug 13, 2020 13:05 AM

      Humm…..that looks interesting…….. 🙂

      Aug 13, 2020 13:55 AM

      +1

      Aug 13, 2020 13:54 AM

      Silvercrest news release was not carried by brokerages( Schwab , TD Ameritrade) simply because the company’s name didn’t lead or was included in the Headline

    cfs
    Aug 13, 2020 13:57 AM

    Iamgold drills 3.8 m of 16.9 g/t Au at Monster Lake

    2020-08-13 07:10 ET – News Release

    Mr. Craig MacDougall reports

    IAMGOLD INTERSECTS MINERALIZATION ALONG STRIKE AT MONSTER LAKE, QUEBEC; PROVIDES RESULTS FROM 2020 EXPLORATION PROGRAM

    cfs
    Aug 13, 2020 13:58 AM

    Wallbridge drills 21.5 m of 5.32 g/t Au at Fenelon

    2020-08-13 06:37 ET – News Release

    Mr. Marz Kord reports

    WALLBRIDGE REPORTS STRONG GOLD INTERSECTIONS FROM AREA 51 AT FENELON, HIGHLIGHTING SIGNIFICANT UNDERGROUND RESOURCE POTENTIAL

    Aug 13, 2020 13:23 AM

    Kootenay Intercepts 608 gpt Silver Over 5 Meters Within 229 gpt Silver Over 22 Meters at Columba Project, Mexico
    http://pdf.reuters.com/htmlnews/htmlnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20200813:nCNW9yHyPa

      Aug 13, 2020 13:39 AM

      Oops, didn’t notice CFS has already posted above.

    Aug 13, 2020 13:24 AM

    Thanks CFS. Good stuff in those news releases. Hard to choose what to buy or add. Silvercrest does it again.

      Aug 13, 2020 13:27 AM

      In the meantime they continue the take down in the fraudulent paper PM markets.

      Aug 13, 2020 13:44 AM

      Added Silv and Vizsla. Ex beat us earlier this week on Silv and Wallbridge.

        Aug 13, 2020 13:57 AM

        Skate to where the puck is going…. 🙂

          Aug 13, 2020 13:49 AM

          …and make sure the puck doesn’t hit you in the back of the head while getting there. Something my Grandmother told me.

            Aug 13, 2020 13:07 PM

            Sound advice.

        Aug 13, 2020 13:54 AM

        Added more Metallic. Waiting for somebody with a large account to read the Silvercrest drill results. Need to roll over their facebook.

    Aug 13, 2020 13:27 AM

    I am now 112.5% long and still ready to buy more.

      Aug 13, 2020 13:45 AM

      Longer is better…

    Aug 13, 2020 13:01 AM

    Silvercrest- Gold- Silver Drill hole of the Millenium

    Aug 13, 2020 13:09 AM

    Silvercrest Babi Vista record drill hole 1.7 miters 635 gmt Au, 26004 gmt Ag= 73595gmt AgEq

    Aug 13, 2020 13:10 AM

    Got SILV?

    Aug 13, 2020 13:13 AM

    Restored to 15% position in SILV $8.80 – $8.90

    cfs
    Aug 13, 2020 13:17 AM

    I own some SILV and am sitting on nice profits….hard not to the way it has run up.
    But it worries me that a $1.1 billion company is running at a $44 million historical annual loss.

      Aug 13, 2020 13:36 AM

      Good Note……..interesting again…..hummm

      Aug 13, 2020 13:50 AM

      Silv: I think they are still an explorer like Great Bear. They just happen to be finding a lot of silver. Market cap growing as is the price of silver.

        Aug 14, 2020 14:39 AM

        While Great Bear is similar to Silvercrest in that they are the best-in-class Gold and Silver explorers, I’d submit that SILV is much more advanced than GBR as far as their resource estimates, economic studies, metallurgical studies, and a plan towards where development and production, where as GBR doesn’t have even have a resource estimate or any economic studies done yet.

      Aug 13, 2020 13:43 PM

      CFS, Silvercrest is going full bore in development & exploration to bring this mine to fruition. Remember, it usually takes 8-12 years to production, SILV IS ON TARGET FOR 6-7 years. It’s disheartening the last 3 months to see the silver PRICE up 50% while SILV HAS FLATLINED

        Aug 14, 2020 14:16 AM

        Agreed Marty. Silvercrest is Tier 1 top shelf project and their path from discovery to where they are now in development mode and moving toward production has been quite fast compared to most in the mining cycle, and is a result of some much interest because they continue to hit bonanza grade Silver.

        When I see that Silver has gone up 50% while SILV has flat-lined, then it gets me very interested and that is why I recently got back into Silvercrest for the 4th time now.

        I’ve made money each time trading it, but I think this time I may just build a core position to stay for the longer term journey to production or buyout. Looking forward to a few good years!!

    Aug 13, 2020 13:42 AM

    Irving drill results out.

    cfs
    Aug 13, 2020 13:53 AM

    Someone ought to teach Irving how to write headlines.

    Irving Resources Hits More High-Grade Veins at Omui Mine Site

    2020-08-13 09:38 ET – News Release

    VANCOUVER, British Columbia, Aug. 13, 2020 (GLOBE NEWSWIRE) — Irving Resources Inc. (CSE:IRV) (“Irving” or the “Company”) is pleased to announce assay results from multiple high-grade epithermal veins encountered in recent diamond drilling at Omui Mine Site, part of its 100% controlled Omu Gold Project, Hokkaido, Japan.

    Summary:

    Assays from diamond drill holes 20OMI-002 and 20OMI-003, the first holes Irving has completed at its Nanko target, confirm the presence of multiple gold-silver veins (please refer to the table below). Results include 12.59 gpt Au and 91.36 gpt Ag (13.81 gpt Au eq) over 2.01 m within 2.90 gpt Au and 29.5 gpt Ag (3.29 gpt Au eq) over 14.50 m in hole 20OMI-002. Hole 20OMI-003 yield one vein intercept of 8.15 gpt Au and 147.29 gpt Ag (10.11 gpt Au eq) over 1.76 m within 3.55 gpt Au and 69.24 gpt Ag (4.47 gpt Au eq) over 14.24 m and a second of 21.65 gpt Au and 538.75 gpt Ag (28.83 gpt Au eq) over 1.72 m including 56.10 gpt Au and 1,435.00 gpt Ag (75.23 gpt Au eq) over 0.60 m

    Aug 13, 2020 13:02 AM

    Matthew and Excelsior, have you ever bought shares that trade only in Vancouver and not over the counter in the USA? NFG.V does not trade here yet. Thanks.

      Aug 13, 2020 13:19 AM

      Bonzo, it rings a bell that I have but can’t sure now since I can’t remember any details.
      Btw, NFG trades on the TSX Venture Exchange in Toronto.

        Aug 13, 2020 13:20 AM

        Typo: “can’t be sure now…”

      Aug 13, 2020 13:59 AM

      Only seen that a few times bonzo. Use Interactive Brokers and you can buy the primary Vancouver stock listing, or any primary stock listing (Australian exchange, London Exchange, etc…)

        Aug 13, 2020 13:22 AM

        Thanks. I hope that before long I can buy NFG on the OTC. Looks like it has traded just 3 days on the Vancouver. And maybe if I wait gold will drop more and I can buy NFG for a bargain.

    Aug 13, 2020 13:01 AM

    (WVM) (WVMDF) West Vault Closes Fully Subscribed Brokered Private Placement Including Investment from Eric Sprott

    10:08 am ET August 13, 2020

    “The closing of both the Non-Brokered Private Placement and the Brokered Offering allows us to complete the purchase of the 25% interest in our Hasbrouck Gold Project not already held by West Vault, thereby consolidating 100% ownership of the asset. We expect closing of this acquisition to be completed imminently, and we look forward to continuing our work in Nevada to advance the development of Hasbrouck in due course,” stated R. Michael Jones, CEO of West Vault. “We are also pleased to welcome Eric Sprott as a new shareholder of West Vault and appreciate the continued support of other key institutional shareholders including Sun Valley Gold LLC and Ruffer LLP.”

    https://www.westvaultmining.com/news_releases/west-vault-closes-fully-subscribed-brokered-private-placement-including-investment-from-eric-sprott

      Aug 13, 2020 13:20 AM

      I’m glad the West Vault team (same guys behind Mag Silver & Platinum Group Metals) got Waterton out of the picture by buying out their 25% stake to now own 100% of the project. That was one of the sticking points with investors, and now it’s a moot issue.

    CFS
    Aug 13, 2020 13:56 AM

    ISRAEL AND UAE PEACE TREATY

    https://www.youtube.com/watch?v=FkdLO-6rrtw

    CFS
    Aug 13, 2020 13:08 AM
    Aug 13, 2020 13:02 AM

    Doc, are you still thinking that 1850 is a correction low in gold, or what are you opinions on where gold and silver will go down to before we return to the upward trend?

      Aug 13, 2020 13:04 PM

      Pardu, I gave the range of 1850-1900—-we already hit that. We could go down there again but as stated don’t see a massive sell off. I think we could form a trading range for a couple of months and then start moving higher again.The monthly strength indicator I mentioned is what you want to watch and with the sell off is still holding up very nicely. I’ll be adding to my positions in the near future and pick up some other stocks that are correcting that I don’t own.

    Aug 13, 2020 13:22 AM

    WOW What to make of the huge struggle with Biden ,Trump . Kamala obviously more attractive personally , than boring Pence . Will Trump and Pence really debate Dems , or avoid it ?? Postma is wrong about the dip in gold, GOLD WILL RECOVER much sooner than he thinks as international situation is very nerve racking esp CHINA, AND RUSSIA making military moves . Tiwan and hong kong at risk . Notice silver and gold bars sold out in some sizes . Currency crashes posible as well. Yes 90% sure Trump loses . best of health and wealth to lyou all rsh

      b
      Aug 13, 2020 13:52 AM

      The americans have made “military moves” as well.
      They threaten the entire planet with their nuclear capable missiles positioned on the Russian boarder in Poland.
      They continue to arm isis etc

      Like dropping the american dollar due to the americans weaponizing it I view the Russian ,Chinese,Iranian etc moves as countering the americans.

      Aug 13, 2020 13:03 PM

      Russell,
      Do you have portraits of Stalin, Mao and Hitler in home?

      Today Trump help further the Middle East Peace Agreement!

      What sounds better?

      MIDDLE EAST peace agreement!!
      Middle East PEACE agreement!!
      (or) Middle East peace AGREEMENT!!

      Aug 13, 2020 13:16 PM

      Hi russell…..I wager you a one ounce silver coin or bar , that Trump wins….
      Will you accept my bet….Waiting to hear back from you.

        Aug 13, 2020 13:26 PM

        I think you’re right, Tony.

          Aug 13, 2020 13:02 PM

          +2..

            Aug 13, 2020 13:34 PM

            Billionaire Grundlach picks Trump to win. Better a boring Pence than a psychopathic narcissist like Kamala. Biden’s wife and Biden himself had better watch out for Kamala.

            Aug 13, 2020 13:28 PM

            Kamala Harris Is Basically Obama-Clinton 2.0, But Worse
            https://www.youtube.com/watch?v=Kx2hChpAG9I

        Aug 13, 2020 13:25 PM

        Trump is too strahge to predict so NO i wont bet but i do think hemqaytry to sieze bllots in detroit charlotte , etc to try and win using usa army troops. if he does expect refusalto obey illegal orders TRUMP IS A WNABEE DICTATOR

        Aug 13, 2020 13:25 PM

        NO

          Aug 14, 2020 14:28 AM

          NO…….the best thing you have ever said……Russell… 🙂

      Aug 13, 2020 13:08 PM

      Anyone listening to Russell, can join him in the LOST BALL IN HIGH WEEDS SECTION….
      So far…..Russell has been spot on WRONG over the last year, maybe, he will get one right, no one bats zero forever…..lol

        Aug 13, 2020 13:11 PM

        For entertainment purposes only………Russell is a good guy…. 🙂

          Aug 13, 2020 13:12 PM

          Russell, I left you a note above on your REIT idea….

    Aug 13, 2020 13:43 AM

    Here we go again. They found another reason to smash paper gold and silver. I guess someone paid off the debt.

    Aug 13, 2020 13:53 AM

    My Guy nailed the short and I’m waiting to reload:::::

    It seems the timing of our DGP sale to minimize gold exposure was perfect, immediately prior to the worst 1-day sell-off in 7 years. We’ll re-enter it when timing seems best.
    Do not chase gold & silver or related stocks higher. The prudent entry point should prove to be lower.

      Aug 13, 2020 13:01 PM

      What happened, Bill? I reloaded yesterday and the day before and am already much better off because of it! I’m smoking the ETFs today by roughly 2 to 1.

    Aug 13, 2020 13:13 PM

    Not sure if theres proof of interm top?
    Always a bounce after a massive sell off.
    Ill wait till it settles out. Still 80% invested.

      Aug 13, 2020 13:22 PM

      I’m just kidding around about my very short term good luck but I do doubt all the bears who think we are in for any serious downside here.
      At least regarding our miners, I do not think this is just a bounce. Everyone and their dog thinks we have a significant top here. It’s 2016 all over again when expert after expert called for one top after another but never got one right.
      Lots of self-professed contrarians aren’t nearly the contrarians they think they are right now.

    Aug 13, 2020 13:14 PM

    I tooks some profits on the spikey ones.

    Aug 13, 2020 13:21 PM

    Ps I go bonkers if i look at this stuff all day. Lol
    Fixing the RV and installi g a cell booster for a friend.

      Aug 13, 2020 13:13 PM

      I want to RENT a big RV……..for TWO MONTHS…….got any suggestions….

        Aug 13, 2020 13:51 PM

        LOL depends where you are OOTB. Renting’s smart as they all need babysitting.
        Have to check where ya live if there a rental…diesel pusher or something.
        I bought a older 3500 Duramax dully with a 4 year old Lance 1172 dual slide camper for $45,000….their a $190,000 CND that just stupid to buy these things new. Their not an investment lol Has a built in jeny… the works.

          Aug 13, 2020 13:01 PM

          Bill,…………I am in the Heart of RV land. making……….INDIANA…..

            Aug 13, 2020 13:24 PM

            Jerry…Watch out you dont end up like this guy , WTSHTF…………….

            https://www.youtube.com/watch?v=cRWuwrjiEeM

            Aug 13, 2020 13:41 PM

            Ha, Ha………..good one…….I forgot all about that song…… 🙂

            Aug 13, 2020 13:04 PM

            OOTB
            And your asking me ya big silly!?!?
            I don’t live in mine and I,m on ferries all the time on the coast of BC. could be $200 for a cross with a bigger unit.. the camper $75 … Im cheap…lol
            Trucks handy with other gigs while I store the camper if need be. Different strokes.

    CFS
    Aug 13, 2020 13:38 PM

    WARNING…..WARNING…….WARNING………WARNING

    https://www.youtube.com/watch?v=v-cdE729ONc

    Aug 13, 2020 13:37 PM

    Gold update!

    Upon spending another day at the drawing board I’m strongly of the opinion that the daily cycle topped as obvious but the intermediate did not! Therefore Gary’s call was premature and if you all remember i had two scenarios playing out. One was topping out second week of August. Almost hit to the tee 1-3 days off. It turns out this was a daily cycle top. The other scenario which I was in big favor off few weeks back when I said cycle bottom March 16, cycle top middle of October and cycle bottom November/December.
    As stated before the bottom is not in.. 25% was used to purchase impact and my etf bull, however we still have another drop or two to come.. the bottom could take another 4-5 days, but will only be a daily cycle low. Up we go from there for another 42-52 days..

    This is how I’m seeing it currently.. things can change. As long as we don’t make bad bets we are good. The bull is alive and well.

    Gold will go lower possibly on Monday/Tuesday.. I see one more up day.

    Glen

      Aug 14, 2020 14:05 AM

      The bull is alive well for months to come and there will be more “expert” roadkill every step of the way.

      Aug 14, 2020 14:03 AM

      I posted this yesterday…….
      Glen….I agree with your statement ..”Therefore Gary’s call was premature ”
      On August 13, 2020 at 9:56 am,
      OOTB Jerry says:

      https://kingworldnews.com/gold-surges-attempt-to-paint-the-gold-close-did-not-fool-anybody-plus-this-has-never-happened-before/

      On August 13, 2020 at 9:57 am,
      OOTB Jerry says:
      Makes Gary’s numbers harder to believe……..JMO

      Aug 14, 2020 14:42 AM

      Glen, I think you might have it opposite. Today will probably be a down day.

        Aug 14, 2020 14:36 AM

        Yep. So far most miners are down on the day, as are the 4 main Gold & Silver mining ETFs – GDX, GDXJ, SIL, SILJ all down about 2-3% each.

        Aug 15, 2020 15:59 AM

        Doc,

        Up or down one day or not my consensus is we have another drop coming from what i see..
        Get ready to buy!

    Aug 14, 2020 14:48 AM

    Hey jerry,

    Yes you have been calling a good game.. I’m with ya :)..
    Thanks for your kind words few days back. I read everything just been hard to respond.

    Matt good point.. it seems the bigger drop will come from higher grounds. Let’s wait and see the next few days.

      Aug 14, 2020 14:30 AM

      Glen…….thanks….. There is a lot of info around here, so, I understand…

    Aug 14, 2020 14:55 AM

    Looks like the fair and regulated markets say this is a down day.

    Aug 14, 2020 14:22 AM

    Years ago, while blogging at Miles Franklin and still having faith in gold, Andy Hoffmann, “The Ranting Andy”, wrote that the major gold etfs almost always peak in the first 45 mins of trading. Well, it still appears to be the case.

      Aug 14, 2020 14:33 AM

      N 1968……..Thanks for posting that…..I kind of miss “Ranting Andy”…..
      Is he still around….last time I heard ….he was off on the bitcon trick…..

    Aug 14, 2020 14:42 AM

    Oh yes, Andy is still around https://cryptogoldcentral.com/ https://mobile.twitter.com/andy_hoffman_cg?lang=hr pimping bitcoin. I miss him too. He wrote some very inspirational missives over the years. I believe he was the one who dug up Bill Holter from the ash heaps of histoty. Andy claimed he was the only sell side analyst for pm shares at major investment firms in NY at the first half of the last bull market. He never believed in shares, metals yes.

      Aug 14, 2020 14:53 AM

      Interesting on Holter…….Thanks for the link…..although , I am not interested in bitcon…
      I might swing in and hear one of his rants…. 🙂

    Aug 14, 2020 14:54 AM

    Sprott Money News Weekly Wrap-up – 8.14.20 w/ Eric Sprott & Craig Hemke

    “Eric Sprott recaps a volatile week in the precious metals and discusses some specific mining companies that have caught his eye.”

    https://youtu.be/14m7eDZBWOI

      Aug 14, 2020 14:21 AM

      Listen to Eric’s comments on Chesapeake, Wallbridge, Jaguar, and Silvercrest…. oh my…

    Aug 14, 2020 14:23 AM

    Dr. Quinton Hennigh: Cycle of Inflation Sets Stage for Gold’s Meteoric Rise

    Palisade Radio – August 14, 2020 #AudioInterview

    “Tom welcomes back geologist Dr. Quinton Hennigh to the show. Dr. Quinton has an excellent track record of attracting capital while lending his expertise at making exploration discoveries.”

    “Dr. Quinton discusses recent US dollar weakness and growing concerns around inflation and government spending. We could be entering a period like in the late 1970s, which was excellent for gold as prices moved higher and stayed high. If this happens again, mining companies could become self-sustaining and self-funded.”

    “He discusses what interests him from a geological perspective when exploring new areas for new deposits. He is delighted to help several companies that are likely to have world-class discoveries. He believes the next few years will be a golden opportunity.”

    https://youtu.be/wawDl7leEgg?t=35