Robert Sinn – Technical Levels In Gold and Silver, The PDAC Curse Continues, And Activity In The Yukon
Robert Sinn, known as Goldfinger over at CEO.ca and writer at the Energy and Gold website, joins us with his technical outlook, thoughts on seasonality and the PDAC Curse, and the recent activity and trading action amongst companies operating in the Yukon. We start off by having Robert share the technical pricing support and resistance levels that he is watching for in gold and silver, and looking at their level importance in connection with varying investors time horizons.
Next we shift over the pattern of seasonality we see in the precious metals sectors from year to year, especially as it relates to the buying pressure coming out of tax loss selling season in the first quarter, only to get faded with selling pressure leading into late February and early March. This coincides right in time for the annual PDAC conference; earning it the nickname the “PDAC curse” after happening fairly consistently for over 2 decades now. Robert points out some of the seasonal factors like the gold’s typical weakness in March, in conjunction with companies rushing their best newsflow out in the weeks leading up the conference, where investors have gotten wise to this pattern which precedes the inevitable capital raising window that occurs right afterwards, to fund summer drill programs.
We wrap up with getting Robert take on the dichotomy between the trading action in shares that clearly are running low on funds, versus companies that are still well cashed up to keep moving their projects and work plans forward for the balance of this year and into next. He highlights Banyan Gold (TSXV:BYN)(OTCQB:BYAGF) as company that is quite cashed up, exploring to expand their resources, and has been trending sideways holding onto most of their gains during this tough period for the sector. This brings up a larger discussion about how area plays can pull in more investor interest, and how there has been a flurry of M&A activity and majors taking over or taking key strategic positions in Yukon developers recently, which has been a net positive for the sector and that jurisdiction.