How Far Can This Bump In Metals Go?
Jordan Roy-Byrne, Founder of The Daily Gold joins me today to look at the uptrend in yields and the bounce in metals. the major question is, how long will the bounce last?
Click download link to listen on this device: Download Show
Click here to visit Jordan’s site for more metals and stock commentary.
It is nice to see some Explorers with attention-grabbing newsflow getting a bid in 2018 despite all the negative sentiment we see most days.
Here are 10 that had nice surges (many of them in the last few months during the Summer Doldrums).
EVM.V Evrim
TIG.V friumph
GLDN.V Golden Ridge
GBR.V Great Bear
SIC.V Sokoman Iron (gold discovery)
KTR.V Kintavar
HVG.V Harvest
PAC.V Pacton
GUG.V Gungnir
RNX.TO Royal Nickel (Gold discovery)
There many more of course, but just making the point that exploration is still receiving investor interest. Follow those companies are much more driven by newsflow, marketing hype, and herd trending.
There were also plenty of producers that performed well coming out of tax-loss selling season from last December 2017 (actually from the 13th the day of the Fed Rate hike) for the first 4 months or so of 2018.
This rise on more established companies for months earlier in the year was based on good fundamentals, but was fairly easy to trade and project in advance just based on normal season trends like the Q1 Run. I know some of us here on the KER positioned accordingly in Dec of 2017 and rode that up, so this isn’t rocket science.
It just gets tiresome when so many commentators and articles act like there wasn’t any opportunity this year, when their clearly was.
It was also just as easy to “Sell in May and go away” until the Summer Doldrums played out, and then to position at the end of the summer for the rally from August into September. These markets have not rewarded investors that just sat on their hands the last few years, but there have been multiple tradable rallies each years for those that were paying attention, and took action.
Happy trading.
Even yesterday with the Silver price going nowhere the miners were starting to anticipate a move higher in the PMs:
Ticker – Silver Producers Company Name – % Chg on day (09/12/18)
SCZ.V Santacruz Silver Mining Ltd. +11.11%
HL Hecla Mining Company +8.89%
EXN.TO Excellon Resources Inc. +6.80%
AG First Majestic Silver Corp. +6.25%
IPT.V IMPACT Silver Corp. +5.26%
CDE Coeur Mining, Inc. +5.01%
FSM Fortuna Silver Mines Inc. +4.52%
SVM Silvercorp Metals Inc. +3.88%
EXK Endeavour Silver Corp. +3.70%
SSRM SSR Mining Inc. +3.45%
TAHO Tahoe Resources Inc. +3.30%
PAAS Pan American Silver Corp. +2.70%
GPL Great Panther Silver Limited +1.89%
FRES.L Fresnillo PLC +0.32%
Ticker – Silver Developers & Explorers Company Name % Chg on day (09/12/18)
AUU.V Aura Silver Resources Inc. +25.00%
CLZ.V Canasil Resources Inc. +22.22%
SMI.AX Santana Minerals Limited +16.67%
BTT.V Bitterroot Resources Ltd. +15.00%
SNG.V Silver Range Resources Ltd. +11.54%
SVE.V Silver One Resources Inc. +11.11%
IVR.AX Investigator Resources Limited +9.09%
VML.V Viscount Mining Corp. +8.70%
SIL.V SilverCrest Metals Inc. +5.67%
NUAG.V New Pacific Metals Corp. +3.85%
MAG.TO MAG Silver Corp. +3.73%
DEF.V Defiance Silver Corp. +1.96%
DV.V Dolly Varden Silver Corporation +1.33%
AUMN Golden Minerals Company +1.19%
AXU Alexco Resource Corp. +0.70%
(KAI.AX) (MPJFF) SIGNIFICANT GOLD NUGGET DISCOVERIES AT CROYDON PROJECT
“256 Gold nuggets have been discovered….” (Pilbara Gold Project in Western Australia)
https://www.asx.com.au/asxpdf/20180913/pdf/43y9d4026wjg7c.pdf
For those that liked the old Claude Resources, their team is at it again…..
(GFG) (GFGSF) GFG Signs Option and Earn-In Agreement with Newcrest to Advance the Rattlesnake Hills Gold Project
“We are pleased and excited to have Newcrest as a partner to advance our Rattlesnake Hills project. They bring world class exploration experience and knowledge in alkalic gold systems,” stated Brian Skanderbeg, President and CEO of GFG, “and the opportunity to partner with one of the world’s largest gold producers validates the brownfield and greenfield opportunities that exist on the Project. This new partnership provides GFG and our shareholders with exposure to two active and fully-funded, district scale gold projects with significant upside in Wyoming and in Ontario, Canada.”
https://ceo.ca/@nasdaq/gfg-signs-option-and-earn-in-agreement-with-newcrest
(KS) ((KLSVF) Klondike Silver to Participate in the 2nd Annual RAI$E on the West Coast Small-Cap Investing Conference in Vancouver, BC, September 14
https://ceo.ca/@thenewswire/klondike-silver-to-participate-in-the-2nd-annual-raie
(KNT) (KNTNF)K92 Announces Further High-Grade Kora Drill Results from Kora Northern Extension
@nasdaq on September 12, 2018
– Drill Hole KMDD0098 records multiple intersections including 4.54 m at 58.63 g/t Au, 6 g/t Ag and 0.63% Cu (59.63 g/t AuEq) plus 7.70 m at 8.81 g/t Au, 63 g/t Ag and 0.58% Cu (10.49 g/t AuEq)
– Drill Hole KMDD0097 records multiple intersections including 4.15 m at 20.83 g/t Au, 7 g/t Ag and 0.20% Cu (21.21 g/t AuEq) plus 8.25 m at 5.91 g/t Au, 7 g/t Ag and 0.49% Cu (6.76 g/t AuEq)
– Drill Hole KMDD0095 records multiple intersections including 10.70 m at 44.02 g/t Au, 2 g/t Ag and 0.27% Cu (44.59 g/t Au Eq)
– Drill Hole KMDD0092 records multiple intersections including 3.40 m at 23.57 g/t Au, 9 g/t Ag and 0.17% Cu (23.95 g/t Au Eq)
https://ceo.ca/@nasdaq/k92-announces-further-high-grade-kora-drill-results-ee5d7
(ANX) (ANXGF) Anaconda Mining Provides Progress Update for the Goldboro Gold Project Bulk Sample
by @newswire on September 11, 2018
https://ceo.ca/@newswire/anaconda-mining-provides-progress-update-for-the-goldboro
(NHK)(MIMZF)Nighthawk Intersects 68.00 Metres of 2.24 Gpt Gold (uncut), Including 6.40 Metres of 5.70 Gpt Gold and expands Colomac’s Zone 3.5 down plunge
by @newswire on September 11, 2018
https://ceo.ca/@newswire/nighthawk-intersects-6800-metres-of-224-gpt-gold
(FPC) (FPRGF) Falco Announces $10 Million Secured Loan With (OR) Osisko Gold Royalties and Provides Corporate Update
by @nasdaq on September 11, 2018
“The loan will be used for the advancement of the Horne 5 Project and for general corporate purposes.”
https://ceo.ca/@nasdaq/falco-announces-10-million-secured-loan-with-osisko
(GBR) (GTBDF) Great Bear Closes $10,000,000 Private Placement Including $5,700,000 Investment from Rob McEwen and McEwen Mining, Receives Additional $1,130,000 from Warrant Exercises
by @newsfile on September 11, 2018
https://ceo.ca/@newsfile/great-bear-closes-10000000-private-placement-including
(ZNX) (CZXMF) ZincX Resources Provides Exploration Update at Akie
by @fscwire on September 12, 2018
https://ceo.ca/@fscwire/zincx-resources-provides-exploration-update-at-akie-03b9f
PIO: Pioneer Mining commences at Sinclair
https://www.asx.com.au/asxpdf/20180913/pdf/43y9frmlqwbjj5.pdf
XAU looks good:
http://schrts.co/J3GxW9
Gold looks good:
http://schrts.co/w7cXu3
Ive gotta say, having visited various economic and precious metals sites over the last couple of weeks, the bearish sentiment within PMs seems to have reached extreme levels not seen since the lows of 2015. The question is: When does the wheel turn for gold and silver? Also, when it does turn, how far can the rally go?
The sentiment out there for gold and silver at the moment seems just as bearish if not moreso than the lows witnessed at the end of 2015. The question is: When will the wheel turn for gold and silver? Also, how far will the rally go?
It is similar, but 2015 was still much more bearish. Even in Nov/December 2015 and Jan 2016 people were leaving the sector in droves, claiming to never come back.
We were ridiculed relentlessly about buying worthless miners during tax loss season in Dec 2015 and then “holding our noses and buying” jr miners at the start of the year in January 2016.
We all know how that worked out and why buying during the negative sentiment and depressed prices, after Gold put in a clear double-bottom pattern worked out.
Sentiment then was literally in the 0-5 range, where lately it has been in the 12-15 range. It did dip down to 9 in the Summer Doldrums of late July / early to mid August, which was the clue to start accumulating again for the inevitable bounce.
The question remains, how much juice will there be to this bounce?
Will it just pop up for a few more weeks and then roll over for one last down leg into year end, before resuming the uptrend in 2019, or will the rally continue into the Fall and get some legs?
That is the million dollar question indeed. I feel as though we may get a relief rally of sorts but the PMs just arent ready to make a sustained move at this stage.
I agree. Will the next big sustained move get started now or will gold go up $70 to $100 before coming back to retest 1200?
The most popular scenario seems to be a bounce followed by a new low with the runner-up being a bounce followed by a retest of the low. So a sustained big move from here might be more likely than most think.
18 years of XAU:
http://schrts.co/hG7McN
Platinum…….finally catching a bid
Some food for thought amidst all the recent noise about the so called “extremely favourable COT structure for gold and silver.
This says it all…………..BANKS AND CFTC are Cons…….PERIOD
: There is nothing in the CFTC data to justify these statements .
I certainly agree that banks are frauds. Its part and parcel of the industry. Here in Aus our major banks are under investigation for many deceitful undertakings.
One of your best guests….