When Will We See The PMs Breakout?
Doc joins me today to share his thoughts on the precious metals and the inverse relationship with the USD. With the USD breakdown gold and silver were unable to breakout to the upside. We also discuss how the PM stocks would shake off a pullback in the underlying metals price. This is a great market to be a buyer but it will still take some time for a takeoff.
Click download link to listen on this device: Download Show
GG and AUY making up for lost time. They could consolidate here (the 20 DMA) for a couple of weeks to allow the MAs to catch up. That would be bullish. They are trying to make up for lost ground.
Spanky, I like those 2 stocks—bought them awhile back at their lows. They’ll come back again and it may be the last time. I’m prepared for that and will add more–not investment advice.
(AUY) Yamana Gold Reports Fatal Accident at Gualcamayo Mine
by @nasdaq on February 2, 2018
https://ceo.ca/@nasdaq/yamana-gold-reports-fatal-accident-at-gualcamayo-mine
DOC,
I nibbled some UEC. I hope it drops further.
Cali, it should drop more—nibbling is okay. I’ve done that with stocks and then hit them harder when they get into my buy zone.
Exactly my strategy Doc. Still hoping for a gapfill at $1.15 on UEC.
Doc, do you pay attention to shipping sector? There’s some great bargain at the moment. With global economy improving a bit, shipping rates are climbing albeit at a slow pace. I own SSW in my portfolio. Pays nice dividend too.
You’re right Cali. I bought NMM over a year ago and continue to hold it as it moves up. The BDI has been slowly moving up although it currently is moving down again. The lows and highs of these movements continue to move higher. I will also start accumulating oil tankers more as the year unfolds. Inventories of oil continue to move lower and oil prices are slowly strenghthening. The purchasing of “newbuilds” will drop considerably next year with scrappage increasing.
Sold 1/2 when UEC hit $2 (THANKS RICK ACKERMAN and KEREPORT!)
Would have sold 100 percent, but nobody bought the 50 percent in the other account at $2 … and I got distracted by other things.
(Am not complaining … the remaining UEC is essentially free … perhaps even a little better) 🙂
https://www.youtube.com/watch?v=mtjPXsCSYuM Trey Gowdy Says Adam Schiff Obstructed Justice In Attempts To Block Courts From Releasing Fusion GPS
Mueller asked for delay in sentencing of Flynn.
I would suggest this is because Mueller knows the FBI lied to court in obtaining information via spying illegally on Flynn.
Volume of gold buying in India appears to be increasing.
Don’t know cause……just an observation.
Bitcoin……getting slammed by Indian govt……might be the reason…..
Here ya go Professor…….you get the I(incomplete) for the day……. 🙁
https://www.zerohedge.com/news/2018-02-01/india-officially-declares-bitcoin-not-legal-tender-or-coin
Yep – Bitcoin was in rough shape today and the news out of India wasn’t doing it any favors.
Bitcoin now at $8400. It really fell out of bed when the futures contracts hit the market in December. Coincidence….. I think not…. 🙂
Bitcoin Bounces Hard But Cryptocarnage Remains
02/02/2018
John McAfee – Verified account
5:09 PM – 7 Dec 2017
“Bitcoin now at $16,600.00. Those of you in the old school who believe this is a bubble simply have not understood the new mathematics of the Blockchain, or you did not cared enough to try. Bubbles are mathematically impossible in this new paradigm. So are corrections and all else.”
https://twitter.com/officialmcafee/status/938938539282190337?lang=en
We all laughed about what a completely absurd and nonsensical statement that was from John McAfee back in December, but it should be noted again what he PROMISED to do if he was wrong and it was a bubble that burst (which it is) or if there was a correction (which there clearly is).
John McAfee better put a bib on before that meal as it is going to get messy.
https://twitter.com/officialmcafee/status/887024683379544065?lang=en
‘The Mother Of All Bubbles And Biggest Bubble in Human History Comes Down Crashing’
Frank Chaparro – 11 minutes ago
“The cryptocurrency markets were awash in a sea of red during early trading Friday — and one economist says we are in the middle of a major crypto-crash.”
“Nouriel Roubini, chairman of Roubini Macro Associates, took to Twitter Friday to call the bitcoin bubble “the mother of all bubbles.” His tweet shows bitcoin’s historic run compared to others such as the infamous tulip bulbs.”
“Now bitcoin crashing below 8000, headed towards 7000. Down 60% from the peak, 40% in a month and over 10% today,” he said.
http://www.businessinsider.com/bitcoin-the-mother-of-all-bubbles-is-now-crashing-2018-2
Regulated, Government Issued Cryptos to Challenge Bitcoin in 2018
By Gareth Jenkinson – 19 Hours ago
https://cointelegraph.com/news/regulated-government-issued-cryptos-to-challenge-bitcoin-in-2018
Considering that the cryptos have been clobbered since December of last year, it looks like a good time to add a bit more DIVE….. (cough… I mean HIVE).
Longer term, they’ll still keep acquiring more Cryptos as a payment system when they mine and verify transactions. Ethereum and Bitcoin are pulling back down, discouraging new miners to enter the space, and they’ll continue churning right along despite the smashdown in the crypto sector.
Once people see a few back to back quarters of what they are generating, then HIVE will be a steady climber with quarterly revenues – like a royalty company.
* I love buying when sentiment is bad and there is blood in the streets…. 🙂
Matthew, we are still waiting for the mythical silver outperformance. It’s now or never for silver. How many more lower lows–oh sorry “pullbacks”–do we need?
“It’s now or never” is usually a foolish assertion when dealing with markets, spanky. And that is the case now.
I did increase my IPT position today by about 2% (22,000 shares). I don’t know how many pullbacks we “need” but I enjoyed this one. 😉
Other than the myriad black candles at lower prices, the IPT.V chart does look like its bottoming and should pop soon. MAs look good and the MACD is primed. Would be too perfect if she broke lower instead.
EXK has almost an identical DMA (55, 89, 144) setup too. I’m sure that will give you warm fuzzies.
It even has the ichimoku cloud on its side. If it screws the pooch here, my god I will have to come up with a new descriptor. Utter trash and POS won’t suffice. lol.
http://stockcharts.com/h-sc/ui?s=IPT.V&p=D&b=5&g=0&id=p65750414924&a=575086606&listNum=1
j/k about POS of course. I hope it goes up 1000%
I think it can still go to .315 but probably not for long.
Matthew – does that give you 1.1 M shares of IPT then? Nice work amigo.
When this bull market gets going in earnest that will be an amazingly profitable position.
Roughly, yes. I’m bullish silver and IPT has a great risk/reward profile that seems hard to beat.
You can’t see the reason on the following chart but .35 is an important level this month.
http://stockcharts.com/h-sc/ui?s=IPT.V&p=W&yr=7&mn=11&dy=0&id=p75541295162&a=544288722
I may ratchet down a few of my Silver holdings to beef up my IPT and get more a concentrated position in it myself, but already have a nice weighting in it. Right now I have too many silver stocks because there is so much potential in many of them, but realistically, IPT will likely outperform most of them and so it makes sense to consolidate down a few of the laggards.
Thanks as always for the charts and input.
Im not siding with the PM bears here but with the dollar falling into the mid 88 level and the PMs unable to enforce their inverse relationship, it is a little concerning. Particularly silver. Gold is currently up about $5 from the opening yet silver is down 10 cents.
I did mention yesterday that gold and silver may need their own positove development in order to book further gains. With todays current action, it would appear such a development is more likely.
Maybe the metals play catch up tomorrow?
I would personally focus more on the yen ($XJY).
I too share your concerns
We have a new closing low for the buck but not a new intraday low. Some follow through tomorrow should be helpful to gold since the market still probably thinks the dollar is bottoming here.
Regarding metals:
HL was smashed below it s 144 WMA. That is not very encouraging. It needs to recover the 89 WMA like yesterday. It has never done something like that as far as I can see, though. Usually, when the 144 WMA is breached it suggests a bear market.
http://stockcharts.com/h-sc/ui?s=HL&p=W&st=1980-02-01&id=p63341595338&a=575106157&listNum=1
Yea, the 89 rolling over ain’t pretty. Hecla is one of my faves, but not now. Most of the PMs got a little ways to go regarding time and price.
We still need that bear-ending smash.
#Silver Miners that had a nice Green day
$FASV First American Silver Corp. +24.88%
$RYO Rio Silver Inc. +18.18%
$AUU Aura Silver Resources Inc. +16.67%
$G1A.AX Galena Mining Limited +9.24%
$NBR Nubian Resources Ltd. +8.33%
$BHS Bayhorse Silver Inc . +7.69%
$SSE Silver Spruce Resources Inc. +7.69%
$CLZ Canasil Resources Inc. +7.14%
$SVB Silver Bull Resources, Inc. +7.14%
$REX Orex Minerals Inc. +6.90%
$IVR.AX Investigator Resources Limited +5.00%
$GRG Golden Arrow Resources Corporation +4.84%
$MTR.L Metal Tiger plc +4.76%
$DEF Defiance Silver Corp. +4.55%
$AZR Azarga Metals Corp. +4.17%
$MRP.AX MacPhersons Resources Limited +4.00%
$NUAG New Pacific Metals Corp. +2.94%
$BCK Blind Creek Resources Ltd. +2.90%
$MSV Minco Silver Corporation +2.74%
$AZS.AX Azure Minerals Limited +2.70%
$SVL.AX Silver Mines Limited +2.38%
$SSV Southern Silver Exploration Corp. +1.54%
$MYA Maya Gold and Silver Inc. +1.43%
$EXN Excellon Resources Inc. 1.88 +0.80%
$GPL Great Panther Silver Limited +0.79%
$FRES.L Fresnillo PLC +0.37%
$SMT Sierra Metals Inc. +0.32%
Gold Major and Mid-Tier #Producers that had a nice Green Day
$KCN.AX Kingsgate Consolidated Limited +13.85%
$DRM.AX Doray Minerals Limited +6.25%
$ORV Orvana Minerals Corp. +4.76%
$DRD DRDGOLD Limited +4.76%
$KLDX Klondex Mines Ltd. +3.18%
$KOZAL.IS Koza Altin Isletmeleri A.S. +2.88%
$JAG Jaguar Mining Inc. +2.56%
$RMS.AX Ramelius Resources Limited +2.33%
$CG Centerra Gold Inc. +1.73%
$BTG B2Gold Corp. +1.66%
$ASR Alacer Gold Corp. +1.40%
$HGM.L Highland Gold Mining Limited +1.27%
$MUX McEwen Mining Inc. +1.14%
$AUY Yamana Gold Inc. +0.87%
$IAG IAMGOLD Corporation +0.85%
$GFI Gold Fields Limited +0.70%
$NCM.AX Newcrest Mining Limited +0.62%
$ABX Barrick Gold Corporation +0.28%
$ACA.L Acacia Mining plc +0.27%
$KGC Kinross Gold Corporation +0.23%
#Gold Small #Producers that had a nice Green Day
$WPG.AX WPG Resources Ltd +12.50%
$ANX Anaconda Mining Inc. +10.47%
$PBR Para Resources Inc. +8.11%
$HAV.AX Havilah Resources Limited +8.00%
$MQR Monarques Gold Corporation +6.76%
$ORA Aura Minerals Inc. +6.43%
$CGN.AX Crater Gold Mining Limited +6.25%
$BLK.AX Blackham Resources Limited +5.66%
$GXS Goldsource Mines Inc. +5.56%
$MXSG Mexus Gold US +4.84%
$SAU.AX Southern Gold Limited +3.92%
$ALK.AX Alkane Resources Limited +3.33%
$SFR.AX Sandfire Resources NL +2.78%
$ABU.AX ABM Resources NL +2.78%
$ASO.L Avesoro Resources Inc. +2.41%
$PG Premier Gold Mines Limited +2.02%
$AMI.AX Aurelia Metals Limited +1.64%
$RPM Rye Patch Gold Corp. +1.57%
$TMR TMAC Resources Inc. +1.47%
#Gold #Developers that had a nice ~Green Day
$CGE Corex Gold Corporation +13.33%
$NEE Northern Vertex Mining Corp. +7.84%
$BSX Belo Sun Mining Corp +5.56%
$GOM Golden Dawn Minerals Inc. +4.00%
$VIT Victoria Gold Corp. +3.49%
$USAU U.S. Gold Corp. +3.14%
$MAI Minera Alamos Inc. +3.13%
$MAX Midas Gold Corp. +3.13%
$CNL Continental Gold Inc. +3.01%
$GSV Gold Standard Ventures Corp +2.78%
$NVO Novo Resources Corp. +2.50%
$HUM.L Hummingbird Resources PLC +2.22%
$LYD Lydian International Limited +1.96%
$TRX Tanzanian Royalty Exploration Corporation +1.53%
$DCN.AX Dacian Gold Limited +1.46%
$WAF West African Resources Limited +1.22%
$SFEG Santa Fe Gold Corporation +0.99%
$MOZ Marathon Gold Corporation +0.96%
$PZG Paramount Gold Nevada Corp. +0.76%
$AGB Atlantic Gold Corporation +0.59%
$AAU Almaden Minerals Ltd. +0.47%
I’m not going to bother with posting all the Exploration and Prospect Generators that also had a positive day as there are too many of them to deal with.
Needless to say it wasn’t all carnage and gnashing of teeth today regardless of the negative sentiment that some expouse.
Newmont is higher vs SIL than the 2016 peak (higher highs for 3-4 months now). Also, quite frankly, gold looks like it is continuing its bull market vs silver. The weekly and monthly ratio charts are telling. It’s just a matter of time before the 2016 gold:silver peak is taken out. The very brief period that silver outperformed gold in 2016 looks like nothing more than a blip on the weekly and especially monthly charts.
The fact that Newmont is making new highs vs the silver mining complex is pretty telling. Sure, someday silver will bottom out vs gold, but it looks to me like silver is cooked. There is absolutely nothing on the daily, weekly or monthly charts to suggest there is any imminent change of trend. To the contrary, gold looks as strong as ever vs silver
Goldman all but says the mining supercycle is back
“The environment for investing in commodities is the best since 2004-2008” – Goldman Sachs
read »
well, thats gotta be the official okey dokey
Mining News Digest
Friday 2 February 2018
Home Gold Coal Copper Iron Ore Oil Sands Rare Earth Silver Uranium
Goldman all but says the mining supercycle is back
“The environment for investing in commodities is the best since 2004-2008” – Goldman Sachs
rea
Here’s that article link for anyone interested:
> Goldman all but says the Mining Supercycle is back
Frik Els | about 3 hours ago
(KNT) (KNTNF) K92 Operations Update and Latest Drill Results
by @nasdaq on February 2, 2018
* Highlights include:
> Drill intercept of 6.49 m at 23.66 g/t Au, 27 g/t Ag and 0.16% Cu (24.24 g/t AuEq)
> Face sampling taken while mining the K1 Kora vein reports values of 0.6 m @ 1,126 g/t Au in one face and 0.3 m @ 2,171 g/t Au in another face
> Process plant feed grade in excess of 40 g/t Au over consecutive days, including a peak of 82.98 g/t Au over a 12 hour period.
https://ceo.ca/@nasdaq/k92-operations-update-and-latest-drill-results
Once again, in contrast to the drill results many hyped up Explorers or Developers have, some of the quality Producers are just crushing them with drill results like these from (KNT) K92 or the ones posted yesterday from Superior Gold (SGI).
** Again, a producer can take the results like these posted above and monetize them over the next year or two by putting them by doing this crazy thing called “mining” and they actually will get this Gold out of the ground. (likely into rising prices).
These are already very economic grades that they are hitting even if gold prices were at $1100-$1200, but at $1350 these exploration results are literally hitting paydirt.
The vast majority of market participants will likely not even consider how these kinds of drill results will benefit the producers moving over the next few years into the future, so it will be a slow realization that develops over time when more analysts start following the mining sector.
However, right now if these stocks get further sold off, it will be the time to be acquiring them for a fraction of where they will be trading in 1-2 years time.
Buying opportunity today….Friday……get it while you can.
Silver …..$16.70
My EXK, hanging on for dear life. If it breaks below the cloud, it’s going to be an ugly slog into March. It needs to hold on here for dear life.
http://stockcharts.com/h-sc/ui?s=EXK&p=D&b=5&g=0&id=p96033135851&a=575250142&listNum=1
Again, with the USD apparently entering a countertrend move, it doesn’t look good.
AG is at a new multiyear low today. It’s anyone’s guess where the bloodletting stops.
As long as EXK stays above those prior $2.07 and $2.04 recent troughs it will be fine. If it dips below those I’d be more concerned.
EXK currently at $2.30 above harms way.
silver………………$16.66
Uh-oh…. spooky…. 😮
Spooky……… 🙂
https://youtu.be/LTWLaq8T5-g?t=120
Trump Speech in WV