Comprehensives Gold Analysis and Gold Company Updates
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We hope everyone had a great St. Patrick’s Day! This week was a news heavy week with the Fed raising rates, Dutch election and a Trump budget that disappointment. It was the Fed announcement that moved the markets the most especially for gold, treasuries and the dollar.
In this weekend’s show we focus on the precious metals and the underlying stocks. The bounce on the back of the rate hike came at a key technical level but the lack of follow through from stocks has some worried.
We also get a number of company updates. Please pay close attention to the stocks we are covering on the site. There is a new exploration play that I outline and an update from another company that already has a defined resource on top of 30,000 meter drill program underway.
I hope you all enjoy this weekend’s show. Please keep in touch with any other company’s you are interested in or topics that warrant our attention. I can be reached at Fleck[at]kereport.com
- Segment 1 & 2: In the first two segments of the show I am joined by the founder of Exploration Insights, Brent Cook. We discuss the overall resource market for exploration companies then get into some zinc and gold explorers that he likes.
- Segment 3: Technical analysts Jordan Roy-Byrne joins me for a close look at the gold and GDX charts.
- Segment 4: Chris Temple, Founder of The National Investor, revisits what is happening in Europe from a political and financial angle.
- Segment 5: Natcore Technology President and CEO Chuck Provini updates us on the expansion of the Australian solar project and the efficiency developments in its solar cells.
- Segment 6: Jean Lafluer, President and CEO or Aurvista Gold details the updated resource estimate at the Douay property in Quebec.
- Segment 7: Introducing a new Company to the site Secova Metals. I am joined by CEO and Chairman Brad Kitchen to outline the Company’s projects in Quebec.
- Segment 8: Wrapping up the show with Chris Martenson, Co-Founder of Peak Prosperity and his comments on why to invest in gold.
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Thanks for the show as always fella’s.
Much appreciated
Cheers.
Welcome back Skeeta. Though you may be in the witness protection program now.
We need a good update sometime soon on any Aussie stocks you are watching that may be flying under the radar. Cheers!
Hi guys !
I’ve managed to drag myself out of the pool this arvo (even if its only to grab another cold beer & check out KER report….lol)
Its a beautiful Sunday Autumn afternoon down here today, 32 Deg Celsius & not a cloud in the sky.
Life is good.
Enjoyed listening to Brent talk about Gold Road Resources,
I am a shareholder, have thought about selling several times but currently still hold.
Its really done nothing from my buy in price, only up 14.29%.
I’ve honestly been disappointed in the return so far.
But after listening I will hold onto them & see what the future brings.
Cheers to all !
Skeeta.
Great to hear from ya Skeeta !
Glad you popped out of the pool long enough to grab a cool beverage and check in on the KER.
Yes I’ve followed Gold Road Resources closely but don’t own any. It’s on my closely watch list, and it’s had downward pressure like most of the stock in the gold sector, but many of the Aussie Gold stocks are undervalued again and its one of them.
One Aussie Gold stock I’ve been adding to is (BLK.AX) (BKHRF) Blackham Resources. I’m simply amazed at their production levels and growth profile that they are trading at such low prices. BLK.AX have a lot of catch up to do in share price appreciation to get valued on par with other Gold miners with similar ounces per year & AISC.
Both sections with Brent Cook were great, and I particularly was interested in the Zinc chat and also have been following sector closely. Zinc is a very popular topic on ceo.ca and a number of people have been banging the drum for Tinka Resources. It has had an absolutely epic move over the last few months and the last big push was likely the Brent/Joe effect. Even Otto likes Tinka.
Vendetta is another great explorer to follow in the space. Trevali has been on a roller-coaster ride as producer, but they’ve had a few challenges with the finer grain and metallurgical processes. Zazu Metals has been on investors minds again, but it may be a while before Teck or Lundin makes an offer on them, so it may stay on the backburner unless the Zinc prices just keep rising. Callinex had a few bad holes last drill campaign, but they’ve been way oversold, and have had a great deal of previous exploration discuss on those properties and plenty of great holes. I believe this year’s drill program will put them back in play. John Kaiser likes InZinc mining, but I’ve read others complaints and concerns about their projects, so remain agnostic. Canada Zinc Metals Corp has put in quite a move and has been strong. Foran Metals is a quality company that has also put in an epic move, (so neither of those is really cheap at current levels). Heron Resources is an Aussie Zinc Copper company I really like and it is far undervalued in comparison with it’s peers. Most of the Zinc stocks have put in moves of 200-300% over the last year, but Heron has barely moved yet as they await the financing deal for their Woodlawn Project.
Wishing everyone a prosperous week in the markets.
I sold the bulk of my BLK @ $A1…..it went higher (but whatever).
I still hold some….but what I hold is now only up 29.01% of my buy price.
I should’ve sold more when I did imo.
Cheers.
Interesting. Skeeta, you may have been one of the people I first bounced ideas off of for BLK.AX Blackham Resources. (sometimes I lurk on Hotcopper though, so it all runs together for me. Regardless, thanks for you input on it, because there were times we were both invested in it, and I had a few good trades.
It got trimmed into the strength last summer, and eventually sold out completely as it was still falling in share price in 2nd half of 2016. I bought it back at year end during tax loss selling, and then trimmed it back again in Feb. but kept a core position in place.
I’ve been following their production results very closely lately and how they will be continuing to ramp up to higher throughput and recovery rates, and they are developing other assets. They haven’t done a great job of getting their story out, but at least they were visible at a few Precious Metals shows and conferences lately, and have a done a few promotional interviews.
Even though hardly anyone seems to follow Blackham Resources, I’ve been adding and adding lately, and consider them one of the most undervalued Australian gold producers. After a few more quarters go by and they keep moving up the chain in the Australian gold mining scene, I believe they will garner more of a following like Resolute Mining (but they are also still very undervalued as well).
What is interesting to me is that if you moved a number of these Australian Gold producers to Canada or the US then they’d be double to triple what they are trading for today, but that is the same things with the Gold producers and developers in West Africa. Canadians really know how to promote mining stocks the best, and in fairness, are geographically closer to many different mining shows and newsletter writers, so it is easier to go on site visits or set up in person meetings.
I’m going to be revisiting some of the Aussie Gold and Base Metals companies (like St Barbara, Northern Star, Westgold, Troy, ABM Resources, Aurelia, Centennial, Crater Gold, Excelsior Gold, Havilah Resources, Kidman Resources, Red 5, WPG, etc… because I see there being good value again. Skeeta if there are any company’s that seem like they are ready for a good run, don’t keep em’ a secret.
In a recent Lithium article about Albemarle potentially acquiring some Aussie and Argentina Lithium projects…..
__________________________________________________________________________
Albemarle flags M&A, Australian Lithium expansion
Mar 19 2017 – by Peter Ker
“Albemarle named several Australian lithium aspirants in a slide that ranked the asset quality of the world’s lithium mines.
The ASX-listed companies mentioned in the presentation included Orocobre, Pilbara Minerals, Galaxy Resources, Neometals, Altura, Kidman and even Rio Tinto for its Jadar project in Serbia.
While the rankings were designed to illustrate the superiority of Albemarle’s lithium deposits, it implied the next best combination of scale and grade in spodumene mining would be found in Pilbara’s Pilgangoora development project and the Mount Marion mine owned by Mineral Resources, Neometals and Chinese company Jiangxi Ganfeng.
Both those deposits are in WA, with Pilgangoora expected to be commissioned before Christmas.
In terms of lithium from brine extraction, Albemarle’s presentation suggested that Orocobre’s Olaroz project in Argentina had one of the industry’s best combinations of scale of lithium content.”
http://www.afr.com/business/mining/albemarle-flags-ma-australian-lithium-expansion-20170318-gv1a2x
Great. Looking forward to the weekend show. Thanks guys.
Your hard work is always appreciated. Skeeta’s back too 🙂
I was forced to get out of the pool & post on here as Big Al threatened that if I didn’t he was going to fly every member here on KER down under for a swim at his cost & they would drink all my beer in the pool bar fridge in retaliation.
Just quietly though, he asked me not to share that message with anyone else, as some might get upset if I posted as Big Al wouldn’t then have to pay for their airfares down here.
So shhhhhh…. just quietly this is between you & me Tad OK ?
Don’t let anyone else know!
Cheers.
Anyhoo…..beer is now finished,
So its back into the pool.
🙂
The Dutch are lovely people but the cancer that is political correctness has completely eaten into their society. It has been going on for decades and 2 or 3 generations have been completely brainwashed by it in school lessons and the constant 24/7 media broadcasts.
A big part of it is this brainwashing of ‘white guilt’ – everything that has ever happened bad in the world is supposedly the fault of white Europeans, especially the British, and history has been completely re-worked in schools from Aberdeen to Malmo to, well, everywhere in order to promote this biased and bigoted view of history.
24% of property in London is now owned by the Qataris. How much by the Saudis and other Gulf states who collectively are promoting, via their billions, islam? How much of Paris, Frankfurt, etc, is owned by these countries. Why are certain British and European leaders so keen to promote islam?
It is frightening. If I had a few million I would emigrate to the Americas. I am just grateful that I do not any children. It is bizarre. All my life I havve considered myself to be a Liberal but Liberalism in the UK and Europe has been completely hijacked. We now are tolerant of the intolerant. We are now tolerant of a religious fascism – and anyone who questions it is accused of racism.
So much of what is happening now reminds me of what my father and grand-father told me what was happening in the 1930’s. Those who spoke out against the rise of fascism then were shouted down, ridiculed, side-lined and even imprisioned.
You can see the same things happening now.
Economic growth is not the priority for European leaders. As long as they can keep things muddling along as they are then they will be happen.
The number one priority – the only priority – for the Merkels, Junckers, Blairs, etc, is the creaton of the European super-state and that includes, as bizarre as it sounds, having not just Turkey as a part of it but states like Georgia ad other Caucasus states , select North African countries and even some Gulf States.
Crazy!
Mining News Digest
Monday 27 February 2017
10 mines still making good money if the gold price falls 50%
The top 10 ranking of the lowest all-in cost gold mines in the world – former US president Herbert Hoover was once in charge of no. 8 on the list.
read
Chris Martensen says we are at or below cost of gold production.
I recalled this article, I doubt these are all the mines that remain profitable with lower gold prices.
I think I posted some a few months back as well when it was prudent to own miners that could withstand lower prices.
Some were paying dividends.
I do like Chris M tho, he makes alot of good points.
Why the Crash & Burn is Public not Private
QUESTION: Hi Mr. Armstrong,
You mentioned the crash and burn applies to government assets, not private sector assets. Can the private sector stand on it’s own two feet?
Thanks again, MB
ANSWER: There are times when the private sector cannot stand and everyone runs to bonds/cash. Likewise, there are times when government can no longer stand and the only thing that survives is private assets. This took place during the collapse of the Weimar Republic (German Hyperinflation) and it has been the case throughout history even at the birth of the USA and the collapse of the Continental Currency.
Gold and Canadian Dollar Surge Following FOMC Rate Decision
HAYWOOD RESEARCH: The Weekly Dig – March 17, 2017
by Mick Carew, PhD, and The Haywood Mining Team
$WKM $AGB $OSK $OR $THO $BTO $AKG and much more….
Download Link:
Could There Be Another Homestake Home Run?
John Kaiser – March 17, 2017
talkdigitalnetwork – Audio Interview
https://www.youtube.com/watch?v=-vG-mZDIpHQ&feature=youtu.be
Rye Patch Gold: Starting Commercial Gold Production at Florida Canyon
ResourceCapitalAG – Mar 18, 2017 – Rye Patch Gold (RPM) (RPMGF)
Video Interview with President & CEO Bill Howald
Montan Mining: Growing mineral processing company in Peru
ResourceCapitalAG – Mar 18, 2017 – Montan Mining (MNY) (SAIDF)
(R) (RDEMF) Red Eagle Mining Site-visit February 2017
ResourceCapitalAG
(MLN) (MLNGF) Marlin Gold: Ramping Up Gold Production in Mexico plus Exploration in Arizona & Royalty Option
ResourceCapitalAG – Mar 13, 2017
Interview Executive Chairman Akiba Leisman at PDAC 2017
We’ve all been following along with Rye Patch for years, but it’s pretty exciting that they went from an explorer, to a long drawn out battle with Coeur, that ended up resolving in a friendly way with a nice Net Smelter Royalty for them, that funded more development and land purchases, and then the permitting and economic studies to develop Lincoln Hill, and now the purchase of the Florida Canyon mine, and graduation to Producer. What a journey and well done to Bill & the team at (RPM).
It is easy to envision how they’ll be a multiple mine mid-tier producer over the next 2 years.
Reviving an old Herbert Hoover mining play: Dolly Varden Silver (DV) (DOLLF)
CEO.CA
Dolly Varden Silver – Corporate Presentation:
https://www.dollyvardensilver.com/investors/corporate-presentations/
Thom Calandra: How to Not Get Burned When Investing
InvestingNews – Mar 17, 2017 – Audio Interview
“In past interviews with the Investing News Network (INN), Thom Calandra of The Calandra Report has spoken extensively about the commodities and companies he likes. But how does he decide which companies to invest in?
At this year’s Prospectors & Developers Association of Canada (PDAC) conference, INN asked Calandra what qualities he looks for when deciding to invest in companies, and what factors he considers red flags. Like many experts, he said that for him management is key.
“I think a lot of it comes down to focus and individual initiative, individual connections, individual brilliance, in a way, and talent. Let’s throw in a few other things: honesty, integrity, timing, capital,” he commented. “As best as we can, we can make a judgment, and I’ve been making more judgment calls internally about the integrity, the work ethic, the intelligence of the people that I’m investing in.”
“Calandra also touched again on a few commodities he’s interested in right now, and mentioned some companies he finds compelling. Notably, he’s feeling optimistic about zinc, gypsum and tin, but follows only one lithium company.”
Precious Metals Video Update: Short-Term Upside But How Much?
Jordan Roy-Byrne
Palisade Radio – Mar 18, 2017
“In this video we discuss the short-term upside potential in the gold stocks and the key resistance levels. It would be a good sign for miners if they can test their February highs. Otherwise, the sector would remain in a trading range.”
The party is over for bond bulls – Charteris Treasury Portfolio Managers
Tip TV Finance – Mar 17, 2017
“Charteris Treasury Portfolio Managers’ chief executive Ian Williams makes a compelling case as to why the party for the bond bulls is over. Williams says the era of deflation and ultra cheap money is over and the rates are likely to higher across the globe.
After US (rate hike), the one to fall in line is more likely to be UK, says Williams.
So if the era of inflation is here, which asset would deliver better returns – equities, gold, silver or other industrial metals? Watch the full segment for clues….”
___________________________________________________________________________
(The first section in this interview was a nice vindication on why in a Precious Metals bull market that Silver and Silver Miners will out-perform the Gold and Gold miners as a general trend).
5 Gold Juniors With Much More Revenue Than Market Cap
Posted By SmallCapPower – February 23, 2017
I thought I would let people know this. Some people havnt herd of this polishing silver method.
I just listened to a fellow on u tube explaining how to keep his silver “in good shape”.
I thought geez he goes thru alot of hassle.
I use my silver ware every day for its bug getting properties, some people dont as they dont want to polish their silver.
This takes the hassle out of polishing.
Get an aluminum pan, the ones you would roast a bird on, I use one that is the right size for silver ware, I have bigger pans for my other silver.
Put the silver in the pan, cover with salt, try it a few times youll learn how much to use, fill the pan with boiling water until silver is submerged.
Let the water cool and dry off with a cloth. you have clean and polished silver.
Zero hassle.
Or you could get you man servant to polish it before serving you tiiffin.
Jordan Roy- Byrne hit the nail on the head.
He put out a youtube commentary last night after close Doc.
Anybody know what’s up with GSV? Sold off big only to rally back on massive 31 mil volume.
Adam Hamilton says:
“After spending lots of time digesting these elite gold juniors’ latest quarterly reports, it is fully apparent that gold stocks’ recent sharp selloff wasn’t fundamentally righteous at all. Gold-stock traders got scared because gold was sliding on an extraordinary surge in futures-implied Fed-rate-hike odds, not because of bad news from these miners. That means the recent anomalous pre-Fed selloff needs to fully mean revert.”
…The collective top-GDXJ-component gold production in Q4 was amazingly strong. Because this leading junior-gold-stock ETF had plunged 22.0% between early February and early March, traders assumed this stricken sector must have some serious fundamental problems. Never mind that GDXJ had rocketed 50.1% higher between late December and early February, already regaining over 5/6ths of Q4’s losses!
The gold juniors have always been exceptionally volatile, which is a key reason they are so attractive to contrarian investors. These elite GDXJ components’ Q4’16 results prove that they were suffering no fundamental impairment operationally. Their 2190k ounces of gold produced last quarter soared by an incredible absolute 10.9% quarter-on-quarter from Q3’16’s results! The junior gold miners continue to thrive.
…The top GDXJ components’ much-higher production last quarter also led to outstanding all-in sustaining costs. They averaged just $855 per ounce among the gold miners reporting as of the middle of this week! That is a major 6.2% absolute QoQ decline from Q3’s $911, which is amazing. The juniors’ AISC were well under the GDX majors’ as well, which reported average AISC in Q4 of $875 as discussed last week.”
The full article is worth reading:
http://www.321gold.com/editorials/hamilton/hamilton031717.html
VIDEO – Brent Cook and Joe Mazumdar talk Mining Stocks on BNN – http://www.pennyminingstocks.com/video-brent-cook-and-joe-mazumdar-on-bnn/
For those of you who are NOT Chartists & TA guys, but mainly long term buy & hold investors like me, yesterday’s Ira Epstein Metals Video explains a lot of the familiar terms like Slow Stochastics & Bollinger Bands etc…
I found it very helpful.
Got to send a shout-out to CFS for this as he’s been posting Epstein links over the past few days. I’d never heard of him before that.
https://m.youtube.com/watch?v=xRPj44d5hVo
I ZINC some investors here will appreciate this 1 year Bar Chart of Zinc stocks :
$TK $VTT $CEM $TV $ZAZ $HER $FOM $IZN $CNX $CZX
Same Zinc Miners group, but in a 1 Year Line Chart showing blips, dips, & pips:
Goviex.
Don’t think I posted this interview before.
https://www.youtube.com/watch?v=n1wGHyp3CeY
https://www.youtube.com/watch?v=-yuviTCYQnc
Marin Katusa.
Peter Schiff:
Thanks CFS. I’ve been following some of Justin Smyth’s work and am very familiar with using the 30 week MA to look at the 4 Stage analysis (first popularized by Stan Weinstein). Good stuff.
I believe this interview would be worth anyone going through just on how the psychology works in the bear and bull markets, and how the cycles play out in each stage of the sector or stock movement.
Agreed. Very solid interview and great perspective on how to play this market.
Here is a recent Technical Analysis video from Justin on the Uranium space that was referenced on the Palisade Radio interview:
________________________________________________________________________
Uranium Miners And The Second Ideal Buy Point
POSTED ON MARCH 13, 2017 BY JUSTIN
http://www.nextbigtrade.com/2017/03/13/uranium-miners-and-the-second-ideal-buy-point/
Rick Rule’s Uranium Conference Call Summary: 10 Key Points
Pento on Greg Hunter:
CFS comment on Pento:
World economic growth is currently close to being stalled by debt.
There will be nowhere safe to hide. Neither in investments, nor in location.
The best we can hope is that nothing is simultaneous everywhere, and that we can ride the flictuations and move fast enough, but I am not optimistic.
More Pento predictions:
A new voice: “GOLD: The Trump Trading Range”
http://trendlinemagic.blogspot.com/2017/03/gold-trump-trading-range.html
Hey Excelsior.Spoke with Glenn Mullen on Friday afternoon.Interesting gentleman….The intentions for abitibi is to buy back shares til there are only 10M shares o/s so gzz will remain a +50% shareholder..have had offers to buyout but not interested at this time…waiting for the drilling to establish 3M ounces at least before entertaining offers…surprised by his statement on sirios that he likes the deal the way it is cuz if he was really interested in the property he would be drilling it himself..bonterra deal is of no real value right now as bonterra has not really done any work on it as yet…mentioned the obvious that gzz only being valued on its rzz holdings…all the rest of the land holdings are being given no value…hopes to do something else with them after the deal with uranium fell through…
Btw….with all the plays you follow,do you know of any plays setting up in Argentina???with a solid management team of course.😉
Hey Wolfster – Yes, I like the Grosso Group that operates down in Argentina. They have a number of projects and companies they work in or with, but the main one that I’m invested in is (GRG) (GARWF) Golden Arrow Resources. They have found the 7th largest undeveloped Silver Mine in the world and are JVing the project with (SSRI) (SSO) Silver Standard Resources in Argentina.
The market is awaiting news from Silver Standard Resources by month’s end on if they are moving forward together or if Golden Arrow is going it solo.
“The option agreement with Silver Standard Resources (TSX:SSO, NASDAQ: SSRI) for the combination of Golden Arrow’s Chinchillas Project with Silver Standard’s Pirquitas Mine is still in progress (see Golden Arrow News Release dated October 1, 2015). As the 18 month option draws to a close on March 30, 2017, we await Silver Standard’s decision. We are appreciative for the professional and transparent technical cooperation between Silver Standard and Golden Arrow which has allowed the advancement of our Chinchillas deposit to this advanced mine planning and prefeasibility stage. Golden Arrow is committed to the Business Combination Agreement and we look forward to fully achieving a final resolve by March 30, 2017.
Our shareholders should find comfort that our Chinchillas deposit has been advanced to a stage where we can be autonomous in the future. We are committed to seeing the development of the Chinchillas Deposit in the near future.
The Grosso Group has had a successful track record in Argentina since 1993 (24 continuous years). We believe that Argentina, where mining is still relatively new, is becoming a better place for mining companies. We have worked hard and diligently to establish the mutual trust and cooperation with the provinces in which we operate as well as any affected mining communities. We plan to continue bringing our experience, technology and capital and deploy these resources within the 2.78 million sq. km of Argentina.”
If Silver Standard does decide to combine Chinchillas with Pirquitas Mine then it will be EPIC. If they don’t, then utlimately Golden Arrow will partner with another larger player, or decide to develop it themselves. They have the capacity to move it into production on their own, and the money has already been sunk to define it as a Tier 1 asset. If they go solo the ramp up may take a little longer, but either way, Chinchillas will be turning into a mine.
Because we are so close to the end of the month, then I’d recommend just waiting for the decision from Silver Standard Resources. The fact that they haven’t said anything about it this late in the game does have me concerned that they aren’t going forward with the project, and if that is the case the shares may sell off a bit on the news, and will offer a great entry point. If SSRI does decide to incorporate Chinchillas in the mix, then the shares will pop on that news, but investors can move forward with confidence that the project is an immediate go. I’m just in hold mode at present to see which way it breaks.
As for other mining companies in Argentina, I actually have exposure or have traded about another dozen on this older list of Argentina miners. Lots of good ideas here though:
http://argentinamining.com/en/empresas-mineras-en-argentina/
To be clear, many of those companies on that list operate in many countries, but have significant projects in Argentina.
Appreciate it Ex….Argentina has been under explored so far.watching it for now.hoping to find a solid play there ….still stand by my rzz in $30’s once all the drilling on odyssey is done and they go +3M in reserves
There are, of course, tons of Lithium companies that have sprung up in the salars all over Argentina that aren’t on that older list posted above, but there are only a few that feel good about Lithium Americas corp (in their JV with SQM) and Galaxy Resource large brine asset, and watching an earlier-stage company NRG Metals.
There is also the Lindero gold Project in Argentina that (FSM) Fortuna “Silver” has been working on… I’m a little surprised at the number of Silver companies diversifying into Gold in such a big way (like Hecla, Tahoe, Fresnillo, Silver Standard, etc….)
Thanks for the (GZZ) update Wolfster. As for keeping their half of Abitibi (RZZ) as the shares get bought back, then I anticipate both share prices continuing to go up in value. That works for me. Yes, I like that Glenn is now the guy behind the PDAC and gets to speak of a whole range of companies as a result. I still feel that their exposure to upside in Sirios is about where it needs to be, as they can always take a strategic position in other explorers as they JV out their other properties. Yes, the Uranium JV fell though, but as the Uranium bull gets underway, I am sure there are many new Uranium companies that will be created and those properties will be in play again. The Bonterra story is focuses elsewhere, but as they grow in notoriety, then people will realize this project is in their pipeline and it will either get worked, or spun out to another explorer to work on. Golden Valley has so many land packages in their mineral bank, that there is decade of JV work that could be done on all of them, and yes, agreed that presently the marketplace is giving them zero value for all those other properties…..smells like upside potential to me.
Here’s a great Video interview with Don Durrett. Don is a very sharp guy on investing in Jr Miners, (and is the man behind GoldStockData which is one of my “Go-To” places for researching the universe of mining stocks out there). This is a longer interview but they cover a lot of ground and it is worth the listen:
_____________________________________________________________________________
Don Durrett | Gold & Silver Insights from a Mining Stock Investor
Feb 26, 2017
“In this video, Bill Powers interviews Don Durrett. Don is a seasoned mining stock investor and author of “How to Invest in Gold and Silver: A Complete Guide with a Focus on Mining Stocks”. His website is GoldStockData.com
Topics Discussed:
0:05 How Bill Powers started in mining stocks
2:45 Introducing Don Durrett
7:00 Don’s exit strategy for mining stocks
9:00 Don’s thoughts on silver (AG)
12:45 AG over $27/oz runs quickly to $50/oz
15:00 US economy & price of gold (“fear trade”)
18:20 Don’s thoughts on silver manipulation
22:30 AG $18.50/oz and AU $1,309 resistance
24:45 US political situation and economy
28:45 US stock market decline & mining stocks
37:10 Advice for investors
Hi Shad:
I listened to Don Durrett. Not once did he mention that first and foremost you must learn to read a chart.
In today’s investment climate,Technicals are a must.
Buy and hold,buy and hold. Wrong.
Buy and sell,Buy and sell,now were talking.
Here’s a good read “The new sell and sell short” Dr Alexander Elder.
How to take profits,cut losses,and benefit from price declines.
Don does have price targets based on the resistance & support on the charts, but didn’t mention specifically the importance of technical analysis. His site is really a great hub of fundamental data and provides means of comparing different metrics across a range of miners. In their forums there are different contributors that do provide insights into the technical merits of individual sectors or charts of individual companies.
I agree with you on buying and selling using the charts and do so quite often, however the sell and sell short is more difficult on individual Jr miners as many of them are penny stocks and can’t be shorted. However the larger miners can with options, and there are of course the inverse ETFs. When I want to short the miners I usually go with JDST, DUST, and DSLV.
2008-2009 was a very painful experience for me. Right up there with Fukashima blowing up my Uranium portfolio.
After the 08-09 crash I vowed not to re-enter the market until I had a grip on what had just happened.
In retrospect, If I had a put as much time into learning technicals as I did fundamentals I would have faired much better.
Per our discussion before, being as toppy as the conventionals are,the million dollar question seems to be how will gold,silver and the gold,silver miners react to a correction in the conventional market.
This is where I believe that if Gold and silver and the miners develop a possitive trend there will be plenty of time to get on board.
Paper gains are nice,real profits are better.
I will also add that in the event of a correction in the conventionals,how bad will the PGM’s get wacked when the margin calls start coming in and how long will it last? Goldman Sachs has come out and said that investors are throwing caution into the wind,thus the low levels in the vix.
Don talks about the fear trade.What will it take to put the fear back into the major investors in the Comex?
Well when the nostalgia about what this new US administration will get done wears off, and Europe continues to unravel, and Japan slogs along with no end in sight to their stagnation, and China presses it’s move on the global stage, there will be enough pressure on governments and central bankers around the world to create uncertainty as to the path forward. That will be a reinstatement of the fear trade, and that there really isn’t a great path forward. In that environment of low or negative real rates and creeping inflation and worries, then the precious metals and things of real value like Commodities and securing Energy, Food, Land should fare much better.
Thanks for the lead, Ex. I’m getting close to the point where go beyond TA and start digging into the fundamentals of individual companies.
It is important to review both aspects (Fundamentals and Technicals), especially with how newsflow can impact short-duration moves in the Jr Miners.
The people that weren’t bullish enough at the last couple of significant lows aren’t bullish enough now, either.
The miners look fundamentally and technically fantastic when compared to the bubbly Dow/S&P. They can do very well even if gold/silver don’t do much — as long as they don’t fall apart, of course.
It will be a very good development when GDXJ breaks out of the big Schiff fork on the following weekly chart (resistance next week is roughly $44):
http://stockcharts.com/h-sc/ui?s=GDXJ&p=W&yr=7&mn=7&dy=0&id=p53516379703&a=510628527
Thanks Matthew. I just spent a few minutes reviewing that chart and noticed a number of things about how the forks and trend-lines acted as support or resistance at some many times over the last few years, and how the moving average crosses, and volume spikes or declines brought emphasis to certain inflexion points.
Gold Prices Shine as USD Drops- Post FOMC Rally Eyes Initial Resistance
Michael Boutros,DailyFX – Fri, Mar 17
https://www.yahoo.com/finance/news/gold-prices-shine-usd-drops-034400344.html
Gold up in overseas trading to $1233
Silver up to $17.42
The charts look like the USD, Gold and the conventional stocks are about to get hit.
Here is an interesting take I came across in Bruce j. Feibel’s book”Investment Perfomance Measurement”
The difference in interest rates prevailing within two countries is called the interest rate differential.
For example,if interest rates in Japan were higher than interest rates in the United States at the beginning of the period, we would expect that the Japanese Yen would depreciate verses the dollar during the period.Over time we expect high interest rate currencies to depreciate relative to low interest rate currencies.
Using this logic,does this spell a lower U S Dollar during a Fed induced rising interest rate environment?
That being said, Does this also foretell a rising gold price?
differential. For example, if interest if interest rates in Japan were higher than interest rates in
JohnK – Interesting points to consider on interest rates, currencies, the effects this will have on precious metals, and how interconnected everything is today.
Gold and U.S. long-term bonds have moved nearly in lock-step for the past year or so. Each bottomed in Dec 2016 and again last week. Too many people are still bearish on both, so there should be at least a brief continuation of the uptrend.
As a further point, gold will be a much better safe haven than long-term US bonds. Once this ratio is back on top of the 200 week simple moving average, as seems likely to happen before long, this point will really become important.
http://stockcharts.com/h-sc/ui?s=%24GOLD%3A%24USB&p=W&yr=10&mn=0&dy=0&id=p53602951113&a=467913661
I think I originally copied this chart from Matthew…
Markets and politics shown in one commercial. Funny…
Gold returning to the pregnant solution pond better than expected at Santa Elena mine – (MXSG) Mexus Gold
by @nasdaq on March 20, 2017
““This is exciting news for Mexus and our JV Partner. The Initial amount of gold returning to the recovery pond is normally lower during the first weeks of cyanide being introduced to a pad. These returns increase as the cyanide is able to work through the mineralized material. I would expect our numbers to increase as pad 1 gets fully saturated which should take another week. Overall, I’m thrilled with the progress being made at the Santa Elena mine. We have gold in our recovery pond and will be processing gold shortly,” added Mexus CEO Paul Thompson.
“In addition, the company announced that a 750KW generator was recently purchased at auction for the San Felix project. This generator will run the entire processing plant at the mine and is an integral part of getting the San Felix mine into production. The generator will be shipped to the mine site during the week of March 19th.”
https://ceo.ca/@nasdaq/gold-returning-to-the-pregnant-solution-pond-better
Argonaut Gold Announces Drill Results at the La Colorada Mine’s El Creston Deposit that Signal Potential Open Pit Expansion
March 20, 2017 /CNW/ – Argonaut Gold Inc. (TSX: AR)
“The Company believes the results of the 2017 drill program, coupled with the results of 70 RC holes drilled during 2016 (see press release dated October 3, 2016) (the “2016 drill program”), have the potential to expand the El Creston open pit beyond its current design. ”
This Schiff fork is still working and has provided support for silver for the last two weeks:
http://stockcharts.com/h-sc/ui?s=%24SILVER&p=W&yr=6&mn=5&dy=0&id=p99150324858&a=374891072
Thanks Big Al, Cory.