Central Bank Hypnosis

Source: Michael Ballanger for Streetwise Reports 06/01/2020 Sector expert Michael Ballanger bemoans the panic-inducing influence of politicians and the influx of “counterfeit currency” from central banks on the money and commodities markets. One look at the chart of the U.S. financial markets against the backdrop of economic paralysis and suffering, and one is immediately filled with a myriad of emotions. Sympathy for those that have been afflicted by the most recent pandemic; fear for the families whose primary breadwinner is now unemployed; confusion toward the proper course of action going forward; and finally outrage at the abject timidity of our citizens in responding to the orders laid down by these insipid politicians in response to the crisis. As the welfare of future generations hangs in the balance, its tentativeness the direct result of government ineptitude, I keep asking myself a critical question: “When did the backbone of our people turn to mush?” If someone holding political office had told my grandfather to stop ploughing his fields or tending to his livestock because a sickness was spreading throughout the community, that charlatan would have wound up with buckshot adorning his gluteus maximus. How dare any group of elected bureaucrats ordain the shutdown of an economy? Telling citizens to “stay home” and “avoid contact” was tantamount to telling my grandfather to cease and desist in providing for his family. That he should shutter the ploughs and the reapers and the milking stations, that his sons and daughters need not feed the chickens … Continue reading

Is Colombia the Latest Gold Exploration Hotspot? FenixOro Gold Thinks It Is

Source: Peter Epstein for Streetwise Reports 06/01/2020 Peter Epstein of Epstein Research profiles an explorer in Colombia with a project on the same prolific gold belt as Buriticá. The importance of good community relations and avoiding serious outcomes from bad environmental stewardship is paramount. Moreover, in the age of COVID-19 and a 7-year high in the gold price, investors are increasingly interested in countries with abundant mineral resources, that are not among the top producers, countries like Colombia. At the same time, due to COVID-19, local communities will be in need of good, longer-term, high-paying jobs. Although Colombia remains riskier than the U.S., Canada or Australia, most of the country is considerably less risky than at least three of the world’s top six gold producing countries—China, Russia and Indonesia. Colombia has a globally significant endowment of potentially mineable metals, yet has been woefully under-explored. The ability of foreign firms to safely conduct mining activities in Colombia is improving. The newly elected federal government is pro-resource development as a means of accelerating government royalty revenue. For example, it is spearheading a national US$25 billion infrastructure program building roads, highways, bridges and tunnels to improve logistics throughout the Andes. It doesn’t hurt that giant Zijin Mining recently acquired Canadian junior Continental Gold for US$1.05 billion = ~C$1.5 billion (at today’s C$ exchange rate) in cash (share price tripled in year leading up to takeout) outbidding Newmont Corp. for a truly world-class Colombian asset. Continental discovered and developed Buriticá, one of the highest … Continue reading

X-Terra Resources: The Undiscovered Discovery

Source: Riley Ireland for Streetwise Reports 06/01/2020 Investor Riley Ireland provides his investment thesis for this explorer with gold properties in Canada. Investment Highlights: Strong management with direct ownership Low market cap of $4,709,629 New gold discovery in New Brunswick on its Grog property Exploration and drilling in a very active area on their Troilus Property begins imminently Troilus East exploration and drilling fully funded through investments by Fonds de solidarité FTQ and SIDEX, société en commandite Troilus East property directly adjacent to Troilus Gold Corp. ($TLG.TO) with a market cap of $103 million Troilus Gold Corp. ($TLG.TO) has already confirmed 6.4 million ounces (all categories) on its Troilus property and geology suggests the formation could extend to X-Terra’s property “Undervalued” is a term thrown around a lot these days, especially when it comes to the resource mining sector. Unfortunately, most of these so-called “undervalued” plays are undervalued for a reason and eventually turn out to be nothing more than promotional hype and paper selling. News releases are commonly packed with buzz words like “visible gold” and “high-grade,” which temporarily attracts the attention of retail investors in droves while creating a chart that would compete with Mount Everest. When the hype dies down, investors are left wondering what happened to those supposed high grade and visible gold as the marketing fizzles out along with their investment. X-Terra Resources Inc. (XTT:TSX.V; XTRRF:OTCMKTS; XTR:FSE) is an undiscovered gem that has made its own discovery recently in New Brunswick. In addition, the company … Continue reading

Jayant Bhandari: East Asia Will Be a Post-Pandemic Success

Source: Maurice Jackson for Streetwise Reports 05/30/2020 In conversation with Maurice Jackson of Proven and Probable, Jayant Bhandari of Capitalism and Morality offers his take on what the post-COVID-19 world will look like. Maurice Jackson: Joining us for a conversation is Jayant Bhandari, the founder of Capitalism & Morality, and a highly sought-out advisor to institutional investors. Jayant, there are a lot of mixed, contentious emotions regarding COVID-19. Irrespective of one’s position, it’s incumbent for us all to prepare for how the world will function going forward. Let’s discover which parts of the world, and how readers may thrive in a post coronavirus world. Sir, you recently wrote a musing entitled “What the Post Coronavirus World Looks Like.” In this piece, you outlined a number of distinctions that may create a great divide between East Asia, the West and Third World countries. From a 30,000-foot perspective, who do you see coming out as the winners, when and if the world returns to some aspect of normalcy, and why? Jayant Bhandari: Readers really need to keep emotions out of business. We have to be attached to objectivity to be able to understand what is the right action to take. In my view, from what I have seen happening, East Asia will emerge out as among the most successful places in the world after COVID-19 is over. In fact, East Asia is already emerging. You can see that in Taiwan—there were virtually no cases and they cleaned up the place very quickly. … Continue reading

Technical Analyst: Gold Explorer Stock at Point of Breakout After Prolonged Major Accumulation

Source: Clive Maund for Streetwise Reports 05/29/2020 Technical analyst Clive Maund charts Black Tusk Resources and explains why he sees it as an “immediate strong speculative buy.” If you are one of those people who likes to show up at a lavish party right at the starting bell, after weeks or even months of arduous preparation (by others) then this stock is for you. This is one of the most powerfully bullish setups I have seen for a long time and the great news is that the price hasn’t started moving yet, but all the technical indications are that it is about to. On its latest 3-year chart we can see that after hitting a peak in 2018, Black Tusk Resources Inc. (TUSK:CSE; BTKRF:OTCMKTS; 0NB:FSE) has been in a persistent downtrend that continued through all of last year with the result that at its lows of last October and December it was priced at just 3 cents, or one-ninth of its price at its highs. Even now, after recovering somewhat in a Triangular base pattern, it is still just a little over one-sixth of its price at its highs. Just going on price alone it looks like the upper boundary of the downtrend shown could force it into another downleg, and while anything is possible, the volume pattern and volume indicators powerfully suggest that instead we are about to see a decisive breakout to the upside. There has been persistent heavy upside volume throughout most of April and this month … Continue reading

Adrian Day: Adversity Often Presents Opportunities

Source: Adrian Day for Streetwise Reports 05/28/2020 Money manager Adrian Day reviews developments, both positive and not-so-positive, at several companies in his portfolio and he finds that some are cheap enough to buy. Loews Corp. (L:NYSE, 31.19) is having a rough time, with several of its holdings severely hit by not only Covid restrictions but by broader market conditions as well. Its struggling, majority-owned Diamond Offshore succumbed to weak oil markets by filing for bankruptcy. Investment income at its CNA insurance unit declined sharply. Virtually all its hotels have closed and laid off 90% of staff amid travel restrictions. All this contributed to a loss for the quarter of $632 million loss, over $400 million of attributable to a no-cash impairment on some of Diamond Offshore’s rigs. And the current quarter won’t be better. It will write down its carrying value on Diamond this quarter. The bankrupt shares are currently trading at 20 cents in the pink sheets, down from $7 a share at the beginning of the year (and over $100 a share before the 2008 credit crisis). Loews’ carrying value at quarter-end of over $1 billion; that will be slashed to about $15 million (in a non-cash loss). Given the bankruptcy, Loews no longer controls Diamond, and so will no longer consolidate Diamond’s earnings. Some units doing well CNA’s operations have been strong, driven by lower expenses as well as rate increases. Its business interruption policies do not pay on the virus related closures. But the decline in … Continue reading

Blackrock Drilling for Bonanza Grade Silver in Nevada

Source: Bob Moriarty for Streetwise Reports 05/27/2020 Bob Moriarty of 321gold discusses the company’s plans to explore its silver project in Nevada’s second largest silver district. When all the stock markets in the world collapsed in mid-March they dragged down all of the metals as margin clerks made investors dump everything they could to meet margin calls. That took the metals and mining shares down in an instant to the horror of investors. I smiled. I predicted it on February 27 and I was ready. Much to even my great surprise, silver literally fell off a cliff. That didn’t surprise me but dropping to a ratio of 131-1 to gold did surprise me. So I was buying the crap out of silver below $12. I know a deal when I see one. You couldn’t buy physical silver unless you were willing to pay an absurd premium. No dealer is going to be paying $17 for silver one day and sell it for $12 the next. But you could actually buy the silver ETFs and they were at a discount even to the price of silver. When investors sober up and realize you cannot and will not get a V recovery with 40 million Americans on the dole the crash will go into phase II. It may well take down the metals again. You can’t get any more absurd than the general stock markets are today. They are like puffing on a crack pipe held in your left hand while tossing … Continue reading

Junior Miner Presents 'High-Risk, High-Return, High-Grade Gold Story'

Source: Peter Epstein for Streetwise Reports 05/27/2020 Peter Epstein of Epstein Research explains why he is “bullish” on Falcon Gold Corp., with five Canadian projects targeting mostly gold, but also silver, copper, cobalt, nickel and platinum group metals. Note: Unless stated otherwise, all $$ = US$. Gold = Au, silver = Ag, copper = Cu, cobalt = Co, nickel = Ni, palladium = Pd, platinum = Pt. Gold producers are benefiting from a significant increase from ~$1,200/ounce nine months ago, to an eight-year high of $1,788/ounce in March, and ~$1,750/ounce in mid-May. Yet, gold bugs say we’re still in the early stages of a gold bull market. Pundits and analysts are moving price targets ever higher due to the shocking economic fallout and massive debt issuance/money printing resulting from COVID-19. What might past bull markets say about today’s gold market? In the four largest historical bull markets since 1970, the average inflation-adjusted gain has been +237% over an average 51.5-month period, for an annualized gain in each period of +36.1% (see chart below). Notice that in today’s rally (the current bull market), the price is up +46% from September 2018 to May 20, 2020 (~20 months). With this in mind, consider the following possible scenario between now and the end of next year. If one were to extend the current bull market from 20 to 51.5 months (to December 2022), and assume the average historical 36.1% CAGR (compound annual growth rate), the gold price would hit $4,514/ounce. Or, instead of … Continue reading

The Inflation–Deflation Conundrum

Source: Michael Ballanger for Streetwise Reports 05/26/2020 Sector expert Michael Ballanger considers what the post-pandemic world could look like in the aftermath of central bank actions. As I sit here on the shores of lovely Lake Scugog, its weed-infested waters lying in wait for countless unsuspecting propellers soon to be ensnared, I am reminded of the failed world of central banking and policy initiatives, which too has become ensnared in flora of its own making—a floating algae bloom of debt, deception and intervention. Following this metaphor apropos, there is nary a dock with twenty miles of Port Perry that is navigable without encountering an impassable wall of goose droppings. Being Canada’s favorite bird, these creatures are the height of ornithological fecal incontinence. Sadly, as a “protected species,” citizens are prohibited from causing them not only any harm, but also inconvenience (as in shooing them off your property), resulting in spoiled lawns and malodorous decks and gazebos. When I see a flock of these flying manure sacks about to land on the lake, I am once again reminded of politics, where unelected officials are paid to engineer policies of unknown outcome and uncertain consequence, but where the result will be despoiled surroundings, economic disaster and odors of the foulest origin. Alas, another thing held in common by a goose and the politician is that both can be found on a stamp, and both worth well under a dollar, and therein lies a lesson of sorts, a parable, a fable of resounding … Continue reading

White Gold Has a World of Riches Few Understand

Source: Bob Moriarty for Streetwise Reports 05/23/2020 Bob Moriarty of 321gold discusses a company with 33 projects in the Yukon. Recently billionaire Eric Sprott added a multi-million dollar vote of confidence to that of Agnico Eagle and Kinross in the Yukon based amalgamation of all the projects of Shawn Ryan named White Gold Corp. (WGO:TSX.V; WHGOF:OTCMKTS). That now makes an even three entities that actually understand the magnitude of what White Gold has in their stable. That would be Eric, Kinross and Agnico Eagle. Few others get it. The mining industry used to be populated by legends. A few exist today. One of the most interesting would have to be Shawn Ryan highlighted in various articles and magazines. I was on a trip to the Yukon fifteen or so years ago when I met him. He was living with his partner in a trailer in Dawson. He was intent on staking half the Yukon and eventually pretty much succeeded. Later he did joint ventures with a number of juniors before he realized that dealing with dozens of juniors was at a minimum, painful. So he put together a package of 33 projects covering over 420,000 ha with an existing 1.8 million ounce resource. You would think the market would jump at the opportunity to get a piece of such valuable real estate in probably the best country in the world to explore and produce gold. You would be thinking wrong. I’ve been to hundreds of projects including half a dozen … Continue reading