Trump's Missile Strike on Syria and Gold

Source: Clive Maund for The Gold Report 04/11/2017 Technical analyst Clive Maund charts gold’s movements following the U.S. missile attack on a Syrian airbase. In Britain in the old days there was a saying, which was “Buy on a strike.” It had nothing to do with economics and everything to do with psychology. When a general strike by workers was declared, stock prices would have fallen up to the point at which the strike started, when the economic outlook would have been at its worst, but well before the strike ended they would actually start rising again, as investors perceived an eventual resolution of the problems. Thus, savvy investors who bought when things looked at their worst would have made the best of the situation. The same thing works in reverse when gold and silver look like they are going to rise due to a ramp up in geopolitical tensions. Thus, on Friday, we had any number of market commentators and “green” investors declaring a breakout by gold and silver due to the apparently increased danger of conflict between Russia and the U.S. after Trump lobbed about 50 cruise missiles at a Syrian airbase. Trump had three main reasons for initiating this strike. One is that he appears to have been genuinely outraged at the chemical attack having seen film of the victims of it, and wanted to hit back at those he saw as the perpetrators. The second is that it couldn’t do any harm to his flagging ratings … Continue reading

Charts Spelling 'Big Trouble' for Silver

Source: Clive Maund for The Gold Report 04/11/2017 Silver’s latest charts show that it is set up for a potentially severe decline, says technical analyst Clive Maund. Silver’s latest charts show that it is set up for a potentially severe decline, a situation that is aggravated by its latest COTs and Hedgers charts showing record extreme readings, which mean BIG TROUBLE for silver. Now, you might think, like so many traders did on Friday morning, that with Cruise Missiles flying around the Mideast, the outlook for the Precious Metals couldn’t be better, but the charts are saying that this is an opportunity—on the short side—dressed up in a crisis that will soon ease. Action in silver on Friday was very bearish as we can see on its 6-month chart below—it tried to break higher in the morning but the breakout attempt failed and it dropped back, zig-zagging around and leaving behind a high volume “Spinning Top” candlestick on its chart, so that it looks like it is about to break down from a Double Top with its highs of late February. The 1-year chart shows silver perched on the edge of a cliff, at the top of a big expanding downtrend channel with no relief in sight until it reaches the support level shown, and COTs and Hedgers charts show that it could drop much further—to the lower boundary of this expanding channel. The risk of silver tipping into a potentially severe decline from here is amplified by its latest … Continue reading

'Bond God' Jeff Gundlach Is Essentially Long Gold

Source: Tom Beck for The Gold Report 04/09/2017 Tom Beck, senior editor of Portfolio Wealth Group, examines how low real interest rates boost gold. In a fiat monetary system, gold is apparently not money anymore for 99.15% of the population. Although demand is outstripping supply by $54 billion annually, only 0.85% of the population owns any gold or silver! The ownership of gold and silver stocks is even more miniscule. To 99 out of every 100 citizens of our planet in 2017, a government note makes more sense than a gold coin, and even a digital currency, such as Bitcoin or this potentially explosive new one, is apparently more appealing. But some investors see the eternal importance of gold, like Jeff Gundlach, who manages more than $100 billion through his investment firm, DoubleLine Capital. “I expect a rally on the 10-year,” Gundlach said. A “rally” means higher bond prices, and therefore lower interest rates. Gundlach predicts they will fall “to below 2.25%, at a minimum. . .maybe a bit lower than 2%.” Interest rates are already the lowest they’ve been since our ancestors watched gladiators fight for gold, and this investor optimism is what tells me that Gundlach sees what I see. Real interest rates (you know, after you deduct inflation) are negative—not just in the U.S., but everywhere else in the developed world as well. The reason to own gold is because it’s a safe haven and it’s a hedge against currency devaluation. I personally own 8% high-yield special … Continue reading

Doug Casey's Big Gold Play Makes 3,100% More than Gold Bullion

Source: Lior Gantz for The Gold Report 04/09/2017 Lior Gantz of Wealth Resources Group discusses why he anticipates the majors will start making acquisitions of small-cap companies again and how investors can take advantage. Most investors do not own gold and silver. In fact, most people worldwide don’t own a single ounce—they never have and probably never will. Gold ownership is down to less than 1% of the population, and that is similar to not owning insurance. Fiat currencies are simply vehicles for governments to run deficit spending without taxing the population—instead, they simply issue more bonds. It’s working (for now) since there’s enough population growth to fund increasing tax revenues, which cover the interest payments on these fiat IOUs. Like our friend at SRSrocco Report shows in this chart, the trading volume for gold rises tremendously every year, and that is how paper gold manipulation works. As we showed on our micro-documentary, “Manipulation End-Game: JP Morgan Hoarding Silver,” the major banks are behind blatant paper rigging, which is keeping a cap on precious metal prices. If you truly understand the role of these metals in a portfolio, you understand this is actually a blessing in disguise, because you can accumulate more before a potential fiat crisis sends these safe havens into much higher price levels. With cryptocurrencies, you can actually make a fortune just by owning this new coin! It’s a speculation, but allocating small amounts could yield huge gains. For long-time international speculator Doug Casey, who is a … Continue reading

Leagold Mining: Woodyer & Giustra Are Building Endeavour Mining 2.0

Source: The Critical Investor for The Gold Report 04/09/2017 The Critical Investor profiles Leagold Mining, a company that just took over Goldcorp’s Los Filos mine in Mexico. Sometimes it happens that an asset can benefit from a new set of eyes looking at it from a different perspective. That is exactly what seems to be happening at the Los Filos mine in Mexico. Goldcorp Inc. (G:TSX; GG:NYSE), the previous operator of this mine, decided to focus on other projects due to its new 20/20/20 strategy (in the next five years achievement of 20% growth in gold production, 20% growth in gold reserves and a 20% reduction in our all-in sustaining costs) put in place by new CEO Garofalo, and put the mine up for sale. Several parties were interested, but Leagold Mining Corp. (LMC:TSX.V) made the winning bid. Leagold appeared to be a special purpose vehicle: created for the sole purpose to acquire this mine in Mexico’s Guerrero Gold Belt. but it is meant for much more. Looking at the company’s management team, built around well-known founders Neil Woodyer and Frank Giustra, the Los Filos mine is the very first step of Leagold Mining. This company is destined to achieve great accomplishments, and the current valuation of the company is definitely just the beginning. All presented tables are my own material, unless stated otherwise. All pictures are company material, unless stated otherwise. All currencies are in U.S. dollars, unless stated otherwise. The company Leagold just finalized the financing which was … Continue reading

Jack Chan’s Weekly Gold and Silver Update

Source: Jack Chan for The Gold Report 04/08/2017 Technical analyst Jack Chan charts the latest developments in the gold and silver markets, including an all-time high in speculation in silver. Our proprietary cycle indicator remains down. The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term. The gold sector is on a short-term buy signal. Short-term signals can last for days and weeks, and are more suitable for traders. Prices are bound tightly between support and resistance. Looking for a break. A trend has not been established as to whether speculative activities are in a bull or bear market, according to COT data. Silver is on a long-term buy signal. SLV is on a short-term sell signal, and short-term signals can last for days to weeks, more suitable for traders. Speculation in silver made a new all-time high this week, but prices remain well below the 2016 high. SummaryThe gold sector is on major buy signal. The cycle is down. A correction is in progress. Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ … Continue reading

Integra Gold Is Entering Unicorn Territory

Source: The Gold Report 04/06/2017 Companies tend to excel at exploration or development, but Integra Gold seems to do both well simultaneously. In this interview with The Gold Report, Integra CEO Stephen de Jong explains Integra’s dual track, discusses the company’s latest PEA and resource update, and enumerates Integra’s path to production. Gordon Holmes: Steve, a real pleasure to speak with you today. Integra Gold Corp. (ICG:TSX.V; ICGQF:OTCQX) recently released an updated preliminary economic assessment (PEA) for your project in Val d’Or, Quebec. Would you give us some highlights and how it compares to the older PEA? Stephen de Jong: The updated PEA/mine plan is a completely new plan. The old mine plan was a five-year life of mine with 100,000 ounces (100 Koz) gold per year, so essentially the project would produce 500 Koz. Half of that would come from Triangle, and half would come from other deposits, including the Parallel. That PEA was done in 2015, based on a resource from 2014. We’ve been one of the most active exploration companies in the industry over the last few years, and we’ve seen substantial growth at Triangle. The Triangle resource in the most recent PEA would produce over 1 million ounces (1 Moz) by itself. So on the updated PEA, 1.3 Moz would be recovered, and we’re continuing to grow that resource as we go. The other big difference in the updated PEA is that the bulk of the mining done at Triangle now is done within steeper structures, … Continue reading

Klondex Ups Mineral Resource at True North

Source: The Gold Report 04/06/2017 An updated mineral resource for Klondex’s True North project that increases the Measured and Indicated resource by 32% and the Inferred by 45% caught the attention of several analysts. Klondex Mines Ltd. (KDX:TSX; KLDX:NYSE.MKT) on March 29 released an updated mineral resource for its True North Gold mine located in Manitoba, Canada. Klondex acquired the mine in January 2016. The Measured and Indicated resource represents an increase of 32% in gold ounces over the September 2016 resource estimate and the Inferred resource increased 45%. Paul Huet, president and CEO stated, “True North continues to evolve into an important asset in our portfolio. We believed our initial Mineral Resource Estimate was just the beginning and this update confirms that belief. Using the results from our own drilling program post acquisition, we continue to unlock the true potential of this asset by adding ounces at depth with additional tons at higher grades.” The resource estimate was well received by industry analysts. Jamie Spratt, an analyst with Clarus Securities, called the update positive and noted that “we are encouraged by the growth in the mineral inventory that further strengthens our view on the significant exploration upside available at True North from the multiple zones that remain open. We believe continued drilling should translate into mine life extension of the ~45 Koz/year production profile at True North.” Spratt also lauded the True North and Hollister acquisitions by noting, “we continue to believe that KDX is well positioned to deliver … Continue reading

Permitting at NOVAGOLD's Donlin Project Is Entering Its Final Stage

Source: The Gold Report 04/06/2017 The release of NOVAGOLD’s first quarter results has analyst Raj Ray of National Bank Financial highlighting that permitting for the Donlin Gold project is entering its final stage. NOVAGOLD Resources Inc. (NG:TSX; NG:NYSE.MKT) announced on April 3 its results for the fiscal year Q1/17, which ended on Feb. 28. The company noted that work continues on the “Donlin Gold environmental impact statement (EIS) as the U.S. Army Corps of Engineers, the project’s lead federal permitting agency, works to complete the final EIS.” The Donlin Gold project in Alaska is a 50-50 joint venture with Barrick Gold. The company also owns 50% of the Galore Creek copper-gold-silver project in British Columbia. Analyst Raj Ray of NBF, in an April 4 research flash, noted that permitting activities for Donlin continue to advance. “The comment period on the draft environmental impact statement was completed mid-2016 and the U.S. Army Corps of Engineers (USACE), the lead federal agency with responsibility for preparing the EIS, is in the process of reviewing the comments received on the draft EIS. NG management expects filing of the final EIS in early 2018,” wrote Ray. Ray noted that the company indicated that it “made a special permit request to the Pipeline and Hazardous Material Safety Administration (PHMSA) for some design change considerations to the 315-mile long pipeline that is expected to transport natural gas to the Donlin Gold project site from the Cook inlet in Alaska. Management indicated on the conference call that the … Continue reading

Pershing Gold Climbs to the Next Level in Nevada

Source: The Gold Report 04/06/2017 As Pershing Gold closes a deal to consolidate its Blackjack project, it continues to move the Relief Canyon mine closer to production. Pershing Gold Corp. (PGLC:NASDAQ; PGLC:TSX) has a couple of irons in the fire, with its flagship Relief Canyon mine progressing closer to production and a new sublease that will expand the Blackjack project, which the company terms as highly prospective. On April 4 Pershing Gold announced it has entered into “a Mining Sublease with Newmont USA Limited which further consolidates the Antelope Springs mining district in the Pershing Pass area south of the Relief Canyon Mine.” Stephen Alfers, chairman, CEO, and president of Pershing Gold stated, “The Blackjack Project is comprised of seven historic mercury and antimony mines. The consolidation of this historic mining district for the first time is the crucial catalyst for the Company’s district-wide gold exploration efforts.” With the sublease, Pershing Gold now controls 100% of the prospective ground in its Blackjack project area, according to the company. Under the terms of the agreement, Pershing Gold has “the exclusive right to prospect, explore for, develop, and mine minerals in all areas [with] an initial term of ten years and may be extended by Pershing Gold until December 3, 2034.” “Blackjack is important to the Company because it presents a very real opportunity to extend the life of the entire project through the discovery of satellite deposits,” CEO Alfers noted. “This Sublease is important to Pershing Gold because it unlocks the … Continue reading