Optimum Entry Point for Gold and Silver Stocks

Source: Clive Maund for Streetwise Reports 01/11/2018 Technical analyst Clive Maund discusses why he believes a massive new sector bull market is about to begin in gold and silver. When you are following the markets closely day after day it can be easy to lose sight of the big picture. So with the “everything bubble” getting closer to bursting, leading to universal mess and mayhem, there could not be a better time to look at the long-term picture for gold and silver, in order to see whether they are going to salute and go down with the ship, as they did in 2008, or constitute a lifeboat and a profitable means of escape for more fortunate investors. I am therefore pleased to be able to report that it will almost certainly be the latter, for reasons that we will now elucidate on the respective long-term charts for gold, then silver. On gold’s latest 18-year chart—a time period selected to show the prior 2000’s bull market in its entirety—we can readily see that a potential Head-and-Shoulders bottom has been forming since 2013, and the probability that this is the genuine article, the “real deal” is vastly improved by the dramatic increase in upside volume over the past two years as this base pattern has approached completion, which has driven volume indicators strongly higher over the past year, such that, rather incredibly, the Accum-Distrib line is already close to making new highs, which is a very bullish indication indeed. It’s pretty much … Continue reading

Brownfield Leverage and Blue-Sky Greenfield Zinc Exploration in British Columbia

Source: The Critical Investor for Streetwise Reports 01/09/2018 As zinc continues to rise, The Critical Investor profiles an explorer consolidating claims in southeastern British Columbia. Kootenay Arc; Jersey Emerald Project 1. Introduction Every now and then certain junior mining companies succeed in consolidating a large group of claims or even multiple projects on very favorable terms, often creating very interesting continuous land packages with ongoing areas of exploration potential, greenfield and/or brownfield. This kind of transactions are usually out of the realm of larger, well-known parties, as prices shoot up the second their involvement becomes apparent. One of these junior mining companies is Margaux Resources Ltd. (MRL:TSX.V), a relatively new player on the zinc front. The company consolidated a lot of land and historic mines in an area called the Kootenay Arc, and set out to look not only for zinc, but also for tungsten and gold. This year has already seen quite a bit of exploration activities on various projects, so it is time to discuss the current status of the company and its projects. 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. 2. The Company Margaux Resources is a mineral acquisition and exploration company focused on zinc, gold and tungsten resources in the richly mineralized Kootenay Arc region of southeastern British Columbia (B.C.), Canada. The company has quietly consolidated a portfolio of previously producing properties in the last three … Continue reading

Gold Project Could Be One of the 'Top Five Producing Mines in Australia'

Source: Streetwise Reports 01/09/2018 As this gold explorer continues to test its Australian property, an updated preliminary feasibility study is expected this quarter. Vista Gold Corp.’s (VGZ:NYSE.MKT; VGZ:TSX) principal asset is the Mt. Todd gold project in Australia’s Northern Territory, where the company is undertaking metallurgical testing. At the end of November, Vista Gold announced that its test work has led to improved gold recoveries; automated sorting and a two-stage grinding circuit would “enable the project to achieve a finer grind size, higher gold recoveries/higher gold production, and lower processing costs with no material increase in project capital.” Heiko Ihle, an analyst with H.C. Wainwright & Co., noted in a Nov. 28 update on Vista Gold that his firm expects “a reduction in grinding, leaching, and tailings handling costs due to lower volume of material processed, and reiterate[s] the potential for these changes to reduce the above costs by around 10%.” “We expect the improvement in recoveries to translate to greater production and profitability at Mt Todd,” Ihle wrote. The company is now updating the preliminary feasibility study (PFS), which it plans to release this quarter. “We continue to expect an updated PFS for Mt Todd to be completed in 1Q18 and expect the study to reflect a project that can provide value to shareholders at the current gold price, rather than a potentially higher price in the future,” Ihle noted. Fund manager Adrian Day of Adrian Day Asset Management, wrote in Global Analyst on Nov. 20 that “the updated … Continue reading

Getting Bullish on Gold

Source: Rudi Fronk and Jim Anthony for Streetwise Reports 01/08/2018 Rudi Fronk and Jim Anthony, cofounders of Seabridge Gold, discuss gold’s recent moves and potential signs of a bull market. Gold is up nine of the last 12 Januaries with an average gain of over 4%, and the trend has continued in 2018 with gold reaching an intraday high of $1,327 so far this year. From December 19 of last year, gold rose 10 trading days in a row. Is this another rally destined to disappoint investors or the resumption of the gold bull market? To make a reliable bullish case, gold must first break decisively over $1,360 (the 2017 high) and then $1,375 (the 2016 high). So, the question can’t be answered yet. But there are some encouraging signs. Gold posted a 14% gain in 2017, its best annual increase since 2010. In mid-December 2015, gold bottomed at $1,051 per ounce. In mid-December 2016, it bottomed at $1,128 per ounce. For 2017, the bottom was on January 3 at $1,162. That’s a trend of “higher lows,” which is a solid indicator of a turn in the market. Breaking out above the July 2016 high of about $1,370 per ounce would generate a “higher high,” a strong sign to us that gold is in a new long-term uptrend. Gold’s long-term moving averages are in bullish alignment for the first time since 2012. The last time the alignment structure flipped to bullish was in 2002, which confirmed the beginning of a … Continue reading

Jack Chan's Weekly Precious Metals Update

Source: Jack Chan for Streetwise Reports 01/08/2018 Technical analyst Jack Chan charts the latest movements in the gold and silver markets, noting a falling dollar is supportive for metal prices. Our proprietary cycle indicator is up. 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. Gold sector is on a short-term buy signal. Short-term signals can last for days and weeks, and are more suitable for traders. Speculation is in bull market values. USD: a falling dollar is supportive for metal prices. Silver is on a long-term buy signal. SLV is on a short-term buy signal, and short-term signals can last for days to weeks, more suitable for traders. Speculative longs are bouncing back sharply from the lowest level in years. Summary Precious metals sector is on major buy signal. Cycle is up, suggesting that the multi-month correction is now complete. COT data is supportive for overall higher metal prices. We are holding gold related ETFs for long-term gain. 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 top in 2000, the new gold … Continue reading

Melt-up, Up, and Away

Source: Michael J. Ballanger for Streetwise Reports 01/05/2018 Precious metals expert Michael Ballanger likes what he sees for gold in 2018’s first week of trading. While the moniker for this missive is “Gold and Gold Miners,” I just sit back in absolute AWE as the global equity investors (otherwise known as “Stock jockeys”) have decided that “cash is TRASH!” and despite a massive “miss” in the employment numbers this morning, within seconds of the release, the spin doctors manning the equity trading desks deemed that number “bullish” because it is less inflationary and may cause the Fed to “pause.” So dollar-yen rallies, the USD index has a minor pop, gold sells off, and stocks come out of the gate up another 0.25% with all of the bubblicious bravado of a high school quarterback getting his first win. The chart of the S&P shown below is a classic illustration of what occurs when global central banks open up the monetary spigots and flood the world financial markets with unchallenged credit and liability-free liquidity. It is this “inflationary spiral” that enhances “the replacement value of equities” and sends literally everything skyward. Since the two biggest collateral risks to the banks are real estate and stock buyback loans, it is no surprise that this tsunami of phony, counterfeit currency of all colors indiscriminate of flag has not only mitigated those risks but also floated the underlying collateral into the ozone layer. Don’t forget that even Ben Bernanke admitted that no one could predict … Continue reading

Miners of the Modern Yukon Gold Rush

Source: Ron Struthers for Streetwise Reports 01/04/2018 Ron Struthers of Struthers’ Resource Stock Report describes a miner making a promising stand in the Far North, as well as other Yukon-based gold companies that have captured his attention. The Yukon is seeing a modern-day gold rush, with five major miners jumping in and several junior exploration companies with large exploration budgets. Kinross Gold Corp. (K:TSX; KGC:NYSE) was the first of the major gold miners to make a move into the Yukon when it gobbled up White Gold. The current Yukon gold rush really gained traction with Goldcorp Inc.’s (G:TSX; GG:NYSE)’s CA$520 million buyout of Kaminak Gold Corp. in 2016. Since then, Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE), Newmont Mining Corp. (NEM:NYSE) and Barrick Gold Corp. (ABX:TSX; ABX:NYSE) have all picked up gold properties in the territory. Late summer in 2017 the Canadian government weighed in with $360 million in road infrastructure to access the Yukon’s minerals, called the Yukon Resource Gateway project. Peter Tallman of Klondike Gold Corp. (KG:TSX.V) probably said it best: In the Yukon, 20 million ounces of gold have come from gravels but zero from the bedrock. The Yukon is the largest unexplained geochemical gold anomaly on the planet. It all adds up to the Yukon is seeing its busiest year since 2011. Scott Casselman, head of mineral services with the Yukon Geological Survey (YGS), says: “What we’ve seen this year is a noticeable uptick in the amount of investment in mineral exploration in the territory. We’re probably … Continue reading

Gold: Not the Typical Year-End Buying Opportunity

Source: Ron Struthers for Streetwise Reports 01/04/2018 Ron Struthers of Struthers’ Resource Stock Report takes a look back at gold’s performance in the last quarter of 2017, and describes a producer he’ll be adding to his portfolio in early 2018. As of my last Seeking Alpha comments on gold on September 15, gold (GLD) had hit my $1,360 target and I was contemplating the possibility of a break above $1,375. I believed at that time the best chance for this was in September/October, because after that we would enter the typical year-end period of gold weakness. As it turned out gold made it no higher than my $1,360 target and the year-end weakness began to take hold. I drag this same monthly chart out a few times during October to December each year and simply add on the most recent calendar year. Gold held up better than I expected this year as I believed we would bottom between $1,200 and $1,220. With the year at a close, I have updated my monthly chart and this year we can see that weakness was quite brief, with just the tail of the December candlestick dipping down to about $1,245. I believe there are two main reasons for gold’s relative strength at this year’s end. There are a lot of froth and bubbles in capital markets, with bitcoin soaring, marijuana mania, and all stock market indexes up strongly this year without so much as a 5% correction. Some of this excess capital is … Continue reading

Cheap Gold Stock About to Break Out of Base After Prolonged Accumulation

Source: Clive Maund for Streetwise Reports 01/03/2018 Technical analyst Clive Maund charts a gold company that he believes has the potential to make big percentage gains in a short period. Altamira Gold Corp. (ALTA:TSX.V; EQTRF:OTCBB) is a gold stock that is at a very low price and showing signs that it is about to emerge form a completed base pattern, a combination of factors that gives it the potential to make big percentage gains in a short space of time, which is our “prime directive.” We will start by looking at a long-term 20-year chart, not because it is technically of much use, but because it gives us an overview of the history of the stock. As we can see, overall it has been a useless investment since it started trading in 2001. After it started trading there was a brief dramatic spike, after which it came crashing down to a very low level and it has never really recovered, but instead trundled sideways for many years. However, shorter-term charts open out what looks like a gigantic base pattern on this chart to reveal that there have actually been some big tradable swings within this giant trading range. The 6-year chart reveals that within what looks like nothing more than a gigantic base pattern on the 20-year chart there has been a significant bull market and then a bear market during the past five years, with the bull market resulting in 20 times gains from the lows, which were all … Continue reading

2018: The Year of Living Dangerously

Source: Michael Ballanger for Streetwise Reports 01/03/2018 What does the New Year hold in terms of prospects for investors in gold, silver and copper? How will central banks and cryptocurrencies play into the health of global financial markets? Precious metals expert Michael Ballanger ponders the possibilities. There is one redeeming benefit to writing “forecasts”: they invariably and inevitably reduce you to a quivering mass of humility as the hubris born of luck and circumstance is replaced with the reality of randomness. I have been reading research reports for years and the most useful portions are those where an analyst goes back and reviews his/her reasons for owning something, and then a year later explains why it was flawed. Interestingly, it is uncanny how random events otherwise known as “black swans,” which carried computer-generated probabilities of occurring in the single-digit-percentages, are by and large the most common reasons for an investment theme blowing into smithereens. Accordingly, as I gaze out into the year 2018 and see all of the attendant risks so very well documented by the most revered investors of the past half century, I have to sweep them all under the proverbial rug because at the end of the day. What we all witnessed in 2017 was truly historic. The quantitative easing that is now credited with having “saved” the financial system in 2009 involved global central banks first creating money out of thin air, and then using that money to initially buy bad bonds, then good bonds, and … Continue reading