Gold and Silver and Hard Assets after Trump’s Inauguration…2017MAKE YOUR PORTFOLIO GREAT AGAIN !
This thread is a continuation of several threads posted previously by the author on gold and silver and hard asset investments. I am still a believer in hard assets. I also believe we are entering a period of inflation with continued dollar devaluation, higher interest rates, and a sluggish economy with chaotic dislocations. I believe there will be a lot of uncertainty and high volatility.
PURPOSE My intent is to find and discuss good mining and commodity ideas. Gold and silver remain a focus, but I want to achieve a more balanced approach still based on tangible commodities.
STEEL and IRON ORE…I believe Trump’s programs will benefit iron ore and steel. Stocks in this sector have been beaten down terribly but are rebounding. I am long VALE, a Brazilian company which is the world’s largest iron ore producer. I have been long Arcelor Mittal but do not have a position at the moment. Anybody know anything about cement and asphalt ?
COPPER, ZINC, PGM METALS…My very best conviction stock is Ivanhoe Mines IVPAF. I am completely comfortable with a large single position in IVPAF to cover these metals. However other investors may be uncomfortable with a small cap in sub-Saharan Africa. So I think it is beneficial to introduce other names even though I myself am not interested. Rio Tinto, Freeport-McMoran, Teck, Turquoise Hill, BHP and others come to mind. Travis, our host, is long Altius Minerals, and I have been also.
URANIUM…I’m bullish but the choices seem pretty limited. My top three investment-grade choices are Cameco first, then Cameco second, or my third pick would be Cameco. After that, you are speculating on small caps, or buying ETFS or funds comprised of Cameco and some small caps. At the moment, I am long Cameco and UEC.
LITHIUM…I am considering a long position in lithium. I have nothing to recommend at the moment, although I am strongly considering Galaxy, an Australian company. And I like Neometals, also an Australian, but it is difficult to get from my broker, who hates it when I want to buy obscure 50 cent companies on small foreign exchanges. If anybody’s got a great battery play, I am interested.
POTASH/FERTILIZER…very interested but they all seem pretty expensive. There has been consolidation but I have considered Agrium, Mosaic, and there is a German company whose name I forget at the moment (K&D? K&S?).
OIL AND GAS…I would like some very good conviction picks accompanied by strong reasons and decent research. This field is so big, we could get completely lost just tossing names around. I am somewhat worried about price weakness in the energy sector but feel that it is worthwhile to develop a point of view on a few companies. I have little experience although I made very good money in the past on XOM and CVX. Currently I would be interested in pipelines, LNG, or any other sector that someone knows something about. In natgas I like OGZPY.
SOLAR and WIND…really not too interested. The results depend too much on politics, the time frames seem too long. But I am not completely closed-minded on it if you have conviction on something.
COAL…same opinion as solar and wind, but the prices are low and depressed instead of hyped and high-flying. I am still stuck with some defaulted Arch Coal bonds that my financial advisor recommended. They went to ZERO. Now they are worth a Starbucks latte and a pastry. And no espresso shot in the latte, either.
AGRICULTURE…very interested. A large sector but really not too many choices if you rule out futures, like I do. I have a few obscure favorites, but no positions at present:
WHGPY (Chinese pork processor who bought Smithfield)
LAND (Gladstone Land, California farmland)
INCPY (Input Capital, a Canadian canola, streaming model).
Open to more conventional picks like ADM and DBA.
GOLD AND SILVER…my picks have been discussed at length previously. I follow these pretty closely. I am long royalty/streamers SAND, FNV, SLW, and OR; miners PVG, MAG; developers SA, CLASF, MRDCF, BALMF, KNTNF, and LXVMF; and I own PSLV and physical bullion. I swing trade big caps ABX and NEM.
****
DISCLOSURES. I am a retired executive and an amateur investor. I like both fundamental and technical analysis. I am a medium-term to long-term position player and prefer to discuss stock investment in that context. Please no minute-by-minute reports that oil is now 52.50 down 10 cents and the Iranians may suspend Ramadan next week so you are going long until the afternoon bell.
I am not an expert in any of the commodities discussed nor am I qualified to give advice.
Everyone makes mistakes and I make more than my share.Sometimes I change my mind.
When I post, I express my opinions and my positions. These are just that…they are my opinions and my positions. They are not advice or recommendations, which I remind you I am unqualified to make.
Opinions and positions are subject to change at any moment. That is quite unlike the pig-headed and foolish political convictions everybody carries around adamantly, and which change only rarely for unpredictable reasons that have nothing to do with logical thought or reasoned discussion.
Because of this, political developments can be introduced on this thread only when they have a clear bearing on the commodities or companies under discussion.
You are responsible for your decisions, and I am responsible for mine. Caveat emptor.
I would like to operate in a friendly, honest, and constructive atmosphere.
As thread moderator I reserve to myself the role of referee, censor, arbiter, and Grand Poobah, subject to the over-arching authority of Travis, who owns the site and who has on occasion exercised his right to ruthlessly censor and suppress my radical blatherings.
This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.
$GDXJ
VanEck Junior ETF REBALANCING on FRIDAY…From Jim Rickards…
https://pro.agorafinancial.com/p/RGS_goldanomaly_0617/ERGST631/?email=MONICA%40thelesliegroup.com&a=13&o=48073&s=55054&u=2823368&l=586995&r=MC2&vid=JuH9O1&g=0&h=true
You might have to click on the “Technical Difficulties? Click Here. link that is at the bottom of the page in order to get the video to play.
Noticing, on
2/24 gold was 1257 silver 18.36
4/7 gold was 1255 silver 18.01
right now gold 1252 silver 16.64
tomorrow I may be looking to add a silver stock, probably AG. I’ve successfully traded it 3X, and never bought it cheaper then it is right now.
renbycage, The ratio is indeed near its high for the last 52 weeks. KITCO charts this:
http://www.kitco.com/Gold_Silver_Ratio_Charts/gold-silver-ratio-charts.html
KITCO has gold/silver ratio graphs.
HN et al – I get an e-mail almost daily from a small stock website Ben mentioned a year ago or so, anyway this was their latest (this morning) stock, which is a silver stock: https://mail.google.com/mail/u/0/#inbox/15cc0a8618f9e951 I know nothing about it but thought it might be of interest.
jokin
Jking not a good link. It leads to a google mail box.
Hedy, I am very sorry. Haste does indeed do that bad stuff. And it’s my bad!
Here’s the entire article from The SmallCap Network
Dear SmallCap Network Members,
Devotees of Antiques Roadshow or Pawn Stars often fantasize of stumbling across that one special item – a diamond in the rough as it were – that will transform their everyday lives and bring new enthusiasm to everything around them. It does happen – albeit rarely – but the shows wouldn’t be the hits they are without the occasional big discovery to keep audiences and seekers enthralled. Such may be the case with a small mineral resources exploration company domiciled in Nova Scotia, Canada.
In 2015, Silver Spruce Resources, Inc. (OTCBB: SSEBF) (TSXV: SSE) underwent a fundamental restructuring, which included the appointment of a new President & CEO, as well changes to the Board of Directors, in order to focus attention and resources away from what was then a depressed uranium market to more lucrative mining opportunities in other base minerals.
What happened next is a bit of an early stage Cinderella story. Management at Silver Spruce Resources was alerted to an MLS property listing in Yavapai Country, Arizona, very close to the tiny town of Black Canyon City (population +/- 3,000). The 470.84 acre property was the site of the Kay Mine, once owned by Exxon Minerals (a subsidiary of Exxon Petroleum), and listed for sale by the current local owner. The listing included both the surface land as well as all rights and claims to the land and its contents below the surface. Without too much fanfare, the current owner sold the property to Silver Spruce Resources for $500,000 cash and $477,000 of TSXV: SSE stock. (Yes, you read that correctly…)
Silver Spruce Resources had access to all the earlier reports about the mining project that had been conducted by Exxon when the property was under the oil giant’s ownership. Review of those reports, and in conjunction with their own geographical and geological studies, revealed that the property contains substantial mining potential for several base minerals, including copper, zinc, silver, and gold.
The estimates for gold in particular, suggest that there is as much as 1.6 million ounces of gold under the surface, and in total 6.4 million tons of product with an estimated value of $1.8 billion. These estimates were made using assay data from historic mine level plans and Exxon drill hole intercepts. To date, Silver Spruce Resources has yet not conducted sufficient work to definitively classify Exxon’s resource estimate to be compliant with NI-43-101 resource definitions, and additional drilling is required to verify. However, Exxon geologists repeatedly state in their documentation that considerable upside remains as the project has not been fully explored and the known deposits are open down-dip and potentially along strike.
After Investing $1.5 million in exploration studies, Exxon sold the land which is known as the Kay Mine Project because the commodity product contained in the mine was not consistent with their exploration goals (you can make decisions like that when your market cap is $355 billion), eventually paving the way for Silver Spruce Resources, Inc. (OTCBB: SSEBF) (TSXV: SSE) to cultivate exploration and extraction of the natural resources.
Silver Spruce also owns mining property in southwestern Chihuahua, Mexico, however their primary focus this year is the Kay Mine in Arizona. Kay Mine is an advanced exploration project with potential of greater than 20 million tons of massive sulfide ore, according to Exxon Mineral Company reports. The Company’s exploration program for 2017 consists of mapping, sampling, geophysics, and drilling. Upon completion of this work, Silver Spruce Resources will endeavor to create a NI 43-101 compliant resource report on the property. In case you aren’t aware, an NI 43-101 report is a national instrument for the Standards of Disclosure for Mineral Projects within Canada. The Instrument is a codified set of rules and guidelines for reporting and displaying information related to mineral properties owned by, or explored by, companies which report these results on stock exchanges within Canada. It keeps mining companies honest and prevents investors from being scammed.
Silver Spruce estimates Kay Mine to have an indicated resource containing 6.4 million short tons at a 2% copper cut off, and an estimated average grade of 2.2% copper, 3.03% zinc, 0.082 ounces of gold per ton, and 1.6 ounces per ton silver (1.65 million oz. au equivalent). These estimates were made using assay data from historic mine level plans and Exxon drill hole intercepts.
Another key feature of the Kay Mine is the accessibility of necessary mining resources. Labor, water, electricity, roads, are all factors to consider when valuing a property for mining potential, and the historically productive Kay Mine, located in central Arizona, has all of these in abundance. The mine was productive in the early 1900s, but the advent of the World Wars redirected focus away from mining prospects in the area, leaving much of the area under-developed and under-explored.
Silver Spruce Resource’s other property, Pino de Plata in Chihuahua, Mexico, has mining indications on the property that date to the Spanish Colonial era of the 1600s. Although undrilled, since the 1800’s, and including the past 30 years, artisanal, small scale surface mining of high grade silver/base metal veins (likely >1,000 gr/ton silver) is evident at workings at nine discrete locations on the property.
As is the case at Pino de Plata, high base metal values (Pb, Zn, Cu) are often associated with high precious metal values in these epithermal veins. Coeur Mining’s Palmerejo mine, located approximately 15 km NE of Pino de Plata, and within the mineralized portions of the structures, silver and gold can be zoned from top to bottom with higher silver values occurring in the upper parts of the deposit and higher gold values in the lower parts. While this notion is untested at Pino de Plata, company geologists remain optimistic due to similar geologic indications on the property.
Silver Spruce’s recently completed 43-101 exploration assessment yielded many silver values in excess of 200 gr/ton, and some greater than 500 gr/ton from areas that for the most part have either been high graded at surface or are highly altered and leached at surface. While a systematic program of exploration was outlined, it noted a key objective should be to identify potential drill targets in areas deemed to be the most prospective.
From a management perspective, Silver Spruce Resources (OTCBB: SSEBF) (TSXV: SSE) has a C-Suite and Board of Directors that has decades of experience in mining, natural resources, geology and geophysics, financing and corporate strategy. The company has a market cap of $3.63 million, and carries no debt. SSE is focused on high impact precious metal and base mineral exploration opportunities, and making strategic acquisitions in well-established districts with sound models and infrastructure. They continue to seek properties and partnerships that have had some production and/or a resource that could be brought into NI 43-101 compliance.
In the meantime, they continue to focus on the mining potential of the Kay Mine project.
If you are considering adding a mining exploration stock to your portfolio, Silver Spruce Resources current $.04 cent price is worth considering. And, if the estimated $1.8 billion of product believed to be in the ground at Kay Mine is there and can be exploited, it will certainly make the $500,000 cash/$477,000 stock purchase price one for the record books.
Warmest regards,
SmallCap Network
http://www.smallcapnetwork.com
This web site is a paid stock promoter site. Hired gun that should be ignored.
$KNTNF
K92 Intersects High Grade Gold in Multiple Drill Holes at Irumafimpa Intercepts include:
• 8.2m at 24.65 g/t AuEq plus 3.2m at 4.77 g/t AuEq in hole GCDD0074
• 4m at 60.57 g/t AuEq, including 1m at 77.99 g/t AuEq and 1m @ 95.30 g/t AuEq, plus 0.3m at 14.49 g/t AuEq in hole GCDD0071
Long $KNTNF
KNTNF stock price still in the dumpster but the gold is incraasingly looking real. Was on the fence for a while but getting that conviction feeling now despite their showboating PR and cleverly timed stock raise.
Travis, why are my posts labeled as “guest” when I am the author, and why does the post above say “PRO” as the writer ?
-Hendrixnuzzles
That’s not what I see on our test machines, but I’ll look into it.
Just log onto the site as a public user would do. The “PRO”
contributor label appears on the posting at 7:29 today.
HN: The ‘Guest’ happens because youre not logged in…..or the system logged you out. Youll see this post is as Guest.
I assume it just says pro so that other guests cant ID you.
Thank you, Travis
$FTSSF, $TSX.V:CSK
I got two emails this morn that I’m going to present for your DD if interested. The market seemed to like it First Cobalt was up 16% today. If you are short Cobalt stocks First Cobalt appears worth looking at, SP .4762.
~~ First Cobalt Proposes Friendly Merger with Cobalt One ~~~
https://firstcobalt.com/2017/first-cobalt-proposes-friendly-merger-cobalt-one/?utm_source=firstcobalt&utm_medium=pr&utm_campaign=firstcobalt_pr_cmt_000002
~~~ First Cobalt Signs LOI with CobalTech ~~~
https://firstcobalt.com/2017/first-cobalt-signs-loi-cobaltech/?utm_source=firstcobalt&utm_medium=pr&utm_campaign=firstcobalt_pr_cmt_000003
$ECSIF long
xpost
Gold…in general.
If the following article has correct information, does anybody here know WHY the US has been liquidating it’s physical gold supply? Have we had to do so? Is there a more nefarious or sneaky reason for doing so??
https://seekingalpha.com/article/4083651-russia-vs-usa-gold-going?app=1&uprof=45&isDirectRoadblock=true
I often have difficulty knowing when to believe these articles. There always seems to be a lot of scare tactics.
Consider, if all these countries were buying all this gold, why does the price continue to remain relatively flat?
Hedy: I dont think it works like that. The market generally works like an auction room…..the prices rise/fall with supply/demand. If a buyer offers a price and sticks to it (coz theyre in no rush…and generally nations arent in any great rush) then the price simply sticks there and the trades only happen when theres a willing seller at that price. If they ask for more, there will be no trades, so prices will fall back to where there is a buyer.
Alan that was my point. If there was all this extra demand, by Russia/China buyi g gold, price should rise. Supply would lag when you have a large surge in demand thus higher prices.
So I am led to believe there is no unusual demand buying going on. Relatively stable market.
Hedy: I prob didnt explain it well enough. Its like placing a stink bid. If youre in no hurry to buy (and generally nations arent in any hurry), they set their bid at say $1000 and sit back. So if someone wants to sell, they have no choice but to sell for $1000 or pass. A limit bid does not cause a price rise….in fact it tends to slow the price movement, coz, above their $1000 bid, theres virtually no market. Consequently, the price moves v slowly. Remember, theres v little retail purchasing of gold, just the whales, who are in no hurry to chase the price. So when they stop buying, the price stops rising.
Alan
What is the basis for your statement “there’s very little retail purchase of gold”?
My sense is there is a lot of retail purchasing thru coins and jewelry worldwide. And more to come now that Islamic law permits.
Hedy: Its relative. It takes a whole lot of minnows to weigh the same as one whale. The market is manipulated….get used to it.
Alan
It may be manipulated.
Is that your way of saying supply and demand have minimal effect on price?
Then why/how did it spike relatively quickly to $1900? Why didn’t manipulation stop that?
Sometimes its manipulated and sometimes it isn’t?
It certainly is not clear what is going on.
I know you don’t have the answers. Very hard to decipher.
Don’t you wonder what the G8’s the G20’s etc get up to when they get together? Was the Indian government’s sudden stance toward the time honored Indian tradition of stashing as much gold as you could in the form of jewelry etc, really for the reasons they gave? Or the sudden war on cash etc. The whales have a lot of power in such things, as far as I can tell, and even the threat of intervention can make people hesitate to use gold as a protection.
I do think that not even the whales will be able to stop enough panicked minnows, key word being ‘enough’ from driving up the price of gold.
I wondered the same thing ” why, why ” while watching Modi avoid answering Megan’s questions ‘the way she hoped’ and he looked very uncomfortable…… He seemed to ‘want’ to side with Putin. Why ‘cash n gold’? Is this a way of controlling India, a country with a future of strength? Europe ‘Germany”is being weakened by migration….but who wants to migrate to India?
The rules of migration have always been pretty simply. Migrate to a country that has a successful economic system and then struggle to make it more like the system of the country you left.
Hedy…the price can be suppressed by the sale of forward paper in futures and options by central banks, who have unlimited ability to create currency and issue paper.
Many believe that this one the core tools of price manipulation. That is why many analysts follow the volume of the paper sales
on gold and silver.
The game ends when people start to demand delivery of the physical.
HN
Then wouldn’t the recent demands of countries asking for their physical gold hasten this process and thus be against their own interests?
Hedy: They can never be given physical coz it doesnt exist in quantities anything like equal to what’s traded ‘on paper’. Theyre not trading gold….they are simply trading bits of paper that have the value of ‘notional’ gold. I read a fine article about this (now lost) . It maintained that paper holders could only ever expect to be paid the value of their holding ….(wait for it)…. in paper $, not gold !! (Its not so different to stocks….do you imagine that you could nip over to cleanteq with your 100 paper shares and demand to be paid out in some hard asset like scandium or one of their office desks? )
Yes, youd certainly get a lot more paper currency for your paper ‘gold’ shares, so in a sense youd still have preserved the relative value of your investment (so long as the issuer of the paper doesnt go bust first….and most will !)…..but that value would still be delivered in government paper promises, not bullion. ‘Gold’ is mostly traded as a derivative, WAY beyond the existence of the real underlying commodity.
And the reason they will never reveal how much physical is held in Fort Knox is because its soooo little. If that was ever proved, confidence in the governments $ promissory notes would crash in nano seconds. There was a fab example of this after WW2 where the German currency had so little value that someone who had a wheelbarrow full (to buy a loaf of bread) was whacked over the head, had the notes tipped out and the thief promptly made off with the wheelbarrow.
When talking about “gold actually in the vault” you must be aware of two important considerations. Yes, the ingots are probably there, but who exactly owns them ? Have they been pledged as collateral on VERY large loans, and if so, how often ? There is a BIG difference between gold in the vault and “Gold Good for Delivery” . This consideration holds for both the gold at Ft. Knox and gold held in the vaults of the bullion banks. Yes, they may have have it, but who really owns it ?? and what is the state of the title ? If one asks for delivery, are you likely to get physical gold or its dollar equivalent ?
I suspect that a lot of “Gold Reserves” are nothing but IOU’s. About two years ago Germany wanted return of $8 billion in metal they had on deposit in US but got only $1 billion and told they must wait five years for the balance.
If you add up all the gold paper including derivatives it is far more than the total world supply. What would you call that scheme?
Ponzi
🙂 🙂 🙂
Frank, I’d call it SOP (standard operating procedure) for our federal government. Hopefully there will be someone sometime who has the gonads to actually conduct an audit of Fort Knox.
Regards,
Frank
Our shortage of physical gold pales in comparison to our shortage of truth tellers and honest brokers in government and media, and when confidence in the latter finally collapses, I expect confidence in the former, physical gold – held in the hand and not the ETF or paper – will soar. I own gold mining stocks, but when it comes to physical, I am not going to trust the paper version.
Since there is no citation in reference to the US secretly selling their gold reserves I doubt that is true. The paper gold market dwarfs the physical gold market and that allows countries like China to acquire gold at cheap prices.
Very true, rocketman and Arch. I do wonder, though, why our gold and silver reserves aren’t audited by an independent auditor (not that an auditor couldn’t be threatened or bribed to lie, I suppose). The government doesn’t “own” the gold–the country owns it. Citizens of the country should be provided with an audited accounting of what is there.
leslie7…don’t wonder. It is clearly not in the interests of the Powers to provide truthful information.
The Federal Reserve is not owned by US citizens. It is mostly owned by private foreign banks.
Hi, HN. Is it the Fed that owns the supposed gold in Ft. Knox, etc.?
Follow-on question, HN…I know that the Fed is a private organization, I just didn’t know that the only gold in the US was “owned” (if it is) by the banks.
If it IS the Fed and not the Treasury that owns the gold in Ft. Knox and other vaults, does the US own ANY gold or silver? How can we have a Treasury that doesn’t have any money other than the toilet paper with dollar amounts printed on it? I know that the country is probably technically bankrupt (unless you count Federal land as an asset and the government were to privatize the gold mines), but…
Rocketman, if the owners of the Fed are private banks (with Goldman Sachs being a publicly held poster boy for the US government), there is no need for a citation of sale. The bankers already own the Federal Reserve and its assets.
Rocektman…this is not a criticism, but I must point out that you have the carefully and deceitfully created impression the the Fed is part of the US government or is a government agency. It is not.
HN – as someone has pointed out: The Federal Reserve is NOT Federal, nor is it a Reserve – just clever marketing by very bright bankers in 1913. The Creature from Jekyll Island is required reading for anyone interested in this subject. YouTube also has excellent video’s. I have often thought of the Federal Reserve as a very useful intermediary between the US Treasury (wholesale) and the major banks (retail). Hardly surprising that it serves the interests of both.
I know the Fed is owned by the banks but they are far from being independent of the government. The Fed governors are appointed by the President and you know they work with the Treasury. I’m no expert on these matters and most of my info comes from Jim Rickards.
Rocketman…the New York Fed, meaning the banks, calls the shots. The others are window dressing.
Do some research on the banks who actually own the the thing. You will see
English and continental PRIVATE banks predominating, with US publicly held banks in the spotlight.
…and lets us buy in at good prices, too.
Sharon…they will let us buy it, but then try to outlaw it or confiscate it. Meanwhile of course we cannot get an audit of the assets or ownership of the gold in Fort Knox.
They can also just make ownership of it onerous, say by taxing it, taxing the capital gains heavily, and by outlawing its use as trade – heavy penalties, etc. That sort of move will bring the price down quickly and accomplish the same purchase. I have my fingers crossed that a leveraged play in mining stocks, or SAND, will allow for some real profits before the government steps in to try to assert control. I do think there will be a time to sell.
SAND is my favorite, as I hope it’ll slowly grow to a large company, even without some large surge in gold prices, and its approach to debt keeps it viable even in hard times. It is slowly reflating, and I may lessen my position in it if it rises, as the low prices kept me adding….
Dr Ron Paul tried for decades to bring some accountability of the Fed back to the Congress via an audit of the Fed. While I am not sure the House’s HR 24 includes an audit of Ft Knox, the comptroller general would conduct an audit of Board of Governor operations and report his findings to Congress.
@leslie7
Remember – 1) this is a Seeking Alpha article
2) Money Metals Exchange credo: “Precious Metals News & Analysis – Gold News, Silver News from Money Metals Exchange. Money Metals Exchange provides the latest precious metals news for savvy, self-reliant investors who want to invest in gold, silver & other precious metals.” Their aim is to persuade the reader to BUY precious metals from guess who? Them.
3) The comments section is interesting, ranging from:
“Ron Netz
Comments (50) |+ Follow |Send Message
major wacko
24 Jun 2017, 12:10 AM Report Abuse”
to:
“Franklin123
Comments (2608) |+ Follow |Send Message
What is this secret selling of US gold that is occurring? Any credible documentation of that? If it’s a secret, then how does the author know it’s true? Who is buying it? I mean specifically – not just showing me tables of net purchases and sales. If this is some under-cover process, for which there is evidence, then there is a seller and a buyer in question – who are those parties?
How has the Russian stock market performed in comparison with the US market in the past 10, 5, 3 and 1 year periods?
What was the Ruble:USD pair five years ago? What’s it worth now?
I do know that some of the world’s biggest yachts are owned by Russian oligarchs. Any of the world’s top 100 companies based in Russia? Top 200?
I’m not sure I understand what we gain as far as understanding anything when we compare the gold transactions of Russia and the US?
As far as gold reserves or resources, who’s to say there’s not more gold resource in one mountain range in the US than in Russia – or vice-versa – and what difference does it make.
What is the relevance of the gold price as a store of value when the cost of finding it, extracting and processing it has come down by 30% to 50% in the past decade – and it keeps coming down – and new or expanded gold resources seem to be announced weekly all over the world. All of these mining companies can’t have it both ways – announcing geometric compounding of their “proven” reserves every quarter and then running around saying how we are out of gold. Isn’t that like Chamin saying “…ohh goodness, we’re out of toilet paper…”
If this is the case, that Russia is buying up all this gold, who’s to say it’s a good idea? What if the global price of gold collapses and it turns out Russia bought all this gold near the top of the market? Who knows what the price will be? At this point it’s still in a cyclical downtrend that could either continue or reverse to the upside. if anyone really knew which way it was going it wouldn’t be trading in public markets on a daily basis – it would either all be in someone’s vault by now or being used as door stops. If anyone credible knew it was going to $10,000 in our lifetimes then do you actually believe you or I could buy an ounce today for $1,300? Of course not – nobody knows – that’s what makes a market.
23 Jun 2017, 10:39 PM Report Abuse”
Penny Those are all good points and gold does not escape supply/demand for setting price. If price rises mines are ready to boost production a great deal.
On the other hand the privately owned Federal Reserve has never been audited, though a POTUS intended to do so. JFK?
Well, if you are running a mine for the long run, you drop your cut off grade when the prices go up so you extend your reserves and your mine life. Ore is an economic definition, material that can be extracted at a profit; otherwise it is just mineralized rock. In some mines the grade will fall and therefore the amount of gold or other mineral may actually fall in response to higher prices. Naturally, the mine will attempt to increase tonnage to try to off set the drop in grade.
Richard You obviously know the mining gig. Have you posted before? Please continue. frank
Re: Richard… 4) My wife is an “Irregular” and we are long PVG in our joint account. I thought it more appropriate to reply in my own name although we do have an “Irregular” account under her account name (Dunnydame).
Hope that helps some. Richard
Do a comment search by author….
Glad to have him here as well 🙂
Have a nice weekend and beyond all Best2You
When a Fed-backed big player sells unlimited amounts of paper gold in futures or options, it is not supply/demand of a free market. It is price suppression.
HN – you make a critical point with which I fully agree. It is also helpful to bear in mind that large institutions can sell “naked” short positions in the futures market, without having any gold on hand to support the sale. The fact that they are backed by the Fed, means their credit is unlimited.
Any organization–including the Fed–that holds so much sway over the economic health of the country–needs to be transparent, and that means it needs to be audited and the results shared with those it affects. An ethical organization would do so.
I rather imagine if all was well, that there’d be no resistance to the audit, but confidence in the government, in each other, in the economy, is the name of the game. Lose it, and the can kicking stops abruptly.
The federal reserve as designed worked well to smooth shocks, to be a lender to banks in a region in a sudden crisis, but our government finally exerted its authority to expand that and to make it control inflation – buying government bonds, and letting the government overspend without consequences.
In short, it has been forced by the gov to wonder far away from its charter. Our real problem has been the politicians and we the people who showed we could be bribed by those politicians with pots of money taken from other people’s pockets. That was not done on the federal level until the Social Security, War on Poverty, Great Society days etc, and our spending on the Military Industrial Complex because after WW2, we took a role that would horrify our founders as the world’s policeman and meddler in chief, an unseemly expensive hobby.
Even if our federal reserve was solvent and as honest as the day is long, our problems and future would be the same. Their opacity draws attention, and makes them easy to blame. But the problem has been us. IMO
Read this Part 1 on the Federal Reserve by Martin Armstrong, and then go on to the other parts. Martin knows his economic history like few, and his take his very insightful.
https://www.armstrongeconomics.com/qa/the-creature-from-jekyll-island/
The Fed is anything but ytranspewarent. Heck they won’t tell you who owns it. Nor does the average person realize that the banks get a sales commission on all the government paper they buy and sell.
On our big public deficits and government paper transactions the US taxpayers are paying commissions to the private bankers who own the Fed.
Regarding the SA response by Franklin123 (quoted above) responding to the SA article by Money Metals Exchange, Franklin123 makes this startling statement:
“What is the relevance of the gold price as a store of value when the cost of finding it, extracting and processing it has come down by 30% to 50% in the past decade – and it keeps coming down – and new or expanded gold resources seem to be announced weekly all over the world.”
A Certain Person wants to make it known that it is not true that costs have come down.
OK, I’m done with commenting on SA stuff. Thanks for your forbearance.
Penny
Price of physical gold,vs paper market, physical in Ft Knox, price suppression, etc., mostly unverifiable by people like us.
Just to weigh in with some thoughts by Hedy, Alan, dunnydame etc.
1. AUDIT of the physical in Ft Knox…there was a recent crowd-funded suit, I forget by whom, to have the gold reserves audited. It was met by government stonewalling and obfuscation and the guy gave up. If the gold was really there it would be easy to prove it. But to do so would add more hypocrisy to the already hypocritical position of the Powers that gold has no inherent monetary value. They want to convince everyone that USD or Yen or euros are money, but they are not, they are only currencies.
The Fed carries US gold reserves on its books as assets. Yet the ownership of the Federal Reserve itself is a closely guarded secret since the real owners of it are mostly foreign private banking interests. Think about that…the gold book assets of the Fed are largely owned by foreign banking interests, Rothschilds, Lazard, Kuhn Loeb etc.
2. ACTIONS SPEAK LOUDER The actions of the governments are facts we can observe and make our own conclusions. They want the gold and their actions are very clear…Germany tries to repatriate their gold and is met with excuses. China buys or builds gold mines and enormous vaults in NY and London. There are poorly publicized proofs of central bank price fixing and unlimited computer-generated capital, which is used to suppress prices and has not theoretical limit. Another “free market”. The Arab world moves to interpret Shari’a law as permitting gold investments.
The schemes for price suppression works until people want to take possession of the physical or reach the tipping point on the baloney currencies. The low prices in US currency just serves to subsidize the gold price to those who want to buy.
3. GO TO AN AUCTION…If you don’t think gold and silver have inherent value, then just go to a good auction house and see for yourself if there is a floor under these things. Look at the bids compared to the inherent “melt” value.
Anecdotally: I was at a merchant who had a desireable item for sale. Price was $600. I am reducing my revolving debt so I did want to charge it. I said:
“Would you take gold in trade?”
“Sure. Why not ?”
“Kruggerands OK?”
“Yeah, but how are you going to cut it in half?”
“So you know the spot price ?”
“Of course, I check it every day.”
IN A NUTSHELL: I doubt the gold is there and it is owned by foreign banks anyway
(the Fed). All the government games will continue, it is part of the landscape. the low prices benefit the governments who want to maintain the currency charades and those who want to accumulate physical. This can continue indefinitely…but not forever. Eventually the price of gold in USD will go up.
And the price of silver should go right on up with it. Physical silver seems to be a screaming bargain right now.
Leslie: I simply dont understand why you put so much faith in PM’s. I could understand why you put faith in a loaf of bread, but when the going gets tough, you cant eat an oz of gold. Gold is a useless chunk of yellow metal.
I also put faith in emergency supplies of necessary items. But because this is a PM forum, I usually stick to that subject in my comments. Gold is a way to preserve wealth (in case you ever need some money down the road) after the banks and government have taken everything you have in the way of currency and other assets–think inflation, confiscation, bail-ins, unemployment, failed pensions, etc. Unless you have a wheat field and know how to go from grain to a baked loaf, you might need money (or items with which to barter) when you run out of that loaf of bread.
Stockpile liquor and cigarettes and you’ve got trading material…as long as it’s well hidden or you will be robbed. my 2 cents
While I agree that the loaf of bread is necessary, after you have made provision for the unthinkable such as an EMP attack, the question then is whether or not you still have money left you wish to preserve, isn’t it? One of the reasons for physical gold or assets like diamonds is that these always have some value even if its less than your purchase price. They are also ways to store a lot of value in a small item which is therefore easy to transport and conceal. Platinum is up there, too. Silver isn’t.
I would say they are commodities, rather than money, which will lend themselves to trade in a pinch, as long as they come in a form easily recognizable by your fellow man as the real deal. If currency collapses, they at least will hold some value.
Alan, you have stated your opinion before; some agree and some do not.
But gold is not useless.
It is very useful as a store of value and has been useful as money throughout human civilization.
The demonetization of gold is a recent innovation promoted and abetted by those who wish to be able to print as much money as they want.
Diamonds, emeralds, also sapphires are also “useless” rocks. Not suitable as a medium of exchange, but they hold value. So does gold.
Silver…I agree and it is more practical for smaller purchases and less likely to be confiscated.
HN – I can add a little color, to the recent “audit story” you mention. I believe the Treasury Dept. said an audit could be conducted, but that it would cost about $25,000 and the person requesting the audit had to pay up front. I believe Koos Jansen, a precious metals dealer in Singapore, made a request. Through crowd funding, he raised the required $25,000 and sent his request to the US Treasury. After some delay, he received his report. It was so heavily redacted, that it was useless. He then complained to the Treasury Department and they refunded his payment. I assume, he returned the meaningless report.
I have two jr. gold stocks for the Gummune to evaluate here. First, here are the tickers: $ZON.V (or $EREPF) and NRG.V (or CMBPF)
I will focus on Zonte Metals in this post and New Range Gold in the next post.
Zonte Minerals: http://www.zontemetals.com/
Most recent press release: http://www.zontemetals.com/press-release/zonte-discovers-a-new-target-at-the-mcconnells-jest-project-yukon-territory/
In this press release, they announce the discovery of a new drill ready target at the McConnells-Jest Project in the Yukon territory. This is a stock that was introduced to me through a friend who has a subscription to Ron Struther’s Newsletter – not sure what it is called. Struthers first recommended it back in the winter sometime. I think my friend mentioned it in Feb. when it was trading around $.15 Canadian. He is up almost 300% so far. Unfortunately I did not buy in at that time. I had never heard of Zonte and had bigger and better fish to buy. However, I finally got some when it went up to $.43 – so naturally, now I am underwater, but I did pick up a good bit more on the recent drop. I don’t have access to the newsletter so I do not know exactly what Struthers is saying about the stock, but my friend tells me he is very excited and sees big things for it. I wish I had bought in when I first heard about the stock. I would be up 300% or so. Although it is up big since February, there is still a long ways for it to go.
Now is a great time to buy – imo. It has fallen in price. They just found a new target and will be drilling it soon. They are drilling now on other areas and results will be out this summer. Good results are expected. It looks like the short position has dried up. One reason for the drop was that some warrants issued during the last financing became optionable in early June. I think everyone thought the stock would drop big time then. It did, but I think it was more of anticipation of a big drop than a big selling spree that caused the drop. Anyway, that provided a good buying opportunity. Right now the ask is at $.345. It spiked to $.36 on Friday, but recent highs are in the mid $.40s so still a ways to go.
Zonte, because of this recent drop, might even be a better deal right now than NRG.V, but it’s a toss up in my mind. My friend tells me that each of Zonte’s three big projects could command a $1.00 valuation. I don’t know enough to say yea or nay to that. However, compared to peers, it seems greatly undervalued. I now have a significant position in this one. It’s not IVPAF for sure, but I think it has more near term potential than IVPAF.
Here is a recent write up on the stock at pinnacledigest.com (Paid promotion? I don’t know), but take a look at the chart from Feb. until June. That is what I missed by not listening to my friend on this stock!
http://www.pinnacledigest.com/mining-stocks/zonte-metals-rallies/
As of Feb., 2017: Share Structure Outstanding 40,808,976 Fully diluted 52,958,113 Cash ~$1,200,000
I could write more, but perhaps it is better if you investigate it for yourself. I’m invested in this one with an average of $.234 (usd)
Perhaps the experts here can poke holes in this stock and may end up saying it isn’t worth it. I’m staying in for the forseeable future. I want to see the result of the summer drilling program which I think will give a good boost to the stock price.
So, just passing this on as an idea to investigate on your own.
OK, here is the write up on the second stock – New Range Gold. I have no position in this one yet, but intend on getting some soon.
New Range Gold seems very exciting to me. Unfortunately, it recently had a huge spike, but still, there is a long ways for this to go IMO. It is an exploration play – as is Zonte. I have some links for you to check out here.
Here is a fairly new interview with Robert Carrington, CEO of NewRange Gold https://www.youtube.com/watch?v=0LbFa4HhFFI
Carrington explains how it came to Colombian Mines Corporation, now renamed to New Range Gold after his very fortuitous acquisition.
New Range Gold is one of those featured by #BergDex, made up of three guys who have been very successful choosing Jr Mining stocks. They have achieved quite a reputation, and now, if a stock is chosen by them, it almost assures a nice gain just because it is on their list. http://bergdex.com/recent-reports/
There are 21 fairly recent reports on their website, 5 of which are on NewRange Gold. The above is one. Another is by Jay Taylor which I told you about before.
Here are some others.
http://bergdex.com/newrange-gold-test-bergdex-trio-metal/
http://investingnews.com/daily/resource-investing/precious-metals-investing/gold-investing/newrange-gold-ceo-robert-carrington/
James West’s Midas Letter has a recent write-up on this one too.
Here is their website with a write-up on the Pamlico Project: http://www.newrangegold.com/Pamlico.asp
There is a possibility for millions of ounces here as it is located in a historical mining area of Nevada! They finished a recent round of drilling and announced partial results last week – which sent the stock skyrocketing. There will be more results published within 1-2 weeks. I’m going to get some stock and hold through at least the end of the year. Carrington said there will be a string of announcements between now and then.
Struthers first recommend this at $.08 and it is now at $.72. Unfortunately, I totally missed this one.
From a company presentation, http://www.newrangegold.com/Projects.asp
“Management expects a steady flow of news in the coming months as exploration progresses on this unique and exciting gold project with multi-million ounce discovery potential.” They only have a $46 million dollar MC right now!
= =
This is an interview with Robert Carrington, CEO of New Range Gold. http://jaytaylormedia.com/audio/
My friend wrote:
This sounds like perhaps the biggest new opportunity in gold for some time. It sounds like the share price here, even though about 38% higher than two days ago, will still turn out to be a real bargain. Next drill results will be in about 2 weeks. Especially if the price pulls back before then, I would be a buyer of additional, if I could free up some funds for it. Since it had risen significantly before this news release yesterday, I had sold a fair amount. I wish now that I had not, but I still have a reasonable amount for me.
Stockhouse chat board: http://www.stockhouse.com/companies/bullboard?symbol=v.nrg
Again, do your own DD. This went from $.08 to $.72 since Struthers first recommended this – and I don’t know how recent that was. What a ride. I’m sure not all of his picks do so well, but these two, ZON.V and NRG.V seem to have real potential. I put them out there just for ideas.
I own ZON.V & am a bit underwater. I do not own this one, NRG.V (CMBPF) but plan on getting some shares.
Update on share count for New Range Gold $NRG.V (np)
From their website, as of May 23, 2017, share structure looks like this:
Issued and Outstanding: 63,533,435
Total Options: 5,019,798
Total Warrants: 20,317,001
Fully Diluted: 88,870,234
Niiz…can you give us some info on them and reasons why one might be interested in this stock ?
I wrote two long posts introducing this stock and another – ZON.v. I was told they are in moderation or whatever. I don’t know if they will be released or not. I don’t have the energy to write them both all over again. Suffice it to say that both of these are exploration plays. Zonte Metals is the Yukon and New Range – in a famous Nevada mining district. Both have recently done drilling and both have recently reported good results with more to come soon. I am invested in ZON.V and would like to enter NRG.V. They are both recommendations that come originally from a Ron Struthers newsletter through a friend who has already made about 300% on both of these stocks. I regret not listening when I was first introduced to them, but both stocks still have very low market caps and still have a long ways to run – imo. New Range CEO Robert Carrington gave an interview here: http://jaytaylormedia.com/audio/
This sounds like perhaps the biggest new opportunity in gold for some time. It has already run quite a bit here, but within the next week or 10 days, they will report on the rest of the holes drilled. Carrington said there would be quite a succession of announcements between now and the end of the year. It’s an exploration play, but it seems to have multi-million ounce potential.
I don’t know the potential of Zonte as I do not get the newsletter, but I know Struthers is excited about it. It recently fell in price(I”m now down a bit) because some 10 cent warrants or options became exercisable in early June, but now that selling has let up and good news is expected. They have 3 projects and my friend told me each one has a value of a dollar. Since Zonte has fallen recently, it may be the better deal right now, I do not know.
I just wanted to suggest these two jr gold companies as possible investment options. I am long Zonte and thinking about entering New Range – have purchase order in.
There was benign news out today on $NRG.V (Now a small position as I got some this morning)
They obviously like what they have been seeing and so they staked an additional 111 claims at their Pamlico Project.
http://www.marketwired.com/press-release/newrange-gold-stakes-111-additional-claims-at-its-pamlico-gold-project-nevada-frankfurt-x6c-2223685.htm
Stockhouse dot com has some good information on this stock if anyone is interested.
$ZON.V Fair sized position. I don’t know why this moved so much today, but perhaps movement in anticipation of the next release of drilling results.
New thread update…and note to Alanh
I had planned to a new thread continuation after the Pretium Resource announcements on initial production. I thought that the results would be an excellent point to make a break to a new thread…three months seems to be a good lifespan for the thread. However, from information provided by Dunnydame and another contributor, it now appears that meaningful information on the Pretium production will be delayed by a few months even though the mill is operational.
So now I think the July 4th weekend is a good breakpoint. We should also have the results from the GDXJ rebalance, which so far is pretty much a non-event. I will ask Travis to close this thread and we will move to a new one by July 5th.
I will continue the separate thread on Scandium, Cobalt, and Water Purification (CleanTeQ Holdings) which I believe will grow in importance and relevance.
***
Note to Alanh…I understand your general skepticism about gold being money and gold as a store of value. However this thread is not the place to debate this core issue, because the thread is written specifically for those who believe in the validity of gold as a hard asset.
We are not trying to persuade anyone who has contrary point of view on this issue. We do not want to recreate a Harry Dent vs Jim Rickards debatefest.
If one does not view gold or gold-related stocks as a valid asset class, that is OK, and we do discuss other commodities. But extended debate on gold as a valid asset is not productive, since we are looking for the best investments possible for those who believe in the asset.
Cordially
Money can be made on gold and silver whether it is treated as strictly commodity or last resort money,,, so anyones view is irrelevant as far as prospects for profit.
If you have something people want and can supply it, at a price they are willing to pay and enables a profit,,, who cares what it is, tiddles or tungsten.
Gold has always been used as a store of value as it does not rust and does not rot,,, and some always desire it for its beauty and sound and feel. IMO
I feel I have been a little misunderstood…..my last comment on gold was only 2 sentences long, but clearly grated as its generated far more pixels in response. I can see value in silver, platinum, palladium etc coz they all have growing industrial uses and are consumed by these processes, so need to be replenished….but I cannot see any major use or depletion of all the gold thats ever been dug up….so its still all squirreled away somewhere just snoring, awaiting the doomsday scenario. I was hoping someone would correct me. I get it that throughout history, its been a respected store of value coz it was rare, but Im not convinced that this will hold true into the future…..with the amount of mining going on, Im not even sure it is ‘rare’ anymore. Its a bit like shale oil in the sense that there’s oodles of the stuff down there, but at these prices, its mostly uneconomic and pointless to dig it up…and when/if it becomes economic, so much will flood the market that the price will be suppressed again by simple supply and (lack of) demand laws. I thought it interesting that even RF said he could make a case for just about every PM…..except gold. Obviously he cant see where it fits into the future either. If doomsday ever arrives and people completely lose faith in government controlled paper currency, I think Id prefer to be holding some Bitcoins. At least no single gov can manipulate or confiscate those. (np)
Still, Ill not labour the point further.
Alan, your position has not been misunderstood.
There are simply many who have a different opinion, and no one is likely to be persuaded to change their opinion.
A doomsday scenario is not needed to send the price of gold and silver a lot higher…government creation of billions of currency units is enough to do the trick. Or turmoil in South Africa. Or a war someplace. Or many other scenarios that could happen. Gold will still retain value, as it has
since the beginning of civilization.
Currencies come and go…can you name even one that has retained its value for the last 100 years ?
Or even for the last 50 years ? How about even 20 years ?
They get debased by the governments and are as extinct as the dinosaurs, without exception. Yet gold has retained its value.
You are correct that Robert Friedland does see gold as a major focus of his mining endeavors…nor does he particularly favor silver.
He simply remarks that prices of gold and silver are not in the path of big changes in industrial demand, as are copper, cobalt, nickel, and a few others.
He is going after commodities that are not likely to be subject to manipulation by governments..he is after the commodities for which there will be huge industrial increases in industrial demand.
And none of the pixels devoted to this debate help us find good investments. If you are not a believer in gold assets, that is OK…just pass them by. There are still plenty of other hard assets to consider.
Arch and Allan – when discussing gold as a disaster fall-back representative of value, it is helpful to remember that the world will be a rather different place when, and should, this happen. All the comfort and logic of the “normal” world goes out the window when Push comes to Shove. How we think and act at present, may have little bearing on our situation in the doomsday scenario that we may face in the future. An Army recruit in training will have a very different idea of combat, once he is under fire.
petervr
You are absolutely correct. A problem lies in the complexity of various possibilities, Natural disasters [the most likely] political conflicts and war or break down of systems,financial ,supply {food, energy, water etc} and transportation. Those could occur singly or in various combinations. Survival requires water, food and shelter/clothing in roughly that order although at times shelter might be first depending on conditions. In all of those metals may be next to worthless as protection. In short term or rapid inflationary times gold and silver may preserve a certain amount of wealth. As a little factoid,,, at any given time the world is approximately six weeks from famine if food harvest stops.
Gold investment is one way I hedge against a U.S. economic collapse, but my main play was an oceanfront condo in costa rica. If ever you get a worse case type scenario in the U.S., my town will be booming with the americans who have the ability to get out, in fact, that explosion is already happening.
I’m pretty sure, as a doctor, I can make more money with a cash practice in Nosara, then I can in my coastal california office under the US healthcare system. My main reason for staying in california is I have friends and long standing patients I don’t want to move away from.
I hope for your sake the oceans don’t rise so much from global warming to take away your piece of seaside real estate.
they will, but after i am dead.
how much does the water rise when the ice cubes in a glass melt? How much has ocean level risen in the last 200 years. Most glacial melt occurred before 1920.
Effete good question. I think I’ll experiment with a rum n coke on ice…..cause I drink it ‘press’ anyway!!
🙂 🙂 🙂
Renby: Thats interesting. Im just in the process of looking for a Christmas holiday in Costa Rica. If you could give me some low down on the place, Id love to hear. Runningrep at BTinternet dot com
ok, i send you something via e mail
Renby…We are thinking along similar lines although my real estate is in the USA, away from major urban centers.
The Federal Reserve explained in an entertaining way.
https://www.youtube.com/watch?v=Oe0fGXzKb1o
Posted previously but still relevant.
HN – I have seen this video on the Federal Reserve several times and feel that most people. who consider themselves to be informed, should view it once a week, along with reading The Creature from Jekyll Island once a year. Only in this way, can we begin to understand how far we have fallen down the rabbit hole.
For any who might have PM stocks in South Africa; Lots of updates this week to recent stories. With Glencore upping a bid for Rio Tinto’s Australia coal assets, and Tanzanian police arresting dozens after villagers stormed gold mines belonging to troubled producer Acacia Mining.
But the biggest story going in mining continues to be South Africa. With credit experts Moody’s this week weighing in with a dire warning on the country’s new mining charter.
Moody’s said this past week that enhanced financial burdens under the new code will have a devastating impact on miners. With the ratings agency saying that increased taxes and local ownership requirements will almost certainly lead to a credit downgrade for a slew of South Africa’s biggest miners.
That reportedly includes South32, AngloGold Ashanti, Anglo American, Gold Fields and Sibanye Gold. And a credit cut for these firms couldn’t be coming at a worse time — with most of the firms already hovering at low credit ratings, after years of finanicial difficulty in the general sector, and specifically in South Africa.
In fact, a credit downgrade of even one notch would lower nearly all of these firms to junk status. With South32 likely to be the only investment-grade South Africa miner left — and that company just barely hanging on, at one notch above junk.
Moody’s observed that the financial onslaught has already started for these firms — with $2.5 billion in equity value having been wiped out for the group of companies since the new charter was unveiled.
And it’s not just cash flow where Moody’s says miners will suffer.
Under the new charter, development of greenfields resources will require miners to give away a steep 51% of project ownership to black empowerment groups. A move that Moody’s estimates will make development of many near-mine reserves unprofitable.
That in turn will force miners to downgrade those in-ground minerals from “reserves” to “resources”. Lowering mineable inventories, and reducing net present values of many mines and development projects.
All of which equals more awful news for South Africa’s mining sector. Watch for a coming battle in the courts, with the local chamber of mines proceeding with legal action to stop the new code. If that effort fails, we could see South Africa production — and financials for miners — take a quick and steep tumble.
Here’s to a storm coming,
Dave Forest
dforest@piercepoints.com
Denton: Thanks for the timely warning…….exited till I can see the horizon again.
HN: Any thoughts on this re Ivanhoe?
Ivanhoe is already getting zero credit for its South African asset, Platreefs. In the market Ivanhoe price is reacting mostly to its copper assets in
DRC. So I am not doing anything at all in reaction to the politics in South Africa.
Alanh…exited what ?
denton – thank you for this most informative and significant post. This most certainly goes in the category of “game changer” and it’s full repercussions have yet to be seen.
Hmmm, will $SBGL Sibanye’s recent buyout of $SWC Stillwater Mining (in good old Montana USA) be enough to keep them afloat?
Dunnydane…Sibanye or Stillwater ?
Sorry, that wasn’t clear, was it.
Stillwater is no more, stock listing-wise. Schwab last shows $SWC for May 3, 2017 when the buyout went through. I think the purchase was a shrewd move for $SBGL Sibanye and hopefully will help cushion the blow of this new mining charter.
NP $SBGL
Sibanye undoubtedly looking to diversify jurisdiction risk.
Devil’s Advocate…turmoil in South Africa will be good for precious metals prices. Bad for South African miners, true; but good for gold and other metal prices.
Denton… miners suck. Especially large cap ones. And super especially large cap miners in unstable jurisdictions considering confiscatory tax and ownership policies.
In passing, Ivanhoe’s Platreefs is so big and rich and will have such low costs of production that they could probably stand it if
a new policy on the national mining charter in South Africa were instituted.
Niiz…New Range Gold…NP…I listened to the interview with Carrington and looked at the website. I could not see enough detail on the maps and graphics but the market cap seems pretty low and the deposit seems legit, the announced drill results do look juicy and there will be more assays in a matter of a few weeks.
Cannot comment on the management. Carrington says they have enough cash to get done what they need to get done in the short term. It looks reasonable, but as you said it is an exploration play. With the turmoil in South Africa it will be comforting to many to have a speculation in the USA.
Another thing I liked was that Carrington said the major vein is over a kilometer long and that there are surface outcrops measuring 5 grams per ton. Carrington talks geology, which I also like. Could be good although I would want to take a position before the next assay results. As an exploration play there are years before a mine will be built but it is surely possible that the additional assays will bump up the price.
$NRG.V Thanks for taking to time to check it out a little. I picked up a decent sized position yesterday. The rest of the assays for this first round of drilling are due in maybe a week or so and I wanted to get in for that. It may drop a bit waiting for those results OR it might increase in anticipation, but it is a relatively unknown play so I doubt there would be much of a run up. Nevada is a safe play. I’m going to park a little bit of $ here for at least 6 months and see what happens. Carrington knows his stuff and comes from a family of geologists I believe. It’s what he’s been doing his whole life.
Since I brought it to the board, I certainly hope it does not disappoint.
I picked up a little more $ZON.V yesterday too, but the story there is not quite as clear. However, it too has a really low market cap and a long way to run. They will report this summer as well. I’m hopeful.
$NRG.V Here is what Robert Carrington, CEO of New Range Gold, said about the most recent drill results.
“Robert G. Carrington, chief executive officer, made the following comments: “These initial results indicate that Pamlico is a unique high-potential opportunity for Newrange Gold. The extremely rich Merritt zone, where we are focusing our initial exploration efforts right now, is one of five similar target areas, covering only one-half of 1 per cent of this property and less than one-10th of 1 per cent of the combined strike extent of the more than 300 known veins and mineralized structures on the property. The knowledge gained in this area will guide future exploration for several similar target areas elsewhere on the property, including the Gold Box, Central and Sunset mine zones. I look forward to the receipt of assays for the remaining nine holes of the phase I drill program and for more information that will come from ongoing exploration work under way at Pamlico. We are truly excited by what we are seeing develop here.”
Well, certainly the CEO HAS to be positive, but the drill results back up his optimism. Exploration play that will report on the remaining 9 holes that were recently drilled within a week or so.
Stock was down $.04 today so a nice buying opportunity. I’m down 10% with my first position that I took 2 days ago, but am expecting the next drill results to take care of that. I buy the US symbol – $CMBPF
$KNTNF
K92 Mining is pleased to provide you with a link to today’s News Release, announcing that the Company has closed the private placement financing previously announced on June 6th, 2017, which was oversubscribed, raising total gross proceeds of $16,554,600.
The brokered component of the financing, as described in detail within the News Release, was conducted by Clarus Securities Inc. as lead agent, on behalf of a syndicate of agents that included CIBC World Markets Inc., Eventus Capital Corp. and Haywood Securities Inc.
Long $KNTNF
$MRLDF & $SAND
Mariana Resources Ltd : Court Sanction of Scheme
June 26, 2017
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
26 June 2017
Recommended Combination
of
Mariana Resources Limited (“Mariana”)
and
Sandstorm Gold Ltd (“Sandstorm”)
Court Sanction of Scheme
Mariana is pleased to announce that the Guernsey Court has today sanctioned the Scheme to effect the recommended combination of Mariana (AIM/TSXV: MARL) and Sandstorm (TSX: SSL and NYSE MKT: SAND).
It is anticipated that the Scheme will become effective on or before 3 July 2017. Mariana has made an application to cancel the admission to trading of Mariana Shares on AIM, to take effect on or around 4 July 2017, and it is anticipated that the Mariana Shares will be delisted from TSXV as soon as practicable on or after 4 July 2017.
The expected timetable of remaining principal events is attached as an appendix to this announcement. Mariana will announce any changes to these dates through a Regulatory Information Service.
All references to time in this announcement are to London time unless otherwise stated. Capitalised terms in this announcement, unless otherwise defined, have the meaning given to them in the scheme document issued by Mariana dated 15 May 2017 (the Scheme Document).
$MRLDF…$SAND…long both, just waiting for the conversion of my Mariana stock to cash and Sandstorm stock. My position in Sandstorm will be pretty bloated after the transaction is complete.
Mariana obviously is a big winner for me. I am likely to diversify away from gold a little more , as my overall position will be way overweight in gold.
Reasons to be more fully explained in the next iteration of this thread.
The Fed
“Just prior to World War I emerged one of the historic disasters in American history, the creation of the Federal Reserve System.”
—ALAN GREENSPAN, 1964
He can say that again.
Ivanhoe Mines AGM Presentation June 28, 2017
https://www.ivanhoemines.com/site/assets/files/2807/ivn_agm_corporate_presentation_-_2017-06-27-cp.pdf
$KLDGF Kirkland Lake Gold Extends High-Grade Gold Mineralization at Macassa, New Gold System Discovered at Depth
note: this was originally New market and introduced by HN
http://www.klgold.com/news-and-media/news-releases/press-release-details/2017/Kirkland-Lake-Gold-Extends-High-Grade-Gold-Mineralization-at-Macassa-New-Gold-System-Discovered-at-Depth/default.aspx
Kirkland…no position, well-regarded company mentioned often but it was not my find…originally introduced by Myron, I believe.
It seems like this could have an effect on the price of gold.https://www.armstrongeconomics.com/markets-by-sector/precious-metals/gold/india-taxing-gold/