GOLD AND SILVER AND HARD ASSETS…SUMMER 2017

By hendrixnuzzles, July 3, 2017

Pretium Resources $PVG announced on July 3 that commercial production has been achieved at Brucejack.
That achievement makes a nice breakpoint for a new thread continuation on hard assets, which I introduce herewith.
This thread is a continuation of threads posted previously by the author on gold and silver and hard asset investments. It incorporates the changes that have occurred in my outlook
since January. Most of the companies I am long have been subject to lengthy due diligence and discussion, which you can find on prior threads.

PURPOSE My intent is to find and discuss good hard asset and commodity ideas. The thread is aimed at those who share the same general outlook. I favor royalty companies, developers, small to mid-cap miners, and explorers. I am wary of big-cap miners, ETFs, and indexes. I am strongly influenced by the leadership and management of the companies under discussion.

I am a believer in the concept of optionality as propounded by Rick Rule. And remember that as investments, in general, MINERS SUCK. We are looking for those that suck the least and have the most upside, or speculations we believe have the best chances of appreciating. My favorite jurisdictions are Canada and Australia, but I will look at sketchy neighborhoods like Turkey, DRC and Mongolia and speculate there if I think the story is compelling. I am also a big fan of Robert Friedland and I believe there is a technological materials and commodity revolution taking place, which subject is also best suited to the other thread: Scandium, Cobalt, and Water Purification: CleanTeQ Holdings.

My outlook for the sectors (excluding scandium and the rare earth battery metal complex) is as follows:

GOLD AND SILVER INVESTMENTS…Precious metals remain a focus on this thread. I believe that gold and silver prices have been and continue to be a target of manipulation and price suppression by powerful groups, including and especially governments and central banks. I take these suppressive actions to be a reality and part of the landscape. It is pointless to cry about it, but instructive to observe what is happening.

I believe these efforts will eventually fail, but they can visit havoc on prices and values in the meantime and keep prices artificially low for long periods. But not forever.
Meanwhile I will maintain my positions in the sector and lookfor the very best speculations and investments in it.

So I am still bullish and gold and silver investments for the long-term, although the proportion of them in my investments in my stock portfolio is being reduced somewhat.
That proportion is still probably much higher than that of most readers.

My gold/silver longs are:

Miners, even though miners suck: $PVG Pretium Resources, $MAG Mag Silver
Royalty/streamers: $WPM Wheaton Precious Metals, $SAND Sandstorm Gold. Was long $FNV but did not like their recent shift to gain exposure to oil and gas, so I am out.
Developers: $SA Seabridge, $BCEKF Bear Creek, $KNTNF K92 Mining
Exploration speculations: $CNRIF Condor, $ERDCF Erdene Resource Development, $KVLQF Kivalliq Energy, $CLASF Colorado Resources
Physical and redeemables: I hold physical in non-numismatic gold and silver, and I am long $PSLV.

COPPER, ZINC, NICKEL…I am bullish and welcome discussion of tickers in these commodities. My only long at the moment is Ivanhoe Mines, $IVPAF.
$IVPAF has some political and jurisdiction risk in DRC, and minor exposure in South Africa; so I think introduction of other ideas is of benefit.

SCANDIUM, COBALT, and WATER PURIFICATION: Please revert to my thread devoted to this. Discussion of battery technology and mining technology is best posted on that thread.
My conviction pick/stock speculation here is $CTEQF, CleanTeQ Holdings, which has its own thread.

LITHIUM: I am long Galaxy Resources but I am not terribly excited by the lithium space as a commodity play;
discussion of lithium and batteries should be on the other thread Scandium, Cobalt, and Water Purification: CleanTeQ Holdings.

PLATINUM GROUP METALS (PGM) Fair game for thread discussion.
My only long is Ivanhoe Mines IVPAF, which is mainly a copper/zinc stock.

DIAMONDS I have very small positions in Lucara and Lupara, they are diamond mining speculations.

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 $CCJ Cameco and UEC as a high-leverage speculation.

POTASH/FERTILIZER…very interested because it is at the intersection of food and mining, but no position at present. Ideas welcome.

AGRICULTURE…very interested. A large sector but really not too many choices if you rule out futures, like I do. No positions as of this writing, but I have been watching WHGPY (Chinese pork processor who bought Smithfield), LAND (Gladstone Land, California farmland), INCPY (Input Capital, a Canadian canola, streaming model).

OIL AND GAS… Currently I have no positions in oil and gas as I see uncertainty in long-term demand, no real problems on the supply side, and more competition from other energy sources, primarily from the battery/electric sector. But I would welcome good ideas accompanied by strong reasons and decent due diligence and research. This field is so big and complex we could get completely lost just tossing names around. If someone has conviction and knowledge about a company, discussion is welcome.

SOLAR, WIND, COAL, IRON ORE, ALUMINUM, STEEL…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. I am bullish on aluminum vis-a-vis steel but prefer more leveraged, long-term scandium alloy to aluminum.

****
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.

I am not an expert in any of the commodities discussed, nor am I qualified to give advice. I change my mind on investment choices and my opinions are subject to change at any moment. Everyone makes mistakes and I make more than my share.
.
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. Caveat emptor. You are responsible for your decisions, and I am responsible for mine.
Political developments and opinions should be introduced on this thread only when they have a clear bearing on the commodities or companies under discussion.

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.

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214 Comments on " GOLD AND SILVER AND HARD ASSETS…SUMMER 2017"

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motion
Irregular
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sandstorm, when do you expect some up Travis? ants in pants for some gains. pvg is doing it. thanks

Travis Johnson, Stock Gumshoe
Admin
5629
I don’t. I expect that if gold rises, Sandstorm will rise faster — but I don’t know when or if that will happen. They should have substantial growth in ounces produced per share, or attributable gold, or whatever operational metric you want to use, over the next two years, assuming that mine development proceeds as expected (which means gold doesn’t collapse and put projects on hold), but there’s no particular reason, other than shifting sentiment because of a rising gold price, that the stock should do anything dramatic. Sandstorm is cheaper than the larger royalty companies, but it’s not so… Read more »
motion
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motion

Travis your the best!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!111111111111111111

motion
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motion

PVG changes of buyout or just straight play as is??????????????????????????????/

Sharon Schreiner
Irregular
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Sharon Schreiner

motion, I don’t understand your above sentence about PVG. Please could you explain what you are trying to say?

niizajim
Guest
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niizajim
Follow up on Zonte Metals: ZON.V (I have a substantial position) Since May, Bill Carson has been working for Zonte Metals. He is the person who staked Victoria Gold’s claims that neighbor Zonte’s property and he, perhaps better than anyone else, knows that area well. On Stockhouse website, he recently posted this about ZON.V under the name Hardrockclaim: “I am, of course, limited to public knowledge. I will say (as has been publicly documented) that, even with very limited exploration prior to the agreement with Zonte, at least 6 “areas of interest” were identified and there is one HELL of… Read more »
denton
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denton
$SSVFF. Latest drill results continue to expand the potential of this deposit. Vancouver, British Columbia–(Newsfile Corp. – July 25, 2017) – Southern Silver Exploration Corp. (TSXV: SSV) (OTCQB: SSVFF) (FSE: SEG1) (“Southern Silver”) reported today that it continues to identify high-grade mineralization from the current core drilling program on the Cerro Las Minitas project, Durango State, Mexico. Recent drilling has identified two thick intervals of mineralization in hole 17CLM-101 opening up the potential for significant extensions to the Blind Zone and Skarn Front deposits to the southeast of their currently drill extents. Highlights from hole 17CLM-101 include: a 17.6m down… Read more »
hedy1234
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hedy1234

$IVANHOE

Copper at 2 year high. Heading back to $3.00. IVN should start to really run from here.

secretsquirrel
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secretsquirrel

Also awaiting news results from the now 15 drills.

Robert Friedland – “You’re going to need a telescope to see the copper price in 2021!”

secretsquirrel
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secretsquirrel

Robert Friedland: Copper Will Continue to Outperform Gold
Speaking at this year’s Sprott Natural Resource Symposium, Friedland also named three companies he’s currently bullish on.

http://investingnews.com/daily/resource-investing/base-metals-investing/copper-investing/robert-friedland-copper-outperform-gold/?mqsc=E3900290

hedy1234
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hedy1234

Ahhh the missing two are Cordoba Minerals and Peregrine Diamonds.

secretsquirrel
Irregular
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secretsquirrel

Good jump Colorado Resources today (so far). Drill results are due soon.

Here’s Rick Rule SVNRS 2017 video below, mentions Colorado at 11:04.

https://youtu.be/KNa0sG9RKU0

Long CXO.

secretsquirrel
Irregular
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secretsquirrel

For those interested, np Sand as i sold for adding to already overweight position in CleanTeQ but still holding ERD.

Sandstorm Gold Provides Development and Exploration Updates on Royalty Assets

http://markets.businessinsider.com/news/stocks/Sandstorm-Gold-Provides-Development-and-Exploration-Updates-on-Royalty-Assets-660611

If this has already been posted, apologies…

secretsquirrel
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secretsquirrel

Putting this here, not quite sure it would fit on the CleanTeQ thread?

Interesting site regards sectors on Rare Earth and Technology Metals etc.

Below is one link – Resurging Commodity Markets: The Rare Earths (Part 2)

https://investorintel.com/sectors/technology-metals/technology-metals-intel/resurging-commodity-markets-rare-earths-part-2/?utm_source=InvestorIntel+General+Email+List&utm_campaign=4245f6d02a-INVESTOR_INTEL_DAILY_RSS&utm_medium=email&utm_term=0_e78262a875-4245f6d02a-59741817

secretsquirrel
Irregular
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secretsquirrel

Np but any thoughts on this, as there was talk a short while back regards diamond mines. I believe hn you took a small position in another one recently?

This is now owned by Robert Friedland. His brother Eric is the executive chairman. Friedland mentioned Peregrine Diamonds as one of his 3 buys at the recent Sprott Conference. Friedland said he and his brother Eric own about 50% of Peregrine, which has diamond assets in the Canadian arctic. They include the wholly-owned Chidliak project in Nunavut.ķ

Looking cheap at the moment, perhaps?

Links below:

https://www.pdiam.com/corporate/board-of-directors

https://www.benzinga.com/pressreleases/17/07/m9821418/robert-m-friedland-press-release

http://www.internationalresourcejournal.com/peregrine-diamonds-establishes-westward-expansion-of-ch-6-kimberlite-with-first-drillhole-completed-in-2017-program

http://www.stockhouse.com/opinion/movers-shakers/2015/06/10/4-stock-picks-john-kaiser-targets-mining-success-stories

ksand52
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ksand52
(LONG – Canasil Resources Inc) OTC: CNSUL TSX-V: CLZ Canasil Res is one of the Companies mentioned by Rick Rule from the Sprott Conference Something possibly worth keeping an eye on (to be completed by Oct. this year) Yesterday they announced a possible spin-out deal splitting their British Columbia properties (mostly all gold and copper plays) from their Mexico properties (all silver plays located on the well-recognized world class Fresnillo silver belt, hosting a number of prominent silver mines such as the San Martin-Sabinas mines of Grupo Mexico and Penoles, the La Colorada mine of Pan American Silver and La… Read more »
chrizcringle
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60

If I’m not mistaken Marin Katusa in on the board of Copper Montain and has been for many, many years.

Lulu
Irregular
808

CMMC – Believe I have mentioned this one before as well but only as a ticker. It is 100 miles from Kelowna ( my home )in the small town of Princeton, BC. I’ve been in and out a few times…waiting for it to move back but may have missed that .70. Thanks HN for confirming as a choice. I keep my eye on both IVN and CMMC but have not traded IVN. Stick with what I know. Cheers HN, appreciate the sharing of your DD.

dunnydame
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dunnydame

In 2008 I believe, I visited Kamloops (drove there from Seattle with 2 granddaughters to meet up with my husband). It was at the peak time for the pine beetle infestation along the Rocky Mountains and the beetle-killed trees were sadly evident everywhere, even in Canada.
You’re not so far from there, and I see that the fires are all around. Stay safe.
Penny

frankw17
Irregular
842

hn, I just pulled up a daily chart of $CPPMF. It appears that it hasn’t traded for 2 days. I realize that it’s not a heavily traded stock, average trading volume is ~ 25K shares, but do you have any idea why it’s gone dormant the last 2 days?
Great thread by the way!
Regards,
Frank

mudmar
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mudmar

Check the Canadian ticker to see trading https://mobile.tmxmoney.com/quote/pricehistory/?symbol=CMMC

frankw17
Irregular
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mudmar, yes, $CMMC has traded more than 37K shares today, but that still doesn’t change the fact that $CPPMF has yet to trade today on the OTC. Just seems strange.
Regards,
Frank

frankw17
Irregular
842

Sandstorm Gold Ltd (NASDAQ:SAND) was upgraded by analysts at Royal Bank of Canada from a “sector perform” rating to an “outperform” rating. Previous closing price of $3.84.
np in $SAND, although I’ve been eyeing it for a long time.
Regards,
Frank

Lulu
Guest
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Lulu

Drove right by CMMC yesterday afternoon returning from a trip to Vancouver Island…..moving too fast and too many roadside trees to get a decent picture but I tried.

hendrixnuzzles
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hendrixnuzzles
Frankw17…if you believe in the gold sector, then Sandstorm near or under $4 is a good bet. If you wait much longer, I think you will regret it. Wonderboy Watson has filed an extension of their NCIB, which is notice to the authorities that they are going to buy back their own stock. Sandstorm has stated they intend to buy the full amount authorized, over 7 million shares. Besides being a good value under $4, this will be a helpful floor under the price if it goes too low. Watson has also stated flat-out that he intends to start paying… Read more »
frankw17
Irregular
842

hn, you are probably “right as rain”. I need to adopt the “Cable Guy’s” strategy and “get er done”.
Regards,
Frank

hedy1234
Guest
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hedy1234

Up 9% since Fri 🙂

frankw17
Irregular
842

Thanks hn, that got me off the dime and I’m now on board with $SAND.
Regards,
Frank

dougj34
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dougj34

I have heard/read enough too HN, picked up a handful a minute ago. A tiny amt of skin is better than none eh! Best.

dougj34
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dougj34

Do you have a target for $SAND HN? I understand if you do not want to put your number on it, just fishing. I have targets on all my positions except this one, this one is further along than any other resource stock I have ever owned. Best.

dougj34
Irregular
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dougj34
I got distracted and did not finish my post: Even though $MDRPF is named Midas Gold set that aside for a minute and look at the other huge asset here. Antimony will equal or surpass the gold factor IMO during the early phases of this mine’s production when it happens and all four current targets are open pit. Add to it that there are multiple other targets close by set for exploration and future development. Problems in Chinese mines will continue to mount as will our political relationship with China. We need Antimony and this is the only identified significant… Read more »
petervr
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petervr

Penny, we are nice people because we are encouraged to be nice people by people like you 🙂

renbycage
Irregular
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renbycage

Penny, if anyone was impolite to you on an internet thread, just ignore it, and don’t take it personally. People who post mean things are just losers who aren’t worth even a second thought. Thank you for being a nice person.

hedy1234
Irregular
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hedy1234

Penny

It is wonderful that a thread of strangers can provide solace.

Thanks to HN who provides us with this great thread.

dunnydame
Irregular
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dunnydame

Thanks renbyc and PeterVR for your kind remarks.
No, no-one was impolite to me, and if they were, I could ignore it. We were foster parents for our county for 16 years for almost 60 children, some of them quite disturbed, and believe me, I’ve heard it all and can close my ears when the epithets fly. (We took care of the more difficult children.)
Fortunately these blogs are relatively free from trolls.
Penny

renbycage
Irregular
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renbycage

wow, it takes one special heart to do that, may your heart always be protected, it deserves only the best feelings.

deanbob
Guest
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deanbob

Penny, I agree with ren. My hat is off to you and your husband. I really appreciate what you have done since my parents were foster parents to 2 very troubled kids who were 2 years younger than my brother and me.

leslie7
Irregular
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leslie7

You are one very special couple to have given those children a loving home! G-d bless you always!

dougj34
Irregular
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dougj34
You just nudged me into critical thinking mode HN, thanks. There are several possible if not highly probable events taking place in the greater markets that I expect to effect metals in a big way in the near future. I do not see how these events can be headed off without serious consequences to fiat currencies. I actually think the consequences re fiat currencies are not avoidable as world governments have dug a huge hole and found nothing of value if there ever was a value aspect. Between $ARTH, $CLIR, $IPIX, and a couple other positions I feel like I… Read more »
dougj34
Guest
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dougj34
That is why I have begun looking at hard assets again HN. When I entered a few years back I had few clues which ones to look at and ended up buying into enterprises that were far from what I am looking at and buying today. My senses tell me we are at a tipping point and past errors have led to a much richer understanding of this sector. I started buying physical metal a couple years ago and am set for the now, I will keep physical metal in the 5%-10% range of total assets. On another note, $DRRSF… Read more »
dunnydame
Irregular
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dunnydame

@doug34 buying physical metal
My physical metal is in the form of sterling silver, especially serving pieces. I love the beauty of finely crafted sterling silver and thoroughly enjoy using it – and I do use it.

dunnydame
Irregular
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dunnydame
@renby & deanbob, peter & hedy Thanks people. There are so many stories I could tell of those years. (Suggestion: come to my Total Solar Eclipse Watching Party; we’ll provide the wine.) Sometimes we were toughing it out, but most times we just had a blast with the kids. Even now I have trouble with buying & cooking small quantities of food after so many years of feeding what felt like the 5,000! On the other hand it’s great to have some spare time to follow my own interests (like being in charge of my own retirement accounts, for better… Read more »
Sharon Schreiner
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Sharon Schreiner

Dunnydame, that is so awesome. I’ve always admired those able and willing to take on such a task.

frankw17
Guest
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frankw17

God bless you indeed Penny! I understand now where you and Ben get your spirit of contributing within these threads. It’s “built in” to the both of you. Thank you from all of us. Having been on the “other side of that fence” I have quite the empathy for good foster parents. The operative there is good!
Regards,
Frank

frankw17
Irregular
842

Long $SAND:
Sandstorm Gold Ltd (NASDAQ:SAND) is now covered by analysts at Raymond James Financial, Inc.. They set an “outperform” rating on the stock. Previous closing price of $4.11.
Regards,
Frank

dunnydame
Irregular
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dunnydame

Thanks everyone for your kind words. Foster-parenting was a great way for me to be a stay-at-home parent and raise our children and some extras too. As our children got older, the ages of the foster children we took got older too. I’ve been all over the western United States on spring break and summer road trips with a van full of kids. As I said, it was a blast.

dougj34
Guest
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dougj34

I have old Morgans and current gold/silver Eagles Penny, my other half is big in sterling, crystal and that kind of stuff. Hey it’s all practical and usable one way or the other plus it is a genuine store of value eh! Best.

dougj34
Guest
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dougj34

A year or two ago I read that if our currency was still pegged to gold, either gold would be valued at somewhere around $9000/oz or there would be nowhere near the current debt levels as paper currency would not have been allowed to reach its current levels. Lets people understand the true meaning of fiat currency and how far the manipulation of physical metal price has progressed, sure is a convoluted mess. Best.

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