Pit stop SITREP coming off a brutal week for the miners
The miners are hanging in there so far, but here’s what to look for
“The dollar could begin a “meltdown” phase as gold bursts above the neckline in the $1260 area”
History has a tendency to repeat from time to time, and somehow surprise everybody when it does so.
We are officially in the first innings of a 2017 gold rush, as gold demand threatens to outstrip supply for the first time in decades…
Doldrums term is very apt for gold’s summer predicament. It describes a zone in the world’s oceans surrounding the equator. There hot air is constantly rising, creating long-lived low-pressure areas. They are often calm, with little or no prevailing winds. History is full of accounts of sailing ships getting trapped in this zone for days or even weeks, unable to make any headway. The doldrums were murder on ships’ morale.
Eric Sprott’s on Board…
The gold miners’ stocks remain deeply out of favor, largely shunned by traders. Since this sector just spent the better part of a year grinding sideways, such bearish sentiment isn’t surprising. But with a giant technical formation nearing a major inflection point, things look to be coming to a head in gold-stock land. A big breakout is nearing, and gold stocks’ deep undervaluation relative to gold argues it will be to the upside.
The junior gold miners’ stocks suffered a serious thrashing between mid-April and early May.
The recent major selloff was totally unjustified.
That makes this battered sector a screaming buy right now fundamentally.
Gold has had a wild ride since Trump’s surprise election win in early November. This metal first plunged then surged, ultimately making little headway. It wasn’t until mid-April that gold regained its pre-election levels. This overall lackluster gold action was confounding given all the mounting uncertainties. But it once again highlights that gold investment demand is often hostage to the US stock markets’ fortunes.
Time to batten down the hatches, mateys.
This chain of developments has the potential to devastate the junior miners in the short run, coming on top of the effects of the GDXJ rebalancing.
What did they know, And WHEN Did They Know It?
Risks to the global economy was the main topic of the conversation between precious metals expert Jim Rickards and Lior Gantz, editor of Wealth Research Group.
Money manager Adrian Day reviews recent developments at a handful of gold companies, both juniors and seniors.
The junior gold stocks corrected hard in recent weeks, setting them up to blast higher on Wednesday’s less-hawkish-than-expected Fed. That started to dispel some of the serious bearish sentiment that has been mounting in this sector. The junior gold miners’ fundamentals justify much-higher stock prices, as evidenced in their recently-reported fourth-quarter operating and financial results. They remain very bullish.
The gold miners’ stocks have corrected hard in recent weeks, hammered by a gold pullback driven by soaring Fed-rate-hike odds. Like any considerable selloff, this has spawned serious bearish sentiment. But the gold miners’ underlying operating fundamentals remain quite strong, proving the recent selling was purely psychological.
This sector’s just-reported fourth-quarter results are Impressive, VERY Bullish:
The gold stocks enjoyed a strong surge early this year, fully reversing their sharp post-election losses. While they spent much of February consolidating before sliding, this sector’s seasonals will soon turn very favorable again in mid-March. The gold miners have long enjoyed strong spring rallies in bull-market years. Early March’s seasonal lull is a great opportunity to deploy aggressively ahead of this big spring buying.
Fund Manager Dave Kranzler Warns This Stock “Pimped By Stansberry/Casey, Martin Katusa and Rick Rule” Could Go to ZERO:
The gold miners’ stocks have blasted higher in this young new year, far outpacing the broader markets. But surprisingly gold stocks’ trading volume has diverged from their powerful rally. Volume has actually been waning on balance since gold stocks’ newest upleg was born in mid-December. While volume is a complex nuanced indicator, this bullishly suggests that major gold-stock buying hasn’t even started yet.
Veteran investor Bob Moriarty provides an update on Nexus Gold’s potential home runs in Burkina Faso.
Gold has hit the ground running in this young new year, a stark contrast to its brutal post-election selloff. Rather remarkably, these strong recent gains accrued despite literally zero buying from one of gold’s most-important constituencies. The American stock investors who almost single-handedly fueled gold’s strong bull market last year are still missing in action since the election.
That means big gold buying is still coming:
Gold has suffered brutal, withering selling pressure in the month following the US presidential election. The stock markets’ surprise surge after Trump’s surprise win has led speculators and investors alike to rush for the gold exits. As usual the former group’s extreme selling came largely through gold futures. But this gold-futures dumping has been so severe that it is rapidly exhausting itself, a bullish omen for gold:
The junior gold miners’ and explorers’ stocks have been crushed in recent months, collateral damage from enormous gold-futures selling.
That’s naturally left investors and speculators extremely bearish on gold juniors. But lost in all this technical and sentimental tumult are important fundamentals from the juniors’ recently-reported third-quarter financial and operational results, which proved quite strong and bullish: