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:
Most investors and speculators today aren’t paying attention to the gold miners’ strong fundamentals. Instead they are all wrapped up in the fearful prevailing sentiment. That’s a big mistake as always. While gold-mining operating profitability will decrease in Q4 if gold prices remain low, gold’s young bull is far from over.
When it starts powering higher again on weaker stock markets, gold stocks will soar…
Donald Trump’s epic underdog victory climaxing the US presidential race was radically unexpected by the great majority of the world. Equally if not more surprising was the subsequent days’ market reaction. Stock markets, gold, and gold-mining stocks did exactly the opposite of what was universally forecast for a Trump win.
This has left contrarian traders wondering how gold and gold stocks will likely fare under Trump:
Murray Nye, CEO of Winston Gold Corp, joins us for an insider’s view of the gold mining industry, and where major trends are taking us next. We dig into the paradox of suppressed prices despite record investor demand for physical gold, and the extreme challenge this pricing pressure imposes when designing a profitable gold mining operation.
Has the world passed “Peak Gold?”
What if we could revolutionize the gold industry by radically re-inventing our ability to discover brand new, massive & rich gold deposits, and thus re-create the gold boom over and over?
Wade Hodges, serial discoverer of over 30 Million ounces of gold and CEO of Nevada Exploration, joins us to blow away the conventional limits…
Talking to executives from junior companies, one comment just keeps surfacing: they are seeing overwhelming interest from majors.
As ETFs grow in popularity, and therefore size, they become the tail that wags the dog:
The gold miners’ stocks have skyrocketed this year as investors started returning to this long-abandoned sector.
Many have doubled since January, with plenty tripling or even quadrupling.
Naturally such fast gains raise concerns about whether they are actually fundamentally justified or merely the product of fleeting sentiment that could reverse.
Gold miners’ latest quarterly results offer great fundamental insights.
Gold-mining stocks surged higher this past week after breaking free from their high consolidation. This newest upleg catapulted gold stocks to a doubling in less than 3 months, a remarkable world-leading performance. But despite its quick doubling, this red-hot sector still has another easy doubling left to come from here. Gold-mining stocks still remain greatly undervalued relative to prevailing gold prices.
When some individual gold stocks rise by 100% – 400% in just four months, investors can begin to feel it’s a stock picker’s market. While the best stocks will always produce bigger returns than the worst ones in any sector, I think what is occurring in the precious metal stocks is something very much “bigger”.
There are three powerful forces coming together that could soon create “upside thunder” across the entire gold stocks sector:
This is a Biggie!
Sometimes an event can come and go, and become important much later, without setting off any alarm bells, as to whether it was important or not from the start. It happens every day. Yet, at other times however, you just can’t help but to immediately understand the significance of something the moment it happens.
Brothers, I have a feeling that what was just reported in the gold market, seems to strike that crucially, unmistakable note. First, let’s touch upon the parties involved, and what they did, because it’s a strategy that seems like such a no-brainer, that I’m surprised most of the big players in the business world aren’t already doing it.
That announcement was this:
Expert PM analyst Steve St. Angelo (SRSRocco) joins the show this week discussing:
- How long can the bankers manipulate the price of gold & silver? Can it continue another decade or two?
Steve explains why the price of silver is poised to rise EXPONENTIALLY
- Steve explains why When the Light Bulb goes on (for global investors), you’re going to see see a MAD RUSH into precious metals, and crazy prices!
- With the oil price cut in half over the past 6 months, is Peak Oil a Myth of the past, or is it closer than ever- and what are the implications for gold & silver?
- Steve believes the numbers indicate that Silver investors are becoming complacent in 2015- the time to buy insurance is BEFORE your house burns down and its TOO LATE!
- We’re going to see convulsions in the market- by 2020 the world will be a totally different place, and it will be difficult to obtain physical precious metals!
- “What happened to Ammo will happen to Gold & Silver!”
The SD Weekly Metals & Markets With The Doc, Eric Dubin, & SRSRocco is below: