Category Archives: Financial Markets

Tilray: Little More Than A Stock Bubble Scam

Tilray could well become the poster-child stock of the biggest stock bubble in U.S. History.

This past summer Tilray (TLRY) went public (July) at $17 per share. TLRY is a Canada-based medical marijuana company. While its operations are targeting the international medical marijuana market, the Company generated just $9.7 million in revenues in its Q2 2018. It produced a net loss of $12.8 million. The stock had run from $30 on August 20th to
a close of $120 on September 17th. The stock jumped again the next day to $154 on newsthat the DEA granted the approval for Tilray to provide THC capsules to UC San Diego for a clinical trial on the medicinal use of THC/CBD.

At the close of trading last Tuesday, TLRY’s market cap reached $14.1 billion, despite the fact the the UC San Diego deal would provide little in the way of revenues. Wednesday the stock soared to as high as $300 – a $27.6 billion market cap. TLRY did $17 million in revenues for the first-half of 2018. Let’s double that for the next 6 months and give them credit for a forward 12-month revenue stream of $68 million, which is more than generous. That means at Wednesday’s peak, TRLY was trading at 405x forward revenues. But from Q2 2017 to Q2 2018, its operating loss nearly quintupled, from $2.3 million to $11 million. We don’t know to what extent, if ever, this business model will be profitable.

Tilray closed just below $100 on Monday. On Tuesday the stock jumped $17, adding $1.5 billion to its market cap on the “news” that the Company “successfully” delivered CBD capsules to 29 “critically ill children” at a hospital in Victoria, Australia. There was no mention of revenue or profit impact of this “event,” which means this “feat” will be an expense item. Funny thing about CBD products, they are egally available in high concentration capsules and tinctures to anyone. See Ambary Gardens, for instance.

Marijuana was approved for medical use in Colorado in 2008. It was approved for recreational use in 2012. From 2008 to present, the retail price for “top shelf” weed has gone from $350 per ounce to as low as $150 per ounce. Once marijuana is legalized in a jurisdiction, the barrier to entry for producers and distributors is low. This means that, over
time, the selling price of marijuana will begin to approach the cost of production plus the cost of distribution plus a small profit incentive for growers and distributors. I have to believe the big tobacco companies are waiting impatiently for the Federal Government to legalize marijuana out of desperation to generate tax revenues. Then it’s game-over for existing growers.

TLRY’s operating loss including non-cash stock compensation was $14.7 million in the first half of 2018. Net of the huge jump in accounts payable, TLRY’s operations burned $11 million in cash in the first 6 months of 2018. TLRY insiders are sitting on 83 million of the 92 million shares outstanding. I’ll be curious to see how quickly insiders begin to register their shares and unload them. It’s only a matter of time before ground-floor investors try to quietly unload shares. They are idiots if they don’t.

The point here is that, while the run-up in stocks like Tesla and Netflix has been absurd, the trading action is Tilray has been absolutely insane. As it turns out, with only 17.8 million shares in the public float, TLRY has been engulfed by a vicious short-squeeze made even worse by momentum-chasing hedge fund algos and day-traders. Buyers blindly chasing the price higher, driven by fearless greed and the expectation that they will be able to unload their stock purchase on the next buyer willing to pay even more for the stock in complete disregard to valuation considerations.

This is very similar to the early 2000 dot.com/tech stock bubble. Tilray’s price rise to $300 is similar to rise in Commerce One. I was short CMRC at $200/share, which at the time was a completely irrational valuation. CMRC then ran quickly up to $600. But $600 was the top and it fell off a cliff from there.

Paul Craig Roberts: Without Truth, Government Becomes Totalitarian

“THE conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country.” – Edward Bernays, the Godfather of Propaganda

It’s stunning to me the number of highly educated people I know who are blinded by the Orwellian fog that now engulfs the United States. Even if the Russian election meddling accusations were true, and there’s not been one shred of court-admissible evidence produced yet, so what? The U.S. interferes in elections and governments all over the world, including Russia. Thus is the power of propaganda. It’s difficult to know what’s real and what’s fiction because the accepted purveyors of “truth” and “news” have been captured by the political and corporate elitists, who use the traditional media outlets to advance their political and economic objectives.

“Today in America no member of the print and TV media or NPR dares to get within a hundred miles of the truth. It would be a career-ending event. Without a media dedicated to truth, there can be no control over government.” – Paul Craig Roberts. The following essay is a must-read from Paul Craig Roberts

On September 17, I posted my column, “Evidence is no longer a Western value.” I used as an example the blame that has been put on Russia for the shot down Malaysian airliner. No evidence whatsoever exists for the accusation, and massive evidence has been presented that the airliner was shot down by the neonazis that seized power as a result of the Washington-organized coup in Ukraine.

Blame was fixed on Russia not by any evidence but by continuous evidence-free accusations that began the moment the airliner was shot down. Anyone who asked for evidence was treated as a “Putin apologist.” This took evidence out of the picture.

Wherever we look in these times, we see evidence-free accusations established as absolute facts: Saddam Hussein’s “weapons of mass destruction,” “Iranian nukes,” “Russian invasion of Ukraine,” the Trump/Putin conspiracy that stole the 2016 US presidential election, Syrian use of poison gas. Not a scrap of evidence exists for any of these accusations, but the truth of the accusations is established in many minds worldwide.

Science gave the world the principle of evidence-based fact, which did away with the burning of witches and political decisions based in superstitution. Truth became a force.

But truth can get in the way of agendas, and as elites recovered their power from the social, political, and economic reforms of a previous era, truth was divided into categories and cut so fine that it disappeared. For the elite truth became identical to their economic interests, and Identity Politics stripped truth of its universal meaning and reduced truth to self-pleading race and gender truth.

The result is that today truth is established not by evidence but by repetition of accusations and falsehoods.

This made it easy to destroy people and countries by lies alone. Who remembers Dominique Strauss-Kahn, the head of the International Monetary Fund and at the time the likely future president of France? Strauss-Kahn was out of step with Washington which wanted its puppet Sarkozy reelected. Strauss-Kahn came to New York and was accused by a hotel maid of sexual assault. He was arrested and jailed. The New York district attorney and media whores pronounced him guillty. Simultaneously, on cue, a French woman made the same claim. Case closed. No evidence. Just claims. Then it emerged that the hotel maid had just had very large sums of money far above her income level deposited to her bank account. Even more damning, it was revealed that Sarkozy knew of Strauss-Kahn’s arrest before the police announced it. The case fell apart, and the New York district attorney publicly apologized. But Strauss-Kahn had been forced to resign as Director of the IMF and was out of the French presidential election. So Washington won.

Today it is a common, routine tactic for both US political parties to produce a woman to bring accusations of sexual harassment, abuse, or assault against any heterosexual male appointee or nominee that either party regards to be out of step with its agenda. It happens so regularly that no sentinent person can possibly believe the woman. Sexual assault has been reduced to one of the dirty tricks of politics.

As hard as false accusations can be on individuals, they destroy entire countries. Just consider the destruction of Afghanistan, Iraq, Libya, currently Yemen, and Washington has not given up on the same fate for Syria and Iran. Based on nothing but Washington’s endlessly repeated false accusations, millions of peoples have been murdered, maimed, orphened, widowed, displaced, and sent as refugees overrunning Europe.

There is not a scrap of evidence anywhere that justifies Washington’s enormous crimes against humanity. Yet, these crimes that in a truth-conscious world would have resulted in several entire governments of the United States standing accused in the International Criminal Court, or the War Crimes Court, or whichever court, and perhaps in all of them, are ignored, because accusation alone against the destroyed countries and peoples sufficed to justify Washington’s war crimes against humanity.

What I have described is a truth-free world. There is no place for truth in the world that the West has created. The Western hostility to truth is overwhelming. As I write truth-tellers are being banned from Facebook, Twitter, and PayPal. Google makes their sites almost impossible to find. Throughout the Western World truth has been redefined as “Conspiracy Theory.”

Elites such as George Soros and innumerable tax-financed government agencies, such as the National Endowment for Democracy, spend taxpayers’ money discrediting those who tell the truth. Many in governments want truth-tellers locked up as enemies of the state, by which they mean “enemies of the self-interests of the ruling elites.”

You don’t need to believe me. Here are four books written by honorable persons, meticulously documented, full of evidence that make it clear that American elites have no respect whatsoever for truth. Truth is something that is in their way.

One of the books is Charlie Savage’s Takeover. Savage shows how Dick Cheney used the George W. Bush regime and 9/11 to destroy the separation of powers and the civil liberties in the US Constitution. When you read Savage’s book you will discover that the America that you think is here is not here. In its place is a dictatorship available to any president clever enough to use it. Savage’s book is one of the best pieces of investigative reporting that I have read.

The Roman system of government never recovered from Caesar crossing the Rubicon. I doubt that the US Constitution will ever recover from Dick Cheney.

Two of the books are by David Ray Griffin, one of the last and most determined of American protagonists for truth. In his book, Bush and Cheney: How They Ruined America and the World, Griffin makes, a decade after Savage, the same case against Dick Cheney. When two independently minded researchers reach the same conclusion, you can bet it is on the money. If the world survives Washington’s orchestrated conflict with Russia, Cheney will go down in history as the person who destroyed American constitutional government.

In this same book, Griffin also examines the official 9/11 story and exposes it as a total fabrication with no connection to any truth whatsoever. He takes up this case in his current, just released book with Elizabeth Woodworth, 9/11 Unmasked: An International Review Panel Investigation.

Anyone who is still brainwashed by the official 9/11 story can immediately free themselves from their deception by reading this book. There is no longer any doubt that 9/11 was an inside orchestrated event for the purpose of unleashing two decades, with more to come, of American aggression in the Middle East.

Griffin does not leave a single official statement about 9/11 standing as not a single official claim is based on any factual evidence whatsoever.

For seventeen years the world has been fed a pack of total lies based on nothing but accusations and in the face of massive evidence produced not by some collection of political hacks sitting as a 9/11 Commission, but by thousands of experts. Yet for seventeen years false accusations prevailed over heavily documented facts presented by disinterested experts called “conspiracy theorists” by those intent on covering up their crimes.

The fourth book is Mary Mapes’ Truth and Duty. Mary Mapes is the CBS producer whose team carefully prepared for Dan Rather the 60 Minutes report on George W. Bush’s failure to perform his Texas Air National Guard duty. Her story was absolutely correct, but she and Rather were destroyed by accusation alone. The Republicans set in attack mode the right-wing bloggers, and soon the official media joined in for the purpose of elevating their ratings at CBS’s expense.

CBS was vulnerable, because it was no longer independent but a part of Viacom’s empire. Mapes was already in trouble, because she had broken the Abu Ghraib torture story just at the moment that Bush and Cheney declared: “America doesn’t torture.” As the Cheney/Bush regime put pressure on Viacom, a corporate executive told Mapes: “You don’t have any idea how many millions of dollars Viacom is spending on lobbying in Wasington, and nothing you’ve done in the past year has helped.”

There you have it. The Viacom executives had no interest whatsoever in the truth, only in what advanced their lobbying interests in Washington. Mapes, a truth-teller had to go, and she did. And so did Dan Rather.

Ask yourselves where you can read articles like this. If you do not support the remaining portals of truth, you will find yourselves bound, like the Elven-kings, Dwarf-lords and Mortal Men in J.R.R. Tolkien’s Lord of the Rings, “in the darkness” by the elites ability to control the explanations that comprise your reality.

Here’s Why Vista Gold Is Extraordinarily Undervalued

VIsta Gold (VGZ) is advancing Australia’s largest undeveloped gold project.  The current resource stands at 7.8 million ounces, of which 5.8 million proven/probable reserves.  Vista is implementing a high-tech grinding and sorting process that will improve gold recovery and production.

Vista released an updated Preliminary Feasibility Study which shows an after-tax NPV of $679 million, assuming an initial capital cost of $839 million and $1300 gold. Vista’s current market cap is $49 million.

Vista Gold is one of the most undervalued junior mining stocks given the degree to which the project has been de-risked.  At this point, the biggest hurdle to eventual production is raising the money to fund mine construction.  As recently as February Vista was trading at 85 cents vs its current price of 49 cents.  In my opinion, Vista’s stock is an easy double from here when gold embarks on its next big move higher.

The Mining Stock Daily’s Trevor Hall interviewed Vista’s CEO, Fred Earnest, and Sr Vice President, John Rozelle, at the Beaver Creek Precious Metals Conference this week (click on the image to listen):

Fundamentals Supporting Stock Market Further Deteriorate

The Bureau of Economic Analysis calculates and publishes an earnings metric known as the National Income and Products Accounts which presents the value and composition of national output and the types of incomes generated in its production. One of the NIPA accounts is “corporate profits.” From the NIPA handbook: “Corporate profits represents the portion of the total income earned from current production that is accounted for by U.S. corporations.”

The BEA’s measurement of corporate profits is somewhat similar to using operating income from GAAP financial statements rather than net income. The BEA is attempting to isolate “profits from current production” from non-production noised introduced by GAAP accounting standards. “Profits from current production provide a comprehensive and consistent economic measure of the net income earned by all U.S. corporations. As such, it is unaffected by the changes in tax laws, and it is adjusted for non-reported and misreported income” (emphasis is mine).

Why do I bring this up – what is the punch line? Because the NIPA measurement of corporate profits is currently showing no growth. Contrast this with the net income “growth” that is generate from share buybacks, GAAP tax rate reductions and other non-cash GAAP gimmicks used to generate GAAP net income on financial statements. This does not surprise me because I use operating income when judging whether or not companies that are reported as “beating” estimates are “beating” with accounting gimmicks or actual products derived from the underlying business.

It’s quite easy for companies to manufacture net income “beats.” But it’s more difficult – though possible – to manipulate operating income. The deferment of expenses via capitalizing them (taking a current cost incurred and sticking it on the balance sheet where the cost is amortized as an expense over time) is one trick to manage operating income because expense capitalization reduces the quarterly GAAP expense that is connected to that particular expenditure (capex, interest, etc).

The point here is that corporate operating profits – or “profits from production” per the BEA – are not growing despite the propaganda from Wall Street and the President that the economy is “booming.” Furthermore, if we were to adjust the BEA numbers by a true inflation number, the resulting calculation would show that “real” (net of price inflation) corporate profits have been declining. Using this measure of corporate profitability as one of the measures of economic health, the economy is not doing well.

August Auto Sales – August auto sales reported the first week of September showed, on a SAAR (Seasonally Adjusted Annualized Rate basis), a slight decline from the July SAAR. The positive spin on the numbers was that the SAAR was 0.4% percent above August 2017. However, recall that all economic activity was negatively affected by the two huge hurricanes that hit south Texas and Florida. The SAAR for this August was reported at 16.5 million. This is 11.2% below the record SAAR of 18.6 million in October 2017. It was noted by LMC Automotive, an auto industry consulting firm, that “retail demand is deteriorating” (“retail” is differentiated from “fleet” sales). Sedan sales continue to plummet, offset partially by a continued demand for pick-up trucks and SUVs.

Casting aside the statistically manipulated SAAR, the industry itself per Automotive News reported 1.481 million vehicles sold in August, a number which is 0.2% below August 2017. In other words, despite the hurricane-depressed sales in August 2017, automobile manufacturers are reporting a year over year decline in sales for August. This was lead by a stunning 12.7% drop in sales at GM. I’ll note that GM no longer reports monthly sales (only quarterly). But apparently an insider at GM fed that number to Bloomberg News.  Automotive News asterisks the number as “an estimate.” Apparently GM pulled back on incentives. On a separate note, I’m wondering what will happen to consumer discretionary spending if the price of gasoline continues to move higher. It now costs me about 35% more a year ago to fill the tank in my car.

The commentary above is an excerpt from the latest Short Seller’s Journal.  I  recommended shorting GM at $42 in an early November 2017 issue of the Short Seller’s Journal. It hit $34 earlier this past week. That’s a 19% ROR over the time period. In the last issue of the Short Short Seller’s Journal, I recommended shorting Wayfair (W) at $149.92, last Friday’s close. W is down $3.50 – or 2.3% – despite the rising stock market. My recommendation include put option ideas You can learn more about this newsletter here:  Short Seller’s Journal Information

Silver, Trump’s Trade War, Mining Stocks And The Fed’s Gold

If you have gold, you have money – If you don’t have gold, you have a problem – Alisdair Macleod

With the massive net short position in both gold and silver Comex paper precious metals, offset by the historic net long position of the “commercials” (banks, mining companies, users, hedgers), numerous rumors are swirling around the precious metals market. For certain, the availability of physical gold bars in London that can be delivered to the large eastern hemisphere buyers who demand delivery is growing tight.  Apparently the retail silver coin/bar market is starting to feel supply strains.

Miles Franklin’s Chris Marcus invited me onto this podcast to discuss the precious metals markets, mining stocks, Trump’s Trade War and the status of the gold held in custody by the Fed on behalf of the American public:

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If you are interested in ideas for taking advantage of the inevitable systemic reset that  will hit the U.S. financial and economic system, check out either of these newsletters:  Short Seller’s Journal information and more about the Mining Stock Journal here:  Mining Stock Journal information.

Reasons To Optimistic About The Precious Metals Sector

The September 7th COT report is probably the most bullish I’ve seen since the beginning of my involvement in the precious metals sector in 2001. As most of you probably know by now, the “commercial” trader category is now net long both gold and silver for the first time going back to at least 1994. The banks (“swap dealers”) net long position in both paper metals increased. Conversely the hedge fund net short increased in both.

It may take a few weeks for gold to push through $1215-1220, as the hedge fund algos will be looking to attack the price until they have covered their enormous net short position. That said, it will take only one particularly surprisingly bad economic report or unexpected geopolitical event (Syria, trade war, domestic political surprise, reckless Trump tweet, etc) to trigger a spike-up in the price of gold. Once this occurs, the hedge fund computers will race to cover their shorts, which will drive the price higher very quickly.

Trevor Hall and I co-produce the Mining Stock Daily, a brief, daily overview of news and events connected to the precious metals and mining stock market. We focus on junior mining stocks. We are looking to exploit audio information distribution on 10 different digital platforms including Anchor, Alexa, Apple Podcasts, etc. Trevor and I discussed why there is cause for optimism in the precious metals sector for MSD’s Friday feature interview segment (click on graphic to listen):

Precious Metals, Mining Stocks, Housing Market – What’s Next?

“The housing market is 100% a function of the Fed’s money printing.  Half the money the Fed printed, $2.2 trillion, went directly into the housing market.”

Analysts and financial media meatheads look at the $4.5 trillion created by the Fed and truly believe that it wasn’t money printing because it’s “backed” by Treasury bonds and mortgages.  But this is pure ignorance.  Not taken into consideration is the amount of credit and debt issuance enabled by using the $4.5 trillion as the “reserve capital.”  It’s fractional banking on steroids.

As the U.S. financial system reaches its limit on the amount of debt that can be serviced from the current level of wealth output, what happens next?  We’re already seeing what happens in the housing market per the fact that the homebuilder  stocks are in an “official” bear market, with some of them down over 30% since late January.

Then what?  The Fed will have to print multiples of the original amount it printed or face systemic collapse. At that point the precious metals sector will soar beyond anyone’s imagination at this point in time.

Phil Kennedy (Kennedy Financial) invited me to discuss these issues on his podcast.  Phil’s podcasts blend truthseeking, facts, humor, humility and sarcasm.  It’s  well-worth the time spent to listen:

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If you are interested in ideas for taking advantage of the inevitable systemic reset that  will hit the U.S. financial and economic system, check out either of these newsletters:  Short Seller’s Journal information and more about the Mining Stock Journal here:  Mining Stock Journal information.

Will The Housing Market Fall This Fall?

“The number of homes on the market surged, the number of sales dropped, and price reductions were abundant last month, all signs that buyers are pulling back in metro Denver” – Denver Post (September 6, 2018) citing the Denver Metro Association of Realtors.

Buy a home now if you must if you manage to qualify for one of the de facto sub-prime mortgages sponsored by the Government Taxpayer. But I guarantee that if you wait 6-12 months, you’ll be able to buy the same home or a better home for a lower price…

Denver has been one of the top-10 hottest housing markets in the past few years, largely driven by an enormous inflow of households moving to Denver from California. However, I started seeing signs developing of a market top that were similar to the indicators I noticed leading up to the popping of the last housing bubble.

As reported by the Denver Metro Association of Realtors (NAR-affiliate) single-family home sales dropped 7.5% in August from July and were down 9.8% from August 2017.Condo sales dropped 5% in August from July and fell 15.6% year over year. At least 30% of the sales were below the original listing price. The inventory of listed homes rose at a record rate for the month of August. Normally inventory from July to August drops a small amount.

Based on articles I encounter in my research or sent to me by subscribers, most if not all of the hottest markets are experiencing a similar development. The spokesman for the Denver affiliate of the National Association of Realtors, like a good salesman, attributes the declining sales to “push-back” from buyers. But, as you might well have expected, I disagree with that assessment.

As I’ve discussed previously, the Government lowered the bar on mortgage qualification requirements for its mortgage programs starting in 2015 in order to counter, what was then, a deteriorating housing market. The Government has lowered the bar on its guaranteed mortgages each successive year since 2015. A growing portion of the home-buyers using Government guaranteed mortgages would have been considered “sub-prime” in the previous mortgage/housing bubble.

In effect, the Government has kept “juicing” the housing market by enabling a larger population of people to buy a home that they otherwise could not afford unless they could get a low-down-payment, rate-subsidized, sub-prime quality Government mortgage. At some point, the limit will be reached on the number of people who can qualify under the current requirements. I would argue that the system is approaching that point.

The second factor in reduced buyer demand is the potential buyers who can qualify for and afford a mortgage from any issuer (Government or private-label) are starting to see a lot more inventory come on the market accompanied by falling prices. Many will hold off on the decision to sell their existing home and “move-up” in order to see if prices come down. It doesn’t take a genius to understand that the prices are going to go lower when you drive around desirable neighborhoods and see a lot of “for sale” signs.

Once the buyers are in full-retreat, we’ll start to see sellers get more aggressive on pricing and we’ll see motivated sellers panic. Similar to the last bubble, the motivated sellers will primarily be “investors” who are stuck with a home they can’t rent at a rate that covers their expenses and flippers who can’t sell at a price that covers the costs of buying the home and preparing it to flip. Just like 2008, this is when the “price wars” will start (as opposed to the buyer “bidding wars” in a bull market) and prices spiral south.

This is why the stock chart of the Dow Jones Home Construction Index looks like this:

The homebuilder stocks have been in a bear market since the end of January. Many homebuilders are down over 30% since then. If that fact surprises you, it’s likely because you get your news from CNBC, Bloomberg, Fox Biz or the Wall St Journal, none of which have reported the bear market in home construction stocks. This is just like the mid-2000’s bubble leading up to the financial crisis. The homebuilders peaked in July 2005 and were in a full-fledged bear market before 2007.

The Employment Report Has Become Orwellian In The Extreme

“Today’s job numbers might be the biggest disaster I’ve ever seen reported. This Fall could get real ugly real fast. The deterioration of the participation rate is so big it makes me suspicious of earlier numbers.” – John Titus, producer of Best Evidence videos.

Titus goes on to say, “”The Household Survey” is showing a net loss of 1.47 million jobs year-over-year and a Labor Force reduction north of 2 million [YoY]. CNBC headline: ‘Economy adds more jobs than expected.'”

The employment report is unquestionably the most manipulated economic report issued by the Government. The content of the the headline on which the mainstream media bases its  broadcast and analysis of the report is entirely disconnected from the actual data contained in the report. The damning data that no one in the financial media or Wall Street seems to be able to find is at the top of the BLS’ report:

As you can see, the “civilian labor force”declined by 469,000 people in August from July. The number of “employed” dropped 423,000. The “not in labor force” increased by nearly 700,000. With these facts in mind (“facts” at least as far as the BLS numbers contain any shards of credibility),  how can the Government claim that 201,000 “jobs were created” in August? How can CNBC say the “economy created more jobs than expected?”  Based on the numbers in the details of the BLS report, it looks like, between the decline in the number of people employed and the decline in those not counted as part of the labor force, the economy shed over 1 million jobs.

Titus remarked to me that, in terms of manipulating the data to make the headline report look positive, this is the worst report he’s ever scrutinized: “In terms of people leaving the labor force, it sure looks like earlier data was was manipulated to hell and back and the BLS just couldn’t hide it any longer. The deltas are f—ing crazy.”

By the way, has anyone besides me noticed that the BLS calls this report the, “Employment Situation Report?”  What does that even mean?

On another note, my colleague and Mining Stock Daily collaborator, Trevor Hall, posted a fascinating interview with Scott Close and Dr. Eric Jensen of EMX Royalties.  EMX employs a project generator royalty  model and has 92 assets, three of which are current-pay royalty assets. One topic covered is what EMX will do with the cash proceeds from the sale of its giant Malmyzh copper-gold project in eastern Russia. EMX will receive a cash payment ($68 million) that is approximately two-thirds of EMX’s current market cap ($98 million).  You can listen this interview by clicking on the image below (or this link: MSD / EMX Royalty):

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The Mining Stock Journal has featured EMX Royalties as strong as recently as early May, when EMX was trading at 80 cents. You can learn more about this newsletter service here: Mining Stock Journal subscription information.

Why Are The Banks Long Gold And Silver Futures?

“The banks are very net long gold and silver futures. To the extent that banks can peer at what’s going on behind the proverbial ‘curtain,’ they must see something that has inspired them to take long position in the precious metals.”

Gold is behaving the same way it was behaving in the months leading up to the 2008 financial crisis.  Emerging markets are melting down and transmitting a financial and economic virus that infect the entire world.  The coming financial collapse will be magnified by the enormous amount of visible and hidden debt, the worst perpetrator of which is the United States.

Elijah Johnson invited me onto his Silver Doctors podcast to discuss the bullish set-up for gold and silver, along with the underlying factors that will lead to problems which have motivated the banks to go long gold and silver:

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You can learn more about this newsletter here:  Short Seller’s Journal information and more about the Mining Stock Journal here: Mining Stock Journal information.