Tag Archives: junior miners

Full Metal (Gold And Silver) Price Manipulation

I’m not sure of the significance of 20 minutes past the hour, and I’m sure it has some sympbolic meaning to the gold manipulation cabal, but for the last week the price of gold has been getting slammed with an avalanche of Comex confetti at regular intervals at 20 minutes past the hour.

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THAT is not the graph of a market that is allowed to trade freely.   But notice how gold bounces back sharply from every take-down attempt.  This is especially significant given that this is one of the slowest seasonal periods of the year for the buyers of physical gold and silver.

This morning (Tuesday morning) was particularly blatant.  Gold had traded steadily higher overnight from $1344 (December futures basis) to $1364 just after the Comex floor opened for business (8:20 a.m. EST/6:20 a.m. MST).

Whenever the elitists start to lose control of gold, they roll out one of their Fed stool pigeons to threaten the world with a 25 basis point (one quarter of one percent) rate hike at the next FOMC meeting (September).   Today’s park bench popcorn scavenger was NY Fed President, Bill Dudley, who stated on Fox Business that a rate hike in September is “possible.”  I guess that means September’s meeting is a “live meeting” – a phrase Dudley and SF Fed Prez, John  Williams, propagated the mainstream media propaganda meat grinder with in May – LINK .

But gold shrugged off Dudley’s empty, Straw-man threats and closed today respectably up about $5 from the close of yesterday’s afternoon “access market” trading session.  I still believe that gold could see $1500 by Halloween despite the Comex B-52 paper bombs being dropped religiously on the market.  And we are just one economic, political or societal catastrophe from gold making a rapid run toward $2,000.

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Buy every manipulated sell-off in gold and silver.  It’s the true “TINA” idea.

A lot of readers have asked me if it’s too late to buy mining stocks at this point. I refer them to a long-term graph of GDXJ so they can see where the junior miners have been relative to the level at which they bottomed. It’s a prototypical chart of a market that is in the early stages of a massive move higher. The key is to identify the exploration companies that have a high probability of hitting the proverbial pot of gold. The last 5-years caused a lot of damage to the junior sector, but there’s a lot of companies with “a pulse” that have been revived, albeit significantly undervalued from a risk/return standpoint.

My Mining Stock Journal is focused on finding companies that are currently overlooked by the mainstream mining stock analysts and newsletters. As an example, I presented a stock idea in mid-April that is up over 280%. It recently doubled in price shortly after a major newsletter service poo-poo’d the idea. I draw on several seasoned veteran contacts plus 15 years of experience researching and investing in this sector. You can access the MSJ – a bi-weekly report – here:   Mining Stock Journal.

I just received your August 4 Stock Journal and before getting to your suggestion and half way through your guidelines for picking stocks I wanted to write this first. I have attempted to find those obscure companies and must say it is most difficult. Upon reflection I should have just waited on your bi-weekly report because your picks have been awesome. – “Jim”

Gold And Silver Are Being Bought On Every Manipulated Hit

In  real terms, most international fiat currencies could come to be near valueless when measured against gold and silver…And of course that climate will cause the utter collapse of the global stock markets, not to mention impact most severely our societal stability;  all as direct consequence of the delusionary monetary practices employed for decades.  – Safewealth newsletter

Sell please. I’m buying. There’s a lot of analysis out there with highly flawed assumptions. The biggest problem with this analysis – Seeking Alpha link – is that the author assumes the Fed will raise interest rates. That won’t happen until the entire is system is forced into a reset from a collapse. The Fed knows this and has no interest in hastening that reset.

Just like the continuous threat of raising interest rates, there’s been a continuous threat of Untitled“gold is overbought, too many longs, market is going to cliff-dive at any moment” like this article pouring forth (click to enlarge image). Where was this story-line when gold was being hammered daily as if the market was trying to dig a hole to China for the price of gold?

The gold net long is “stretched?” That meme is now quite tired. Put it to sleep please. Analysts with a longer track record in this sector than the author of the above article have been instilling the “net long” fear into the market for nearly three months now. Where’s this overbought sell-off?

Untitled1They key to finding profit opportunity is to think outside the box. Based on my findings, there is a lot of institutional cash on the sidelines waiting to buy into the pm sector on any pullback. That’s why the metals have popped after that manipulated take-down on Monday – a takedown fueled by the “net long is overstretched” commentary that littered the airwaves last Friday after the COT report was released. (click image to enlarge)

This market has been surprising everyone to the upside and will continue to do so. At some point the lemmings who blindly soak up the “market is overbought” fairy tale will be running to catch the train. That’s when the real fun begins.

Currently gold is behaving similarly to the way it behaved back in 2003 when it was tryingmining-stock-journal-banner punch through $400. The “overbought” garbage was permeating the media back then just like now. In fact, Robert Prechter issued a call for gold sell off to $50. How’s that call look? Shortly thereafter the market blew through $400 and eventually hit $1900. I would suggest that the author in the article linked above was not around back then and thus has no context for what is happening now.  (CLICK ON THE IMAGE TO THE RIGHT TO ACCESS IRD’s MINING STOCK JOURNAL)

New Junior Gold Miner Research Report

Note:  If you participated in the Website Fundraiser, you already have this report

James:  Dave: Thanks for all you do. I’ve purchased your stock briefs and have made some nice profits.

This junior gold miner has nearly 5 million ounces of gold in a prolific gold mining district in Canada.  The gold resource is one of the largest gold deposits discovered in the last 15 year.  It is joint developing this project 50/50 with a mid-sized mining company that has deep pockets.  This project has a very high probability of being successfully advanced into a big gold mine.

I suspect as the price of gold advances into the next stage of its bull market, this junior will be swallowed whole by its JV partner which has pre-funded a significant portion of the up-front advancement of this project.  Perhaps this is one of the primary reasons this Company’s stock is up 32% YTD and has outperformed the GDXJ junior ETF by a significant margin – click to enlarge:

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This Company also has some projects in Nevada with huge upside potential.  I doubt this Company will be independent by the time those projects reach an advanced stage.

You can access this report here:    MINING STOCK REPORTS

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This Silver Stock Is Outperforming The Sector

I published a research report – My Best Silver Stock Idea – on October 28.  As you can see from this relative performance graph, this stock has outperformed the mining stock sector (GDX and GDXJ) (click on graph to enlarge):

SVLCvsGDX

The stock has outperformed both GDX and GDXJ by a significant amount since October 28.  As you can see from the MFI, there has been a lot of money flowing into the stock.

This Company went free cash flow from its silver mine production during the 3rd quarter. It is in the process of ramping up both its mill capacity and overall production level.   It makes money on every ounce produced down to $12/oz on silver.  Most silver miners are currently, at best, breaking even on production.

In addition to being an emerging silver producer, this Company has significant land holdings adjacent to its existing mine which enable it leverage any new silver discovered off its current fixed asset production base.   It has already been permitted to double its mill from its current operating capacity.   We should be getting some drilling results on one of the adjacent properties that it is currently exploring.  Early indications suggest that this property likely contains a similar amount of silver resource as its existing mine, which is currently measured at 20 million ozs with plenty of room on the property footprint to expand that number.

The Company also has a mine-ready project with a significant amount of gold, copper, silver and titanium situated in Mexico’s “Silver Belt” in the State of Durango.

In my view this stock combines the best attributes of a currently profitable silver producer plus the huge potential upside of an exploration stock.  The kicker is that it can fund all of its expansion plans from cash flow.   You can access the report here:  Huge Upside Silver Miner

We own this stock in the investment fund that I manage and we have been adding to our position on every dip in price.

This Stock Will Fly