Tag Archives: mining stocks

U.S. Gold Corp: Home Run Potential In The Cortez Trend

Some geologists believe that the Cortez Trend could be bigger than the famed Carlin Trend.  U.S. Gold has a project that sits about 10 miles south of Barrick’s mammoth Cortex Hills gold mine. I’ve spent about five hours with the CEO and co-founder – in person and on the phone – and over two hours in person with the head geologist understanding why USAU’s Keystone Project has potential to be the next big gold discovery in Nevada.

I published a report on Seeking Alpha that reflects specifically the wealth of information I learned about Keystone from Dave Mathewson, who is considered one of the leading experts on Nevada’s geology:

For Mathewson, the key to starting the hunt for a deposit is to find areas with the “right host rocks.” With Keystone, it has “rocks, system and geological characteristics – nothing is missing.” The “scout holes” drilled by the Company were used to identify the “stratigraphy,” which shows the geological layering of the rock formation and can help identify gold-bearing formations. According to Mathewson, the stratigraphy of Keystone looks almost exactly like Barrick’s Cortez Hills property stratigraphy – but even better.

 You can read the rest of this report from Seeking Alpha here:   US Gold – Home Run Potential

I first presented U.S. Gold to my Mining Stock Journal subscribers in mid-November at $1.45. It has traded as high as $3 since then. The latest pullback in price is a great entry point. The Mining Stock Journal has had several home run stocks since it’s inception. You can learn more about this newsletter here:   Mining Stock Journal information.

The Stock Market Is Setting Up For A Historic Collapse

There is no history to suggest this is sustainable. This price move remains the most extreme technical disconnect in the $DJIA ever.   – Northman Trader

The U.S. dollar has had the worst January since 1987.  There’s a lot of reasons why the stock market crashed in October 1987, but the declining dollar was one of the primary catalysts.  The rest of the world, led by China, is methodically and patiently removing the dollar as the world’s reserve currency.  The cost for the U.S. Government to fund its rapidly expanding spending deficit is going to soar. Absent the ability to print unlimited quantities of electronic dollars, the U.S. Government’s credit quality is equivalent to that of a Third World country.

Silver Doctor’s invited me to join Elijah and Eric Dubin for their weekly Metals and Markets podcast.  We discuss the issues above plus have a little bit of fun:

The cost to buy down-side protection has never been cheaper.  No one, I mean no one is short or hedged this market.  When slide starts, it will quickly turn into a massive avalanche.  You will have to be set up with hedges and short positions or you will miss the money that will be made from taking a lonely contrarian view of the market.

My subscribers who shorted my homebuilder stock idea two weeks ago are now up 17.7%. That’s if they shorted the shares. They are up even more if they used puts. If you are interested in learning how to take advantage of the coming stock market crash, you learn more about the Short Seller’s Journal here:   Short Seller’s Journal information.

The Gold Cartel, Sex Scandals and GATA

The point is going up against the rich and powerful is known to be a losing proposition … for most, but not ALL, of the time, The tide has now turned when it comes to serious sexual harassment issues. The scandal took decades to surface. And, in my opinion, the same is going to be the case for the biggest financial market scandal in US history, that being the wrongful suppression of the gold/silver prices

Bill Murphy’s speech at the Vancouver Resource Investment Conference is a must-read. The truth about the Central Banks and Government intervention in the precious metals market is out “there” for everyone to see. But the public prefers to keep its eyes wide shut. Those elected or appointed to positions to prevent illegal market interference are well-paid by the banks to look the other way. The suppression of gold/silver prices is designed to hide horrifying truths about the U.S. financial and economic system. Truths that most do not recognize and most of the rest prefer to pretend don’t exist. But, you can ignore reality but you can’t ignore the consequences of reality. Then the reality hidden by gold price suppression can no longer be ignored, 99.5% of the populace will have no chance to protect themselves – the prices of gold and silver will be out of reach….

Hello Everyone

It is much fun having the opportunity again to make a presentation here in Vancouver on behalf of The Gold Anti- Trust Action Committee … in order to expose the manipulation of the gold/silver markets by The Gold Cartel.

My first trip here was 19 years ago for an arranged meeting at the airport with Normandy Mining Chairman Robert Champion DeCrespigny on his way back to Australia. After flying all that way from Dallas, this arrogant man refused to see me. GATA went all that distance to help his firm, the gold industry, and the gold market … and he could have cared less about those issues and our effort. Little did we know back then this type of reception would become much the norm, as not.

What a journey it has been all these years.

What we have learned over this period time is how all encompassing the market manipulation schemes really are. Initially, we realized that various bullion banks (such as Goldman Sachs and JP Morgan) were collectively suppressing the gold price to keep it below $300 an ounce. Eventually we realized the manipulation extended to silver also AND included the Fed, The Treasury, Exchange Stabilization Fund, BIS and other central banks.

Over the many years it became apparent the market rigging extended even further to other financial markets … including acknowledged intervention in our bond market and clandestine operations in our stock market, marshaled by the infamous Plunge Protection Team. One of the first people to acknowledge the magnitude of it all was my colleague Chris Powell, who at GATA’s 2008 conference outside of Washington, D.C. came up with his great line, “There are no markets anymore, just interventions.”

For nearly 20 years Chris has been documenting the evidence of the intervention in the gold/silver markets by The Gold Cartel. It is all there on GATA’s website ( www.GATA.org) for anyone who wishes to get a grasp on how real and massive the intervention really is.

One of the most telling bits of evidence of what The Gold Cartel is all about emanates from one of the ringleaders of the scam, the Bank for International Settlements, which can be found at their own website. Regard what it explains to the investment world as one of their products.

And yet, incredibly enough, despite the obvious there are very few in the gold world who will touch the subject … THE most important one of ALL to those with any interest in the precious metals.

My role has been to chronicle the day to day activities of this cabal on my LeMetropoleCafe website, which many times are so blatant even a caveman could spot them. Our colleague James McShirley, a lumber company CEO with decades of experience in the futures market, has been invaluable in that regard. No other markets in history have traded the way gold and silver have … over, and over again, sometimes in the most absurd of fashions. The latest of which is the astonishing and unprecedented rise in the gold open interest on the Comex with The Gold Cartel doing the selling, and the hideous punishment of silver each time its price rises to $17.25.

Course many of you in this audience understand this and know of our efforts of nearly two decades to expose what will eventually become the most infamous financial market scandal in U.S. history.  As part of that effort…*We have held 4 international conferences – in South Africa, Alaska, Washington D.C., and London.

At our 2005 Dawson City conference a senior economic advisor to Russia’s President Putin, Andrey Bykov, showed up and said it was the finest conference he ever attended. The price of gold had been comatose. Two days later the gold price began to take off.

NINE months after GATA’s conference in Alaska, the gold price had risen 70%.  *We have been to Washington numerous times to meet the likes of the Speaker of the House; Ron Paul; Monetary Committees, etc. *Organized letter campaigns to Congress. *Been on various cable TV financial shows. *Presented at conferences, such as this one, etc.

YES, it has been some journey…*Most gratifying of all has been the terrific people we have met over the years, such as yourselves … many of whom have financially supported our efforts.

*Unfortunately, we learned the industry as a whole will never do anything about dealing with the most important factor in the gold/silver world. Yes, to do so would mean dealing with some permitting issues by governments and financings by bullion banks. Yet, any other industry would form an organization to deal with, or correct, the problem, so they could not be individually blamed. Not this one, which has The World Gold Council refusing to do anything about this devastating issue. The situation is so bad that when Chris, John Embry and I went to see their acting CEO in London in 2010 we had to sign a waiver of sorts saying we were never there.

Huh?  The World Gold Council’s CEO today is Randall Oliphant, who actually aided The Gold Cartel’s operations when he directed Barrick Gold’s massive hedging operations at the turn of the century.  GATA’s confrontation of Barrick Gold as an arm of The Gold Cartel back then, and for some years to follow, is a presentation all in itself. Just a few key points:

*In lawsuit proceedings Barrick Gold confessed that it and its bullion banker, JP Morgan Chase & Co., were the direct agents of the central banks in the international control of the gold price … that the central banks, having what is called sovereign immunity against suit, simply could not be included in the suit; and that the suit therefore had to be dismissed.  The suit was not and was settled out of court.

*It is no fluke that past Barrick Board members included George Bush, Brian Mulroney, the notorious Adnan Khashoggi, etc. All rich and powerful men. – and something to keep in mind for the rest of this presentation. Barrick was connected directly to the bullion/central bank rigging operations.

*Those gold rigging operations came to an end with Barrick taking something like an $8 billion dollar loss when its ludicrous gold hedges were forced to be lifted. The Barrick shareholders paid the price for that firm’s complicity with The Gold Cartel operations.

*Despite being the world’s largest gold producer, its share price today is less than when gold was below $300 and GATA came into being. What goes around come around in that regard.

*One final note, I made another trip up here to Vancouver in 2006 on behalf of the Nova Gold CEO, who, at the time, wanted GATA’s help to stave off an unwanted Barrick bid back then. We did what we could, but eventually those two companies got together and we never did receive any thanks from the CEO.

So, here we are all these years later and so what? Why carry on when the industry refuses to deal with its most important issue and let’s themselves get mugged by a corrupt operation? The answer is quite simple.

For Chris and I, “It is the life we have chosen” … a term appropriately taken from an old Mafia movie. Most importantly, major scandals in the past have taken many years to come out in the open. They include Enron, who was voted the US corporation of the year 5 years in a row by a major US financial magazine … and who can forget the Bernie Madoff scandal, one in which no one would listen to whistle blower Harry Markopolis for nearly a decade, despite the overwhelming evidence he presented to the authorities. Insiders at Enron who tried to expose the truth were fired.

How hard is it to get the truth out there? Last summer GATA spent many hours sending some 50 emails to a Wall Street Journal reporter doing a front page story on the Fed and its gold. We introduced the reporter to a number of those in the GATA camp.  But guess what? When that story surfaced, everything in there from GATA, or Chris Powell and myself, was cut out. YOU HAVE TO BE KIDDING ME! But were we surprised? Nope

But why carry on is best exemplified by what occurred this past year regarding the sex scandals in the U.S. A sexual harassment horror show by rich and powerful men in the U.S. praying upon women was an ongoing fact of life for many decades, but was kept on the down low. Finally, it all really began to surface with some 50 women accusing one of my childhood heroes, Bill Cosby, of date rape.

One or two could be a misunderstanding. But FIFTY? (Which is the equivalent to the sort of evidence GATA has on The Gold Cartel.) While that was more than unsettling, Cosby still has not been convicted of anything yet. However, it surely set the stage for the Hollywood Harvey Weinstein revelations…

The sexual harassment accusations against this famous Hollywood big shot were so outrageous and over the top that it sent out reverberations throughout the media/political world. Senator Al Franken has resigned, as have media giants Matt Lauer of NBC and Charlie Rose of PBS Broadcasting. Good grief! Within just months of Weinstein’s outing! Seems to me those reverberations are unprecedented in terms of speed.

The point here of this presentation is that these were hideous provocations just waiting to be exposed, which is just why GATA stays on the manipulation of the gold/silver markets. The reason so many of the coerced women were silent for so long is because they were going up against the MOST POWERFUL and RICHEST people in their field. LEGENDS in many cases. Who was going to believe them against who they would be charging? Most importantly, in terms of the GATA issue, they might get fired, or face retribution, for even making such charges.

I know exactly what I am talking about here. My very young sister Kris back then was a successful model in New York City in the 1980’s. She went on an interview with Harvey Weinstein in a New York hotel suite and he had her dress up in a Teddy outfit with high heels on. So scared, she ran for the hills, but did tell my brother Tim at the time exactly what happened.

The point is going up against the rich and powerful is known to be a losing proposition … for most, but not ALL, of the time, The tide has now turned when it comes to serious sexual harassment issues. The scandal took decades to surface. And, in my opinion, the same is going to be the case for the biggest financial market scandal in US history, that being the wrongful suppression of the gold/silver prices.

Its time will come when your average Joe and Jane is devastated financially and wants an explanation of, “HOW COULD THIS HAVE HAPPENED?”

Which brings me to a critical point of my presentation for all of you here who are interested in the gold and silver markets. Because of what The Gold Cartel has done, the gold and silver prices are the most undervalued assets in the world … by a hefty margin. GATA realizes we are not wanted in certain circles in the precious metals arena because of what we have to say … that the richest and most powerful people in the world are preventing them from making money, going against them. So why bother to go there? Keep GATA out of sight and out of mind is their thinking. Nothing could be more out of whack in a big picture sense.

Think about it. Assets of all kind have soared over the past years, including stocks, art, real estate, etc. Incredibly low interest rates have enhanced all of them, but not the two markets which should have gone up the most with all the paper money hoarded into the financial market system. The orchestrated suppression of the gold/silver prices was put into play by The Gold Cartel to deflect from what the powers were doing … inflating the system, and perhaps very dangerously so.

As a result, the gold/silver prices have been forced to retreat to artificially LOW prices which will not stand. They will catch up to and go way beyond what most other assets have done these past years! IMO, understanding what The Gold Cartel has done is THE most important reason right now to be in the gold/silver markets.

Which brings me to a topic of conversation surely to be a part of many at this conference, the Bitcoin/cryptocurrency phenomenon.

One year ago I presented at a Jeff Berwick conference in Acapulco. The conference focused on precious metals and crypto currencies. The crypto folks were ecstatic back then as Bitcoin had risen to the same price of gold at $1240. Even then, the crypto crowd was bubbly as could be. So upbeat compared to the gold/silver crowd, which included myself, because of the nauseating price suppression. Can you imagine what that convention will be like this year with Bitcoin having reached $19,000 not long ago? Good for them.

Which leads us to another key issue for our camp. The crypto geniuses realized the advent of a technological way to put money outside of the traditional financial market system … for a myriad of reasons. The win for those who bought in prior of Jeff’s conference has been astronomical, the most phenomenal in all of recorded history. What has occurred exemplifies just how much the outside of the fiat money system gold and silver prices have been suppressed these past many years … which many of you are already too aware of.

But while what the Bitcoins have done has been a short term negative in the west regarding current interest in the precious metals, it is likely to be a boon of all booms once these undervalued assets begin to take off. A reason is that there are now a number of momentum traders around the world who have made so much money in various markets, they will not be afraid to pour into gold and silver investments as they really begin to REALLY move. This will be a force The Gold Cartel has not had to deal with before.

It is only a matter of time before the physical supply needed by the cabal forces to keep the gold/silver prices at such ridiculously low price levels dries up. The momentum traders will pounce all over this new, delicious opportunity. The Gold Cartel will be forced to retreat.

So, for what it is worth, this is what I see for the rest of this year…

*The gold and silver prices really get going, and they keep on going. The cheapest assets on the planet won’t be by the end of 2018.

*Gold will launch towards new all-time highs in the not too distant future.

*Once the price of silver, the cartel’s krytonite, takes out $21 it goes bonkers and eventually trades akin to what Bitcoin has done. The efforts by the JP Morgan forces to hold the silver price down at levels which are 2/3 less where it managed to trade 38 years ago are the most obvious and onerous I have even seen in 40 years. Silver has been so ludicrously depressed, Newton’s Law of Equal and Opposite Reactions, will finally take hold. $100 silver should be achieved faster than most anyone can imagine right now.

*Many of the beat up junior/exploration stocks will trade in Bitcoin fashion too and repeat the returns they made after the turn of the century, which were extraordinary to say the least.

2018 Should Be Bullish For The Precious Metals Sector

Usually I’m loathe to stick out price targets on the markets, especially gold and silver, because of the undeniable market intervention of the Central Banks – market manipulation which is blatant to the point at which it is now denied only by card-carrying idiots.

Gold and silver had a sharp run-up in the last two weeks of 2017. However, the abrupt move in gold was accompanied by a rapid rise in the gold futures open interest on the Comex. The “commercial” – aka “the banks” – net short position in Comex gold futures has increased by 100,000 contracts (from 120 net short to 220k net short) in just four weeks through the most recent COT report. That’s a net paper gold short of 22 million ozs, or 623 tonnes of paper sold short. As of yesterday (Tues, Jan 16), the open interest in gold futures increased another 27,000 contracts, most of which, based on the trend in the COT positions,  can be attributed to a continued increase in bank short interest.

To put this paper gold short position in perspective, the Comex reports that its warehouses “safekeep” 9.2 million ounces of gold (this number is unaudited). That’s 11 million ounces less than the bank net short position. However, only 586k ozs of gold are reported to be “registered,” or available for delivery. The ratio of the paper gold short to deliverable gold is 37:1. In other words, each ounce of deliverable gold has been “hypothecated” and re-sold 37 times.

I guess if you are a card-carrying idiot, you have every right to deny that these numbers reflect the flagrant disregard of securities laws by the banks. But of course, the very people appointed to enforce these laws are from law firms that make millions defending the banks’ legal rights to ignore Rule of Law.

On the other hand,  offsetting the attempted control of the price of gold using derivatives, the eastern hemisphere demand for physical gold continues to be immense. It looks like, based on SGE gold withdrawals, China as a whole “consumed” over 2,000 tonnes of gold in 2017. India likely imported and smuggled into the country close to or more than 1,000 tonnes. Turkey imported 370 tonnes of gold in 2017. This exceeded the previous record in 2013 by over 22%. I would note that the size of Turkey’s demand was not expected. I don’t have Russia’s import numbers off the top of my head but Russia imported more in 2017 than has been typical.

The point here is that the eastern hemisphere’s demand for gold on an annualized basis is increasing as the price of gold increases. It’s important to know that, on a seasonal basis, imports into China and India tend to slow down in late January through February before picking up again. My hunch is that the paper gold manipulators are looking to hold down the price of gold as much as possible and wait for eastern demand to subside before attacking the price. 

This will serve as a catalyst to launch another surge higher in the price of gold driven by physical demand.  Demand which might get a boost from the ongoing crash of the cyptocurrencies.

Having said all of that, I believe there’s a good chance that gold will move toward and possibly over $1400 during 2018. This Trump tax cut will negatively impact the Government’s spending deficit by a meaningful amount and the U.S. will be forced to issue well over $1 trillion in Treasury debt this year. Moody’s placed the U.S. Government’s rating on watch for a possible downgrade. During the course of the year I expect to see the dollar index drop below 90, which is a key technical support level. If this occurs, gold will quickly move over $1400.

A portion of the commentary above is an excerpt from the latest  Mining Stock Journal.

Novo Resources Is Not Worth $600 Million

Novo is not worth the $544 million market cap based on Friday’s close using fully-diluted shares.   Novo might eventually be worth $600 million or even more.  But that reality is several years away.  I have been recommending selling to my Mining Stock Journal subscribers for several months.  I don’t just ideas to buy, I help my subscribers avoid stocks that are overvalued, for whatever reason.

Novo Resources is a Vancouver-based junior mining exploration company that is in the early stages of exploring its Karratha gold project in Australia. It also has another gold project, Beatons Creek, in Australia and a property in Nevada. Novo had an extraordinary run in price starting in early July, when it ran from 63 cents (US$) to US$7 by the early October. At its peak valuation, its market cap was $1.39 billion. The stock began to head south after hitting $7. It plunged nearly 29% today (Dec 21) after releasing its latest exploration update.

Seeking Alpha published my analysis if Novo – you can read the rest of it here:  Novo Is Not Worth $600 million

Click on this image to learn more about the Mining Stock Journal:

A Conversation About Tesla, Amazon and Gold

Allegedly (note: emphasis on “allegedly”) Craig “Turd Ferguson” Hemke was awarded a Nobel Prize for his weekly A2A podcast.  If true, the award is more legitimate than the Nobel Peace Prize given to Obama and the Nobel Prize for Economics given to Paul Krugman.  Perhaps those latter two folks should have been awarded the Nobel Price for Charlatanism.

Craig invited me onto his show this week to discuss a variety of issues, including the economy, Tesla and Amazon and, of course, the precious metals market.  I explain why I think there’s one more “shock and awe” attack by the Comex paper bandits on the gold market before the precious metals make a stunning move higher.  I also discuss a couple of my favorite mining stock ideas and the head-scratching market cap of Novo Resources

You can access the podcast here:  TF Metals A2A Conversation

In my latest issue of the Mining Stock Journal I feature a $27 million market cap gold exploration company that I think will eventually be worth at least $100 million.  If you would like to find out more about my Journals click here:  Mining Stock Journal  and Short Seller’s Journal.

Raymond James Recommends Gold?

From King World News on October 12th:

With very little in the U.S. stock market looking like a low-risk entry, consider gold as an alternative option. Recall, the metal broke the downtrend that had been in place since 2011 back a couple of months ago, and has now pulled back to that former resistance line. It should now offer some support, and the 40-week moving average also sits around there, further adding to the importance of the zone (see bullish breakout and test of support below). (click to enlarge):

This graphic above from the KWN report is based on chart-reading analysis. I’m not a big “chartist” or “technicals” advocate, but hedge fund algos and day-traders love to chase “technicals” and price velocity – in either direction. To that extent, the completion of chart “formations” can become a self-fulling prophecy.

Having said that, the fundamental support for substantial upside adjustment to the price of gold becomes more compelling the day, not the least of which is an acceleration in the accumulation of physically delivered gold bullion by several eastern hemisphere countries.

I wanted to highlight the call by Raymond James because, interestingly, a couple different advisors from Raymond James subscribed to the Mining Stock Journal yesterday. I was wondering why until I saw the report posted on King World News. If just a small percentage of retail/high net worth investment advisors begin to allocate capitol to the mining stocks, it will trigger a massive move higher in mining stock prices. Currently, relative to the price of gold, the only time in the last 20 years that mining stocks have been more undervalued was in December 2015.

Sprott (the firm) is currently recommending that its clients invest in an emerging junior exploration gold mining company.  I recommended this particular stock to Mining Stock Journal subscribers in April about 25% below its current price.  I’m chatting with the CEO today and will be updating my outlook for this stock in next Thursday’s issue.  I will also be featuring the stock of a mid-cap mining stock that I think has 30-50% upside by the end of the year if the price of gold continues to move higher as I believe it will.

On average and in general,  since the inception of MSJ, I have been able to dig up junior mining stock investment ideas before the big firms discover, promote and channel client money into them.  I am starting to feature mid-cap miners with stocks that have been unreasonably beaten down in price this year because those are “low hanging fruit” risk/return plays in which 25-50% can be made in a short period of time.  I recommended call options on SA (Seabridge Gold) in the 9/21/17 issue that are up 300% since then.

You can find out more information by clicking on here:  Mining Stock Journal information.

This Feels Like the Action in 2008 Right Before the Collapse

Doc asked me last minute to fill-in for Eric Dubin, who’s M.I.A. somewhere on the shoreline of southern France, on Silver Doctor’s Metals and Markets weekly podcast. Among other topics we discussed why the current trading action in the precious metals paper market feels very similar to trading in the spring/summer of 2008 – ahead of the great financial collapse crisis and why the Fed/bullion banks are making it obvious that they seek  to scare investors away from buying precious metals with their “shock and awe” price-takedowns.

But one big difference between now and 2008 is that these “zip-line” vertical drops in the paper are being met with aggressive buying from the eastern hemisphere physical buyers, thereby limiting the size, intensity and duration of the price-hits.

As of the latest COT report release Friday which details the constituent trader positions through last Tuesday, the trader positions are moving toward a highly bullish set-up for gold and silver. In silver, the hedge funds are now net short silver futures and the swap-dealer segment of the bullion bank positioning is net long. In gold, the hedge funds have aggressively reduced their net long position and the swap dealers are long to a relatively large degree. Historically, this position shift has preceded major bottoms.

In the latest Mining Stock Journal, I present a silver producer who’s stock that was ruthlessly taken recently. I review the details in-depth, including my conversation with the CEO, and discuss why this is an opportunity to buy into a major producing company at irrationally low price level based on the facts of the situation. I also lay-out the call options I put into the fund I manage in large quantities to bet that my assessment has good probability of being correct. You can find out more about subscribing here:   Mining Stock Journal info.

After subscribing to Brent Cook for 3 months, I was underwhelmed.  Resubscribed to you a few weeks back and sure am glad I did so. You are one the few straight shooters still out there. Keep up the great work. I think we are right on the cusp of a serious market break, thus the war drums.  – subscriber “Chris

How Will Gold, Silver & Mining Stocks Perform In A Stock Market Crash?

It looks like the western Central Banks are having trouble pushing gold below $1240 right now.  After series of high lows in the price of gold since late December, it looks like there’s chance gold is forming the base for the next attempted assault on $1300.  At the same time, judging from the stock market trading action of the last three days, it appears as if the Trump “Hope” Bubble is getting ready to pop.

Bill Powell of MiningStockEducation.com invited me on to his podcast show to discuss how the precious metals sector will perform when the stock market inevitably crashes, among other topics.

GDXJ: Myth vs. Reality

Many of you have contacted me about the sell-off in GDXJ and upcoming re-balancing that will occur at the end of this week (I think). First of all, thank you for your inquiries and please feel free to email me with questions/ideas. The only “dumb” question regarding gold, silver and mining shares is, “should I own any?”

First I wanted to highlight the difference between fact and “propaganda.” The propaganda has led many to believe that the rebalancing of the GDXJ has exerted undue pressure on the mining stocks as a whole and on the GDXJ components specifically. However, a simple graphic analysis differentiates fact from fiction:

The graph above compares GDXJ, the HUI (green line) and GDX (purple line) since the GDXJ rebalancing was announced to the market on April 17th. As you can see, over the time since the GDXJ rebalance was announced, GDXJ has performed in-line with rest of the sector. I was a bit surprised when I ran that chart. In fact, on a YTD basis, GDXJ’s rate of return is almost identical to that of the HUI and GDX:

So where does this leave us? The entire sector has moved lower since early February. Maybe this was in anticipation of the GDXJ rebalancing “whispers” and maybe not. Often the miners will be hit before a manipulated take-down of the gold price is implemented. That narrative fits the chart above as well.

It’s important to distinguish the difference between the propaganda and truth, because that’s where money can be made in the markets. The truth is that the sector has sold off after a nice move from the mid-December 2016 low. But I also believe that the market is setting up for another big move into the 3rd and 4th quarters. It may take all summer for this to materialize, but the economic, financial and geopolitical fundamentals, as they are unfolding, weigh heavily in favor of big move higher in the precious metals sector.

One other point I would like to make – something that you WILL NOT HEAR from Wall Street or from Rickards or from the financial media: since bottoming in mid-December, the HUI is up 14.7%, GDX up 16.1% and GDXJ up 15.3% vs the S&P 500 which is up 7.7%. The mining stocks, since bottoming in mid-December, have outperformed the S&P 500 over the same time period through today (June 15, 2017).

Several of you have asked for ideas on the stocks in the GDXJ index that are “oversold” due to the rebalancing. As I’ve just demonstrated graphically and with ROR numbers, GDXJ has not really sold off since mid-April anymore than the larger-cap mining stocks in the HUI index and in GDX. Those are the numbers. I can’t make those up. It’s “narratives” that are fabricated.

Having said that, I did present two ideas in the Mining Stock Journal which happen to be in the GDXJ.  One is up 6% since May 4th – and it has a lot higher to move – and the other is up 20% since June 1st, with a lot more left in the move.

A subscriber told me yesterday that a well-known subscription service that costs $1500/year is promoting 3 ideas from GDXJ.  This is probably one of the services that is promoting the idea that the GDXJ has been hit unusually hard. I’ve shown above that idea is a false narrative.  The Mining Stock Journal is $20/month with no minimum commitment.  Subscriber turnover is exceptionally low for a reason.  You can find out more about it here:  MSJ Subscription Info.