Tag Archives: mining stocks

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”

Silvercrest Metals May Be The Stock Of The Year

Silvercrest Metals was formed by the former management of Silvercrest Mines, which was acquired by First Majestic in 2015 for $154 million.   The primary property interest for Silvercrest Metals is the Las Chispas project.

Silvercrest’s trench samples showed the possibility of high grade silver mineralization on the property, which is believed to have historically produced about 120 million ozs of silver and 200k ozs of gold through 1930.    Silvercrest confirmed the high probability of a prolific silver deposit with the release of its first drilling results:

“The initial Las Chispas drill hole results received to date are impressive. Not only do they indicate bonanza grades of up to*** 18.55 gpt Au and 2,460 gpt Ag or 3,851.3 gpt AgEq*, but also show mineralized widths up to 7.2 metres in estimated true thickness. These first results have exceeded our expectations and appear to confirm that historic mining completed in the early 1900’s has left behind substantial unexplored, unmined and easily accessible high grade mineralization.” – Eric Fier, President and CEO   Press release.

I first presented this stock idea to subscribers of my Short Seller’s Journal in January at $0.11/share.  At the time I had not rolled out the Mining Stock Journal.  MSJ subscribers in general were able to get into the stock in the mid $0.20’s.    This is the kind of value I bring to my subscribers vs. much more expensive/promotion-oriented newsletters.

The current market cap of Silvercrest is $80 million based on Monday’s closing price.  If the quick trade that occurred Tuesday at $2.28 is indicative of where the stock will trade when it frees up to trade Wednesday, the market cap would be $116 million (fully diluted).

It’s tough to value SIL in the context of what AG paid for Silvercrest Mines.   The latter was an operating mine which is estimated to have 56 million proved/probable and measured/indicated silver-equivalent ozs of silver, with huge exploration upside.  SVLC also included the very promising La Joya project.  The price of silver was around $16 at the time the deal was announced.    One Santa Elena’s most attractive attributes is its extraordinarily low cost of production.

I personally believe the price of silver is headed to much higher levels.  If Las Chispas turns out to be a “blueprint” of Santa Elena,  Silvercrest stock could be worth worth several hundred million at $35 silver.  The drilling results very preliminarily indicate the possibility that Las Chispas could be bigger than Santa Elena.

My objective with the Mining Stock Journal is to find junior mining stock ideas that are not followed by most, if any, mining stock sector analysts and newsletters.   The best upside potential for an investment is to invest in great ideas before the herd piles into a stock.

I am finding that the carnage of the last five years in the sector has created several interesting opportunities to invest in high probability exploration projects at close to “ground zero.”    In fact, in the next issue I’m presenting a company that is getting ready to poke holes in the ground in a property that is an interesting location which appears to have significant gold mineralization.  The Company is fully-funded for an extensive drilling program.

I am a subscriber to your mining stock journal. I haven’t acted on all the mining-stock-journal-bannerrecommendations, but i did act on SVCMF at 0.26 and made a second purchase at 0.57. Today it is up to 2.29, with big action last week and today. Thanks for your recommendations and the Mining Journal you create!!  – subscriber “John”

Buy Every Price Hit In The Metals And Miners

Eric Dubin (The News Doctors) and Doc or Silver Doctors, SD Bullion invited me on to their weekly Metals and Money Wrap last week.  We discussed signs that show the gold/silver manipulators are losing control of their ability to control prices, the record amount of paper being thrown at gold and silver on the Comex, the current seasonal “lull” in the precious metals market and the latest developments on Japan’s TOCOM futures exchange which could have a big effect on the price of gold and silver.  In short, we discussed why investors should be adding their positions on every price drop:

In fact, silver and gold were hit hard overnight last night (Sunday night, early Monday morning) and silver is now 40 cents off its low of the day and green vs its Friday close and gold is $8 dollar off its low of the day. Click on the link below to find underfollowed junior mining stock ideas with huge upside potential:

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More Evidence The Fed Is Losing Control Of Gold And Silver

“Chinese miners are competing to secure gold assets, because there’s a consensus that domestic demand will far outstrip local supply due to fast-growing investment demand,” Wang Rong, an analyst at Guotai Junan Futures Co. said – in response to the news that the Silk Road Fund is spending $2 billion to buy a gold mine from Glencore

I am highly confident of two facts that will be difficult to prove with certainty until after the event: 1) the eastern hemisphere is accumulating more physical gold and silver than can be possibly tracked by western propaganda sources; 2) the western Central Banks are losing their ability to control the price of gold and silver with paper derivatives (Comex futures, LBMA forwards, OTC derivatives, lease agreements, hypothecation agreements).

#2 is occurring because the supply/demand deficit of physical gold and silver that can be delivered to the buyer demanding delivery is exerting powerful upward force the on oversupply of fraudulent paper metal. GATA predicted this event would begin to occur eventually back around the turn of the century. It took longer than any of us thought it could but here we are:

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The Fed/bullion banks have been throwing a record amount of paper at the Comex, especially in relation to the declining amount of physical metal reported to be available for delivery into that paper. And yet, they can’t push the price of gold and silver despite incessantly repeated and aggressive attempts since late February.

There is a massive move higher coming in the entire precious metals sectors between now and the end of the year. My Mining Stock Journal will help you take advantage of the move. I focus on lesser-followed junior mining stocks with huge upside potential. You can subscribe plus receive all the back-issues by clicking here: MINING STOCK JOURNAL

I wanted to let you know how much I like your mining stock journal. I have taken advantage of your recommendations and have invested in most of them, especially the companies that Sprott has also taken a position in. Very nice finds! My overall portfolio is up approx. 300% this year. – Robert

Eric Sprott: As the Fed Loses Control Gold Prices Will Soar

A highly engaging and informative interview with Eric Sprott from Palisade Radio

A Massive Move In Precious Is Coming

After the collapse of Lehman and the “official” great financial crisis, gold ran up 260%, silver soared 500% and the mining shares per the HUI moved up 418% – many junior mining shares spiked up multiples of the HUI’s percentage move.

Now that the systemic problems are worse than in the middle of 2008, we believe this current move in the precious metals sector will easily exceed the move it made from 2008-2011. We are confident that the returns in PMOF since the beginning of 2016 are an appetizer that precedes the main course.  – Precious Metals Opportunity Fund quarterly investor letter

Central Banks Are Losing Control Of The Gold And Silver Trading

Note:  the current delivery-month for Comex gold is June – I absent-mindely reference July as the current gold delivery month in the podcast below.

The trading patterns in gold/silver are starting to reflect the real possibility that the Central Banks are losing their ability to use paper gold/silver derivatives a price manipulation device.  Nowhere is this more evident than on the Comex, where the ratio of paper gold/silver futures vs. the amount reported physical gold/silver available for delivery into those paper claims is at historically high levels.

Elijah Johnson of FinanceAndLiberty.com invited me on to his podcast show to discuss the precious metals market, along several other topics.  Elijah posted the portion of the show in which we specifically discuss Comex gold trading because it coincides with the strong move higher made by the metals this week.

If the CFTC passed a regulation prohibited the issuance of gold/silver Comex contracts in excess of 120% of the amount of underlying physical gold/silver it would probalby cause a doubling of the price of gold and a quadrupling in the price of silver…

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BREXIT Destroys The Gold/Silver Manipulation Cartel

Just a quick note on this referendum as we are in the final minutes of the voting. My sister’s friend is in the army.  They came over for dinner tonight and he was asking about the vote and what my thoughts were. I then returned the question and he had said that 90% of the lads in his camp, which are in the hundreds, were all voting to leave. Their reasoning, in a British army camp of lads aged between 18 and 35, was because they don’t believe they should be getting webbed up in wars that we shouldn’t be fighting. He said they pretty much all can agree on the fact that the wars are dictated by Washington, via Brussels, and what they say goes and its not something they support.  These were his words and I have to agree.  – A British friend of the Shadow of Truth

The elitists had a lot to lose if the BREXIT referendum succeeded.   Just like AP declared Hillary the nominee did BEFORE the Calif primary, the WSJ sent out an online article yesterday afternoon saying the REMAIN vote had won.  But this last-gasp attempt to rig the vote failed.

The elitist narrative said that BREXIT would take down the British economy.  The details of this were never explained but NWO’er, George Soros, warned as much last weekend. This was just another scare tactic used to cover up the fact that a BREXIT would undermine considerably the western elitist holy grail of a one world, one Government system.

The Ruling Body of the EU is the European Council, often described as the supreme political authority.  Its members are not elected.  It’s the fortress of totalitarian political control the western elitists have been methodically imposing on Europe, the UK and the U.S for several decades.  If anything, the BREXIT victory represents a last gasp attempt to preserve democracy and Rule Of Law.

At the root of every political upheaval is indeed are hidden economic issues.  The BREXIT should undermine the effort of the western elitists to impose the TPP Treaty, which is designed to advance the confiscation of individual self-determination.  But more significantly is the issue of gold and silver:

The day that QE2 was announced by the Fed. That day, that morning, they were just beating the living daylights out of gold. People on the site were like “oh boy, this is going to be terrible”. I said NO, this is what the banks do. They try to reset the price as low as they can before the news because they know they are trapped. – Craig Hemke, Shadow of Truth

This is exactly what has transpired over the past week leading up to the BREXIT vote. Same game, different scenario. Craig went on to say “Ahead of what they knew was going to be gold bullish regardless of the outcome.” [BREXIT vote]

Since the end of 2014, there have been several notable indicators signalling a high degree of stress between the fraudulent paper bullion market used by the Central Banks to suppress the price of gold/silver and the available supply of physical metal to deliver into the paper claims.

One such indicator that is now stretched to an extreme is the Comex, where the amount of paper silver contracts issued represents over one billion ounces of silver.  This is more than seven times the total amount of physical silver reported to be sitting in Comex vaults.  It’s 45 times more than the amount of “registered” (available to be delivered) silver on the Comex.   It’s 25% more than the annual global production of silver.

Likely, the most significant collateral damage inflicted on the NWO’ers by BREXIT is that it will destroy the ability of the western Central Banks to manipulate the price of gold and silver.   The Shadow of Truth hosted Craig “Turd Ferguson” Hemke of TFMetalsReport.com to discuss this overlooked significance of the BREXIT victory (Part 1 followed by Part 2):

Part 2:

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)

Gold/Silver Manipulation: The Foul Smell Of Desperation

Nearly 40 million ounces of paper silver were launched at the Comex yesterday in the space of seven minutes, which triggered a 92 cent waterfall in the price of silver; over 118 million ounces of paper silver were dumped on the Comex today (April 22) between 11 a.m. and noon EST.  This market intervention typically occurs after the bona fide physical precious metals in the eastern hemisphere have shut down for the day.

The baseline assumption of modern financial theory is that fiat money is sound and markets are efficient.  Neither of those suppositions are valid.  The markets have been completely stripped of any legitimate price discovery function.  You can’t tell me with a straight face that Tesla, which is now burning cash at a rate of half a billion a year is worth $33 billion – or 8x revenues – any more than you can tell me that junior mining stock with $500 million in proved gold/silver resource in the ground is worth only $24 million.

Gold and silver have been “climbing a wall of worry” for several weeks now.  The traditional signs of an imminent manipulative attack on the metals (open interest of shorts vs. longs on the Comex, chart formations, etc)  have defied the behavioral patterns of the past 15 years.   Several “chartists” and Wall Street analysts, notwithstanding their boorish market prediction revisionism, have been been humiliated by the price-action in gold/silver since mid-January.

Several of us who have researched, traded and invested in the precious metals markets since the inception of the precious metals bull market believe that the bullion banks may have a bigger problem with sourcing physical silver for deliveries right now than with gold.  The Comex bullion banks have been hitting the price of silver hard with paper contracts the last two days, in a desperate effort to beat down the price Untitledappreciation of silver during the overnight physical market activities of the eastern hemisphere bullion markets.
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Currently there are are 56,863 open May silver future contracts representing 284.3 million theoretical ounces of physical silver on the Comex.  Against this is 31.9 million reported ounces of physical silver in Comex vaults that have been designated as available for delivery against these open contracts.  In other words, the bullion banks have thrown nearly nine ounces of theoretical paper silver at the market for every ounce of alleged physical silver that could be delivered into these contracts.

Tuesday is options expiration day for May Comex gold/silver options.  Typically options expiry is one of the triggers for a heavy onslaught of bank manipulation on the Comex.  With a brief glance as the put/call open interest in May silver options, it looks like the bullion banks – i.e. the entities that are short May silver options – are motivated to push silver below $17 (based on the amount of open calls vs puts at $17) by the close of silver trading on Tuesday.

Similarly, “first delivery notices” for Comex gold/silver contracts go out after the close next Thursday.  With the paper open interest in silver as of today 900% greater than the amount of physical silver designated as available for delivery, the Comex bullion banks will make every effort to shock and awe the hedge funds into liquidating their long paper silver positions.  We saw this yesterday with the 92 cent silver smash going into the Comex open.  Silver open interest dropped over 14k contracts yesterday.  This is one of the many manipulation games the bullion banks have been playing with the hedge funds over the last 15 years.

Because the CFTC and the Justice Department look the other way when it comes to enforcing market regulations as they should apply to the Comex – because those same regulations are actively applied to every other CME commodity product – true price discovery in the gold and silver markets has become an impossibility.   But we have 5,000 years of historical evidence which suggests that market interventions always fail.  And when they ultimately fail, they fail spectacularly.

India’s jewelry industry is re-opening after a strike since March 1st that shut down India’s gold import machinery.  A sleeping elephant is waking up starved for metal as India heads into its second largest seasonal buying period of the year.  This will make it more difficult for the banks to manipulate gold/silver prices using paper, which means the illegal trading activity of the next few days may be the banks’ last opportunity to cap the metals until India goes back into hibernation in the summer.

I added to high octane junior mining stock positions in the fund I co-manage today and I will be presenting an insanely cheap junior mining stock with 5 million ounces of proved gold, have of which is in the form of gold-equivalent silver ounces in my next issue of the Mining Stock Journal next week.  For a limited time, all new subscribers will have access to the back-issues published since the March 4 debut.

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Guest Post: Precious Metals Bull Snorts, Resumes Move

The character of the precious metals market has changed.  The manipulation efforts using paper derivatives masquerading as gold and silver futures contracts is losing traction.  I believe that the supply/demand dynamic in the physical gold and silver market is beginning to drive the price.  Control over the price of the metals is likely shifting from NY/London to Moscow and Shanghai.  I’ll have more to say about soon.

The  News Doctor’s Eric Dubin posted commentary and analysis of the blatant paper attack on the price of gold and silver that took place about 40 minutes into the floor trading session on the Comex on Thursday morning (April 21).  The initial price attack occurred in the space of about seven minutes in which $2 billion of paper gold and 1,218 tonnes of paper silver were  dumped on the Comex.   Over the last five years,  an attack like this was usually the start of bigger systematic price-takedown of the precious metals over a period of several days.  However, in the last couple of months, the market seems to shrug off these paper attacks and head higher.

“We’re setting up for an epic battle, and if silver keeps motoring forward, we may very well have an $18 handle on silver smack in the middle of the expiring contracts window.  Buckle-up!  There’s going to be fireworks, one way or another” – Eric Dubin, The News Doctors  You can read the rest of Eric’s commentary here:   The Precious Metals Bull 

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