Tag Archives: Mining Stock Journal

Templeton Funds And Druckenmiller Get Burned on Barrick

As reported on Bloomberg TV:  “Barrick Gold Corp was back in favor with fund managers last quarter, before the world’s biggest bullion producer reported disappointing earnings and rising costs…Billionaire investor Stan Druckenmiller’s Duquense Family Office LLC bought 2.85 million shares in Barrick” in the 1st quarter.

Apparently Templeton and Druckenmiller have not done their home work on mining stocks.  Anyone with any knowledge and experience investing in mining stocks knows that companies like Barrick and Goldcorp and are poorly managed, highly bureaucratic organizations.  As such, they are terrible vehicles with which to express a leveraged view on the precious metals market.

Barrick has all kinds of problems that will affect its profitability, including a pile-on of class action lawsuits that hit recently.   Anyone with experience in this sector already knows this. Rather than investing in the largest mining stocks, the best returns in the sector will be made by investing in the companies that will be acquired by these large caps.  A good example is the recent takeover of Exeter Resources (XRA) by Goldcorp:

If Stanley Druckenmiller had been a subscriber to the Mining Stock Journal, he would have known to buy XRA in early September (presented in the Sept 1, 2016 issue) at $1.16. The stock popped up to $1.80 when XRA and GG announced the merger. That’s a 55% ROR in 7 months. MSJ subscribers were also shown Mariana Resources in the December 22, 2016 issue at 82 cents. Mariana agreed to acquired by Sandstorm Gold in a deal valued at $1.41. Because of the heavy stock component, SAND traded lower and Mariana traded up to $1.24. A 51% ROR in four months. The new stock idea presented in mid-April is up 19% and has a lot more room to run.

The Mining Stock Journal is a bi-weekly subscription publication that is designed to help you navigate the smaller-cap mining stocks.  You can learn more about the subscription service here:  Mining Stock Journal information.

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”

Can Gold Hit $1500 By The End Of September?

Gold was taken down $19 from the close of Friday’s post-Comex Globex trading, when it closed at $1301, to $1281 40 minutes into Comex floor trading on Monday, June 20. The apparent catalyst was the polls which surfaced over the weekend that showed the public sentiment in England had shifted heavily in favor of remaining in the EU.

It’s all Kabuki theatre because, at the end of the day, if it looks like the elitist will not get the outcome they want in Thursday’s vote, they’ll rig the outcome to make sure they do get it. Nothing happens by accident and it’s no coincidence that the pro-euro MP was given a dirt nap last week and the polls all of sudden shifted to reflect No-BREXIT outcome.

But gold began to rise steadily during the day, which means that there plenty of other catalysts besides the BREXIT issue which drove the price of gold higher since May 22. At the same time the stock market sold off steadily from its high of the day 30 minutes into the NYSE open. This market action is bullish for gold and quite bearish for stocks.

The big question in everyone’s mind is, “where would the price of gold be without the heavy intervention exerted on the market by the Comex paper gold Ponzi scheme?

Future Money Trends (LINK) invited me on their weekly show to discuss BREXIT, NIRP, negative 10-year German bunds and the precious metals market – LINK:


The Precious Metals Train Is Leaving The Station – Especially Silver

The Nikkei is down 3.7% right now, the dollar index is below 93 and the U.S. seems bound and determined to start World War Three.  The U.S. is collapsing and everyone in the world knows it but the majority of the U.S. population.   Hubris rules the day in the Democratic Party as Obama is going on a farewell tour around globe to tell everyone he saved the world and Hillary Clinton feels confident enough to commit any kind of crime under the sun and get away with it.

Doc and Eric Dubin – The News Doctors – invited my onto Silver Doctor’s Weekly Metals & Markets show sponsored by SD Bullion.

“This Thing [the Comex paper short interest] Could Get OUT OF CONTROL to the  Upside Quickly!” – Dave Kranzler, Investment Research Dynamics

Click on the image to the right below to subscribe to the Mining Stock Journal


Official Intervention In The Gold Market Is Now Blatantly At Work

The damage done to gold on Friday was due to skillfully timed flash crashes rather than powerful selling.  – John Brimelow, JB’ Gold Jottings Report

As a wider audience of market observers becomes aware of the flagrant use of the paper gold market to manipulate the price of gold, the degree of intervention in the gold market by the Fed/Treasury becomes more openly aggressive.

Eric Dubin of the News Doctors wrote a useful commentary on the current effort by the “gold cartel” to take down the price of gold:

The cartel is acting aggressively this week on top of the mountain of paper-based gold issuance into the COMEX market they’ve been shoveling into the short side already – for weeks – in an effort to slow momentum. Now, as you see today, with traders getting nervous considering sky high commercial short positions and an FOMC meeting starting tomorrow, is it any wonder that the cartel was able to get some traction to the downside?

You can read the rest of his analysis here:  The News Doctors


The Bulls Are Loose As The Mining Stocks Are Ripping Higher

To the surprise of most,  mining stocks continued their stunning upward move that began around January 20. Toward the end of last week, financial media goons, chart readers and analysts who rely on the CFTC’s Commitment of Traders report for “insight” into market direction were all calling for a sharp pullback in the precious metals sector. Most market “oracles” were calling for a sharp retreat in the price of gold below $1100 and silver below $14.

Perhaps most amusing about the plethora of “correction time” and “overbought” commentary on the metals sector is:  1)  because of the overt and continuous official intervention in the precious metals sector since 2011, it could be argued that the entire sector has been “artificially” oversold for the better part of five years;  we don’t know where the true “oversold/overbought” statistical levels should be because natural price discovery in the sector has been completely suffocated;  2)  the current stock market, adjusted for bona fide GAAP numbers, is the most overvalued in history;  the stock market, by the same intervention/manipulative forces holding down the metals, has been artificially “overbought for at least 3-4 years now;  yet, no one writes commentary on the need for a big price correction in the stock market.

Too be sure, whenever the COT report shows an extreme level in the bullion bank short position in gold and futures, offset by an extreme long position held by the hedge funds, the criminal banks implement a “COT stop-loss hedge fund long liquidation” algorithm which sets off the stop-losses set by the hedge funds and causes the now-familiar “waterfall” chart patterns that result from heavy bank manipulation of Comex trading.

So far every attempt to trigger forced liquidation of gold/silver futures has failed.  That’s not to say that it won’t happen.  But what makes this current rally even more interesting is the fact that it is occurring while the stock market continues to squeeze higher despite the continued deterioration in economic data.

Typically the precious metals sector will, in general, move inversely to the stock market. The fact that it has moved in correlation with the S&P 500 over the last three weeks suggests that either the precious metals “market” sees the recent move in the stock market as a “faux” rally or the smart money is selling stocks into this rally and moving capital into the precious metals sector, or both.


(click on image to enlarge) The graph to the left shows the last two years of trading in GDX.  As you can see, the current move up in the mining stocks has not yet “corrected” the sell-off that occurred in early 2015.  You can see that the manipulated sell-off from Jan 2015 to July 2015 was accompanied by a steady decline in volume.   Over the next six months, the mining stocks formed what appears to be a very powerful base which was supported with heavy volume.  THAT is the unmistakable sign of smart money accumulating highly oversold and extraordinarily cheap mining shares.

I also believe that the current move up in the miners from mid-January reflects the absurd amount of short-selling and naked short-selling that has infested the mining shares since April 2011.  Naked shorting has become a big problem but we only heard about it when the S&P 500/Dow were plunging back in 2008-2009.   Once the Fed had stabilized the “problem” and began pushing stocks higher with QE, suddenly the naked-short selling was no longer an issue.  What happened to the Congressional inquiries and threats of legislative action?

While impossible to prove, it is 99.9% probable the naked short selling in the mining stock sector has been unimaginably immense – historically unprecedented.  But once the hedge funds and bullion banks are through fixing their problematic short positions in the miners, they will follow-through with enormous buying.

I am expecting a correction to begin sometime soon.  But when that correction has run its course, make sure you are ready to add or initiate positions in high quality junior mining shares, because I believe the next extended bull move in the mining shares will offer the to mining-stock-journal-bannerpotential to make a life-style changing amount of money.

I just rolled a Mining Stock Journal that will help you navigate the precious metals sector and invest in junior (and some large cap) mining stocks.  You can access the MSJ using this link:  Mining Stock Journal or by clicking on the image to the right.