Tag Archives: Stanley Druckenmiller

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”

Most Idiotic Comment Ever? “Sell Gold Because Inflation Will Spike”

Stanley Druckenmiller said:  “I sold all my gold (sic) on the night of the election” because he sees inflation spiking and that will force money(sic) out of gold…hmmm….sell gold because you see inflation coming?  That has to be the most idiotic investment rationale I’ve ever come across.  Even “buy stocks because they keep going higher” is less dumb than that.

You’ll note the “sic” I added after Drunkenmiller’s comment about “gold.”  “Sic” is used after a quoted word (from someone else) that seems odd or out of place.   I inserted “sic” after Drunkenmiller’s use of “gold” because he never owned gold.  He bought GLD, which is a paper derivative of gold.  The only way you own gold is if you buy physical gold and keep it outside the system. GLD is a fraud, just like every other fiat paper “asset.”

I also inserted “sic” after his use of the word “money” with respect to “money flowing out of gold” (because he thinks inflation will spike up).  Gold is money.  It’s the second oldest form of transaction currency – silver being the oldest.

Finally, the idea that gold should be sold ahead of an expectation of a spike in inflation is…well, for lack of a better term, retarded (apologies to safe-space and socially correct people).   Gold is the ultimate inflation hedge.

I sincerely do not know what would motivate Druckenmiller to make those remarks about gold – maybe he was patronizing what remains of CNBC’s imbecilic audience.   I don’t feel any need to directly address each component Drunkenmiller’s assertions about gold – and about his expectations about feeling good about the prospects for the economy.  The audiences of blogs like this one get it.

The current trading action in gold is being fueled by the paper market manipulation. If you review overnight charts for the last 3 months, you’ll see that on average and in general gold moves higher during the eastern hemisphere physical gold trading hours and gets bombed once the London and NY paper gold markets open after the Asian markets close.

It’s as simple as that.  The paper gold market, like Drunkenmiller’s comments and investment rationale,  are emblematic of the fraudulent, debt-riddled Ponzi nature of the U.S. and western hemisphere economies.

While the mantle of “power” in the U.S. was handed from Uncle Tom to Andrew Dice Clay, the real financial, economic and political power is being shifted from the western hemisphere to the eastern hemisphere.   The massive flow of physical gold from west to east is the root of this tectonic geopolitical and economic movement.

The “Bloom” Is Off Dennis Gartman’s “Rose” – Ignore Him On Gold

I have always had the impression that Dennis Gartman was nothing more than a manipulative outlet for a few big hedge funds.   His appeal caters to “high net worth” retail investors and “low level” professional/institutional investors.  He’s the perfect “stool pidgeon” for hedge funds who want to move a bad position or accumulate a potential winner by getting Gartman to promote the opposite of what these hedge funds are trying to do (the strategy for which Goldman is know and for which Bill Gross was known in his “hey-day” at Pimco).

The most recent example of this is with regard to the recent news that Stanley Druckenmiller took down a $300 million-plus position in gold via GLD during Q2.  Gartman reported on Friday that:   “One should be careful about Mr. Druckenmiller’s positioning in gold, for we were told yesterday by one or two others that he’s already liquidated his gold position into last week’s strong advance.”

Anyone who has observed Druckenmiller since his early days running Soros’ main hedge fund knows that Druckenmiller takes highly concentrated, long term macro bets.  He wouldn’t put on a massive GLD position and then turn around and sell it a week or a month or even a few months later just to scalp a few points.  He’s playing for a least 50% here and likely a double or triple.

This is an example of how Wall Street criminals spread rumors to influence directional trading – in this case to try and trigger gold futures selling.  Gartman is always used as  Wall Street’s “punching bag” for this purpose.  His latest behavior based on his market commentary and his constant shifting in and out of stocks and gold is revealing once and for all that he’s nothing but a “weather vane” which is controlled by the direction blowing of a few big hedge funds.

It’s more likely that the “smartest” money is accumulative large positions in gold ahead of some event or catalyst that will trigger the next big upleg in gold – likely accompanied by another big sell-off in the stock market.   Goldman has been mysteriously taking delivery of a lot of gold on the Comex,  Druckenmiller took down and big position in GLD and likely is buying physical gold out of the sight of SEC 13-D filings, gold is in backwardation on the LBMA and premiums for buying and taking delivery in the physical are starting to soar.

“The lady doth protest too much, methinks” (Shakespeare).  The anti-gold and silver propaganda flooding the mainstream is perhaps the biggest tell-tale that something is going on behind the scenes in the precious metals market.   If we’re all still standing a few years from now we’ll look back at the Wall Street Journal’s “Pet Rock” article as the signal that investors should have been converting as much fiat currency into physical gold as possible as soon as that WSJ article hit the Street.  Oh wait, China is and has been doing that.

My best idea right now from a risk/return standpoint in the mining stock sector is up over 2% today.  My last best idea, Silvercrest Mines (SVLC) is being acquired by First Majestic.   My mining stock report on current “best idea” explains why I believe this Company will not be stand-alone by next August.  This is especially true if gold starts to move up, as this Company has a lot of proved gold in the ground in two prolific gold mining districts.

You can access this report here:   DE-RISKED JUNIOR GOLD MINER or in combination with my 2nd best risk/return idea for a special Two-Report Discount Package.   I added a technical analysis report of the gold miner from DenaliGuide’s Summit last night.

In the meantime, this was just too funny not to share, it reminds me both of the idiocy of the Fed and the silliness of Dennis Gartman: