Tuesday, December 12, 2017

The Gold Mining Sector is Poised to Explode Higher


Canadian billionaire investor and gold bull Eric Sprott says the Pilbara conglomerate gold story could provide a huge economic boost for WA.

Talking from Melbourne yesterday, where he is a keynote speaker at the Precious Metals Investment Symposium, the 73-year-old chairman of Kirkland Lake Gold confirmed to WestBusiness that he was a believer in the story, which he described as already being 90 per cent proved.

The discovery of watermelon seed-shaped nuggets, talk of conglomerate-hosted gold and comparisons with the massive Witwatersrand gold basin in South Africa has sent the share prices of several Australian Securities Exchange-listed Pilbara explorers soaring recently.

But it is the Sprott-backed, Toronto-listed Novo Resources which has led the charge by securing vast tracts of land in the Pilbara (12,000sqkm) and striking a joint venture with the ASX-listed, David Lenigas-chaired Artemis Resources over the Purdy’s Reward prospect south of Karratha.

Novo’s shares have soared from C82¢ at the beginning of July to a high of $C8.55 earlier this month, giving it a market capitalisation of more than $C1.2 billion.

Artemis shares have surged from 8¢ to more than 50¢ over the same period, giving it a value of more than $250 million.

Having visited the Pilbara recently and used a metal detector to find nuggets, Mr Sprott said he believed the region could host a gold resource of the same scale as Witwatersrand, from which more than a third of the world’s gold has been mined.

“We know conglomerate rock exists over a wide area of the Pilbara and we’ve discovered gold nuggets unlike any other nuggets in the world,” he said.

“We now need drilling and assays to test the grade and thickness of the mineralisation.

“It’s not yet conclusive but it’s looking good.”

The former Merrill Lynch analyst said large-scale gold mining in the Pilbara would be a big economic boon for WA.

“It would create huge opportunities. Wouldn’t we all want this type of thing in our backyard,” he said.

Besides Novo, Mr Sprott also recently made $5 million investments in Pilbara explorers De Grey Mining and Kairos Minerals, but signalled it was unlikely he would make further plays.

“I think the time for a steal is finished, unless there are other data points that emerge,” he said. He also conceded that he stood to “lose a lot of money” if drilling failed to reveal economic gold mineralisation in the Pilbara.

Mr Sprott’s comments came as Kairos enjoyed a 20 per cent share price rise yesterday after announcing it had identified prospective conglomerates at its Croydon project south-west of Port Hedland as well as discovering visible gold from panning.

Meanwhile, shares in West Wits Mining jumped 16 per cent after it said it was close to finalising the acquisition of the 224sqkm Mt Cecelia project in the East Pilbara, which it believes is prospective for conglomerate-hosted gold.

- Source, The West

Friday, December 8, 2017

Moving Just A Little Crypto Profits Into Gold and Silver Could Blow Up the Market!


Eric says the physical market is tight already, and if smart crypto holders move into gold & silver, the market could blow…

“More of the same” – that seems to be the refrain for precious metals this year, according to Eric Sprott. It’s been tough, and gold and silver bugs may be feeling a bit low this holiday season. But, says Eric, a renewed rally in 2018 may be possible.

“We’ve never seemed to be able to get that large short position down,” says Eric. “It just shows they [Central Banks] have control of the market. Whatever their purpose is, they get there. Once they can cover this, we probably will find a creative low, here. It’s been tough.”

But, Eric says, there may be hope. “We may have lost all our game, but we have things that will happen here shortly that I think will change things rather quickly.”

Bitcoin’s massive capital rush just may be positive for a rush into precious metals – and Eric definitely believes physical commodities will be affected by Bitcoin and other cryptocurrencies. “When people cash out their Bitcoins, where are they going to put their money? Some people will be selling here and look for a place to put it – it won’t take much for things to move around in the precious metals markets [as a result].”

As always when it comes to speculating, anything can blow up – the key is to keep your ear to the ground and remain patient.


Thursday, November 30, 2017

Investors May End Up Selling Their Mining Shares To Take A Tax Loss For The Year



Eric begins the week discussing the phenomenon of EFPs (Exchange For Physical) where contracts on the COMEX are being settled for the physical but out in London.

Eric says there must be tightness here because these numbers of EFPs issued are not insignificant.

Also, Eric says that if there is a rate hike in December, gold is going up regardless because of the yield curve and the long bonds, so if there is going to be selling, Eric says bring it so that he can buy even more.

Rounding out the discussion is the recap of the fundamental news in the economy, as well as talk about the mining sector, which Eric says may involve some “tax loss selling” to take the tax write off. If that happens, Eric says the price of some of the miners that are down this year could go down even further, and that means a good buying opportunity.

- Source, Sprott Money

Monday, November 27, 2017

Eric Sprott: The Whole Premise For Gold Being Weak is Misguided and Flat Out Wrong


Eric and Craig begin the conversation with the recent gold price smashings. Eric says it’s sickening to see, but at the same time, it’s good to see the price pop right back up.

The conversation then shifts to silver, where it is hard to watch as silver is only up slightly on the year whereas the other metals have rallied like crazy.

After discussing the metals, the conversation turns to the fundamentals of the economy. The fundamentals are deteriorating, and now there are signs of trouble in the stock markets. There is specific focus on the lack of wage growth in conjunction with “shrinkflation” (paying the same but getting less of the good or service).

Finally, there is a recap of the precious metals sector including the miners.

- Source, Sprott Money

Tuesday, November 21, 2017

Gold Investor Fatigue Is Going to Lead to a Rally of Epic Proportions


Rick agrees that there is capital misallocation on locating and extracting gold from the ground. Precious metals historically have been the most volatile part of the resource market. 

Reasons for this include the narrative around gold and silver being more interesting than say that of copper and coal. There is an allure to it. Thus there is a flaw in the way investors think. Investors that focus on precious metals likely do themselves a disservice. 

Gold itself has been strong this past year in spite of the dollar also being strong. This is unusual and encouraging. Investor fatigue in the gold sector is not the fault of gold it is the investor's fault as they have unrealistic expectations in regards to time. Gold stocks haven’t kept pace this year probably because they did so well in 2016. Gold may never be good enough to satisfy the wild interest of speculators but indeed good enough for contrarians to make a tidy sum. 

Mr. Rule discusses battery metals including nickel and why there are opportunities in the space. He likes cobalt as increased supply is unlikely to reduce the price. There is plenty of available lithium worldwide; however, that demand has increased faster than the processing capacity of the lithium industry. 

Rick feels that outside of urban areas electric vehicles are unlikely to reach operating cost parity with gasoline based cars. Electric cars are unlikely to be practical for long-range transport. Platinum and palladium need to see a global, sustained recovery that increases the number of vehicles sold. 

Since 2008 the market has been constrained worldwide. Demand could rise if China pushes for cleaner diesel fuel standards something they have discussed but so far failed to do.

- Source, Palisade Radio

Saturday, November 18, 2017

Forget the Noise, Look at the Fundamentals, Gold and Silver Are Going Higher


Eric reminisces about the early days of Sprott and where we are today in the gold market. He points out that Gold holds it's value, unlike fiat money. It’s hard at times to recognize that we are in fact in a bull market; however, we are as the TSXVenture Exchange has had an excellent rally over the past couple of years. Price increases in the gold market have a significant impact on the profit line of a company. 

Price is more important than production. We are in an exciting environment for speculation. Some things are speculative, and some investments are well reasoned sure bets with limited down-sides. 

Eric says to look for opportunities where you can get multiples on your money and where the downside risk is less than 50%. If you know you have a good investment than all you have to do is sit back and wait for it to play out. Mr. Sprott discusses several companies that he has a stake in and why he thinks they are good opportunities. 

It’s difficult when you have a winner to determine how much further a stock can go up. You need to look at how much higher it can go up and look for even better opportunities. Try not to get scared out of your trade. Eric doesn’t believe in technical analysis he prefers fundamentals. Company management shouldn’t be conservative when it comes to pricing things they should be realistic. 

As investors, we need to know what is going on. You want to see the future early and know where things are going today not next year. How do you find out what is going on? First of all, you listen very carefully, and you have to read things critically. Connect the dots. 

If the information is in the public domain, you can use it. Sometimes smart people are talking about companies and what they are into. You have to learn to use whatever you can, and the Internet can be a great resource.

- Source, Palisade Radio

Wednesday, November 15, 2017

The Commercials Have Dangerously Shorted Silver in Massive Quantities


With all the fundamental news and the data releases, gold and silver so far look to be set to eek out weekly gains here, and this encouraging, but Eric says that the commercials still aren’t done yet because the open interest is just too high.

There is discussion of the BLS Jobs Report released just today.

Eric and Craig also discuss the latest news of the Fed Chair nomination in Jerome Powell.

Eric points to signs of hyperinflation all around, namely as evidenced by a recent trip and the soaring cost of Bitcoin in fiat dollar terms.

Finally, there is discussion of the mining sector.

Eric is optimistic however, and he says that gold and silver investor’s day in the sun is still coming.


Thursday, November 9, 2017

Rick Rule: Gold Investor Fatigue Is Going to Lead to a Rally of Epic Proportions


Rick agrees that there is capital misallocation on locating and extracting gold from the ground. Precious metals historically have been the most volatile part of the resource market. Reasons for this include the narrative around gold and silver being more interesting than say that of copper and coal. There is an allure to it. Thus there is a flaw in the way investors think. Investors that focus on precious metals likely do themselves a disservice.

Gold itself has been strong this past year in spite of the dollar also being strong. This is unusual and encouraging. Investor fatigue in the gold sector is not the fault of gold it is the investor’s fault as they have unrealistic expectations in regards to time. Gold stocks haven’t kept pace this year probably because they did so well in 2016. Gold may never be good enough to satisfy the wild interest of speculators but indeed good enough for contrarians to make a tidy sum.

- Source, Palisade Radio

Tuesday, November 7, 2017

Eric Sprott: This is the Key to Outperform in the Gold Markets



Craig and Eric start off by discussing what is turning out to be a slow, drawn out flushing of the speculators on the COMEX.

The conversation then shifts to the bad data that keeps coming out, regardless of what the GDP statistics say.

Since we are in the midst of a short-covering flush, and since the covering has been slow and painful, there is discussion about the mechanics of market manipulation.

Finally, discussion shifts towards the mining industry.

Eric discusses simple strategies that investors can use to research companies to look for returns on their investments in the mining industry.


Friday, November 3, 2017

Eric Sprott: Make No Mistake The Resource Bull Market is Back


Eric reminisces about the early days of Sprott and where we are today in the gold market. He points out that Gold holds it's value, unlike fiat money. 

It’s hard at times to recognize that we are in fact in a bull market; however, we are as the TSXVenture Exchange has had an excellent rally over the past couple of years. 

Price increases in the gold market have a significant impact on the profit line of a company. Price is more important than production. We are in an exciting environment for speculation. 

Some things are speculative, and some investments are well reasoned sure bets with limited down-sides. Eric says to look for opportunities where you can get multiples on your money and where the downside risk is less than 50%. 

If you know you have a good investment than all you have to do is sit back and wait for it to play out. Mr. Sprott discusses several companies that he has a stake in and why he thinks they are good opportunities. It’s difficult when you have a winner to determine how much further a stock can go up. You need to look at how much higher it can go up and look for even better opportunities. 

Try not to get scared out of your trade. Eric doesn’t believe in technical analysis he prefers fundamentals. Company management shouldn’t be conservative when it comes to pricing things they should be realistic. 

As investors, we need to know what is going on. You want to see the future early and know where things are going today not next year. 

How do you find out what is going on? First of all, you listen very carefully, and you have to read things critically. Connect the dots. If the information is in the public domain, you can use it. 

Sometimes smart people talk about companies and what they are into. You have to learn to use whatever you can, and the Internet can be a great resource.

- Source, Palisade Radio

Sunday, October 29, 2017

Eric Sprott Just Made A Prediction On President Trump’s Nomination For Fed Chair


Here’s the latest wrap up of macroeconomic fundamental news on the on the economy in general, and the gold and silver markets in particular.

Craig and Eric begin the discussion with the latest moves in the metals markets, with a round robin from the base metals to the precious. Eric wonders which metal will start to show physical tightness first.

Then the conversation shifts to the nomination for Fed Chair. Eric thinks President Trump will choose the absolute most dovish person possible, and with an expectation of early November at the latest for an announcement, we will know soon enough.

Tune in for Eric’s Fed Chair prediction, as well as an update of the gold and silver mining industry.


Wednesday, October 25, 2017

Eric Sprott: Are We Going To See A Shortage Of The Metal Here?


Eric starts off with discussing the latest data releases of the week, and he says that these numbers must be suspect. One can only assume they are massaged and manipulated to paint a certain picture.

Eric moves on to discussing palladium, and he says the palladium market may be thirty years behind in supply. Eric wonders if the shortage is set to break-out with one of the metals and that could bring everything down.

The conversation then moves on to gold and silver. Eric notes that silver is also short on supply nearly half of a year.

Ultimately, Eric hopes the palladium or silver shortage issues can expose the COMEX for the fraud it is.

There is also discussion of the other metals including the base metals.

After going over the macroeconomic picture and the metals markets, the conversation turns political with the latest happenings in the Trump Administration.

Eric says that it will create weakness for the dollar because everything is uncharted.

Finally, Craig and Eric conclude the week with a discussion on the mining shares.

- Source, Sprott Money