Friday, July 19, 2019

Eric Sprott: The Renewed Precious Metals Bull Market

Eric Sprott discusses the renewed and surging bull market in the precious metals as well as the intriguing profit potential offered by the mining shares.

- Source, Sprott Money

Tuesday, July 9, 2019

The US Dollar Relies on Faith, Gold Does Not

"I think that’s very important. The U.S. dollar is a promise to pay. It supposes that people will continue to accept it. Almost every fiat currency in history has always retreated to its intrinsic value, which is, of course, zero. If, as an example, rather than having U.S. dollars in your jeans, you had Venezuelan bolivars, you would understand the promise for what it was. Something that could be broken.

Gold is very different. It doesn’t rely on faith. Gold isn’t a promise to pay. It is, in and of itself, payment. It is an asset that isn’t simultaneously somebody else’s liability. And I think that’s very, very important. I don’t think, as an example, that you’re seeing the Chinese government, the Chinese Central Bank, buying gold because they like the chart. I think that you’re seeing them buy gold because they’re afraid that the U.S. government will use U.S. financial markets and U.S. dollars as a weapon in foreign exchange transactions.

And so the Chinese are looking—and I just point out the Chinese, others are looking the same way—to a medium of exchange that isn’t under anybody’s control and isn’t a promise to pay, but rather constitutes payment in and of itself.

It’s interesting to note, Maurice, that over the last couple of days in the news, you will see that Venezuela exported seven tons of gold to Uganda, and then apparently onto either Dubai or Turkey. A pariah state that can’t necessarily trade in U.S. 10-year Treasuries can trade, can buy and sell gold. But even more interestingly, apparently those gold bars date from the 1940s, and they were payment from the United States to Venezuela for oil that was sold in World War II, when the Venezuelans had some doubt as to the outcome of the war, and weren’t willing to take U.S. dollars for their oil. They were willing to take gold.

So even a creditor as strong as the United States has periods of time, has circumstances, where their promise, which is what their currency is, isn’t acceptable. But there hasn’t been a time in recorded history when gold wasn’t acceptable."

- Source, Rick Rule of Sprott Global

Friday, July 5, 2019

Rick Rule: Money is Made Employing New Ideas in Old Places

"It’s not like I think Congo, or Russia, or Sudan, or Bolivia are the greatest countries on the face of the earth. I’m certainly cognizant of political risk. The truth is, however, that I’ve experienced lots of political risk in places that are alleged to be good. My worst personal experience with political risk was here in the People’s Republic of California. But I’ve also had money stolen from me by legislatures in places like British Columbia.

The truth is that investors who look like me, old and Caucasian, tend for some reason to believe that money that’s stolen from us in English, according to the rule of law, is somehow less gone. So I’m not afraid of bad jurisdictions, it’s just I’m also afraid of so-called good jurisdictions. And what I’ve learned is that in jurisdictions where capital feels comfortable, a lot more exploration has taken place, which means that the probability that I’m going to find a high-quality deposit in a jurisdiction that I’m also comfortable in is very low. The probability is that I’ll find the type of deposit that will give me the returns I’m looking for—1,000% plus—are much more likely to occur in jurisdictions that have not been looked at as thoroughly.

Perhaps my most important mentor in the 1970s told me that in exploration, money is made employing new ideas in old places—that is, new technology—or old ideas in new places. But if you’re using old ideas and old places, you’re assuming that you’re smarter than everyone that came before you, which is usually an incorrect assumption.

So, as an example, investments around the application of new technologies like three-dimensional seismic measurement while drilling, and new fracturing and recovery techniques, have revolutionized the old oil fields of West Texas. That’s a new idea in an old place. But old-fashioned exploration technology—that is, projection of existing trends, things like that—work well in places like Congo and Kazakhstan, places that haven’t been explored thoroughly for 40, or 50, or 60 years, as a consequence of challenging social, economic, and political circumstances. So I would say that while I’m certainly cognizant of political risk, I define political risk much differently than many of my competitors."

- Source, Rick Rule of Sprott

Monday, July 1, 2019

The New Game For Gold: Opportunity of a Lifetime

“And then we have this week Paul Tudor Jones coming in, being interviewed on Bloomberg, one of the world’s most successful investors saying that his best trade in the next two years is being long gold because it’s going to go to 1750. 

And when the Fed starts to cut interest rates, gold will “scream,” in his words. And the impact of that happening is so stunning for the gold stocks. It’s so stunning. We are looking at hundreds of percents of gains here. Hundreds! DON’T MISS IT! This is a lifetime opportunity here to make a truly, truly outsized gain.”

- Source, Sprott Money

Thursday, June 27, 2019

Money Made In Gold Could Offset Money Lost In Dollar Based Accounts

"I try to be mathematically and empirically based. The truth is, in terms of philosophy, my own political philosophy is very much libertarian and free market oriented, which means that I’m always a sucker for the gold bug pitch. The consequence of that is that I try not to listen to my philosophical side as often.

Now, related to a libertarian philosophy is an acceptance of the precepts of Austrian economics and, in particular, the predictions with regards to the activities of markets and groups of people that was evidenced by Ludwig von Mises in “Human Action.” I would say, in that sense—the understanding of economic cycles and the understanding of the impact of cycles on human action—that that part of my investing philosophy has been absolutely instrumental to my success.

Von Mises points out that although all of us believe ourselves to be rational fact-gatherers, that’s not what we are. We have a view of ourselves as impartial observers that gather information, hither and yon, and process it in a rational fashion. But that’s not what we do, in fact. We gather information that is convenient to our prejudices and our paradigms, and we use the information that we gather to support those same prejudices and paradigms.

Von Mises also points out that our expectation of the future is set by your experience in the immediate rather than the distant past, which is why bull markets go on longer than they should and why bear markets go on longer than they should. If you have done lots of work around an investment or speculation and you’re attracted to it, but your experience in the last five years has been that you get spanked for all your hard work, you tend to be cautious and conservative in bear markets—which is precisely when the markets are cheap—because your most recent experiences have been bad rather than good.

Conversely, in bull markets where stocks are doubling and tripling for no reason, you do two things. You confuse a bull market with brains. That is, you assume that your good performance is in some way, shape or form due to your own efforts. And you also become less cautious. Your expectation for the future being set in the immediate past means that you’re irrationally bullish. Even in a market that’s up 400% or 500%, which is, as you know by now, Maurice, something that’s not an uncommon phenomenon in our sector. Yeah, I’ll leave it there."

- Source, Rick Rule of Sprott

Wednesday, June 26, 2019

Eric Sprott: Summer is Breaking Out and So is Gold...

“I love going back to the call we had three weeks ago, when I said I’d read an article that I really believed in that suggested gold would have a rally for 5-7 weeks… 

We’ve had three of them now! This rally started at $1275. We’re at $1400. That gentleman, Chris Vermeulen, and I’ve got to give him credit for being prescient…

The first target was $1450, but he actually thought it was going to go to $1650. And I want the listeners to think about that: $1650! What would happen?”

Friday, June 21, 2019

Eric Sprott Takes On This Week In Gold And Tackles Your Questions

It’s a special edition of the Weekly Wrap Up this week, as Eric Sprott takes time to answer some or our Sprott Money customer questions about precious metals.

Due to the enthusiastic response, this week’s WWU is over 30 minutes as Eric and Craig try to answer all your questions. Although this was to be exclusively a Q&A session, there was just too much Gold news this week to be ignored.

Listen to Eric and Craig get excited about the later FED speak about ELB – Effective Lower Bound – basically, zero interest rates and what this could mean for Gold investors.

- Source, Sprott Money

Sunday, June 16, 2019

Eric Sprott: A Recession is Coming, Are You ready?

“Of course, the big macro is the trade war, which now seems to be getting really spread out as we put Huawei into the whole thing… I don’t think the Chinese are going to sit idly by and do nothing here—it’s been mostly a U.S. initiative so far. 

But you know the other shoe’s going to drop… There’s no doubt in my mind that the Chinese economy is way bigger than the U.S. economy. I don’t care what the numbers say.… 

They’re the biggest steel producer, they’re the biggest gold consumer. They’re the biggest everything, OK? … Think about what happens when the Chinese say, ‘No mas, man.’”

- Source, Sprott Money

Wednesday, June 12, 2019

Eric Sprott: How The Trade War Affects Gold

“We see evidence of world trade slowing down. We see it in airport traffic. We see it in ship traffic. We see it in truck haulage in the United States. 

We saw it in retail sales this month,that we’re down .2%. So there are many, many indications that a slowness is taking hold here. And, of course, the more the trade war manifests itself—i.e. we put on the tariffs and people start having to pay more for the same goods—that is not going to be a good situation. 

And, of course, the worst part about it all: the government takes in the tariff, and the people pay it. And the people that are paying it are the people who can’t afford it… It’s not a good situation that we have.”

- Source, Silver Doctors

Wednesday, June 5, 2019

Wallbridge Mining edges closer to production at Quebec gold project

A Sudbury mine developer is putting the pieces in place to reopen a former Quebec gold mine.

Wallbridge Mining, which is proving up its high-grade Fenelon Gold property in northwestern Quebec, posted the results of a recently-completed 35,000-tonne bulk sample.

In a May 15 news release, Wallbridge said the former open pit and underground mine is capable of producing good grades with low-cost bulk mining methods. Stope grades released by the company ranged between 10.94 grams per tonne (g/t) to 38.33 g/t.

Wallbridge ran 33,233 tonnes of ore through the Camflo Mill in Val d’Or from its bulk sample to produce 19,755 ounces of gold at an average grade of 18.49 g/t.

The company has applied to the Quebec government to take a second bulk sample and will shortly be filing for full production permits.

The Fenelon project is located 75 kilometres northwest of Matagami, Que.

Wallbridge acquired it in 2016 and has since updated the resource estimate, posted a positive pre-feasibility study, and found more gold offshooting from the main deposit. The company has a major exploration drilling program underway.

"Completing the bulk sample provided valuable information while generating positive cash flow to fund our 50,000 to 70,000-metre exploration drill program at Fenelon," said Wallbridge president-CEO Marz Kord in the release.

"Overall, the bulk sample results met or exceeded our initial projections in terms of grade and gold recovery.”

Their aggressive method of sampling offered a valuable lesson on how best to mine the deposit.

“Selective mining methods allowing narrower zones with less dilution will be tested if a second bulk sample is granted."

Frank Demers, the company’s vice-president of mining and projects, echoed Kord that the Fenelon experience “has given us the opportunity to understand how best to approach developing the property.

"As we continue expanding our exploration efforts and ideally undertake a second bulk sample, we will continue to broaden our understanding of this deposit and maximize overall value.

“Some notable achievements during this campaign include better than planned safety results, zero environmental exceedances, underground development of nearly 2,100 metres and 25,000 metres of diamond drilling.”

On the same day, Wallbridge also announced it closed a $7-million deal with mining financier Eric Sprott in exchange for 29,166,667 common shares.

The private placement increases Sprott’s stake in Wallbridge from 19.9 per cent to 24.9 per cent.

Earlier in the month, William Day Construction and William Day Holdings bought $702, 505 worth of common shares in Wallbridge, representing a 15.16 per cent amount of the company’s shares.

Wallbridge has a stable of nickel, copper and platinum group metals properties in the Sudbury Basin with copper and gold exploration interests in British Columbia and Jamaica.

Friday, May 31, 2019

Pure Nickel up 200% on Eric Sprott deal

Pure Nickel Inc. [NIC-TSXV; PNCKF-OTC] said Tuesday April 30 that it has signed a deal with a numbered company controlled by Eric Sprott that outlines the arm’s length terms for the acquisition by Pure Nickel of a 51% interest in the Neal Development Ltd. Partnership from Sprott Mining, and the option to acquire an additional 27% of the Neal LP and seven unpatented mining claims.

The Neal LP holds a lease to operate the Neal Project, a gold project consisting of five patented and seven unpatented lode mining claims located 27 km southeast of Boise, Idaho.

The Neal Project site was the most productive gold producer in the Neal Mining District, with underground production from 1889 through 1941, sourced mainly from the Hidden Treasure, Homestake and Daisy mines.

According to the US Bureau of Mines records, the Neal Mining District is estimated to have reported production of at least 30,000 ounces of gold, mostly from the Neal property.

Pure Nickel shares jumped 200% or $0.02 to $0.03 on volume of 4.5 million on Tuesday, making the junior the most actively traded stock on the TSX Ventures Exchange. The shares trade in a 52-week range of $0.01 and $0.03.

There are currently 200 outstanding limited partnership units in Neal LP, of which Sprott Mining owns 142. It has the option to acquire another 54 units (total 196 units or 98% of the units.). Four units are held by a separate party.

Under the agreement, Pure Nickel will acquire 102 units of Neal [51%] by issuing 10.2 million shares to Sprott Mining, an amount that represents 15% of the issued and outstanding shares of Pure Nickel. Once the deal is complete, Pure Nickel becomes the operator of the Neal Project.

Pure Nickel will have an earn-in option to acquire an additional 54 units [27%] of Neal LP and seven unpatented mining claims by raising up to $1.5 million for exploration drilling. On completion of this future financing, Pure Nickel has the option to pay Sprott Mining $84,706 ($1,568.63 per unit) causing Sprott Mining to exercise its option to acquire the remaining 54 units and assign them to Pure Nickel.

Sprott will also transfer its interest in the seven unpatented mining claims to Pure Nickel. Once the earn-in option is fully exercised, Pure Nickel will own 156 units or 78% of Neal LP, leaving Sprott with 40 units or 20%. A separate party will continue to hold the remaining four units or 2%

The Neal LP currently leases the core patented private property at the Neal Project from Daisy Mining & Land, LLP, and the underlying claim holders. Under the lease agreement, Neal LP may remove, extract, ship and sell ores, minerals and materials from the property.

In exchange, Daisy Mining will be entitled to receive lease payments equal to $3 per ton for all material removed from the property.

If the annual lease payment is less than $10,000, Neal LP will pay Daisy Mining as cash top-up to meet the $10,000 annual payment minimum. Daisy Mining will also receive production payments on any production in the form of a 3% net smelter royalty.

“We are very pleased that Eric Sprott has agreed to allow Pure Nickel to become the operating partner at the Neal Project, while at the same time becoming a significant shareholder of the company,” said Pure Nickel’s President and CEO David Russell.

- Source, Resource World

Monday, May 27, 2019

News Bites Is Fear Finally Coming Back?

Fear is finally making its way back into the financial markets and pushing gold higher, said Eric Sprott, billionaire precious metals investor and founder of Sprott Inc.

“The outlook for gold works against the market and that’s why it is up this week because the markets have been down about 3% across the board and there is fear coming back into things here,” Sprott said during Sprott Money’s Weekly Wrap-Up on Friday.

Spot gold opened stronger on Monday in Asian trading, up 0.10% on the day at $1,287.10, according to Kitco’s aggregated charts.

Investors hear conflicting things about the economy and inflation all the time, which drags gold prices in different directions, Sprott noted.

“There are great waves of macro-information flipping back and forth here. At the odd time, we’re told that the economy is great, and then we look at some of the data and the economy is awful. Inflation is rising, and then it’s not rising. The trade war is going to be settled, and then it’s not going to be settled. Each of these seems to be used as an excuse to move the prices around on COMEX,” he said.

The latest headlines keeping the markets worried are the trade war negotiations that are likely to be an ugly affair with no easy resolution, Sprott pointed out.

“You can just sense it. It is not going to be an easy negotiation. Obviously Chinese pushed back on things and the only option Trump had was to put more tariffs on. And this trade war … is going to have a big impact on earnings and sales all around the worlds and those who believe we are in the Goldilocks market might have to reconsider,” Sprott explained.

A more reliable measure when it comes to gold price direction is the physical side of the market, added billionaire precious metals investor.

“I always fall back on the physical side,” he said, highlighting impressive demand for the metal worldwide.

“China stepped up their buying to 15 tonnes last month. That I find very significant … Plus, we have these other government and central banks that are also buying,” he noted.

- Source, Kitco News