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.