Bull Market In Gold Is Just Beginning

“In terms of the near-term on gold, Eric, I’m never fussed about these types of pullbacks. My own feeling going back 40 years is that the most important determinant of the gold price is faith in the US dollar. This faith is expressed by the US 10-Year Treasury, and the delta between the yield on the US 10-Year TIP and the US 10-Year Treasury.

If you believe that past is prologue, that is if you believe that the gold price is going to be primarily determined by faith in the US 10-Year Treasury, and you observe that the US 10-Year Treasury has been in a bull market since 1982, and that as a consequence the yield has fallen from 15.6% to 2%, I think you’re struck with the fact that the bull market in treasuries is closer to the end than to the beginning. Which means that the bull market in gold is closer to the beginning than the end.

If gold sells for $1,300 or gold sells for $1,350, neither price point is of any particular interest to me. I hold physical gold because it’s a medium of exchange that’s simultaneously a source of value. And a $20 move, $30 move, or a $50 move in either direction isn’t even background noise from my point of view. I’m in this for the long-term because gold is headed a lot higher than what it is trading for today.”

- Source, Rick Rule of Sprott Asset Management, via King World News

Rick Rule On Comments From Paulson & Co. About Gold Miners, Plus What’s Next For Gold

Today one of the wealthiest street smart pros in the business spoke with King World News about the comments from Paulson and Co. criticizing the gold mining industry as well as what to expect from the gold price going forward.

Eric King: “Rick, the comments about the mining industry coming from Paulson and Co. were fascinating. Your thoughts on what unfolded.”

Rick Rule: “Well, I think its hugely useful what he is proposing. Marcelo Kim was proposing that some of the bigger mining investors in the world, ourselves included, form a shareholders council — sort of like the World Gold Council — and advocate for change among the major mining companies. I think this is so important, Eric, because the change needs to come from us (investors)…

“If you look back to what started the current sort of paradigm around gold stocks, in my opinion it was the move in the 1970s of the gold price from $35 an ounce to $850 an ounce. And despite that incredible move in the bullion, many of the gold shares generated even larger returns. The consequence of that is that investors have looked at the gold mining industry to provide them one thing, which is leverage to the gold price. Now, amusingly, when you ask a gold company to exhibit leverage, what you are really asking them to do is be marginal because the high cost producer gets the best margin increase from an increasing gold price."

- Source, King World News, Read More Here

Eric Sprott: A Group of Suckers That Get Wiped Out All The Time

Eric Sprott says that Fed meetings are one of the two key cover events used to really whack gold and silver prices. Eric says that now is a good time to be buying physical, but those playing the paper games will get wiped out again. Here’s the latest…

The commercials are disgustingly more coordinated than ever. They are both long and short paper gold and paper silver in the markets, and they have been playing this game for years.

Now is a great time to be buying gold to take advantage of this latest whack job on the precious metals. Right now they have succeeded in working the price back down, and they do over and over and over again.

The significance of this week’s move is one of the main events the gold cartel uses as cover to smash price. The other being the monthly non-farms payrolls report.

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.

- Source, Sprott Money

A wild theory and a bit of gold has sparked a 500% rally in this Canadian gold explorer

Quinton Todd Hennigh has spent 13 years scouring the Earth for clues to back a hunch: that the world's biggest gold resource has lost siblings elsewhere on the planet.

Now, the president of Novo Resources Corp. thinks he may have found a counterpart of South Africa's Witwatersrand in the ancient red rocks near Australia's northwest coast. In July, his company zeroed in on a gold find that's confounded geologists and sparked a 500-per-cent surge in the explorer's share price.

The first test on land south of the coastal town of Karratha looked good. Employing two men, a metal detector and a jack hammer, Vancouver-based Novo extracted gold nuggets as long as 4 centimetres from an exploration "trench" little more than a half-metre deep. That tiny sample hinted at ore grades that could be among the highest of any operating mine in the world.

Mr. Hennigh, who's worked as a geologist for Newmont Mining Corp. and Newcrest Mining Ltd., isn't screaming bonanza yet. "Can I say 100 per cent that this will turn into a mine right now? No, I don't know," he said in a phone interview, acknowledging that hard work remains to determine if watermelon-seed-like specks of gold can be economically mined.

Still, the potential upside is seen by some as huge.

- Source, Globe and Mail

Precious Metals Are Hugely Manipulated, But Eventually They Will Lose Control

Eric discusses the recent gains in gold and silver. In 2016 stocks went up 160% in six months, we could be looking for something similar in the gold sector. It’s a tiny part of the overall market that could explode quickly.

The dollar index had support at the 93 level, but it seems to have broken to the downside. If you look logically at the U.S. financial situation, you will realize that they are bankrupt. There will be a shocking wake-up call at some point when people realize things are unsustainable and pensions can’t be paid out.

There is a lot of chaos happening in politics in Washington, and it doesn’t seem like much will be accomplished. Foreign countries are going to continue selling U.S. dollar treasuries. It’s not ridiculous to think that gold can’t go many multiples higher. The way the system has evolved is a good reason to hold gold for the next decade.

Eric discusses the ICO frenzy in cryptocurrencies and why he feels that there are too many different versions of cryptos. He prefers gold and silver but thinks cryptocurrencies may have a place especially if they find a way to tie themselves to gold and silver.

He expects the market to move similar to 2001 he expects it to be volatile. He says “I am a huge believer that metals are manipulated by central authorities when they lose control we could be looking at a sustained gigantic bull market in precious metals.”

Mr. Sprott discusses Novo Resources (TSX.V: NVO) and why he is excited about the potential. He finds the geology of the site to be quite fascinating.

- Source Palisade Research

Forced Selling Creating EPIC Opportunities: Eric Sprott & Keith Neumeyer

The demand for junior precious metals mining company stocks is soaring, and as a result VanEck's GDXJ is being forced by stringent regulations into rebalancing - forced selling to reduce positions that have become too large, which is creating tremendous opportunities. As Eric Sprott says, "There's too much interest. Isn't the funny thing? There's so much interest that the stocks are going down! It's the most ironic situation that we've ever been in, but there will just be new vehicles created. " Keith Neumeyer & Eric Sprott join me to discuss this, the precious metals manipulation, the problems at the LBMA and much more. Thanks for tuning in.

- Source

The Recent Action in Gold and Silver Broken Down

Eric Sprott returns this week to discuss the latest moves in gold, silver and the mining shares.

- Source, Sprott Money

A New Bull Market is Well Underway

This week we're joined by John Embry, longtime Chief Investment Strategist for Sprott Asset Management. John discusses the recent surge in gold prices and why he believes a new bull market is well underway.

- Source, Sprott Money

Eric Sprott: Gold to $5,000 and Then on to $10,000 per Ounce

Eric discusses the recent gains in gold and silver. In 2016 stocks went up 160% in six months, we could be looking for something similar in the gold sector. It’s a tiny part of the overall market that could explode quickly. The dollar index had support at the 93 level, but it seems to have broken to the downside. If you look logically at the U.S. financial situation, you will realize that they are bankrupt.

There will be a shocking wake-up call at some point when people realize things are unsustainable and pensions can’t be paid out. There is a lot of chaos happening in politics in Washington, and it doesn’t seem like much will be accomplished. 

Foreign countries are going to continue selling U.S. dollar treasuries. It’s not ridiculous to think that gold can’t go many multiples higher. The way the system has evolved is a good reason to hold gold for the next decade. Eric discusses the ICO frenzy in cryptocurrencies and why he feels that there are too many different versions of cryptos. 

He prefers gold and silver but thinks cryptocurrencies may have a place especially if they find a way to tie themselves to gold and silver. He expects the market to move similar to 2001 he expects it to be volatile. He says “I am a huge believer that metals are manipulated by central authorities when they lose control we could be looking at a sustained gigantic bull market in precious metals.”

- Source

Bonterra Resources Has Eric Sprott, Kinross Gold as Investors

In this interview with SmallCapPower at the recent Formula 1 Capital Conference in Montreal, Bonterra Resources Inc. (TSXV: BTR) Corporate Development Head Todd Hanas talks about Bonterra’s promising gold projects on both sides of the Ontario/Quebec border. Find out more about Bonterra Resources’ upcoming resource estimates by watching our video interview.

- Source, Small Cap Power

Sprott Energy Fund joins exodus from Canada’s energy patch

Foreign oil producers aren’t alone in beating a retreat from Canada’s energy sector. In an interview on BNN, Sprott Asset Management Portfolio Manager Eric Nuttall, who manages the $146.3 million Sprott Energy Fund, said the energy investment landscape in the United States is much more attractive due to fewer regulatory headaches.

“We’ve taken our capital out of Canada, largely,” he said. “There’s such profound sentiment headwinds as a result of both provincial and federal government [measures.] Whether its carbon taxes, royalty regime changes and pipeline takeaway issues: we don’t get that in the U.S., we get the same commodity exposure, with equally good fundamentals without all that noise.”

Nuttall said his fund is currently about 85 per cent weighted to the United States, the largest exposure in its 14-year history.

“I just got sick of having to come on shows and talk about bloody pipeline takeaway capacity,” he said. “A company drills a great well, well great, are you going to have a pipeline [to] put the volume of oil or gas through? It was utter stupidity for us to not be able to build a pipeline after 12 years or 10 years of review, where in the U.S, in Texas, it takes you six to nine months to get a permit and get shovels in the ground.”

Nuttall said multiple levels of government need to take decisive action, lest the issue becomes more severe.

“We as a nation have to fix this, it’s a large part of our overall economy, and capital is fleeing: my capital has been fleeing,” he said. “When you look at the majors selling out oil sands, Petronas not going ahead with LNG projects, these should all be like shocking warning signals to our federal and provincial governments, and yet there just seems to be a total apathy.”

“It’s beyond my imagination why it’s not becoming more of a national priority.”

- Source, BNN

The Latest US Political Turmoil and GDP Numbers

This week, Eric Sprott discusses the latest US political turmoil and GDP numbers. He also addresses the latest trend in gold prices and physical demand.

- Source, Sprott Money