EDITORIALS IN 2016
New Miner Bull Threatened as Major GDX Support is Breached
December 23, 2016
It appears the miner divergence from gold this past month was a bull trap, as the sector collapsed after the expected Fed rate hike. However, the US Dollar surged higher as Fed chair Janet Yellen telegraphed three more probable rate hikes in 2017, as opposed to the expected two in her post Fed meeting speech...
Sold Out Miners Await Fed Rate Hike(s)
December 16, 2016
As I mentioned last week, the miners continue to diverge from the gold price as we trade into the highly anticipated Federal Reserve (FOMC) meeting speech at 2pm EST on Dec. 14. Gold and the GDX are clinging to their 61.8% Fibonacci retracement levels from their respective mid-summer highs. Those levels...
Gold Closes Below $1250 Bringing New Bull into Question
December 2, 2016
Just a mid-week heads up on the miners here as I believe gold breaking below $1250 last Friday is a huge red flag. Something bearish happened on the way towards the GDX testing strong support at 21-20. As my post last Friday was being read, the gold price closed below $1250 on the week...
Gold Bears Get Trumped by Clinton Email FBI Investigation
November 16, 2016
Last week, the miners were heading lower into the weekend which gave me the impression of leading gold lower into the US election. However, as I submitted my weekly missive last Friday suggesting a final miner washout being possible into Super Tuesday, November 8th, FBI Director James Comey released a statement saying the FBI is going to...
Miners Leading Gold Lower into the US Election
November 4, 2016
As we head into one of the most controversial elections in US history, the miners appear to be leading the gold sector lower. The low struck from this move could very well be the final low for this correction of the huge first leg higher of this new miner bull market. I believe the sector formed...
4 Possible Catalysts For The Gold Sector into Year End
October 28, 2016
The precious metals miners have outperformed all asset classes this year by a wide margin. This unloved and beaten down sector in January was down over 85% from the highs reached in 2010-11. The miners are still technically in a downtrend, having corrected the 179% move from earlier this year by up to 30%...
Miners Attempting to Form a Bottom into Week End
October 21, 2016
Since the paper gold “stop run” began on Oct. 4, the oversold mining sector is attempting to bounce from the strong support levels of 22 GDX and 190 HUI mentioned last week in this column. However, we must not rule out another attempt to break the $1250 level to set up a final plunge with...
Mining Sector Could Be Setting Up for a Sling-Shot Move
October 14, 2016
As I pen this missive, the mining sector may have already began a reversal from the nasty sell off which accelerated into capitulation selling toward the highly anticipated non-farms payroll report (NFP) that has been released this morning. I believe this would depend on the market reaction...
Miners Consolidating Into Quarter End
October 7, 2016
The miners are about to enter month four of a correction (or larger consolidation) that has seen the GDX correct 20% and the HUI 23% from their early summer highs. The 175% advance in gold stocks, which happened in 5 months and 22 days, was the 11th greatest first leg up in any tangible asset bull market during the past 150 years...
Dogs Days of Summer Ending with Critical NFP Report on Sept. 2
September 9, 2016
The highly anticipated Non-Farms Payroll (NFP) Report for August will be released Friday, Sept. 2nd, at 8:30am EST. It is arguably the most important report to date this year. The ADP report released this Wednesday matched expectations bringing a rate hike into focus but if recent history is any guide,..
Is This A Miner Bear Trap Into Jackson Hole?
September 1, 2016
As, I pen this; Janet Yellen is giving her highly anticipated speech at Jackson Hole entitled "The Federal Reserve's Monetary Policy Toolkit".
As of this past Thursday, the GDX and the HUI have corrected roughly 17% testing their Brexit gaps as summer vacations near an end...
Will Yellen's Jackson Hole Speech Provide the Next Miner Catalyst?
August 26, 2016
The mining sector in August tends to be uneventful due to thin trading volume creating potentially unreliable moves. Savvy traders often ignore such moves. However, for long-term investors looking for a good entry on quality miners during bull markets, August can be a very opportune time to buy...
Stay Focused on the New Miner Bull and Tune Out the Noise
August 19, 2016
In my nearly fifteen years of following the precious metal miner sector I have witnessed countless failed and completely outlandish predictions by so-called gold gurus and gold bashers alike. Since the precious metals are driven by both greed and fear there are plenty of these charlatans to choose from whether bullish or bearish...
Burkina Faso - An Undervalued Area Play
July 29, 2016
Burkina Faso - which means “land of honest people” - is a 105,900 square mile sized landlocked country in West Africa with a very stormy recent history. In late October, 2014 then President Blaise Compaore decided to amend the constitution so that he may extend his already lengthy 27-year rule...
Gold Correcting In Price – Gold Miners Correcting In Time
July 22, 2016
For almost 15 years I have been beholden to this wild and crazy precious metal miner sector that entailed two crashes and two huge run-ups. However, I believe this third run-up will be the charm as the set-up since January has all the makings of being a generational bottom...
Will Miners Break Down Into Brexit, Fed Meeting?
July 15, 2016
The highly anticipated vote on whether the UK leaves the European Union is fast approaching on June 23. However, the Federal Reserve meeting, June 14-15, precedes that vote. The Fed, which will hold a press conference June 15 following its decision, will raise rates another 25 basis...
Fed Meeting Minutes Provides a Buying Opportunity
May 26, 2016
Long suffering gold sector bulls have just been given a gift by the Federal Reserve as the minutes released from the April meeting have provided a hawkish tone to the ongoing interest rate saga. The extremely overbought miners were pushed lower on profit taking that has given long term bulls waiting on the sidelines a chance to buy their favorite miners at lower prices...
Miners Could Reach First Stage Blow Off Targets Soon
August 12, 2016
I just returned from the well-attended Sprott Symposium, which was held in Vancouver last week. I could hardly believe my ears when I heard the very first speaker tell the audience of over 700 attendees he sold all of his gold miner positions the previous Friday...
Miner Blow Off Or Break Down?
May 13, 2016
The Non-Farm Payroll Report (NFP) for April will be released this Friday, May 6, an hour before the market opens at 8:30 EDT. My editorial from a few weeks ago focused on the huge impact this highly anticipated market-moving report has had on the precious metal mining sector since the metals bear market intensified in 2013...
Denial Is Not Just A River In Egypt
May 5, 2016
The cautious and bearish tone from almost every precious metals expert on the sector continues to amaze me. As gold pundits and paid subscription newsletter writers alike continue to keep their subscribers out of this sector, the mining shares continue to climb the goldbug wall of worry...
Fedspeak and NFP's and Bears! Oh My!
April 29, 2016
In hindsight, it was a near lock to short resource stocks going into a Federal Reserve meeting speech by Ben Bernanke and/or the Non-Farm Payroll reports (NFP) as the bear market intensified from 2013 to 2015. It was very easy for big institutional shorts to bully this tiny market and they took full advantage as their computer algorithm trades...
Q1 Earnings - The Next Miner Catalyst?
April 22, 2016
During the last few years of the vicious bear market, quality majors and mid-tiers have done a very good job of lowering costs and trimming corporate fat while readying for the next bull cycle. With the huge write-downs of unrealistically priced deposits behind them, the miners that had the foresight...
Diversification Key As Miners Continue To Climb A Wall Of Worry
April 8, 2016
Most precious metal miner investors have been terrorized by an epic short seller gala event lasting four years that has convinced most of them to swear off the sector for good. Share dilution in major miners together with a 45% gold decline gave the shorts a perfect scenario for reaping huge gains in this small sector...
It's Old Turkey Time For Precious Metal Miner Investors
April 1, 2016
When I first started to invest in the stock market over 15 years ago, I did everything I could to be the best investor I could be. I watched CNBC daily, read Barron’s and countless other mainstream paraphernalia…….and promptly lost over 50% of my capital in 2 years...
Optionality Plays For The Patient Precious Metals Investor
March 24, 2016
It is my belief that the worst precious metal miner bear market in 90 years has ended. If correct, I also believe there is a wonderful opportunity in a certain few development stage companies that should be worth considerably more in the near future when Gold and Silver find floors at $1350/oz and $20/oz respectively.
Tune Out The Noise And Listen To The Market
May 20, 2016
As the chorus of short-term gold sector bearishness grows louder from the long-term bullish camp, the healthy and bullish price action of the miners continues to outwit the pundits and most of the subscription newsletters. Each week they trot out new reasons for a sharp correction that never comes to fruition as their credibility goes in the opposite direction...