Jack Chan’s Weekly Precious Metals Update

Source: Jack Chan for The Gold Report   06/24/2017

Technical analyst Jack Chan charts the latest moves in the gold and silver markets, and believes the ongoing consolidation may end soon.

Our proprietary cycle indicator is down.

chanhui6-24
The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term.

chanhui26-24
The gold sector is on a short-term sell signal. Short-term signals can last for days and weeks, and are more suitable for traders.

chanspec6-24
Both speculation and OI are supportive for overall higher prices.

chanspdr6-24
The trend in gold is up.

chanhui36-24
Prices bounced firmly off the lower support, and the multimonth consolidation may be ending soon.

chansilver6-24
Silver is on a long-term buy signal.

chanslv6-24
SLV is on a short-term sell signal, and short-term signals can last for days to weeks, more suitable for traders.

chansilverspec6-24
COT data is supportive for overall higher prices.

Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Statements and opinions expressed are the opinions of Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation or editing so the author could speak independently about the sector. The author was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) Jack Chan: We do not offer predictions or forecasts for the markets. What you see here is our simple trading model, which provides us the signals and set-ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion. We also provide coverage to the major indexes and oil sector.
3) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

Charts courtesy of Jack Chan

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17521

Jim Rickards Exclusive: Dollar May Become “Local Currency of the U.S.” Only

Your browser does not support the podcast player element.
DOWNLOAD MP3

Mike Gleason: It is my great privilege to be joined now by James Rickards. Mr. Rickards is editor of Strategic Intelligence, a monthly newsletter, and Director of the James Rickards Project, an inquiry into the complex dynamics of geopolitics and global capital. He’s also the author of several bestselling books including The Death of Money, Currency Wars, The New Case for Gold, and now his latest book The Road to Ruin.

In addition to his achievements as a writer and author, Jim is also a portfolio manager, lawyer and renowned economic commentator having been interviewed by CNBC, the BBC, Bloomberg, Fox News and CNN just to name a few. And we’re also happy to have him back on the Money Metals Podcast.

Jim, thanks for coming on with us again today. We really appreciate your time. How are you?

Jim Rickards: I’m fine, Mike. Thanks. Great to be with you. Thanks for having me.

Mike Gleason: Absolutely. Well first off, Jim, last week, the fed increased the fed funds rate by another quarter of a point as most of us expected, but during that meeting, we also heard Janet Yellen say she wants to normalize the Fed’s balance sheet, which means the Fed could be dumping about $50 billion in financial assets into the marketplace each month. Now you’ve been a longtime and outspoken critic of the fed and their policies over the years. So, what are your thoughts here, Jim? Do you believe they will actually follow through on this idea of selling off more than $4 trillion in bonds and other assets on the Fed’s books? And if so, what do you think the market reaction would be including the gold market?

Jim Rickards: Well, I do think they’re going to follow through. Of course, it’s important to understand the mechanics of the Fed. They’re actually not going to sell any bonds. But they are going to reduce their balance sheet by probably two to two and a half trillion. So just to go through the history and the math and the actual mechanics there, so prior to the financial crisis of 2008, the Fed’s balance sheet was about $800 billion. As a result of QE1, QE2, QE3, and everything else the fed has done in the meantime, they got that balance sheet up to $4.5 trillion. By the way, if the Fed were a hedge fund, they’d be leveraged 115 to one. They look a really bad hedge fund. But that’s how much the Fed is leveraged, they have about 40 billion of equity, versus 4.5 trillion of assets. Mostly U.S. government securities of various kinds. So, they’re leveraged well over 100 to one.

And if you mark the balance sheet to market, not always but sometimes depending on what interest rates are doing, they’re actually technically insolvent. There have been times, again not all the times, but times when the mark to market basis, the Fed would have negative equity or basically would be broke if they were anyone other than the Fed. So that’s how leveraged they are. That’s how bad it is.

Now, what they want to do is to get the balance sheet down to what they consider normal. Now normal is completely subjective. There’s no rigorous scientific formula for what’s normal. The way you would do it is go back to 2008, start with the 800 billion, and say well look, if we had grown the balance sheet on the prior path, where would we be today in 2017, going into 2018, 2019? That number’s around two trillion. I mean it wouldn’t have been 800 billion. They’re not going to hold it steady. But probably just two to two and a half trillion for an approximation, which means that they have to reduce the balance sheet by two trillion dollars or more to get back to normal.

Now the question is, how do you do that? And again, I just want to emphasize, they’re not going to sell any bonds. What they do is they let them mature. If you want to go buy a treasury bond, let’s say we bought a 5-year note, five years ago and it was maturing today. What would happen? The Treasury just sends you the money. It’s like any bond. You don’t have to sell it. You don’t have to do anything with it. They just send you the money. They have your account and the money just shows up in your account. Well, it’s the same thing with the Fed, they have all these trillions of treasury notes and bonds and bills and mortgages and all that. And when they mature, the Treasury just sends them the money.

So, if that’s true, which it is, why hasn’t the balance sheet been going down all along? Well the answer is, they have been reinvesting the proceeds. So, as I say, if you have a 5-year note you bought five years ago, it matures, treasury sends you the money. Well the Fed has been going out buying a new 5-year note to replace the 5-year note that just matured. So that holds the balance sheet constant. During QE, they were actually doing more than that. They were not only rolling over the existing balance sheet. They were buying new securities with money from thin air.

That, by the way, for listeners who may not be familiar, that is how the Fed creates money. So, the Federal Reserve calls one of the so-called primary dealers which are the big banks. It’s Goldman Sachs, City, JP Morgan, the usual suspects. And they say, “offer me 10-year notes or 5-year notes, whatever.” And the dealer will offer them a price. And the Fed will say, “Okay, you’re done.” And then the dealer delivers the treasury notes to the Fed. And the Fed pays for them. But the money comes from nowhere. If you or I called Merrill Lynch of Goldman Sachs or somebody and said, I’d like to buy some 10-year treasury notes, they would sell them to us, but we’d have to pay for them with real money. I mean the money would come out of our brokerage account or a bank account. Whereas when the Fed does it, they just say, “Here’s the money.” And it literally comes from thin air.

So that’s what Quantitative Easing was. That was printing money to buy bonds to build up the balance sheet. And then that money went into the banking system. Of course, all the banks did was give it back to the Fed in the from excess reserves. On which they got interest, so the whole thing was just a way to funnel earnings from the treasury to the banks at the tax payers expense without anyone knowing. I mean obviously, technically I just described it, but this is not something that the everyday American necessarily understands that well. So, that’s what QE is, and this is now the opposite. And the name for it is quantitative tightening. So, when they were printing money, it was Quantitative Easing. Now that they’re making money disappear, that is what happens, it’s Quantitative Tightening, so we call it QT.

So, we had QE1, QE2, QE3. Now we’re going into QT or quantitative tightening. Now this does make money disappear. It’s the opposite of creating money. So again, simple example. The 5-year treasury note on the Fed balance sheet, it matures. The Treasury sends you the money. Now what they’re going to do, Mike, this is what you referred to, instead of going out and buying a new one to roll it over, they do nothing. And then the money disappears, the bond disappears, because it matured. And the balance sheet shrinks. So, the significance is not that they’re dumping bonds, because they’re not going to sell a single bond. The significance is that they are not buying new ones. Now at the margin, that still affects the market. The Fed has been the biggest buyer of new treasury issues for the last eight years.

In recent years, they’ve been buying as much as 30% of all the treasury bonds. So of course, the treasury issues bonds all the time to cover the deficit, right? So, we’ve had these huge deficits. They were over a trillion dollars back in the Obama days. They’re now down to around 400 billion, but that’s still a very big number as a percentage of GDP. And the Treasury covers those deficits by issuing notes and bonds. Well, the Fed has been buying 30% of them. So, it’s like any market. You take the biggest buyer out of the market, what’s going to happen? Well prices are going to fall, which means that interest rates go up. So that’s going to be a very strong headwind for the economy.

Now the Fed is trying to pretend that that’s not going to happen. And I know that sounds ridiculous, but here’s the way they’re spinning this whole thing. The Fed is saying, “Look, our policy tool is interest rates.” When they were zero, they didn’t have any flexibility. They couldn’t go below zero. I mean technically, you could go to negative interest rates, but the Fed never did. The evidence is pretty good that negative interest rates don’t work anyway. So, let’s just put negative interest rates off to one side for the time being. They are a tool in the toolkit, but not a tool that the fed has ever used or is planning to use. So, put negative interest rates to one side. Treat the zero interest rates as a hard boundary. When they were on the boundary, they couldn’t really do anything with interest rates. They couldn’t cut them anymore. They certainly weren’t going to raise them at the time.

But now they’ve got them up to 1%. We’ve had four interest rate hikes. December 2015, December 2016, March 2017 and June 2017. So, we have four rate hikes behind us – 25 basis point each. So that actually got rates up to 1%. Now they’re indicating they’re going to raise them some more. I don’t see that until December at the earliest. Maybe not even then, but I don’t think they’re going to raise rates in September. But they’re hinting that they will. They think they can raise them. If somehow we dropped into a recession, they wouldn’t do this right away, but they could cut them.

So, the Fed feels that the interest rate tool is now in use again. They can raise them or cut them. They’ve got a little bit of flexibility both ways. So, they don’t need to use the balance sheet. So, what they’re saying is, “Okay, starting now, we’re not going to sell any securities, but we’re not going to buy new ones. The amount that we’re not going to buy.” It’s kind of a strange concept, how much are you not going to buy? Or in other words, what’s the ceiling on the amount that you’re prepared not to roll over. And it’s going to start low. They’re going to start at 10 billion a month at six billion in treasuries and four billion in mortgages, but they’re going to ratchet it up. Every three months that number’s going to go up and up and up. Until they get to the point where, and this is the number you mentioned, it’s $50 billion a month broken into 30 billion in treasuries, 20 billion in mortgages.

But it’s 50 billion a month times 12 months is 600 billion dollars a year. So sooner than later, meaning late 2018, early 2019, the Fed is going to not roll over $600 billion a year. Put differently, $600 billion a year in money is going to disappear. The Fed would like us to believe that that’s not a monetary tightening, that that’s not going to have any impact on the economy. That’s nonsense. How could they tell us for eight years that Quantitative Easing was stimulative, that Quantitative Easing acted through the portfolio channel sect by pumping up stock prices, by pumping up house prices, making it good collateral for loans. This would increase funding and spending, have a wealth effect. All this wonderful stuff.

By the way, a lot of what I just said is nonsense. I mean I’m describing how the Fed thinks about it. It’s not necessarily how I think about it. Nor do I think all that stuff works the way they think it does, but that’s what they told us. That Quantitative Easing would have all these wonderful effects. Well how come Quantitative Easing has those good effects, but Quantitative Tightening or QT doesn’t have any bad effects? That seems ridiculous. So, little by little, they’re going to work their way up to $600 billion a year of money that disappears, that reduces the base money supply (M0), but somehow, we’re all supposed to pretend that that’s going to have no impact on stock prices or housing. I think that’s nonsense.

So, it’s a very big deal and the Fed says they wanted to run on background, wants to pretend that this not rolling over the 600 billion a year is going to run on background, pay no attention to that man behind the curtain. We’re not going to use it as a policy tool. We’re just going to do interest rates up or down over here, so ignore this. Well they can say that, but the market’s not going to ignore it. The market understands what’s going on. And it will have this tightening effect as you described.

So, the Fed is blundering once again. They can’t seem to get anything right. That’s not really surprising when you have the wrong models, obsolete models, you’ll get the wrong policy every single time. But the economy’s weak. It’s getting weaker. We may be in a recession sooner than later. The market looks vulnerable and now the Fed wants to launch this major tightening program. I think it’s nonsense to think that won’t have some very bad effects.

Mike Gleason: Switching gears here a little bit. I want to talk about the dollar. It’s long been said that the U.S. dollar is significantly boosted and allowed to maintain its status as perhaps the world’s most reliable fiat currency or the tallest midget at the circus, so-to-speak, because the world’s financial system is built around the dollar. It is used to settle trades of oil and practically everything else. Now you’ve written a lot about currency wars and how this type of thing plays out and what goes on behind the scenes with all of this. And you just know people like the Chinese and Russians would love nothing more than to see the Petro-dollar taken out and replaced. Is our US dollar going to retain its Petro-dollar status over time here, Jim?

Jim Rickards: I don’t think so. There’s a very famous line from an Ernest Hemingway novel. The novel is The Sun Also Rises. It’s basically two guys, they’re having a drink at the bar and the one guy’s recently gone bankrupt. The other guy’s a little incredulous and he says, “Well how did you go bankrupt?” And his very famous answer was, “Slowly at first, then quickly.” Meaning, with any exponential algorithm or any exponential function, it starts slowly at first and then quickly. In other words, it’s the famous story of the courtier to the emperor of Persia, who did the emperor a service. The emperor was so pleased, he said, “I’ll give you anything you want. What do you want?” And the guy took out a chess board and he put one grain of rice on one corner. He said, “I’d like you to double the rice every square, so I’ll get two grains of rice on the second square, four grains of rice on the third square. And eight grains of rice on the fourth square, etc. around the board. And that’s how much rice I want.”

So, the king goes, “Done. You got it.” And then of course, he didn’t do the math. That’s two to the 4th power because there’s 64 squares on a board. And then the king’s administer came back later and said, “That’s more rice than the entire kingdom.” So, it’s an example of how starting with a grain of rice, you can bankrupt a kingdom when you have any kind of exponential effect going on. So, with regard to the U.S. dollar, yeah, the dollar is 60% of global reserves today. It’s 80% of global payments today when you look at all bank wire transfers and purchases of securities and currency trading and global trade, etc. No doubt that it is used to price oil and a lot of other things. So, no doubt that the dollar is the dominant global reserve currency today.

But I see at least seven or eight different, very powerful threads. Those grains of rice are going two, four, eight, 16, 64, 128 and so forth, leading to the demise of the dollar. So, what are they? Well number one, is gold. I think the China gold acquisition story is pretty well known. The Chinese officially say they have about 800 tons of gold. By the way, all these numbers I’m going to recite, these are all government gold. I’m not talking about private gold, which is a separate area, also important, but just government gold. China says they have about 1,800 tons. But (there’s a) very good reason to believe, based on Chinese mining output figures, Chinese gold imports, activities of People’s Liberation Army, which moves the gold. I’ve been to China recently. I met with the top gold banks in China.

I’ve also been to Switzerland recently and met with refiners there who actually sell gold to the Chinese and based on a lot of sources, it looks like they probably have more like maybe 4,000 tons, maybe even higher than that from all it’s probably higher, maybe 5,000 tons of gold. Russia is a lot more transparent than China, but they have tripled their gold reserves in a little over 10 years. In 2006, they had about 600 tons. And now they just passed 1,700 tons. We just got the numbers for May. That may not sound like a lot compared to the 8,000 tons that the United States has, officially 8,133 tons, but remember Russia’s economy’s only 1/8th the size of the U.S., but they have almost one quarter the amount of gold, which means that their gold to GDP ratio is double the United States.

If you had to back up your economy with gold, Russia would have twice as much as the United States again, all relative to the size of their economy. China is about on the par with the United States. It seems determined to pass the United States. So, two of the most powerful countries in the world are buying all the gold they can lay their hands on. The way I put it to people is, you can draw two conclusions. Number one, the Chinese and the Russians are really dumb. Or, they see something that you don’t. They see something that most people don’t see coming. I’ve spent time in Russia and China, they’re not dumb, meaning they see something that most people don’t see. And they’re preparing for a post dollar world or a world in which the confidence in the dollar is greatly eroded. So that’s one thread right there.

Beyond that, we have crypto-currencies. And I don’t want to get into Bitcoin and all that, but that’s a whole separate subject. It’s a long subject and a difficult one for a lot of people. But in all my discussions, I’ve always separated block chain from bit coin. Block chain is the technology behind the distributive ledger and how you actually account for the bitcoins. Bitcoin is the specific digital currency. And there are others out there. Bitcoin may or may not be the future though. That remains to be seen. I have my doubts, but others disagree. But there’s no question that block chain technology has a bright future. Russia is exploring that. If you were Russia, then you were the central bank of Russia, why would you want to be talking to the founder of Etherium or other experts on block chain technology.

Well one answer would be that you’re building a digital currency alternative to the dollar that the U.S. cannot hack or disrupt, because right now everybody’s vulnerable to dollar sanctions. So, Russia doesn’t love the dollar. They don’t love the United States, apparently. But when they sell their oil on global markets, they get paid in dollars. Now they then take the dollars. They do stuff with them. Sometimes they buy gold. We talked about that, and that they store the gold of Russia. They don’t store it in New York by the way.

Or they can buy U.S Treasury securities and they have some of those. They can buy European or Euro denominated securities, German government bonds – they have some of those etc. or they can put it into their sovereign wealth fund. So, there are a number of things they can do with the money, but they always start with dollars. And when you start selling dollars for euros, or buying gold, sending the dollars to a Swiss refinery, getting the gold in return, etc. you’re trapped in this dollar payment system that I was describing earlier, where all of what is called the message traffic – I pay you, you pay me. And we do it through banks. How is that actually done? Is it through these MT forms on Swift MT stands for message traffic?

That’s how we make irrevocable transfers. Well the United States has a choke hold on all that. We definitely have a choke hold on Fed-wire, which is the dollar payment system. And through our allies and out intelligence services, we have a choke hold on Swift, which is the international payment system.

Russia is very uncomfortable having to transact through a system that the United States holds in its grip. It’s like you’re in intensive care and you’re on oxygen and your worst enemy has his hand on the oxygen supply. They can cut it off anytime they want. So, Russia is building alternative payment systems. It’s not enough to try to get out of dollars into gold. You actually – if you’re going to transact, if you’re going to pay people for things – you need an alternative payment system that the U.S. does not control. Block Chain offers that. So, Russia and China are pursuing that.

There are there threads out there. The Chinese are very heavily diversifying into euros right now. Not all at once… none of these things happened all at once. But if you look around at the landscape, and Russia and China are buying gold. Russia and China are looking at digital payment systems, block chain type technology that the U.S. can’t control. Russia and China are doing currency swaps. China’s doing currency swaps throughout the world with Brazil, Switzerland, and with a lot of other countries. Saudi Arabia is looking at perhaps pricing Chinese oil in yuan. They’ve done currency swaps with China. They’re working on these block chain based technologies. China’s buying euros. This has the look of, you lose your status slowly, and then quickly at the end.

So, yes, I think that the dollar will sooner than later lose its status as the dominant global reserve currency. It doesn’t mean dollars go away. It does not mean that we wake up one day and, “Oh, gee. There’s no dollars.” It just means that it becomes less and less important, the U.S. loses its financial leverage, and the dollar may end up like the Mexican peso. If I go to Mexico, I’m going to get some pesos, because I need them down there for taxi drivers or tips or bartenders or whatever. So, it’s a local currency, but I’m not going to take them back to the United States with me.

Well, the dollar could get to the point where it’s the local currency of the United States. You’ll have some when you come here. And you and I might get paid in dollars or spend money in dollars or whatever, because we live in the United States. But it loses its global reserve currency status. And that’s a very big deal in terms of the ability of the United States to run perpetual trade and budget deficits without having to suffer inflation or suffer devaluation or the consequences that countries like Argentina know all too well.

And we haven’t even talked about the SDR, which is another alternative to the dollar. I’ve been talking about Russia and China and block chain and gold and euros, but the SDR is out there as well. The last issuance of SDRs was fairly recent in 2009, in the aftermath of the financial crisis. And then the next global liquidity crisis, which again, you can foresee and expect. Independent of the decline of the dollar. That’s something that’s just happening in front of our eyes. But a global liquidity crisis could happen at any time. And it begs the question. How do you re-liquefy the world? How do you put out or end a global liquidity crisis?

The last time it was the central banks bailing out Wall Street and really bailing out the world, but going back to the earlier part of the interview, Mike, when we talked about the Fed reducing their balance sheet. Well the way the fed dealt with it last time was by expanding their balance sheets. From 800 billion to 4.5 trillion. Printing money in other words.

Well what if a global liquidity crisis hit soon or maybe even next year long before the Fed reduces their balance sheet? Why is the Fed reducing their balance sheet? Why do they care? Why not just keep the 4.5 trillion? What’s the big deal? Well the answer is they’re at the outer limit of a confidence boundary. They’re at the outer limit of how much money they can print before people start to question the value of the money itself. So, they want to get it down to two trillion, so they can go back up to 4.5 trillion again if they have to. In other words, if here’s another liquidity crisis. And you start at maybe two trillion, you can take your balance sheet up to five trillion with, that would be QE4 and QE5 and QE6.

And that would help to maintain the U.S.’ dominance. But here’s my question. What if the liquidity crisis hits before the Fed can get their balance sheet normalized, which in my view is very likely. Well in that case, you need another source of liquidity, and that source would be the IMF issuing SDRs and that would be the end of the dollar. So, the threats are everywhere. They could come from a lot of different directions. In fact, all these things will tend to converge, each one will amplify the other. But they all point in the same direction, which is the devolution in confidence in the value of the dollar and much, much higher dollar prices for gold.

Mike Gleason is a Director with Money Metals Exchange, a national precious metals dealer with over 50,000 customers. Gleason is a hard money advocate and a strong proponent of personal liberty, limited government and the Austrian School of Economics. A graduate of the University of Florida, Gleason has extensive experience in management, sales and logistics as well as precious metals investing. He also puts his longtime broadcasting background to good use, hosting a weekly precious metals podcast since 2011, a program listened to by tens of thousands each week.

The post Jim Rickards Exclusive: Dollar May Become “Local Currency of the U.S.” Only appeared first on Gold Silver Worlds.

from Gold Silver Worlds http://goldsilverworlds.com/gold-silver-experts/jim-rickards-exclusive-dollar-may-become-local-currency-u-s/

Gold and Silver Are “Asymmetric” Trades

An asymmetric trade is a situation where investing a relatively small amount of money holds the potential of yielding a profit many times the amount of the original sum at risk. In other words, where the risk to reward is skewed massively in the direction of reward.

This took place recently with Bitcoin (BTC). Is this conceptually different from bets made years ago on Microsoft, Cisco, Amazon, or Facebook, which yielded hundreds of percent profit to intrepid investors? Does it have relevance to the possible returns during the next few years for those who hold physical gold and silver?

I would answer “yes” and “yes.”

The current “mania” in the cryptocurrency space – most notably BTC and Ethereum (ETH), along with a few other “app coins” – offers an in-future lesson for a similar setup in the precious metals. (For more on the above topic, see “The Blockchain: A Gold and Silver Launchpad?

First: This may be the first time ever that an investment “story” has had the ear and investment dollars of a global audience on a simultaneous basis. Individual investors, hedge funds, businesses, and even countries, are sending a torrent of funds, with the effect, to paraphrase Doug Casey’s famous remark, of “trying to push the power of the Hoover Dam through a garden hose.”

3-Month Bitcoin Chart

At this point, trying to use technical analysis, Elliott Waves – or common sense – in predicting when and how this moon shot is going to end, or even level out, is of little help. Taking some money off the table of a large position still makes sense. But “going to cash” with the idea of getting back in might become a tactical – or even strategic mistake.

In January 2017, ETH could be had for $10 each. By $50, the charts and many soothsayers said that it was “grossly overbought.” Time to cash out? Today ETC sells for $328 each. Can you predict at what price level this will end? Not I. During a bull run of indeterminate length and height, losing your (core) position can knock your profit-making efforts to the curb.

This is exactly what metals’ and miner-holders will face as the next leg(s) of the secular bull run in gold and silver starts moving upward in a sustainable manner. The temptation to sell out at 3-4x will be overwhelming – especially for those who bought at higher levels and are looking for an excuse to “get out at break-even.”

In order to ride the tiger for as long as possible, you will need to have decided beforehand what part of your holdings are defined as “core” – insurance and longer-term investment-related, versus “speculative” – selling into great strength, in order to take profits and “play with the house’s money.”

Without having a plan early on, you WILL end up selling too soon.

Second: Because of the Internet’s power to instantly broadcast information, good or bad, the time it takes for this kind of price run to get underway and rocket off into space has been greatly compressed. It took over two decades for Microsoft to “do its thing.” Amazon? Arguably about 15 years.

Could BTC go to $500,000 each in 5 years? Your guess is as good as anyone else’s on the planet. Jim Rickards has gone on record predicting $10,000 gold, and I have written that silver could rise to $175 to $250 the ounce.

Apply this reasoning to the precious metals.

This report is not about how to “make a killing” on bitcoin. It IS about applying the same kind of thinking to the metals.

What if the new factor of digital metals become wildly successful in the coming years and adds to the already strong demand against finite above-ground holdings? This could cause gold and silver prices to go through the roof… just as new supply from the mines goes into a tailspin.

The coming bull run in the metals – because it too will be “globally attended” will be taking place in a sped-up investing environment, and with the tailwind of a “digital metals’ kicker” – could offer the same kind of wildly unbalanced asymmetric opportunity currently being witnessed in the cryptocurrency space.

Is Your “Picture” Big Enough?

May 22, 2017 was the seventh anniversary celebration of “Pizza Day.” It may have been the first successful trade of BTC for something “tangible” – in this case, two pizzas from a Papa John’s franchise. Laszlo Hanyecz wrote, “I’ll pay 10,000 Bitcoin for a couple of pizzas… like maybe two large ones, so I have some leftover for the next day — I like having leftover pizza to nibble on later.”

Hanyecz can be forgiven back then for not comprehending the potential this new vehicle might someday offer. Still, we can learn from his personal outlook.

And we can learn from the person who sold Bill Gates an operating system for a pittance; the wealthy investor who refused to make a $10 million initial seed loan to a startup operation called Home Depot; or the financier who kicked out the Google founders when they sought a loan for less than one million dollars.

We need to make sure our minds are open enough to “allow” for whatever the future might have in store for our investment and insurance positions in the precious metals’ space.

This is not about mindlessly holding an entire position indefinitely for “the long term,” but rather keeping in mind that the potential gain could be all out of proportion to what we now think is possible… and acting accordingly.

Do you suppose that a few short years ago, anyone in Venezuela thought that having just one ounce of silver would one day be exchangeable for 6 months of food, or for an ounce of gold… a house? I didn’t think so.

But just to be fair, the bolivar fuerte – “strong bolivar” currency – in spite of thousands of percentage point devaluation per year, still does have some value… as a napkin, which the adjacent picture that has since gone viral shows.

The moral of this story is that you should continue to exchange some of what David Morgan has so famously called “paper promises” for more physical gold and silver – and if you’re still on the fence about getting started, get a move on!

Don’t be wishin’ and hopin’ at $40 silver that you should have done something at $17, or worse yet, instead of getting invested now, say… “I’ll just wait for a correction.”

David Smith is Senior Analyst for TheMorganReport.com and a regular contributor to MoneyMetals.com. For the past 15 years, he has investigated precious metals’ mines and exploration sites in Argentina, Chile, Mexico, Bolivia, China, Canada, and the U.S. He shares his resource sector findings with readers, the media, and North American investment conference attendees.

The post Gold and Silver Are “Asymmetric” Trades appeared first on Gold Silver Worlds.

from Gold Silver Worlds http://goldsilverworlds.com/stocks/gold-silver-asymmetric-trades/

Good News Pouring In for a British Columbia Miner

Source: The Gold Report   06/22/2017

Once again analysts are talking about this British Columbia mining company that just announced its first gold pour.

In a June 21 press release, Pretium Resources Inc. (PVG:TSX; PVG:NYSE) announced its 100% owned Brucejack Mine had its first gold pour and “that the flotation and gravity circuits are now operational. In addition, gold-silver flotation concentrate is being produced and bagged, with initial shipments scheduled.”

In a June 21 report, BMO Capital’s Andrew Kaip followed up on his May 1 report by explaining that “the focus for PVG now turns towards the ramp-up to commercial production. We currently model commercial production at the end of Q3/17, but note that following the announcement, PVG could declare commercial production earlier than expected.”

Kaip concluded by pointing out that “saleable shipments, even if for lower-grade material, will provide early-stage cash flow for the company. With Q2/17 results upcoming, financial reporting will provide an indication on how PVG is tracking towards its budget.” He rates Pretium as an Outperform with a target price of $19.50.

Eric Zaunscherb, an analyst with Canaccord Genuity, stated in a June 21 report that the gold pour “is a major milestone for the company as it has been working diligently to bring the project into commercial production, a declaration expected in the back half of this year.” Zaunscherb points out that in his May 1 report he highlighted “management’s view that the production of gold concentrate and doré in the coming weeks was on track; this current announcement is in line with expectations.”

Zaunscherb concludes “that the share-price dip of late is likely a good buying opportunity “and that “Pretium currently trades at a normalized P/NAV (5%) of 0.61x, a premium to covered development companies at 0.52x. In our opinion the premium is justified due to the project’s scalability (exploration upside), low sovereign risk and the potential appeal as an M&A target.” He maintains a Speculative Buy rating with a target price of $17.50.

In a May 17 interview with Gold Report, Louis James, editor of the International Speculator, highlighted that Pretium “is on the verge of pouring its first bar of gold” and pointed out that regardless of critics worried about Pretium’s methods that the “bulk sample produced something like 60% more gold than was expected based on the model.” He summarized “that the company was not being risky or cavalier; in fact, it was being conservative” and thought that “we’re about to find out if I’m right.”

Pretium is currently trading at around $9.39.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Pretium Resources Inc. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Additional disclosures about the sources cited in this article

( Companies Mentioned: PVG:TSX; PVG:NYSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17520

Junior Miner Cracks a Strategic Tough Nut in British Columbia

Source: The Gold Report   06/21/2017

The acquisition of the Toughnut Project in British Columbia would provide strategic access to the Silver King Shear Zone adjacent to the explorer’s existing properties.

Prize Mining Corp. (PRZ:TSX.V), a junior miner that holds the Kena-Daylight project in southeastern British Columbia, just announced that it has signed an option agreement to acquire a 100% interest in the Toughnut property, which is contiguous to the west side of Daylight. The company is taking a district-wide approach to the area.

According to Prize Mining Corp., “the 1,010 hectare Toughnut claims strategically cover over 3.5km strike length of the Silver King shear including most of the mineralized land between Prize’s main Starlight-Daylight block and Prize’s Sand block to the northwest.”

Feisal Somji, president and CEO of Prize Mining stated, “This is a strategic acquisition for Prize Mining as we now control what we believe to be the most significant part of the mineralized Silver King shear zone. This parcel of land will play an important role in this summer’s exploration program as we prepare to drill this fall.”

Under the terms of the agreement, Prize will pay CA$150,000, issue 250,000 common shares and spend CA$750,000 on exploration over the next five years. There is a 2% net smelter royalty (NSR), of which Prize has the right to purchase one half for CA$2 million up to the date of commencement of commercial production.

Prize Mining reported that the Toughnut Showing, “which includes old pits, shafts and trenches, had grab samples from Pacific Sentinel in 1989 that returned 6.64 g/t, 8.65 g/t, and 32.8 g/t Au with associated silver ranging between 33 and 175 g/t Ag. Follow up diamond drilling by Valeterra Resource in 2010 returned a best intercept of 6.9 g/t Au and 143 g/t Ag over 2.0m, and 4.05 g/t Au over 8.0m in hole VTN10-005.”

The company also stated that the Gold Eagle Showing, which is located 500m north of the Toughnut Showing, “was drilled by US Borax in 1988 who reportedly returned a strongly anomalous intercept of 90 g/t Au over 1.53m (RC hole S88-43) (AR 19503). In 2010 Valterra Resources also drilled the property with its best results being 4.02 g/t Au and 9.52 g/t Ag over 24.33m (including 4.0m of 14.47 g/t Au and 3.46 g/t Ag). The zone has been tested to 73m and remains open and along strike and down dip.”

Prize Mining earlier reported that it had engaged TerraLogic Exploration to manage the 2017 Daylight exploration program. The company noted that the Daylight Property is a “contiguous land package located in the northwest corner of Prize’s approximately 8,000 hectare Kena Project. The Daylight Property hosts four historical producing gold mines: Starlight, Victoria, Great Eastern and Daylight. A detailed desktop compilation carried out by TerraLogic has identified and prioritized four highly prospective gold bearing zones based on previous field work including geochemistry, geophysics, prospecting, surface sampling, and limited diamond drilling.”

Veteran investor Chen Lin discussed Prize Mining in an article in The Gold Report on May 25, prior to the announcement of the option agreement: “I had a discussion with Prize Mining CEO Feisal Somji yesterday. If you recall, Mr. Somji built and sold Rio Alto during the recent downturn of the market. PRZ is his new baby, and it is a new kid in town for junior investors. PRZ has consolidated the district of Daylight in British Columbia for the first time. The company is going to drill the high-grade targets this summer. According to the historical mining results, the chance of high-grade discoveries (30-100 grams/ton gold over multiple meters) is high. Going forward, Mr. Somji plans to do ‘bulk sampling’ of the high-grade material starting in 2018, and send the samples to the Kinross mill nearby, which is running out of ore. This way he will be able to generate good cash flow to support building a mine there.”

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Prize Mining Corp., a company mentioned in this article.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17519

Dollar Update

Source: Clive Maund for The Gold Report   06/20/2017

The U.S. dollar has held up better than expected, says technical analyst Clive Maund, as he discusses its downside potential.

While the dollar has held up better than expected in the recent article “The Sun Rises on the Precious Metals Sector” in that it has not continued to drop, it hasn’t risen much either, and what rise there has been has significantly unwound its earlier oversold condition, which, of course, has opened up downside potential again. We can see all this on the latest 8-month chart for the dollar index shown below. While the most optimistic interpretation of this chart is that it is forming an intermediate base here and that the still rising 200-day moving average some way above indicates room for a sizeable rally, the break below the red trendline a month ago is still viewed as a bearish development, especially as until now it has been forced lower at an accelerating pace by the parabolic downtrend shown, and we have seen a bearish moving average cross late last month. In any event, and regardless of whether it breaks higher or not, there is quite heavy resistance immediately above, at the parabolic trendline, then the red downtrend line almost at the same level, and above that towards the support level in the 98.5 area which having been breached a month ago is a source of resistance.

US Dollar 8-month chart

The following text written with respect to the 4-year dollar chart is taken from the report “The Sun Rises on the Precious Metals Sector” as it is unchanged. . .

On the 4-year chart for the dollar, we can see how the it broke out above resistance to new highs on euphoria over Donald Trump’s election victory, but it was subsequently unable to hold on to these gains, and has slumped back into the large trading range, a bearish development, particularly as the entire pattern from early 2015 now looks like a giant bearish Broadening Top. Having broken down back into the pattern and below its 200-day moving average, which is rolling over, it now looks like it will continue lower to the key support level at the bottom of the pattern, as a 1st stop, despite its already being significantly oversold. If it breaches this support there is some support lower down at the red trendline, which marks the lower boundary of the Broadening Top, but if it breaks below that things could quickly get a lot more serious.

US Dollar Index 4-year chart

Clive Maund has been president of http://www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see recent articles with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Statements and opinions expressed are the opinions of Clive Maund and not of Streetwise Reports or its officers. Clive Maund is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Clive Maund was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

Charts courtesy of Clive Maund.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17517

Quebec Explorer Raises $4M, Welcomes Eric Sprott And Osisko Mining as Significant Shareholders

Source: The Critical Investor for The Gold Report   06/20/2017

Exploration on its Quebec property is up next for this junior after raising money from some prominent players, says The Critical Investor in this company update.

After compiling, interpreting and modelling all available data and surveys, and defining targets, Genesis Metals Corp. (GIS:TSX.V; GGISF:OTC) needed cash to advance their flagship Chevrier Gold project to the next stage: commencing of drilling. Management worked hard to gain interest, and it seemed they succeeded in their aim to get the company funded to drill well into 2018. On top of this, they welcomed two of the most respected and well-known names in the business, Eric Sprott and Osisko Mining as significant shareholders, which is impressive. The company completed 2 rounds of financing to achieve this.

On June 5, 2017, Genesis Metals closed its C$3.25-million non-brokered private placement previously announced on May 24, 2017. Eric Sprott, Delbrook and other large, strategic institutional investors also participated in this first big round.

The company issued a total of 7.3 million (7.3M) units at the price of C$0.14 per unit for gross proceeds of C$1M and 13.95M flow-through (FT) units at the price of C$0.16 per FT unit for gross proceeds of C$2.2M. Each unit consists of one share of the company and one-half of one warrant, each whole warrant exercisable to purchase one share at $0.20 per share until June 5, 2019. The FT units have warrants with an exercise price of $0.23 per share until June 5, 2019. A 2-year warrant is a healthy period, and the small discount and the 40-45% warrant exercise premium isn’t a dead giveaway too. Sometimes you see up to 5-year expiry periods with hardly any premium, which create an almost (and often sizeable) risk free overhang for non-participating investors, which I don’t really appreciate.

Finders fees accounted for 7% in cash and 7% in 2 year warrants, which is normal; standard finders fees are about 6-7% and can go as high as 10% in a bear market. The cash fee being paid was C$121,732.80 (C$117,672.80 to Medalist Capital, C$2,100.00 to Raymond James and C$1,960 to Echelon Wealth Partners) and the warrants issued were 146,160 finder warrants at C$0.14 and 632,940 finder warrants at C$0.16. (751,100 warrants to Medalist Capital, 14,000 warrants to Raymond James and 14,000 warrants to Echelon Wealth Partners). The warrant expiry prices were significantly lower compared to the placement warrants, but the amount is relatively small so I don’t bother too much here.

Sprott buying into Genesis for the first time and Delbrook topping up was a good thing to see, as big names bring additional credibility to a story. Eric Sprott acquired 4.85M shares and 2.4M warrants, representing approximately 7.2% of the issued and outstanding (O/S) shares on a non-diluted basis and 10.4% on a partially diluted basis. Delbrook acquired 3.48M shares and 1.74M warrants, which together with Delbrook’s existing holdings of 3.85M shares, resulting in a total of 7.33M shares and 1.74M warrants, representing approximately 10.83% O/S on a non-diluted basis and 13.07% on a partially diluted basis. This is all based on 67.65M shares O/S post-financing. Of course, a 21M shares plus 11M warrant dilution is very significant, as the company had a very tight 46.6M shares O/S and about 15M warrants and options, which would make this a 45% dilution O/S, and 34% F/D, but the company had to raise the cash anyway, the share structure is still relatively tight, and the company is set to start trenching and drilling shortly.

Chevrier Gold Project, trenchingChevrier Gold project; trenching

One can always debate whether a junior should raise in different rounds or not, trying to get success with the first-round cash, get the share price up and raise a second round at less dilution, but in this case I don’t see a lot of difference as for example a C$0.30 would save only about 5M shares O/S, and raising it all at once brings a lot of comfort for management, not having to go to the markets in the midst of a drill program. On top of that, Osisko Mining wanted in too, and you can’t send those guys, being the big power player in the Quebec region, away very easily as a small junior in my view.

On June 15, 2017, Genesis Metals closed its second and smaller non-brokered private placement previously announced on June 6, 2017, and this placement had the same share prices and warrant exercise prices as the C$3.2M placement. The company issued a total of 1.75M units at the price of C$0.14 per unit for gross proceeds of C$206,500 and 3.9M flow-through units at the price of C$0.16 per FT unit for gross proceeds of C$624,000.

Most of this placement was taken by Osisko Mining as a first investment, which acquired 4.7M shares and 2.3M warrants representing 6.4% of O/S shares of the company and 9.6% on a partially-diluted basis. The above percentages are calculated based on 73M O/S shares after closing. Again, Medalist Capital played a vital role in bringing Osisko to the table, receiving the same finders fee (about 7% cash and warrants) as was paid during the other round. This Osisko stake is in line with other strategic investments of Osisko in juniors in the broad area around Windfall, like Beaufield and Enforcer.

I estimate the cash position of Genesis Metals at C$4-4.2M at the moment, which is enough to complete several drill programs and other exploration activities well into 2018. So far, the company has been busy analyzing and interpreting existing data, completing an IP survey, modelling the Main, South and East Zones and defining trenching- and drill targets.

The interpretation of compiled data has identified 11 (I, J and K were added recently) priority targets that require evaluation by drilling in 2017:

Genesis' Chevrier Gold Project

Additionally, results from the recent IP survey have identified at least two new chargeability anomalies that appear to have not been evaluated by drilling:

Anomalies

And:

Chevrier Deposit Map

These anomalies probably will result into targets with following letters of the alphabet, and are the first targets to be drilled by Genesis, starting in the beginning of July, followed by the East Zone, and after this the drill rig will be mobilized to the Main Zone. Trenching around the Main Zone will start at the end of June, by the way. The company has planned a 5,000m drill program based on one rig for this summer, of which 2,000m will be focused on the IP targets and the East Zone, and 3,000m to the Main Zone for infill drilling.

As discussed in my earlier article on Genesis, the company only needs to redrill a fraction (about 10% it seems) of the historical holes to prove up the historical resource estimate, and my view is they can achieve 0.7-1.0 Moz by this small drill program, which is a bargain of course. If this figure can be reached and the ounces could be indeed economic as estimated, then this would put in a solid floor for Genesis. This summer program will be followed by a 5,000m fall-winter program. The all-in drill costs are estimated by management at C$170/m, so this entire program would only cost C$1.7M, with plenty of meters to spare if new discoveries would need further exploration.

I suggested to add one more rig, but it appeared that available rigs and especially personnel are very rare now in Quebec, since again Osisko Mining is using a lot of available drillers with their current 400,000m program, and active developers like soon to be acquired Integra also have a large drill program going on. In addition to this there are numerous explorers like Balmoral, Aurvista, Beaufield, etc. at work, and of course producers doing grade control drilling.

The 3D geological modeling is nearing completion for each of the three mineralized zones as mentioned, and the company is also working on rendered sections, which will increase the understanding of deposits. The results from the modeling will enable a better understanding of gold distribution and parameters that control this mineralization, and define the infill drill program for each zone:

Main Zone 3D Model

Another issue discovered by the company was the fact that not all located drill core was assayed, so the company is reassaying 1 out of 5 existing drill cores at the moment. To give you an idea for costs of this particular method of analysis, this will cost C$22/m, so this is relatively cheap since it is only a few holes of a few hundred meters each. I also asked the costs for an IP survey for the entire claim package since this seems to be flooded with targets, but this would be too costly, as the last IP survey already cost about $150k and covered only several targets. Management estimated a total survey at about C$1M, which was out of reach, plus the company already had defined more than enough targets to keep themselves busy for a year.

Genesis Metals is also performing the same work on compiling and interpreting of data on its other property, October Gold, to be finished in August. Since prices of claims and land packages were going up like crazy and there is increasing interest, the company told me looking for a JV partner was definitely something from the past now. It will be obvious that there is no money to complete all sorts of exploration and drilling on October Gold, but management isn’t planning on shelving it completely either.

A bit of a surprise was the leaving of Chairman Rob McLeod, who has been with the company and its predecessor since inception. As exploration is in his blood I’m sure he wanted to be involved at the beginning of drilling at Chevrier, but it appeared that Rob had too many directorships according to Glass Lewis rules, and his focus was increasingly needed at his family company, IDM Mining, of which he is CEO. Fortunately, and despite those rules of best practices, etc., Rob is able to stay involved at Genesis as a strategic advisor though, and CEO Brian Groves will assume the role of chairman in addition to his current position. Less of a surprise was the appointment of Vice President Jeff Sundar to president, as he was the founder and president & CEO of Genesis until the restructuring last year.

A long story short: Genesis Metals is fully cashed up and ready to drill, and I’m very curious what will come out of this. I expect the first few exploration drill holes to take two to three weeks to complete, plus another three to four weeks of assaying, although it will most likely also be crowded at the assay labs at the moment. Nevertheless, I expect a busy second half of the year for Genesis, with hopefully a lot of positive drill results, possibly taking care of a long-awaited re-rating.

October Gold propertyOctober Gold project; prospecting

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter at http://www.criticalinvestor.eu/, in order to get an email notice of my new articles soon after they are published.

Critical Investor Disclaimer:
The author is not a registered investment advisor, and currently has a long position in this stock. Genesis Metals is a sponsoring company. All facts are to be checked by the reader. For more information go to Genesis Metals Corp. and read the company’s profile and official documents on http://www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long term commodity pricing/market sentiments, and often looking for long term deep value. Getting burned in the past himself at junior mining investments by following overly positive sources that more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Streetwise Reports Disclosure:
1) The following companies mentioned in the article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
2) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Charts and photos provided by author

( Companies Mentioned: GIS:TSX.V; GGISF:OTC,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17515