Holiday in India Means Demand for Gold Will Rise

If you were in India right now, someone is bound to tell you that it’s that time of the year. He or she would be referring to the almost-three months of festivals and wedding season, which India sees starting from sometime late August and continues until early September. More specifically, just under a week remains…

The post Holiday in India Means Demand for Gold Will Rise appeared first on Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner.

from Precious Metals – Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner https://agmetalminer.com/2017/10/16/holiday-in-india-means-demand-for-gold-will-rise/

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Comfortably Numb: Surviving the Assault on Silver

Source: Michael Ballanger for Streetwise Reports   10/15/2017

Precious metals expert Michael Ballanger discusses the current state of the precious metals markets.

In the late 1960s and most of the 1970s, an English rock band named Pink Floyd dominated the world of progressive and psychedelic music with such memorable albums as “Dark Side of the Moon,” “Wish You Were Here,” and “The Wall.” One of their greatest hits was a song entitled “Comfortably Numb” and as I was listening to it the other night, the refrain in the middle of the song—”Gotta keep it going through the show; c’mon it’s time to go”—reminded me of the current state of the precious metals markets in the sense that the bullion bank criminals really are doing their utmost to “keep it (the price caps and interventions) going through the show”. That silver investors have been rendered “comfortably numb” by way of serial price assaults is a testimonial to the sentiment out there for silver equities, coins, and the like. In case you hadn’t noticed, sentiment for gold and particularly silver is outright putrid.

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Who Remembers THIS?

Surely, the competition for alternative investments such as Bitcoin, Eleutherum and other block-chain deals is fierce and with stocks hitting all-time highs literally every few days and with volatility at record lows, not many people have retained sufficient focus to concentrate on silver based upon the pure economics of demand and supply. Mind you, analysis of the supply-demand equilibrium for financial or non-financial assets is a useless exercise because the SUPPLY for items HATED by the central banks such as gold and silver is fabricated by way of swaps and loans and illusory WGC figures while DEMAND for items LOVED by central banks such as stocks and bonds is also fabricated by way of journal entries from sovereign treasury accounts or accelerated credit creation. Compounding this felony lies the moral hazard present in the elevated stock markets that have been largely buoyed by central bank largess as opposed to macroeconomic expansion on a global basis. Taking away the proverbial “punch bowl” now could be analogous to tightening credit in 1931, generally regarded as the major accelerant to the economic conflagration of the 1930s. At the least, traders are now unequivocally convinced that the Fed “has our backs,” a direct and total contrast to the dark days of 2008, when they were convinced that the Fed had erred in its role as an omnipotent watchdog over the banks. All it took was shuffling a few trillion in the direction of Washington and the “fix”, as they say, “was in.”

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Everyone in the markets these days is “behaviorally trained” insofar as it pertains to the expectation of “outcomes.” This is especially true of the precious metals where fifty years of central bank interference was capsulized with a ten-year moonshot to $1900 gold and (once again) $50 silver back in 2010-2011. Silver has remained my absolute top pick for the balance of the year but in deference to calling spades as they would appear, I called the bottom in the PMs about ten times between 2015 and 2016 and each time I was beaten about the face and arms until I went skulking off into hiding. Here in the final few laps of 2017, it would appear that silver is beginning to awaken and as the chart below would infer, some long-term downtrend lines are going to be summarily vanquished if the silver price stays simply “flat” over the next quarter.

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Speaking of being “comfortably numb,” former Fed Vice-Chair Stanley Fischer most certainly qualifies due to his reply to a question from Sara Eisen regarding the Fed’s “legacy” when he said that “their actions prevented a Great Depression from evolving.” Really? An organization owned by the major member banks in N.Y. and London that was supposed to oversee bank behavior sits by as it proceed to vaporize the system in 2007-2008 and Mr. Fischer lauds its actions because it bailed them all out with purchases of every toxic investment ever made by the perpetrators with taxpayer funds? That is like thanking the arsonist firefighter for dousing the flames from the fire he set in your living room.

CNBC lionizes these academic egghead clowns at every and all turns because the S&P 500 continues to hit record highs every day when all that this banker class have done for the past fifty years is ruin the purchasing power of your currencies and enrich themselves. I want an interview where Sara Eisen asks “Mr. Fischer, what exactly were you DOING when the bankers blew themselves up?” or “What exactly is on your balance sheet that someone else will buy?” If the toxic slime it bought from member banks in 2008-2009 was lethal then, how is it any less so now? The “normalization” of the central bank balance sheets will NEVER, EVER occur and they know it. They talk about it; they write about it; they think about it; but in the end that is all they will do. They made the blunders of the banker class simply “go away” and that means never to be seen again.

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The chart posted above is a compelling optic for making a bet on the return of “vol” to the marketplace because there has been a palpable absence of any kind of corrective behavior since investors shrugged off the North Korean missile tests in mid-August. Not hurricanes nor missile tests nor mass murder in Vegas could upset the apple cart as the rampaging bull took out all resistance levels in this latest near-vertical ascent. One of the signs of an impending top in any market is when, after a prolonged period of slowly rising prices, the chart goes “vertical” (meaning “straight up”), which is nearly the case with U.S. stocks.

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As is the case in this next example, the Nikkei 225 average did the same thing from 1980 to 1990 until the final exhaustion gap to the upside failed, rolled over, and solidified the “top.” However, while it is fairly easy to spot a top in terms of the x-axis (time), it not only impossible but also very dangerous to try to spot a top in terms of the y-axis (price). Any market that goes “vertical” after a prolonged period of gradually rising prices is a market on its last legs and while we have not yet gone truly vertical, the last few weeks have seen the S&P’s trajectory steepen and that is enough to invoke caution in this camp. This is a period for the S&P quite similar to the 1980s parabolic in the Nikkei 225, and before I hear the chorus of “Sour grapes!” and “But it’s different this time!” and “You are over the hill!”, I want you all to remember those fateful words of 2009: “As long as the music is playing, you’ve got to get up and dance.” (And we all know how THAT played out…)

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The open interest in gold futures continues to decline so it is no surprise that the Commercials have covered again this week albeit by a relatively paltry amount. I wrote back in July that I expected accelerated demand from the Indian wedding season and the Italian jewelry trade inventory restocking to exert upside pressure on gold and silver prices in the months of September through November and thus far the rally ended in the beginning of September with a big jump in the Commercial net short position to roughly 270,000 contracts. That figure has now plunged to just under 230,000, which is to be expected. The tiny amount of covering by the bullion banks is explained by the “up” week we just finished and since we had a strong rally since the Tuesday COT cut-off reporting period, I see the number advancing next week. I have not replaced the SIL calls nor have I added to the JNUG position and that is just fine since I have a fully-paid-for position at around $13.37 and am using zero leverage.

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The first weekly rally in five weeks for the precious metals has left me less than invigorated so as we head into the fourth weekend since autumn began, I am thankful for the changing of the colors in the north woods, the relative calm on lovely Lake Scugog with the summer boating crowd now absent, and the company of my faithful Fido who has returned from five weeks of hibernation under the tool shed, safe from the rants and tantrums of this humble penman, but still sleeping near the exit and with one eye permanently open.

Smart dog. . .

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

Want to read more Gold Report interviews 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 interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Statements and opinions expressed are the opinions of Michael Ballanger and not of Streetwise Reports or its officers. Michael Ballanger is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation. Michael Ballanger 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.
3) 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 images courtesy of Michael Ballanger.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17767

Week in Review: A Noisy Week in the World of Metals

Before we head into the weekend, let’s take a look back at the week that was.  Benchmark Your Current Metal Price by Grade, Shape and Alloy: See How it Stacks Up In case you missed it, our October MMI report is out. Make sure to check out the free PDF download for the rundown on…

The post Week in Review: A Noisy Week in the World of Metals appeared first on Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner.

from Precious Metals – Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner https://agmetalminer.com/2017/10/13/kobe-steel-data-scandal-opec-aluminum-glencore-zinc-coal-india/

Future Upside Provides Excellent Entry Point for Fiore Gold

Source: The Critical Investor for Streetwise Reports   10/13/2017

The Critical Investor provides an update on Fiore Gold, which has just resumed trading after completing a business combination with GRP Minerals. critical investor pic1.jpg

Pan Mine, Nevada

After a lengthy trading halt since June 12, Fiore Gold started trading on October 2, having completed the business combination with GRP Minerals. This took quite a bit of time, as it was a fairly complex venture for both companies, with a lot of paperwork. I view this deal as an accretive one, as a lot of tangible value through much more advanced assets was added, up to an estimated Net Asset Value of about C$120 million in my view, and a lot of realistic growth potential. Apparently, not everybody had the same long-term view for Fiore Gold as is needed in this case, the company now morphing into a long-term growth production story instead of an exploration story, and a sell-off started immediately after opening of the markets:

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Share price; 10 day time frame

My suspicion is that there were some shareholders from both sides of the deal selling their shares, as the initial story changed significantly for both companies, possibly appealing to different kinds of investors, although the volume wasn’t really massive on the first day comparing to the last few days as the share price bottomed at C$0.70. As the share price closed at C$0.76 yesterday on healthy volume, it seems that the worst is behind us now. As I have calculated in an earlier article, I don’t think this selling is very much justified. According to my estimates, the Net Asset Value (NAV) comes in at around C$120 million, as there are:

  • the current exploration assets, of which I estimate El Peñon at C$1M and Cerro Tostado at C$4M
  • about C$25M in cash, zero debt
  • the Pan Mine with a C$65M NPV and ramping up production
  • the Gold Rock historical deposit and the exploration potential of both Pan and Gold Rock combined at C$20M
  • Golden Eagle at C$5M, bringing the total NAV at C$120M.

The current market cap comes in at C$69.2M, so as the usual market cap to NAV ratio comes in at a very global 1.0-1.5, this would already indicate undervaluation. The valuation of a producer is usually much better represented by the market cap to operational cash flow ratio (which varies from about 8 to 12 in good jurisdictions at current gold prices/sentiment), so when looking at this metric we get confirmation for more upside when the Pan Mine is fully ramped up to commercial production next year.

The annual pro forma cash flow for Fiore Gold is calculated like this for a $1215/oz Au base case scenario: 40,000oz Au in 2018 x $1215- $685 = EBITDA US$21.2M – US$4.5M estimated depreciation etc – US$2.7M G&A = US$14M net income. Corporate taxes are about US$2M annually on average per the Feasibility Study. Operational CF is EBITDA – G&A – taxes = US$9.3M = C$11.625M. This does not take expensed exploration activities, currency fluctuations and changes in working capital into consideration. The corresponding estimated market cap would range from C$11.625 x 8 = C$93M to C$11.625 x 15 = C$174.4M, with a still conservative ratio of 10 resulting in an estimated market cap of C$116.25M, which would mean close to a double in a year from now.

When Fiore Gold is compared to a few other junior gold producers (some data coming from Haywood’s weekly update the Weekly Dig) it can be seen that Fiore Gold is pro forma (as a ramping up producer) valued on EV/CF ratios comparable to the more adventurous jurisdictions like Turkey or Mexico. Another subject is the relatively very small market cap and EV of Fiore Gold, its peers provide a convenient outlook on future market caps based on the intended scenario for a 150,000oz Au per annum producer:

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And part II:

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It was actually difficult to find comparable producers/advanced developers as all heap leach operations in full production that I know are part of a large producer with multiple projects, so I resorted to smaller tier producers and heap leach start-ups, which have low values on CF multiples as they aren’t in full production yet so the markets are hesitant, or have teething issues to work through. The P/CF multiples are actually quite varying in this table, but on average when looking at many other producers, a P/CF ratio of 8-12 is industry standard for now. Richmont actually has a high number because of the friendly Alamos Gold takeover, btw, so my table isn’t a very good representation, unfortunately. Keep in mind that all companies have their own, very specific stories and valuations, so any peer comparison has its risks, but it illustrates an overview, and at least a quick impression of what’s out there.

Regarding market cap outlook, Fiore Gold itself aims even higher at the likes of Guyana Goldfields or McEwen Mining with market caps recently hovering around the C$1billin tag, with comparable production figures.

Here is a quick recap of the corporate strategy of Fiore Gold, per the news release of September 29th:
“Fiore’s goal is to build on the existing operations at the Pan Mine in Nevada to become a 150,000 ounce/year gold producer. To achieve this, the company intends to:

  • grow gold production at the Pan Mine from a planned 35-40,000 ounces in 2018 to between 40-50,000 ounces per year by 2019
  • advance exploration and development of the nearby Gold Rock project, with a resource update planned for late 2018
  • acquire additional production or near-production assets in Nevada and surrounding states”

    According to this news release, everything is going exactly according to plan, which isn’t an easy feat, as heap leach operations are notorious for delays and problems during ramping up. It really confirms the quality of the people running the show, in my view. As mentioned in my last article on Fiore, the company has overhauled the entire heap, restacked it, improved solutions management and has blended existing clay ore from the South Pit with new rock ore from the North Pit. As a consequence, problems with low permeability and ponding of cyanide solution experienced by the previous operators have not recurred.

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    Pan Mine; leach pads

    Other things Fiore did were:

  • improving grade control sampling procedures
  • the commissioning and continued improvement of the onsite grade-control assay laboratory
  • assigning a geologist to oversee grade control and provide geological controls on mining
  • improving management of and partnering with our contract miner
  • improving operating procedures at the ADR plant

    Management already worked on a way to save initial/sustaining capital, as it is looking to defer on crushers (cost $16.8M), and instead focuses on a larger mining operation as the Pan Mine goes from a foreseen nameplate capacity of 10,000tpd to 14,000tpd:

    “In the fourth quarter, the mining team will be focused on assessing the equipment and manpower needed to achieve a sustained 14,000 tpd ore and associated waste stripping throughout 2018. Fiore is targeting a steady-state mining rate of 14,000 tons ore per day (tpd) by January 2018, with projected gold production of 35-40,000 ounces in 2018. The planned 2018 mining rate of 14,000 tpd of ore is higher than 10,000 tpd rate assumed in the 2017 SRK Technical Report. The estimate of 35-40,000 ounces of gold production for 2018 is based on this higher mining rate, and the 60% gold recovery value used in the technical report for run of mine ore. In conjunction with the increase in mining rates, construction of the Phase II Leach Pad expansion is currently underway with completion targeted by year-end. “

    Recoveries just based on run-of-mine methods come in lower (in this case estimated at 60% by SRK) compared to methods using crushers (72%), hence the increased production. I have no doubt that the trade-off was positive, as a lot of energy would be saved as well by deferring the crushers. As the throughput increase outscores the loss in recovery, I expect a higher production figure than possible according to the FS. Fiore does have to expand its reserves to maintain (and preferably increase) the Pan life of mine (LOM), but there appears to be enough exploration potential for this. The company acknowledges this too, and has drilling scheduled for Q1 2018:

    “Exploration work aimed at increasing the resource and reserve base at Pan is ongoing, with a number of drill targets identified proximal to both the North and South Pits. Drilling is expected to commence in early 2018 in order to minimize delays and increased costs associated with winter drilling.”

    Regarding the second most important project Gold Rock, which is fully permitted for exploration drilling, Fiore will be working towards a resource update in H2 2018 after a first full season of drilling.

    The company is concluding the Federal permitting process for a complete operation, and this permitting process was begun approximately four years previously under Midway Gold, and a decision on the Environmental Impact Statement for the project is anticipated in Q1 2018. As soon as this permit would be granted, Fiore can move forward with the Nevada state permits.

    The potential economics might be better for Gold Rock compared to Pan, as historical grade and potential size are very promising, and CEO Tim Warman pointed this out to me, telling that Kinross came in for a 9.9% stake, mainly for the exploration potential at Gold Rock.

    As a reminder, both Pan and Gold Rock have considerable exploration upside, which could extend both mine life and annual production. Key to the strategy is acquiring another near-production deposit of 800,000 to 1 million ounces Au, capable of producing at least another 50,000 oz Au annually. That would bring total annual production to at least 150,000 oz Au in 2020-2021.

    In the meantime, the company also continues exploring its former flagship assets in Chile.

    Diamond drilling generated verification results on Cerro Tostado, although nothing special yet: 1m @501 g/t Ag and 2.7m@ 381 g/t Ag, coming in below earlier SQM reverse circulation (RC) results (2m @943 g/t Ag, 3m@ 685 g/t Ag and 2m@ 413 g/t Ag). CEO Tim Warman is optimistic about his chances:

    “By drilling these initial oriented diamond core holes we’ve been able to confirm the north-south striking, steeply dipping nature of these high-grade silver zones. We’re also pleased to have intercepted a second mineralized zone beneath the alluvial cover to the east of the main Cerro Tostado hill. Planning is underway for the next phase of drilling to test these structures along strike.”

    To be honest, I don’t expect too much here considering these and past results, and consider this a little exploration wild card on a solid production story.

    Conclusion

    Fiore Gold had to deal with some selling first when it recommenced trading as objectives had changed for both GRP and Fiore investors, and as such, provides an opportunity to get in low on an undervalued production growth story, in my view. The combination of (potential) low-cost assets like Pan and Gold Rock, being cashed up, M&A around the corner, strong management, advisors and, last but not least, strong financial backing by the likes of founder Frank Giustra, who is too proud to have a company named after his mother going nowhere as this last intervention (RTO of GRP) proved, is an attractive one in my opinion. I’m willing to be patient here, as the projected upside is significant.

    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 on my website http://www.criticalinvestor.eu, and follow me on Seekingalpha.com, in order to get an email notice of my new articles soon after they are published.

    Disclaimer:

    The author is not a registered investment advisor. The author holds a long position in this stock. Fiore Gold is a sponsoring company. All facts are to be checked by the reader. For more information go to http://www.fioreexploration.com 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.

    critical investor pic6.jpg

    Pan Mine; waste dumps

    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 at www.streetwisereports.com/get-news 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.

    Streetwise Reports Disclosure:
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    2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: Guyana Goldfields. 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) 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.
    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.

    Images and charts provided by The Critical Investor.

    from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17765

  • Frank Holmes Exclusive: Bitcoin Needs Electricity, Gold CONDUCTS Electricity

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    Mike Gleason: It is my privilege now to welcome in Frank Holmes, CEO and Chief Investment Officer at US Global Investors. Mr. Holmes has received various honors over the years, including being named America’s Best Fund Manager for 2016 by the Mining Journal. He is also the co-author of the book The Goldwatcher: Demystifying Gold Investing and is a regular guest on CNBC, Bloomberg, Fox Business as well as right here on the Money Metals podcast. Frank, welcome back and thanks for joining us again. How are you today?

    Frank Holmes: Excellent. Thank you, my friend. Thank you.

    Mike Gleason: Well, to start out here, Frank, I know you recently attended and spoke at the Denver Gold Show and I always like to talk to insiders like yourself following those sorts of events because you can always glean some good insights on the mood of the industry and how things are really going in the precious metals community. Now the mining industry has taken a pretty good beating over the last few years and it continues to struggle a bit even as we seem to be in a new bull cycle that began in late 2015. You’ve got your new gold fund now, GOAU, so you’ve got lots on insights into the mining industry and know lots of gold bugs. So, what did you glean from the conference Frank? What was the mood in general? Give us some highlights there if you would.

    Frank Holmes: Well I think my presentation was well received when I explained how the quant world and data mining, and these other what they call alternative investment research companies, are providing new insight the way investing is taking place. Understanding the paradigm shift on that data collection and that analysts love their old reports on mid asset value, are irrelevant. They’re not relevant to picking stocks today. And you have to go with the forces of physics either as electromagnetic rebounding to the mean is a cheap stock and math says it will rebound or has strong momentum. And you can take a universe of 88 gold stocks and take it down to 28 and far outperform the GDX or GDXJ.

    Using data that was foreign to a lot of these analysts and recognizing … the other thing I think worth commenting on was gold and this whole thing on Bitcoin, is it a competition for bullion? It is not. First of all, without electricity Bitcoin is not worth any money. It needs electricity. Gold is always gold. It conducts electricity and it will always have its materiality for currency in addition to being jewelry. But I think that’s really important is to recognize that it’s so much easier, this idea of crowdfunding, to go and open up an exchange and trade 24/7 all these different currencies all around the world than it is to open a brokerage account. And I think that this excessive regulations is basically seeing people migrate over to angel investing, crowdfunding such as into cryptocurrencies, et cetera. And I think that’s the bigger danger is to overall investing in trading in the capital markets. So, they’re the comments that I made and that seem to have come back with many written messages to me regarding the quants and how they’re changing the landscape.

    But I think the other part that’s important for your listeners is that there were 1,100 people there. Now they don’t allow investment bankers in. Research analysts, traders, CEOs, gold analysts from the buy and sell side, they’re allowed to participate and there were 1,100. The week before there was a big event for the juniors (junior miners) but this event is the premiere event of the world. And I was impressed with it. The conversations looking for companies that are going to be taken over. What’s the probability? Because the seniors are desperate for future production and where is that growth going to come from because they’re just not finding the gold as fast as they’re mining. So, the Newmonts of the world have to go and strike deals like they did with Continental in Columbia to get a foothold into high grade big geographic footprints. So, I thought that was interesting. I think that in the next 12 months there’s going to be lots of M&A work. And the other part was the royalty companies seem to get a new sort of respect for how their positioned in the capital markets in that gold space.

    Mike Gleason: Yeah definitely. Sounds like there is a wave of optimism there and some good things ahead. Now I wanted to get back to some of the cryptocurrency conversation here. Your firm, Frank, US Global Investors, recently made an investment in HIVE Blockchain Technologies and you have been appointed chairman of the board there. Given you are heavily involved in the cryptocurrency space now, we’d like to get your take on a topic of growing interest in the metals community. You alluded to this a moment ago but cryptocurrencies, Bitcoin in particular, have been seen by many as another form of honest money. You’ve obviously maybe shot a little bit of a hole in what it is that is needed in order to continue the cryptocurrency world, that being electricity. But since you’re a fan at least in part of both metals and blockchains. What are your thoughts on how metals might fit in with this emerging technology, Frank?

    Frank Holmes: Well let’s just focus on this emerging technology. We go back to the internet and it was actually very boring when it first come out because it was very slow and it used to be a joke that it was just porn and dark things. And now it’s fast porn. No, I’m kidding. But the real catalysts for the internet exploding in usage were emails, AOL. And long before Yahoo came out to give you free email. And then people saw the incredible capacity for this channel of distribution of information. Well I think that the Bitcoin and Ethereum are doing that for blockchain technology and that there’s a huge scramble to be able to apply this so that you’ll be able to trade stocks 24/7.

    And when I was doing my research and I went to the largest cryptocurrency event, that used to be where the gold show used to be held in New York at the Marriott. I was just shocked to see how many young people were there. Many more than ever when gold was peaking. And two is that they weren’t drinking scotch and whiskey at the bar and beer, they were drinking Pepsi and coffee. That really threw me off to just watch those young people and how they’re looking at it. And then to find out that the keynote speaker was a CEO of Fidelity. Fidelity is a massive multi-trillion dollar asset management company and they have all their employees on Bitcoin. They have a wallet and you can buy goods in the store. And seeing that she’s the keynote and that the New York Stock Exchange when it was launching GOAU they were commenting that they had put money into Coinbase along with USAA in San Antonio.

    So, at Coinbase you can open an account so easily and they will now let your 10,000 or 50,000 or 100,000 of coins show up as an asset over all in your portfolio. USAA and all that should do that at Fidelity. So, I said well it’s something really that’s not mainstream and then in the summer it came out in the Wall Street Journal that Fidelity is doing it. But really it didn’t seem to captivate a lot of people’s interest. And I think that the big part with the New York Stock Exchange is just their worry of being Uberized the way taxi cabs were with having stock trading 24/7 and a lot cheaper.

    So, I think that that’s the big trend and along I was trying to launch a cryptocurrency, ETF, or a product with that and I just kept bringing up cul-de-sacs. Had to back that car out, back that truck out. It didn’t matter if it was the U.S., the SEC, or Canada with the OSC. They’re just so consumed that AML (Anti Money Laundering) supersedes, even though you can track Bitcoin, supersedes anything else. So that’s why you’ve not seen anything come out directly where you can trade Bitcoin into an ETF.

    So, I’ve been working on this and then all of the sudden I hear from my friend Frank Giustra saying, “Look, we have this deal. Do you know much about this space?” And I said “Oh, yes. I’ve been working on it. And I just keep running into cul-de-sacs.” And he said, “Well, why don’t you explore it” and explored it and I said, “You know what, I’ll be come your third biggest shareholder, and I will go on the board,” because I think that HIVE is so special and unique because it’s the mining business.

    And the company behind HIVE is Genesis Mining and Genesis Mining is the largest cryptocurrency miner in the word. They have a million people give them 500 bucks a year and one of the things I learned was that if you want to do mining of cryptocurrency you need to have cheap energy like two cents a kilowatt hour. So, you find that a lot of these big dealer centers are in Iceland where it’s cool and you have cheap electricity. Google is there. Facebook is there and so is Genesis. And you need to have computer graphic cards because the processing power to validate a transaction. So, you found that NVIDIA stock has taken off because the cryptocurrency companies like Genesis have been massive buyers of their computer graphics cards.

    And so, with that, I said, “You mean, we’re going to be investing in a company that’s mining and validating transactions all over the world, and we create new coins, fresh coins, mint coins, virgin coins” … however you want to characterize them. We are not trafficking on the silk road. We are not buying and selling a coin that could have been painted et cetera. No. We’re the creator because we validate transactions and you get paid every time you validate a blockchain transaction. So, I became extremely excited about this opportunity and so far, we’ve made for our shareholders more than 500% on their money.

    Mike Gleason: That’s fantastic. Now I’d like to get your take on the U.S. dollar. The dollar had a miserable performance through the first eight months of the year and bottomed in early September at 91.5. The greenback then bounced and has enjoyed a very good rally since then. What is driving this rally in your view and are you expecting the dollar to keep moving higher in the months ahead, Frank?

    Frank Holmes: Well, historically it does get a bit of a rally going into the year end. That’s one. Two is the 5-year government bond. The 5-year government bond is positive now, the yield. So, the CPI number is 1.9 and you just take whatever the government is trying to entice you to buy their 5-year government bond, subtract the CPI number… it recalibrates every month and it gives you a good idea for where fund falls are going for real rates return. And whenever the five year government bond and the two year government bond are negative, gold is positive. And so, we went from a 1.4 to 1.5 5-year government bond to a 1.93. Now it’s just slightly positive but that was enough to sort of have the dollar rally and gold come off in the past month.

    But I think that unless you really get change, you get fiscal change, trying to get the tax code streamlined and trying to get other parts of the legislation body in its Beltway to streamline regulations. We need to have the TSA preferred, how you can fly much more quickly now, rather than those two hour waits to fly and to go and catch your flight. You know most people in San Antonio were driving to Houston rather than going to wait two hours for an hour flight. And so, you’re seeing now this TSA preferred. That’s just streamlining processes and this has to be done for the movement of money, for opening a trading accounts, for opening up investment accounts, et cetera. If we don’t get those things, we’re going to have to have negative real interest rates to keep the economy going. Or you’re going to have to a very weak dollar to drive exports.

    And I think that Trump has been a master disrupter. He’s so disruptive to the Beltway Party, which is the regulatory regime that’s been their professional regulatory. I’ve listened to other people like Bernanke spoke about the difficulty for Jimmy Carter and Trump to take on the Beltway Party. But he’s different and so he’s trying to push for the streamline of regulations. If he can, rates can trade higher and I think that the dollar will just trade with the real interest rates relative to the rest of the world.

    But I remain very positive on gold. It’s amazing to see how well gold has done this year. The gold stocks have had a great run until the GDXJ blew up. Basically, they captured 95% of all fund flows. Therefore, they had to be concentrated owning more than 20 companies 20% means they had to do a force takeover. They had to back out of that one and they blew out three billion dollars. They brought in five billion dollars over 12 months and then they did an exit in only a matter of weeks of three billion dollars. And that really damaged the bid side and bruised people. It’s like getting hit by Mike Tyson. You just don’t heal quickly when he hits you and it’s the same thing with the gold stocks. But I think there’s some just fabulous gold stocks out there that are ripe to be taken over, that have very strong positive cash flow. The weaker dollar in the U.S. and the higher gold prices, there’s very strong margins for companies like Klondex.

    Mike Gleason: Yeah, certainly can be interesting as we go towards the latter part of the year here to see what might be sustained in this correction in gold or if it can rebound and get back to where it was maybe a month ago or so. We did have a good first half of the year in the metals but the markets obviously have hit some of those headwinds here recently, a rising dollar and so forth that you alluded to. If you would, give us your bull case for metals in near term and then also if you would maybe a bear case as well and then kind of expand more on which side you’re betting on, as we begin to wrap up here.

    Frank Holmes: Well, there’s the two drivers for gold: love trade and fear trade. And the fear trade dominates the psychic of Americans and the same thing with Europeans in that’s predominantly negative real interest rates. So, whenever the government has to monetize most of their debt, and basically negative real interest rates are losing money and buying their government bonds, gold does well. I don’t think that they can raise rates significantly without a massive streamlining of regulations and the government is doing everything to try to stop Trump from doing that. So, I think we’re going to end up still living with negative interest rates.

    Now, the other positive part, for the U.S., is that the dollar is down but the exports are up. So, we have our strong industrial base. And it’s showing up in PMI, that’s Purchasing Manufacturer’s Index, which is a forward looking index. It’s not like GDP, which is looking out the rear view mirror. This is like looking with headlights looking down six months. And the one month is above the three month, and that’s really positive for global growth. So, I remain positive and constructive towards it. What could derail it? North Korea could derail it. China’s policies could derail it. And I think that if rates were to surge dramatically in the U.S., that could derail it.

    But I don’t think that’s going to happen. We’re in a very constructive mode and it’s a great opportunity for stock picking. I just spoke at a conference in Vancouver yesterday, and I commented on … By the way, I commented on HIVE. I was asked and I said, “You know, if you’re a value investor, HIVE is extremely overvalued.” But if you are a first mover advantage in the first public company where funds can go by and get exposure to crypto-mining. It is not. It’s like Tesla, it’s like Amazon. They will always trade at lofty valuations. And so, it’s extremely attractive that way when you look at it as being first mover advantage.

    Mike Gleason: Well that’s great stuff as usual. Thanks as always for joining us. It’s a real honor to hear your thoughts and we appreciate your time as always. Now before we let you go, please tell our listeners a little bit more about your firm and your services and then also mention the Frank Talk Blog so people can learn more about that if they’re not already checking it out.

    Frank Holmes: Well, we are USfunds.com, makes it so easy, just go to USfunds.com, sign up for investor alert. It’s right in the middle of the page. And we write every week and we do a game film analysis, three strengths or weaknesses for last week and opportunities and threats that can come out next week. Sort of forward looking like game film and looking back.

    And the Frank Talk is my global travels and I try to be insightful and learn about how we’ve applied quant math. What’s called quantamentals to stock picking. And especially we launched our GOGO Canadian gold ETF and we’ve launched one here in the U.S., which we’re really proud of because the ten year index based on those smart factors, both performs of GDXJ say 94% of the time are rolling 12 month periods. So, we think that GOAU, we’ll write about it, we’ll tell you about the changes. And we also have unique products like JETS which is also an ETF listed on the New York Stock Exchange.

    Mike Gleason: Yeah, it’s great stuff. Certainly, the Go Gold fund is looking very good from what I’ve been reading about. Obviously performing just as you were hoping it would and continued success there. We always appreciate it and good luck with the other endeavors that you have going on and keep up the good work on those market commentaries and we’ll certainly look forward to our next conversation. Take care, Frank.

    Frank Holmes: Take care, my friend.

    Mike Gleason: Well that will do it for this week. Thanks again to Frank Holmes, CEO of US Global Investors and manager of the recently launched GOAU Gold Fund. For more information, the site is USfunds.com. Be sure to check out the previously mentioned Frank Talk blog while you’re there for some of the best market commentary you will find anywhere on gold and other related topics. Again, you can find all that at USfunds.com, and you can also go to GOAUETF.com for more information on that new gold fund.

    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 Frank Holmes Exclusive: Bitcoin Needs Electricity, Gold CONDUCTS Electricity appeared first on Gold Silver Worlds.

    from Gold Silver Worlds http://goldsilverworlds.com/gold-silver-experts/frank-holmes-exclusive-bitcoin-needs-electricity-gold-conducts-electricity/

    An Aggressive Gold Exploration Play

    Source: Daniel Ameduri for Streetwise Reports   10/12/2017

    Exploration on a massive project in Nevada holds the potential for “glory,” says Daniel Ameduri of Future Money Trends.

    U.S. Gold Corp. (USAU:NASDAQ) is drilling a massive gold project. With Gold Standard Ventures Corp.’s (GSV:TSX.V; GSV:NYSE) Dave Mathewson at the helm for exploration, this is a must-have for any gold portfolio looking for some potential luster with elephant-sized discovery potential.

    Here are the key takeaways from its recent press release:

    1. A new drilling program at Gold Bar North, located on the Cortez Trend, has begun.

    2. Dave Mathewson, the former go-to exploration geologist for Newmont and Gold Standard, has identified multiple Carlin-type deposit target areas.

    3. Follow-up drilling will be conducted on positive results obtained from earlier this year.

    Mr. Mathewson, U.S. Gold Corp.’s (USAU) Vice President and Head of Exploration, stated that “It’s the best exploration project I have seen in my career. Reminds me of the Railroad project (Gold Standard Ventures discovery) on steroids.”

    We’ve witnessed this before—I mean, this is almost the exact same set-up as Gold Standard Ventures, where Dave Mathewson’s team led to the consolidation of the Railroad-Pinion district and the discoveries of North Bullion, Sylvania, and Bald Mountain deposits.

    Luke Norman is the co-founder of Gold Standard Ventures and U.S. Gold Corp. (USAU), as well as a master when it comes to advancing early-stage companies quickly. Gold Standard Ventures increased from a $15 million market cap to a billion dollars largely based upon Mathewson-led discoveries and Luke Norman driving the business development.

    The Keystone property position controls the entire district-scale opportunity and is comprised of approximately 15 square miles of mining claims.

    In addition to Dave Mathewson, we will also have Tom Chapin on the technical advisory team for exploration. Tom was the senior geologist at the Cortez Gold Mine for Barrick Gold, the largest gold company on the planet.

    We are going to be focused on the Keystone project because that’s where the glory will be if Mathewson scores big for us on U.S. Gold Corp.

    This is the right team, and it’s in the area of major gold deposits.

    It’s also a speculative exploration stock, so that means high-risk, high-reward. I want you to enjoy getting rich when we are right and avoid being poor if we are wrong. Always take into consideration that I have no idea what your financial position is or your risk tolerance.

    Daniel Ameduri is the editor of the Wealth Research Group and the cofounder of Future Money Trends Letter, FMT Advisory and Crush The Street. After warning family and friends in 2007 about the coming market and mortgage collapse, Ameduri started his own YouTube channel, VisionVictory, which has received 10 million video views. On March 18, 2008, Ameduri called for Dow 8,000, the collapse of Lehman Brothers, AIG, and Washington Mutual. During the mortgage crisis, he helped people buy Put Options on Countrywide Mortgage; these Puts saw a gain of 1,400%.

    Want to read more Gold Report articles like this? Sign up at www.streetwisereports.com/get-news 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) Daniel Ameduri: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies referred to in this article: U.S. Gold Corp. I determined which companies would be included in this article based on my research and understanding of the sector.
    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) 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.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 interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of U.S. Gold Corp., a company mentioned in this article.

    ( Companies Mentioned: USAU:NASDAQ,
    )

    from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17764

    Europe’s Weight In Gold and Silver

    Gold, and silver, have always been valuable. Through upturns in fiat currency, downturns in commodities, and everything in between, the precious metals have always been a useful indicator and base level for the worth of things internationally.

    Far from being the hallmark of huge institutions, like the Federal Reserve, you can take advantage of the evergreen currency to secure your own ‘reserve’.

    Why Use Gold?

    There have been few occasions where government has been criticized for keeping hold of gold reserves. Quite apart from it, in fact, with the British government panned for selling back in 2002.

    There has never been a better time in fact, with measures over the world being taken up that can threaten your ‘liquid’ cash flow. Over in Europe, there has been legislation introduced as the EU attempt to prevent bank runs that threatens your ability to withdraw your own cash in the event of adverse economic conditions.

    How Can You Invest?

    If you are already struggling to withdraw the entirety of your cash supplies from the bank under restrictive legislation, the economics show that it’s worth taking beneficial loans to obtain lump sums to invest in gold; see this Norwegian example as illustration.

    You may also be tempted to look into cryptocurrency as a way of making small wagers that can increase in value and, ultimately raise capital. Many vendors now accept cryptocurrency.

    The Benefits To You

    The theory behind establishing a gold reserve is well-established. You can diversify your portfolio, ensure against future fluctuations and have a nest egg on which to build investment.

    In Europe and the USA, however, the policies of the ECB are giving great hope for gold investors. The policy of asset procurement over in the EU is creating a great demand for gold and as a result prices are high and continue to rise.

    Taking consideration also of the effects of 2016’s Brexit vote, NBC reported that silver and gold hit a two-year high after the vote as a result of speculation of the performance on the pound. With the EU facing challenges from France and the Netherlands, Trump in power and Brexit rumbling on, the level of uncertainty is proving a boon to the price of the age-old precious metal.

    Gold is not the archaic measure of worth you might think it is! Despite decades of fiat currencies taking the lead, exemplified by 2002’s British selloff of gold, the worldwide political and economic shakeup we’re going through is bring it back to the fore.

    The post Europe’s Weight In Gold and Silver appeared first on Gold Silver Worlds.

    from Gold Silver Worlds http://goldsilverworlds.com/physical-market/europes-weight-gold-silver/