Tag: Gold

Pro-Inflation? Anti-USD?

Posted on by The INO.com Team

By: Gary Tanashian of Biiwii.com

This is the opening segment from the May 15 edition of Notes From the Rabbit Hole, NFTRH 395.  I am releasing it for public viewing because it seems, the title’s question has come roaring to the forefront this week.  So the information (including the charts) is slightly dated, but becoming intensely relevant as of now.

We anticipated an ‘inflation trade’ or Anti-USD asset market bounce and this has been going on since mid-February. That was when silver wrestled leadership from the first mover, gold (which bottomed in December and turned up in January), and a whole host of other global asset markets began to rise persistently.

gold.spx.crb.silver.eem

So why again did the US stock market react negatively to good economic data on Friday? Continue reading "Pro-Inflation? Anti-USD?" →

Two Companies Poised To Catch Up To Gold Peer Group

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After a mad dash to the upside for gold and a similar dash to the downside for the U.S. dollar, investors are getting their bearings once again. April's disappointing jobs report refocused everyone on the potential economic slowdown and a still-dovish Fed. Brien Lundin of Gold Newsletter paints the big picture of how speculation over the Fed's actions to raise interest rates is affecting gold and gold equities, and he discusses two companies that have not appreciated as much as their peers but are likely to soon catch up.

Pershing Gold's Resource Base

Gold and gold stocks have maintained their gains since early May. And it's largely due to a significant downside miss in the nonfarm payrolls report for April: Against consensus expectations of 205,000 jobs created in the month, April's number came in at just 160,000 jobs. It wasn't quite as bad as the headline number may indicate: Average hourly earnings rose by 8 cents (0.3%), while the average work week added 0.1 hour.

"Gold and gold stocks have maintained their gains since early May."

Still, in an interview recently on CNBC, Atlanta Federal Reserve President Dennis Lockhart volunteered a 200,000-job benchmark as a level that would be conducive to further Fed rate hikes. The miss on jobs, combined with dismal, 0.5% GDP growth for the first quarter, should put a stake in the heart of hopes for a rate hike at the Fed's mid-June meeting. Continue reading "Two Companies Poised To Catch Up To Gold Peer Group" →

Goldcorp Is Back and Spending: Could West Red Lake Gold Mines Be Next?

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Goldcorp is fresh off an announced transaction of $520M for Kaminak Gold, which is a big win for the industry. The company has been quietly putting dollars in juniors, like $16M in Gold Standard Ventures, and there could be more to come. In this article, Resource Maven Gwen Preston discusses possible target West Red Lake Gold Mines and how this company is shaping up to take advantage of the initial turnaround in the market.

A million ounces of high-grade gold in Ontario, open for expansion. A management team that has done it before. A major miner as joint venture partner. A potential new discovery near the kind of structural intersection that can carry considerable gold in this part of the world. And cash in the bank to go back and drill test it. West Red Lake Gold Mines Inc. (RLG:CSNX/ West Red Lake Gold Mines Inc. (NASDAQ:HYLKF) has the right property, people, structure and plan to potentially hit a home run in a gold market looking for high grades in good jurisdictions.

RLG is headed up by Thomas Meredith. Merediths last company was VG Gold. He took the helm there when it was a broken company with a $3 million market capitalization. He cleaned up the management and board, and then focused on advancing and derisking the companys four projects, which were all historic mines in the Timmins gold camp in Ontario.

Under his leadership VG grew its resource base from 60,000 oz to 2 million oz, completed two PEAs, worked one project through a joint venture with Goldcorp Inc. (G:TSX/GG:NYSE), got permitting underway, and attracted Rob McEwen in as an investor, who took a 40% stake in VG through his company Lexam Exploration. About 18 months later Lexam and VG merged. By then, VG Gold had a market cap of $200 million.

Now Meredith is working to do it again. Continue reading "Goldcorp Is Back and Spending: Could West Red Lake Gold Mines Be Next?" →

Gold And Silver Companies With The Potential To Move The Needle

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The two times mining companies add the most value are upon first discovery and when they are nearing development and production. Joe Reagor of ROTH Capital Partners focuses on the latter group, and in this interview with The Gold Report, he discusses a handful of gold and silver companies poised to move up the value curve even if gold and silver don't go up.

Gold Six-Month Chart

The Gold Report: What's your macro outlook for gold?

Joe Reagor: International debt concerns are going to drive gold this year into next year, in our view. A number of countries with mounting debt loads can't continue to pay the interest portion of their debt, let alone ever pay it back. Total world debt continues to increase year after year. If the solution is for everybody to print the money that they need to pay everybody else back with, that's going to be a massive inflationary event, which would bode well for gold.

TGR: Silver has been up dramatically vis-a-vis gold. Do you expect that trend to continue? Continue reading "Gold And Silver Companies With The Potential To Move The Needle" →

The Japanese Gold Trapped In A Large Consolidation

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


This topic was promised in one of my previous posts to our readers, and I am pleased to offer it to you today. I was waiting to see the end of the month price action to try to write when I considered all the moves within a month for more accuracy. Carol and Diane, I should admit you are very brave ladies as when I opened GYEN (The AdvisorShares Gartman Gold/Yen ETF (NYSE Arca: GYEN)) chart I was shocked by all the crazy and abrupt moves there. The history of this ETF is quite short (from 2014), and the analysis based on it would not be solid. At the end of the post, I've added the GYEN chart for you to judge for yourself. I picked the gold/JPY chart instead for analysis as the ETF tracks the price of this pair. I hope you will enjoy the post.

Chart 1. Gold/JPY Monthly: Multi-Decade Uptrend Is Intact

Monthly Chart of GLD/JPY
Chart courtesy of tradingview.com

The multi-decade uptrend highlighted in the chart reflects the trends of both the gold/$ and $/JPY markets. Those markets were extremely bullish for the past decade, and the gold/JPY strong upside move shows the synergy of them. The Big Bull Run here stalled in 2013 while gold/$ stalled two years earlier in 2011. The reason is that the $/JPY bullish move stopped last year and helped to extend the upside move in gold/JPY and then to soften the downside pressure from the falling gold/$. Continue reading "The Japanese Gold Trapped In A Large Consolidation" →