Manganese X Sets Sights on Becoming a Major North American Producer

As manganese gains attention as a potential major component in the next generation of battery technology, Manganese X Energy Corp. is moving rapidly into the North American manganese market.

In the last month, Manganese X Energy Corp. (MN:TSX.V) has taken actions to accelerate its entry into the manganese market. The company has entered an agreement with Globex Mining Enterprises Inc. to earn a 100% interest in the Houlton Woodstock project. Manganese X’s news release of Nov. 30 detailed the terms of the options agreement, including $200,000 in cash payments, of which $100,000 has already been made; the issuing of 4 million post-consolidation shares; and spending a minimum of $1 million in exploration expenditures. Globex will retain a 3% gross metal royalty.

Christopher Ecclestone of Hallgarten & Company, in a Dec. 6 initiation report, noted that the Houlton Woodstock project “is one of the largest Manganese showings in the Northeast of the US/Canada on the Maine/New Brunswick border.”

Manganese X is moving quickly to explore the Houlton Woodstock property. On Dec. 21, the company announced that it completed its diamond drill program: “The drilling program consisted of 16 holes totaling 3,589 meters, and was completed as an initial test of three primary areas on the property: Iron Ore Hill, Sharpe Farm and Moody Hill manganese occurrences. The drill targets were based on the results derived from gravity and magnetometer surveys completed in October.” Drill results are expected toward the end of January 2017.

Manganese has long been used in alkaline batteries, but according to Ecclestone, “The more cutting edge application though is known as the Lithiated Manganese Dioxide (LMD) Battery. The standard mix of LMD used in batteries contains 4% Lithium, 61% manganese and 35% oxygen by atomic weight. The attractions of this format are that LMD has high power output, thermal stability and enhanced safety when compared to other lithium ion battery types. For these reasons LMD batteries are currently being used in the Chevy Volt and Nissan Leaf. Research at the University of Illinois has achieved an advanced prototype battery, using Lithiated Manganese that can be recharged in as little as two minutes (equivalent to filling a gas tank).” He added that “battery consumption of Electrolytic Manganese Dioxide (EMD) has been predicted to be fastest growing segment of manganese production with a CAGR [compound annual growth rate] of 5.1% from 2015 to 2022.”

According to Manganese X, the long-term goal of the company is to “concentrate on other high potential manganese prospects which are located in North America, as well as exploring various opportunities with the intent of integrating and supplying value added materials to the lithium ion battery and other alternative energy industries. Manganese X Energy will focus on Electrolytic Manganese Dioxide (EMD), which is defined as converting manganese into a very pure high quality electrolytic manganese dioxide of 99.7% purity.”

“Manganese is shrugging off it rather prosaic image as ‘just’ another steel alloy metal and is now being seen in many quarters as one of the rising battery metals. Manganese X is one of the few to have recognized this trend and is seeking to create a source of EMM in the North America where hitherto dependence upon China has been the norm,” concluded Ecclestone.

The company, formerly known as Sunset Cove Mining Inc., commenced trading on the TSX Venture Exchange on Dec. 2. Ecclestone noted that the name change was made “to better reflect the new exploration focus it will be undertaking in 2017.”

Read what other experts are saying about:

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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: Manganese X Energy Corp. Streetwise Reports does not accept stock in exchange for its services. 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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.

Additional Disclosures for this Content

( Companies Mentioned: MN:TSX.V,
)

These Resource Sectors Will Soar in 2017

Zinc

A perfectly timed opportunity and a deep-value contrarian speculation are setting up in the resource sector, says Lior Gantz, an editor at Wealth Research Group.

There’s no doubt that zinc is currently the most attractive base metal investment out there—it’s almost a fairytale story. In fact, it will present the biggest opportunity in 2017.

The natural resource sector is based on the most fundamental economic equation, supply and demand, and zinc is following a classic pattern that is truly the quintessential formation of a once-in-a-generation bull market.

As resource legends begin to launch new companies in this industry, the window of opportunity will be opened for a few short months, and Wealth Research Group plans to help members capitalize.

As seen in the chart, 2016 is proving to be a year in which we will see a severe supply deficit, and it will carry on into 2017.

Zinc Supply

In 2016, zinc is the top-performing metal, and the reason is simple: stockpiles are ultra-low and two major mines have shut down.

China is the biggest driver of demand for zinc. It consumes close to 50% of the world’s supply. The astounding mega-projects coming include bridges that will connect hundreds of millions of people, the cities that will house 20M–50 million citizens, and the train system that aims to connect to Turkey—these require an unbelievable amount of zinc.

China car market

About 50% of all zinc is processed and applied as a coating to iron and steel to prevent rust.

The problem is that between 2008 and 2015, the bleak outlook for the global economy made zinc prices very cheap, and supply disappeared.

Zinc Mine Production Cuts

Zinc warehouse 5-year stock levels

Zinc recently bottomed out at $0.66 per pound in December 2015, and it has rallied since then.

Here’s the key to understanding resource bull markets: current exploration funding and near-term new producers. That’s how an investor can gaze into the supply and demand dynamics going forward. Right now, I can tell you that they’re virtually nonexistent!

Only a handful of projects will come on-line in the next few years, and none of them will make a material difference.

In my personal portfolio, I will certainly own a core position of zinc.

We aren’t just focusing on zinc—our team is conducting comprehensive research into uranium at the moment.

Mark my words: the uranium price has become so low that the downside risk is close to zero. Now, the best plan of action is to create a watch list of the best companies and wait for the ideal moment.

US Operating Nuclear Power Reactors

Again, the focus is China, which understands that its energy independence is entirely a question of uranium. The superpower can’t afford to be dependent on foreign oil, and so it is building new power plants fueled by uranium. And in the U.S., it seems very likely that Donald Trump as president means good news for uranium investors.

Take the time to learn about the world of uranium and its main players and characteristics today with the exclusive report our team has put together, because no one is covering this, and that’s why I am genuinely confident that the bottom is close.

Some of the best opportunities will occur in takeovers, where small-caps will be bought at a large premium by the majors.

Ultra-low interest rates have made retirement virtually impossible, and so the strategies needed for a comfortable retirement must include high-yield stocks (like 8.6%) and an allocation into high-potential niches that can make a real difference to your portfolio.

The two that we have spotted are futuristic industries and the cobalt emerging mining world.

This is one metal I am extremely bullish about, since there are so few companies actively looking for it.

Cobalt Supply Shortfall

Cobalt is one of the metals of the future, and it will be a strategic resource for those who own it.

Cobalt and Batteries

This is an industry that Wealth Research Group is spending a lot of time investigating and examining.

With companies like Elon Musk’s Tesla planning to gobble up most of the world’s supply of lithium, for example, and with Asia’s super-large appetite for modern living, cobalt and lithium will offer a phenomenal opportunity with Steroid Stocks.

2017 is shaping up to be a year full of opportunities, and investors should make sure to always keep in mind that we are living in a time of corrupt banking systems and a proper allocation into precious metals is a must.

Lior Gantz, an editor of Wealth Research Group, has built and runs numerous successful businesses and has traveled to over 30 countries in the past decade in pursuit of thrills and opportunities, gaining valuable knowledge and experience. He is an advocate of meticulous risk management, balanced asset allocation and proper position sizing. As a deep-value investor, Gantz loves researching businesses that are off the radar and completely unknown to most financial publications.

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.

Disclosures:
1) Statements and opinions expressed are the opinions of Lior Gantz and not of Streetwise Reports or its officers. Lior Gantz is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Lior Gantz 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 Wealth Research Group

These Resource Sectors Will Soar in 2017

Zinc

A perfectly timed opportunity and a deep-value contrarian speculation are setting up in the resource sector, says Lior Gantz, an editor at Wealth Research Group.

There’s no doubt that zinc is currently the most attractive base metal investment out there—it’s almost a fairytale story. In fact, it will present the biggest opportunity in 2017.

The natural resource sector is based on the most fundamental economic equation, supply and demand, and zinc is following a classic pattern that is truly the quintessential formation of a once-in-a-generation bull market.

As resource legends begin to launch new companies in this industry, the window of opportunity will be opened for a few short months, and Wealth Research Group plans to help members capitalize.

As seen in the chart, 2016 is proving to be a year in which we will see a severe supply deficit, and it will carry on into 2017.

Zinc Supply

In 2016, zinc is the top-performing metal, and the reason is simple: stockpiles are ultra-low and two major mines have shut down.

China is the biggest driver of demand for zinc. It consumes close to 50% of the world’s supply. The astounding mega-projects coming include bridges that will connect hundreds of millions of people, the cities that will house 20M–50 million citizens, and the train system that aims to connect to Turkey—these require an unbelievable amount of zinc.

China car market

About 50% of all zinc is processed and applied as a coating to iron and steel to prevent rust.

The problem is that between 2008 and 2015, the bleak outlook for the global economy made zinc prices very cheap, and supply disappeared.

Zinc Mine Production Cuts

Zinc warehouse 5-year stock levels

Zinc recently bottomed out at $0.66 per pound in December 2015, and it has rallied since then.

Here’s the key to understanding resource bull markets: current exploration funding and near-term new producers. That’s how an investor can gaze into the supply and demand dynamics going forward. Right now, I can tell you that they’re virtually nonexistent!

Only a handful of projects will come on-line in the next few years, and none of them will make a material difference.

In my personal portfolio, I will certainly own a core position of zinc.

We aren’t just focusing on zinc—our team is conducting comprehensive research into uranium at the moment.

Mark my words: the uranium price has become so low that the downside risk is close to zero. Now, the best plan of action is to create a watch list of the best companies and wait for the ideal moment.

US Operating Nuclear Power Reactors

Again, the focus is China, which understands that its energy independence is entirely a question of uranium. The superpower can’t afford to be dependent on foreign oil, and so it is building new power plants fueled by uranium. And in the U.S., it seems very likely that Donald Trump as president means good news for uranium investors.

Take the time to learn about the world of uranium and its main players and characteristics today with the exclusive report our team has put together, because no one is covering this, and that’s why I am genuinely confident that the bottom is close.

Some of the best opportunities will occur in takeovers, where small-caps will be bought at a large premium by the majors.

Ultra-low interest rates have made retirement virtually impossible, and so the strategies needed for a comfortable retirement must include high-yield stocks (like 8.6%) and an allocation into high-potential niches that can make a real difference to your portfolio.

The two that we have spotted are futuristic industries and the cobalt emerging mining world.

This is one metal I am extremely bullish about, since there are so few companies actively looking for it.

Cobalt Supply Shortfall

Cobalt is one of the metals of the future, and it will be a strategic resource for those who own it.

Cobalt and Batteries

This is an industry that Wealth Research Group is spending a lot of time investigating and examining.

With companies like Elon Musk’s Tesla planning to gobble up most of the world’s supply of lithium, for example, and with Asia’s super-large appetite for modern living, cobalt and lithium will offer a phenomenal opportunity with Steroid Stocks.

2017 is shaping up to be a year full of opportunities, and investors should make sure to always keep in mind that we are living in a time of corrupt banking systems and a proper allocation into precious metals is a must.

Lior Gantz, an editor of Wealth Research Group, has built and runs numerous successful businesses and has traveled to over 30 countries in the past decade in pursuit of thrills and opportunities, gaining valuable knowledge and experience. He is an advocate of meticulous risk management, balanced asset allocation and proper position sizing. As a deep-value investor, Gantz loves researching businesses that are off the radar and completely unknown to most financial publications.

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.

Disclosures:
1) Statements and opinions expressed are the opinions of Lior Gantz and not of Streetwise Reports or its officers. Lior Gantz is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Lior Gantz 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 Wealth Research Group

Silver Will Trump Gold in 2017

barclays

Kenneth Ameduri, editor of CrushTheStreet.com, argues that silver markets will see a surge during the Trump administration.

As an ardent student of Austrian economics and sound money being constantly fed mainstream propaganda, I was led to start CrushTheStreet.com to educate people and help build their wealth. People are tired of not having money, and are, quite frankly, tired of being lied to by the press.

Just look at some numbers from the past few years reflecting over the outgoing president’s performance.

• There are 8 million more Americans living in poverty
• 13 million more are on food stamps
• We have the lowest home ownership rate in 51 years
• Health insurance costs are skyrocketing
• And this is all while doubling the national debt, with nothing to show for it

If history is any indication of future results, we are headed for an incredible correction in the overall markets.

Financial crises have perpetuated a political crisis, and we’ve seen that with the movements sweeping Europe, and here in the United States with Donald Trump becoming president. Donald Trump is an outsider and, like him or not, he is a symptom of the deeper fundamental problems that exist.

The average guy is tired of seeing his factory job get shipped overseas. After all, nearly one-third of the manufacturing jobs have been lost since 1997. That’s more than 5 million jobs, which, of course, are the lifeblood jobs for the American middle class. About 70,000 factories during this same time period have either shut down or left the United States.

People have come to believe that they are a victim of the current system, and Trump’s message resonated with much of the population.

Prior to Trump being elected, the markets were pricing in a Trump win as negative, with the markets turning down when his polls were up and markets up when his polls were down. Since Election Day, the markets have decided to trade favorable in anticipation of economic strength, infrastructure spending, and a perception of U.S. strength. This has a macro implication that I will get to shortly.

Trump’s plan for lowering the corporate tax rate from 35% to 15% is certainly benefiting stocks in anticipation of all of this extra money that will be hitting corporations’ bottom line. Take a look at the S&P Futures (shown above) over the last three months—the back-and-forth uncertainty leading up to November 8, with a massive spike downwards on election night, followed by stocks going up with a Trump victory starting to be priced in.

To be fair, the markets are massively benefiting from the ramping-up of debt during this election year, which was supposed to benefit Hillary Clinton and obviously failed. This is typical because historically, the people in power have used the machinery available to get their people elected. Since early 2016, the Federal government has gone deeper into debt to the tune of $1.6 trillion.

We’ve seen this reflected in unemployment, with it dropping into the 4.6% territory from 4.9% in the previous month. GDP actually grew 3.2% last quarter, which is the highest quarterly growth we’ve seen since 2014. Of course, many would rightfully point out the massaging and manipulating of these numbers, but nonetheless, the massive spending has had an initial impact.

Increasing government spending and going into deep debt was something that the Obama administration perfected, racking up more debt than all 43 other presidents combined, from George Washington all the way up to George W. Bush.

Unfortunately, we have been seeing a diminishing return on each dollar of debt, and are having to go into more debt to achieve the same—or even worse—results of the past.

And the greater problem, of course, is that debt is substantially outpacing growth. Take a look at Dept to GDP:

debtgdp

What can we derive? This is ultimately bullish for hard assets, as the underlying economies of the world continue to see their infrastructures crumble.

Having said that, in light of doubling down on debt and spending on infrastructure, I believe silver will “Trump” gold in the short- to mid-term period, less some sort of black swan event.

Trump is proposing massive increases to government spending, with the majority going to defense and infrastructure, and a huge increase in Fed money printing to pay for these spending increases. He’s already discussing spending $1 trillion on infrastructure, which will certainly benefit industrial metals, with silver being one.

Trump’s plan is both inflationary and an injection into the industrial component of the economy, which are both aspects of where silver derives its luster. It’s not to say that this sort of rhetoric isn’t going to benefit gold as well, especially on the economic uncertainty front, but there are multiple upward forces in play to benefit silver.

The opportunities that are presenting themselves in the resource space are unlike anything I have ever seen, given the pullbacks that we are seeing.

The team at CrushTheStreet.com is highly skilled in digging for trends to profit from, and we see silver as one that will have great upside leverage here in 2017. We will be honing in on this trend, as it presents huge opportunities you won’t want to miss. Stay up to date with us at CrushTheStreet.com.

Kenneth Ameduri is the chief editor and cofounder of financial publication letter CrushTheStreet.com. He was a founder in Future Money Trends and Wealth Research Group, which have gone on to be vital sources of education and wealth for hundreds of thousands of readers. In his 20s, Ameduri has founded multiple businesses that have gone on to be worth millions of dollars. Ameduri was also a founder of FMT Advisory, which successfully manages millions of dollars in client funds. He is an ardent student of Austrian economics and anticipating market trends as he has successfully invested and built companies for more than 15 years.

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.

Disclosures:
1) Statements and opinions expressed are the opinions of Kenneth Ameduri and not of Streetwise Reports or its officers. Kenneth Ameduri is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Kenneth Ameduri 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 Kenneth Ameduri

Jack Chan: This Past Week in Gold

chanhui12-24

Technical analyst Jack Chan charts the latest moves in the gold and silver markets.

Our proprietary cycle indicator is down.

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.

chanhui212-24
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.

chanspec12-24
Speculation has now dropped below level of previous bottom.

changdx12-24
The trend remains down.

chansilver12-24
Silver is on a long-term buy signal.

chanslv12-24
SLV is on a short-term sell signal, and short-term signals can last for days to weeks, more suitable for traders.

Summary
The gold sector is on a major buy signal. The cycle is down, and the trend is down. The correction continues. Caution is advised.

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

An Uptick in Brucejack Resource Estimates Bodes Well for Pretium Resources

Upward revision of gold reserves estimates at Pretium Resources’ Valley of the Kings deposit, along with announcement of a management change, caught the attention of a handful of analysts, who offered their takes on future development of the Brucejack mine.

On Dec. 15, Pretium Resources Inc. (PVG:TSX; PVG:NYSE) released an updated reserves estimate for its flagship Brucejack project in northern British Columbia. “Proven Mineral Reserves in the Valley of the Kings increased to 1.6 million ounces gold (3.3 million tonnes grading 14.5 grams per tonne gold), which is sufficient for the first three years of mine life. Proven and Probable Mineral Reserves in the Valley of the Kings increased to 8.1 million ounces gold (15.6 million tonnes grading 16.1 grams per tonne gold),” the company reported.

Pretium also noted that it was on schedule for mill and mine commissioning in mid-2017; the company expects to begin commercial gold production in 2017.

In addition, Pretium has “realigned its senior leadership talent to support the next phase in the company’s growth,” installing Joseph Ovsenek as president and chief executive officer, with Robert Quartermain assuming the role of executive chair.

In a Dec. 15 research report, analyst Joe Reagor of ROTH Capital Partners wrote, “We believe the reserve updated was an anticipated positive. . .We believe the increased reserve estimate, as well as the inclusion of additional stopes into the mine plan, demonstrate the potential for the company to add ounces to the resource base over time through continued underground drilling.”

With regard to the management moves, Reagor noted, “We view this transition as a logical step for the company as Mr. Ovsenek has a strong operational and management background.”

Analyst Heiko Ihle, writing for Rodman & Renshaw on Dec. 16, observed, “Brucejack has been de-risked from a financial point of view, as all of the required capital necessary to reach production has been secured. Further, construction has continued to progress without major hiccups—an impressive accomplishment on management’s part. Due to this, we continue to believe commissioning should occur towards the middle of 2017, with 2018 serving as the first full year of production at the large-scale high-grade gold project.”

In a Dec. 15 research report, Eric Zaunscherb of Canaccord Genuity wrote that, “At the current share price, Pretivm is trading at a 0.62x P/NAV (5%). This is a premium to the mean of peer covered exploration and development companies of 0.35x but a significant discount to the mean of covered small- to mid-cap producers of 0.74x. Given Pretivm’s premium gold project situated in a low sovereign risk jurisdiction, we expect the company to trade toward and beyond the 0.74x multiple as it comes into production and demonstrates profitability.”

CIBC analyst Jeff Killeen, in a Dec. 15 research report, acknowledged both the increase in reserves as well as a decrease in grade, noting, “The reserve update implies our life-of-mine model will increase by >2 years. That being said, investors may put some focus on the updated Proven Mineral Reserve grade, which was lowered by ~7% from 15.6 g/t to 14.5 g/t. This would imply that the grades over the first three years of the mine life are reduced, lowering our production estimates.”

Commenting on the management changes, Killeen wrote, “We view this as a natural change with the company focused on transitioning Brucejack into production in 2017.”

Read what other experts are saying about:

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Disclosure:
1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. 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: Pretium Resources Inc. The companies mentioned in this article were not involved in any aspect of the article preparation. Streetwise Reports does not accept stock in exchange for its services. 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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.

Additional Disclosures for this Content

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

Momentum Is Building at Nemaska Lithium’s Mine and Plant

Nemaska Lithium’s progress on the Whabouchi lithium project and the Shawinigan Phase 1 Plant has garnered the attention of several analysts.

Nemaska Lithium Inc. (NMX:TSX; NMKEF:OTCQX) provided a progress report on its Whabouchi lithium mineral project in Quebec on Dec. 12, as well as an update on its Shawinigan Phase 1 Plant. Guy Bourassa, president and CEO of Nemaska Lithium, said, “We are advancing the project on all fronts and I am very pleased with our progress to date. We expect to be producing a 6% Li2O concentrate and processing it into battery grade lithium salts next year, which is approximately 18 months ahead of our planned commercial production. This will enable us to actively engage customers and demonstrate the quality of our products while we are still building our commercial facilities.”

Eric Zaunschwerb, an analyst with Canaccord Genuity, wrote in a company update on Dec. 12 that “Management expects the Phase 1 Plant to be up and running 24 hours/day and 7 days/week in Q1 2017. Progress is being made on budget and on schedule, with technical operators currently being trained, which should lead to the production of 435 tonnes per annum of lithium carbonate equivalent (LCE), also in Q1 2017.” He added that “as part of the recent resource update, an updated feasibility study is in the works, with results expected to be published in January 2017.”

David Talbot, an analyst with Dundee Capital Partners, in a Dec. 12 comment, named Nemaska as Dundee’s top lithium pick. He called Nemaska’s progress report “great news but this shouldn’t come as a surprise with management doing an excellent job at keeping investors abreast of the situation. Success bodes well for technical and financial de-risking.” He noted that Whabouchi mine site progress is “on track,” and this includes “bulk sampling; completion of dense media separation (DMS) modular mill; and advanced site preparations.”

Talbot noted that “our confidence that management is on top of everything grows. Budgets and schedules are one thing, but execution another and Q1/17 events will be of utmost importance. We do believe those milestones should help accelerate financial de-risking.”

Nemaska announced on Dec. 6 that it has been included in the Solactive Global Lithium Index, which is tracked by the Global X Lithium ETF. According to the company, “the Solactive Global Lithium Index tracks the performance of the largest and most liquid listed companies active in exploration and/or mining of lithium or the production of lithium batteries. The index is calculated as a total return index in USD and is readjusted once a year.”

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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. 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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.

‘Twas the Week Before Christmas. . .

HUI Gold BUGS Index

Precious metals expert Michael Ballanger compares the current state of the precious metals market to it one year ago.

“‘Tis one week ’til Christmas and all through the Street
Brokers are begging for the Donald’s next tweet.
With benchmarks all causing the advisors such fear
They all need a jumpstart to rescue the year.”

I was sitting in my rustic abode on the shores of lovely Lake Scugog last evening, a houseful of family all revelling beautifully as outside the wind howled and the snow whirled while neither man nor beast dared venture into the frigid abyss of a vintage Canadian pre-winter, jet-stream-delivered, pre-Christmas storm. You see, I live in a small rural town located northeast of the City of Toronto at latitude 44°6′, which is approximately the same as Minneapolis, Minnesota, but nowhere as isolated (nor as wintery) as Edmonton, or Minsk, or Moscow, all of which reside at around latitude 55°3′. In the vernacular of brass monkeys, the weather outside here in Port Perry is emasculating at -16 C (3°F) but the weather in Moosonee, Ontario, which lies over 1,000 kilometres north of me in the SAME province, was clocked at -27 Celsius, which comes in at -16.6 F. That, my friends, is COLD weather.

Now, add the wind chill factor, which tonight here in the “Port” is severe as not only is it cold, we sit on the windward side of the lake, which means that the big northwest wind comes over the tree and roof tops across the lake and then barrels down in us with a vengeance. Fido can’t even get through the snow drifts caused by the wind to do his “business,” so he just walks back and forth until he can function and then, when finished, BOLTS back up the back stairs of the deck and howls at the patio door until let in. So WTF is the point of all of this drivel? Ladies and gentlemen, it is three days unto the first day of winter and I continue to read about carbon credits and global warming and how we should ALL drive electric cars. Three days until winter. . .

As Donald Trump continues to “drain the swamp” by adding more and more members of the Black Lagoon alumni (for all of you millennials or echo-boomers or carbon credit counters, Web search “The Creature from the Black Lagoon”), the last vestige of the Obama “Faith and Hope” movement are now observing Mother Nature at her omnipotent best; she is showing these kids (who vote with their “trust fund” brains) that no matter how many “Congressional Studies” are completed and read in session, Mother Earth determines when and IF GLOBAL WARMING is an “issue” with her. She sits up there in the clouds quietly watching the creatures—ALL creatures—that have an impact on HER planet and decides when and if a species should survive. The last time that Mother decided to change the status quo was when a bunch of the “Protestacockalus Flatulus” decided to tell “Tyrannosaurus Rex” that he was emitting too much methane after meals. She hurled an asteroid the size of the moon into what is now Sudbury, Ontario, in order to curb the methane by creating an Ice Age that exterminated the dinosaurs. I guess you really don’t want to piss off Mother Nature, now, do you?

University professors in our current society blame the indiscriminate use of “foul language” aimed at “vulnerable students” left outside of the “safe zones” as the reason for “societal breakdowns” and “suicidal memes.” My father, a lieutenant in the Royal Air Force in WW2, told me less than a decade ago that “you BabyBoomer pansies will raise a generation of men afraid of their own shadows and a generation of women that will resent it.”

I think that he was correct and I further think that many of my fellow Boomer Generation parents would agree with that. So when I walk outside my house in this little Ontario town that is a throwback to the Ontario in the 1960s, where parents in the supermarket introduce their friends to their children as “MRS. Shouldice” and “MR. Toms” and advise them that they should be addressed as such takes me back to my youth when the parents of all of my schoolyard hooligan pals were all addressed as “MR.” and “MRS.” Billy Brassard’s father was in jail throughout most of his grade school years and while Billy was a great schoolyard athlete and even better with his fists, he was really embarrassed that his old man was in the slammer. On Billy’s 12th birthday, Billy’s father showed up at the baseball diamond at Malton Public School and was greeted by all the parents not as “Peter” but as “Mr. Brassard” and we all shook hands with Billy’s father as “Mr. Brassard.” Whatever the parents thought of old “Lefty Brassard,” he was to be treated with respect by the children because those were the rules, plain and simple. Children treated ALL older people with RESPECT, be it the preacher, the school principal, or the car thief.

We are soon to be celebrating one of the greatest events in the history of the planet and one which has caused a great deal of controversy over the past 2,016 years. The mere arrival of a humanoid that had the uncanny ability to survive all odds and create a spiritual movement that would supersede Hinduism as the world’s most prominent religion is something that many young people would condemn. It is like looking at Niagara Falls and accusing it of being “environmentally unfriendly” while engaged in a “SnapChat” with a friend in Mumbai who chastises you for failing to see “the beauty in the water falling off the cliff.” Christmas is a celebration that seems to be under a great deal of fire both of the friendly AND hostile ilk. This year is no different as every non-Christian on the planet is trying to elbow their way into the Santa Claus queue because Ol’ Saint Nick is non-denominational and free stuff is, well, free stuff. I must confess however that the Christmas of 2016 is going to be one of the more “reserved” ones in recent memory and here is why:

This time last year, despite an absolutely brutal year for the precious metals and my beloved gold miners, I was genuinely excited as that $1,045 gold print in early December along with the multiyear low in the commercial net short position (at -2,911 contracts) was going to be THE bottom for our sector and one that could be bought for multiyear advances—and once the miners went through one final capitulatory regurgitation in mid-January unconfirmed by the physical metals, it was obvious to me that it was then time to go “ALL-IN” as I did with the GDXJ (VanEck Vectors Junior Gold Miners ETF) for that exhilarating move from $18 to $52. JNUG (Direxion Daily Junior Gold Miners Bull 3X ETF) was a split-adjusted tenbagger from the January lows to the late-August peak but at Christmas 2015, I felt really good about the outlook for this year, 2016.

Alas, here we are closing out the year with the HUI (NYSE Arca Gold BUGS Index) 47% from the mid-year high at 286 and still a mere 25% of the 2011 peak at 635. After grooming themselves for a magnificent year of outperformance back in August, the script I had been preparing complete with curtain calls and victory laps has been transformed into yet another December assault of tax-loss selling and portfolio rebalancing bringing pressure down upon the throats of the miners, big and small.

After the Trump victory, what should have been a December of portfolio managers chasing gold and silver stocks turned into a December where portfolio managers were chasing the banks because higher interest rates brought about by the post-election surge in yields were “bullish.” Well, yes, I get it that the steeper the yield curve, the bigger the margin for the lenders, but how on earth does Bank of America get marked up by 20% because the 10-year prints a 2.48 yield? Higher borrowing costs, by the way, are NOT good for business especially if borrowers are shutting their doors because higher borrowing costs are crippling their customers’ purchasing power.

I guess what really irks me this Christmas is that the miners were given a seven-month reprieve in 2016 after a near-sixty-month bear market of the “granddaddy” variety in which we witnessed not just “falls from Grace,” but rather total annihilation of projects, balance sheets, hopes, dreams and retirement plans over a very long and drawn out time frame. After bear markets of the magnitude of the last one, the new bulls tend to have big advances initially and then a pause/correction that typically flushes out all of the late longs and allows the early investors to replace peripheral positions before going for the next major advance.

As we close out 2016, the HUI is actually sitting on the precipice of a large gap zone representing the initial lift-off from the lows at 99.17 to around 150; if we don’t grab in here, tax-loss selling right up until the 31st could easily vaporize the 2016 gains made nine months ago. Now, am I forecasting that? No. However, I am calling it to everyone’s attention so that if it actually happens, I can cherry-pick it from today’s missive and tell everyone that I “nailed it” (like all the other gurus do).

Friday’s COT was no surprise in that it was before the big smash last week and while you can see that the open interest numbers are flattening out, that would appear to be because the Large Speculators have started to short the market as compared with last August when they were net long 294,000 contracts versus today at 129,000. So it looks like the Commercials are playing bat catchers to the Large Spec pitchers as long liquidation prevails going into year end. I think that with the Commercials STILL short a ton of paper “gold” versus this time last year, that it is still too early to expect that we are in as good a shape in terms of the COT structure today as we were on December 4th of last year with the Commercial Cretins at -2,911 contracts and the Large Specs massively short instead. Some of the brilliant minds out there say that gold will be weak right up until Trump’s inauguration but I think it will all be pretty much over by end-of-month. One sad thing is for certain from where I sit: the explosive cannon shot that the miners experienced in the winter of 2016 is going to be a very tough act to follow.

Gold COT Report

The good news for me is that the base metals have finally rolled over with copper now finally in retreat and taking Freeport-McMoRan Inc. (FCX:NYSE) with it. I bought a fistful of January puts that are now finally in-the-money and as I wrote when I first posted the trading idea, I continue to think that the Trump Trade will get largely reversed after month-end when people’s gains are moved to 2018 and are probably at a lower tax rate. If that’s the case, then FCX could easily check back to the 200-dma at $11.56 but it could also be headed to its pre-election level around $10.50. If that happens, the January $14 puts will be between $2.50 and $3.50 and a decent return from the $1.25 paid three weeks ago.

There is no question that gold sentiment is similar to last year in its extreme bearish consensus so there is no doubt that we could and probably will get a really sharp countertrend rally in the miners in early January. However, until the regulators can finally put an end to this horrific process whereby the bullion banks have a total carte blanche to issue as many contracts as they desire under the guise of “hedging,” prospective gold investors are simply going to say “Nope, not playing.” Because of the interventions and collusions and bank-coordinated gangs attacks such as we are now witnessing via all of the Deutsche Bank evidence coming to the surface, it is actually having a negative effect on sentiment because as much as the revelations are creating transparency, they are also scaring prospective investors at the same time. The prevailing wisdom that is emanating from the trading desks is “Wow, if they can get away with that, why would anyone put money into the gold and silver markets?” Bullish sentiment for gold is 4%, which is 1% higher than the all-time low from 2014.

The more things change. . .

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.

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Disclosure:
1) Michael Ballanger: I, or members of my immediate household or family, own puts on the following companies mentioned in this article: Freeport McMoRan Inc. 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 mentioned in this article: None. 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. 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) 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.
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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview until after it publishes.

All charts and images courtesy of Michael Ballanger.

( Companies Mentioned: FCX:NYSE,
)

The War on Cash and Then on Gold

Technical analyst Clive Maund says liquidity issues with banks could lead to restrictions on cash and precious metals.

The global financial system continues to groan under the strain of the accumulated weight of trillions of dollars worth of debt and derivatives, which have built up to even more fantastic levels than those that precipitated the near collapse in 2008, thanks to the policy of solving liquidity problems near term by creating even more debt and derivatives, Quantitative Easing being the most obvious example. However, while the majority considers the situation to be hopeless, there is actually “light at the end of the tunnel.”

If only a way could be found to freely tap the funds of savers at will, by imposing duties or taxes on bank accounts, with the additional option to appropriate savers’ funds on occasion as required, then the systemic liquidity problems will be solved. Banks need never fear solvency problems again and they can simply fall back on the account holder’s funds to meet any obligations. There are in fact already names for these restorative operations, they are called “bails-ins” and NIRP (Negative Interest Rate Policy).

Unfortunately, any immediate attempt to implement bail-ins and NIRP on a large scale will backfire because, faced with being charged significant sums for the privilege of keeping their money in the bank, savers will simply withdraw their funds and keep them as cash at home, or maybe even invest in precious metals. It is therefore imperative that these escape routes are blocked off.

We have already seen an interesting “trial balloon” in recent years with respect to bails-ins. This was the celebrated Cyprus bail-in. When Cyprus banks were about to go belly up a couple of years ago, they saved themselves by raiding customers’ accounts, which is more palatably described as a bail-in. The reaction of global savers to this action by the Cyprus banks was one of horror and revulsion and they made it plain that they weren’t going to stand idly by and watch banks plunder their funds—they would withdraw them as cash if any such threat should appear over the horizon.

This reaction set the great minds of the banking community to work on how to stop savers withdrawing their funds in the face of these threats. The solution was and is simple—abolish cash! Thus we have seen production of the 500 Euro note in the European Union stopped so that it gradually fades into oblivion and in the U.S. Larry Summers has proposed abolition of the $100 bill, which accounts for most of the money in circulation. The idea is to implement the policy for a global cashless society in stages—if it is done all at once the public will revolt. They need to be trained to go cashless and this will take time. By starting with high denomination notes you actually remove most of the currency in circulation at a stroke, but the masses can still buy cigarettes and candy bars at street corner shops with small denomination notes. The excuse given for the removal of the notes is that it impedes organized crime and money laundering, etc., which is, of course, a convenient smokescreen.

With plans for a cashless society already well advanced it was time for another trial balloon. India was selected. Anxious to demonstrate his credentials as a card carrying member of the New World Order, and oblivious to the effects of the operation on the hapless citizenry of his country, Indian Prime Minister Narendra Modi went ahead with the withdrawal of two key banknotes. This caused chaos across the country, especially in rural areas where many don’t even have bank accounts, and citizens often had to travel long distances to get to banks to change these banknotes, only to find that the banks had in many cases run out of smaller denomination notes. Despite the economic dislocation and suffering experienced by the masses, including some deaths, the experiment was deemed a success by the elites, as they had gotten away with it, with the cowed and impotent citizenry accepting it as their fate—what they should have done is rioted until the measures were withdrawn. Globally, the plan therefore is to keep chipping away at it until the cashless society is universally accepted, the only cash likely to remain being small denomination notes and coins suitable for paying street vendors and bus fares etc.

The arrival of the cashless society will not only mean that banks will be able to avail themselves of citizens’ funds as and when they please, it will also mean that the banks, and by extension the government, will know all your financial business, what you do and when. Tax evasion will be impossible, and eventually you will not be able to do business with companies that are not approved of by the government.

With the escape route into cash set to be blocked off, that leaves precious metals: gold and silver—gold as a store of value and silver more for everyday transactions. Gold bugs and others, especially survivalists, and many wealthy investors see this as THE way to escape the rapacious grasp of the banks and the government, and are busy squirreling away fortunes into overseas vaults, etc. However, it is unfortunate that if you can think of this, so can they, so can the banks and the government, and they have plans for you and your gold hoard. Remember, their power is absolute, no one dares stand up to them and they can and will do what they like, changing the law as required to suit their purposes. They are much more powerful than President Franklin D. Roosevelt, who in the 1930s, in an act of naked piracy, seized the gold of U.S. citizens, and furthermore their modern powers of surveillance and tracking are much more sophisticated than anything back then.

Thus we can expect governments to declare the holding of gold (and silver) to be illegal, and to demand forfeiture to the government in exchange for nominal compensation. Vendors of gold bars will be closed down and mints will not sell retail gold. Unlike the 1930s, this would be a coordinated global campaign, a kind of witch hunt if you will, and there will be no corner of the world that is safe, just as they finished off private banking in Switzerland. Those buying gold and stashing it in various pseudo anonymous remote foreign depositories will be in for a nasty shock as these vaults are arbitrarily raided and plundered, with local and international law being changed as required to facilitate this. Nothing will stand in the way of a system that will not permit alternatives.

We will end on a positive note. No one really wants to see a complete systemic collapse, which is what will happen if banks don’t avail themselves of savers’ funds quite soon, least of all the controlling elites at the top of the pyramid who live lives of scarcely imaginable opulence and luxury and wish to continue doing so. Such a collapse would lead to bank accounts being frozen, and a breakdown of the distribution system leading to anarchy and hand-to-hand fighting in the streets for essentials like food and gasoline. Should we not therefore be grateful to our illustrious masters who have ingeniously thought of a way out of the current impasse, by availing themselves of your funds as required? Is it not a small price to pay to go cashless and forego your privacy and independence, and forfeit your gold and silver on demand?

It is tempting to blame others for all this, especially those in control of the system, but don’t forget that for decades you voted for people who routinely lied before elections, and told you what you wanted to hear, that you could have it all right now and to hell with the future—well, that future has now arrived.

Clive Maund has been president of 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.

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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.

Jack Chan: This Past Week in Gold

chanhui_12-17

Technical analyst Jack Chan charts the latest moves in the gold and silver markets, noting a bull market has emerged for the U.S. dollar.

Our proprietary cycle indicator is down again, confirming price action.

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.

chanhui2
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.

chanspec_12-17
Speculation has now dropped below the level of the previous bottom.

changdx_12-17
The trend remains down.

chanusd_12-17
USD is in a bull market since our major buy signal in 2011. A strong dollar is not friendly to the precious metals.

chansilver_12-17
Silver is on a long-term buy signal.

chanslv_12-17
SLV is on a short-term sell signal, and short-term signals can last for days to weeks, more suitable for traders.

Summary
The gold sector is on a major buy signal. The cycle is down, and the trend is down. The correction continues. Caution is advised.

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.

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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