Gold price correction sinks mining stocks

By analyst By Frik Els In heavy volumes gold suffered its worst trading day of 2017 on Thursday with the metal coming under pressure from a rise in the US dollar to 2-month highs and a looming interest rate hike in the US. Gold for delivery in April, the most active contract on the Comex market in New York with over 24m ounces traded by early afternoon, slumped to a low of $1,231.90, down 1.5% from yesterday’s close. Gold’s negative momentum saw gold stocks selling off heavily on the day with the Market Vectors Gold Miners ETF (NYSEARCA:GDX), holding stock in the world’s top gold miners, dipping 4%, while the Philadelphia Gold & Silver Index (INDEXNASDAQ:XAU) fell at a similar pace, nearly wiping out is year-to-date gains. While the yellow metal is still up some 7% in value this year, the shares of some major gold miners are back in … Continue reading

Let’s Get Real: Why You Must Own Precious Metals

By GoldSilverWorlds It can be difficult, even for dyed-in-the-wool perma-bulls to hold onto precious metals, let alone buy more. We see the Dow trading above 20,000 (placing this into perspective, is that since 2000, the Dow is up around 65% versus gold’s 300%), gold and silver currently languishing below multiple “resistance” points; suspended just above a couple of “support” lines. For long-suffering holders, it feels like the fabled Sword of Damocles dangling over their head, suspended by that proverbial single strand of hair. If you fit the above description, the following chart should provide good cheer. You’ll notice that since 1925, a few years before the Great Depression, up until the current day, financial assets (paper) – bonds, large cap stocks, and derivatives – have never been more overvalued in relation to metals and minerals, than they are now. Financial (Paper) Assets vs. Real (Metals/Minerals)Assets (Courtesy Sources Listed) What you … Continue reading

Gold Moves Higher Even if the Fed Raises Rates

By James Rickards This post Gold Moves Higher Even if the Fed Raises Rates appeared first on Daily Reckoning. [Ed. Note: Jim Rickards’ latest New York Times bestseller, The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis, is out now. Learn how to score your free copy here. This vital book transcends geopolitics and media rhetoric to prepare you for what areas in gold, markets and more you should be watching now.] When the Fed raised interest rates in December, many believed gold would plunge. But it didn’t happen. Gold bottomed the day after the rate hike, but then started moving higher again. And for the last 10 weeks it’s been up about 12%, despite some up and down fluctuations. Incidentally, the same thing happened last year when the Fed tightened in December 2015. Gold had one of its best quarters in 20 years in … Continue reading

CAT shares hammered as feds search offices

By analyst By Cecilia Jamasmie Shares in Caterpillar (NYSE:CAT), the world’s No.1 heavy machinery maker, were down more than 5% Thursday around noon after it became public that officials were executing a search warrant at three of the companies’ facilities in the Tri-County Area, including the corporate headquarters. Some of the agents spotted by local press and witnesses wore jackets bearing an Internal Revenue Service logo. Company officials confirmed the presence of federal agents in a statement without specifying which agency was performing the search or what they were looking for. “Caterpillar is cooperating,” the brief statement quoted by Sun Times said. The US attorney’s office confirmed that law enforcement officials were active in three of CAT’s facilities in the Peoria, Illinois-area, including East Peoria and Morton. Some of the agents spotted by local press and witnesses wore jackets bearing an Internal Revenue Service logo, others appeared to be from … Continue reading

How the U.K. Turned Trump’s Tweet into a $125 Million Contract

By Nomi Prins This post How the U.K. Turned Trump’s Tweet into a $125 Million Contract appeared first on Daily Reckoning. In the future, U.K PM Theresa May could look back on the canceled meeting between President Trump and Mexican President Peña Nieto on January 26 as the luckiest break in her political career (recent analysis on Mexico featured HERE). A week after Trump took office, he and President Nieto called off a scheduled visit, and may have gotten close to starting a trade war between the U.S. and its third biggest trading partner. However, this cancelled meeting also sparked off a sequence of events with long lasting repercussions for both the U.K. and the EU, which we’ll examine. As President, Trump has pursued his campaign vow to have Mexico pay for a border wall. There continues to be underlying tension between the two countries. But when Trump tweeted that … Continue reading

Rick and Big Al – Thu 2 Mar, 2017

By Big Al Rick comments on the “euphoria in equities markets” The question of the potential of the longevity of the strong U.S. equities markets is on a lot of people’s minds. Here is what Rick Ackerman and Big Al think about that. Download audio file (Thursday-Rick-use-1.mp3) …read more Source:: The Korelin Economics Report The post Rick and Big Al – Thu 2 Mar, 2017 appeared first on Junior Mining Analyst. … Continue reading

You’ve NEVER Seen This S&P 500 Chart Before

By Greg Guenthner This post You’ve NEVER Seen This S&P 500 Chart Before appeared first on Daily Reckoning. I guarantee you’ve never seen this chart of the S&P 500 before. But as I’ll show you in a moment, you could use one just like it to pull double-digit gains out of the market over the next few weeks… Alright, enough with the suspense. Here’s the chart: “I call it the S&P 500 Kinetic Composite,” explains my colleague Jonas Elmerraji. “The S&P 500 Kinetic Composite chart is unique because it’s not a typical price chart. Instead, it’s a special composite of the average calendar year for the last 20 years’ price action. Every single tick in the S&P 500 since the first trading day of 1997 is factored into that chart.” This chart boils down the times when markets are most likely to be in motion year after year – thus … Continue reading


  March 2, 2017 Editors Note from Dudley Pierce Baker American Manganese is interesting company which we own and should be of interest to investors.       WHERE WILL ALL THE ELECTRIC CARS GO WHEN THEY END THEIR SERVICE LIFE? “… Of all the hurdles that electric cars have had to overcome, one of the most annoying, and persistent, has been what to do with the batteries when the vehicles reach the end of their service life. he shell of an electric vehicle (EV) is much the same as that of any gas-powered automobile: a mix of metal, plastics and some fabric. Comprehensive recycling programs exist to deal with most of those components. But the batteries pose a different, and heretofore perplexing problem. Enter American Manganese Inc. (AMI), who say they have the answer to the world’s emerging EV market disposal problems….” READ THE ENTIRE ARTICLE … Continue reading

Broadway Gold Ramps Up Exploration at Madison Mine

Broadway Gold Mining has recently begun both surface and underground mining at its Madison Mine, advancing exploration at the historic gold-copper project in the Butte-Anaconda mining district of Montana and netting the attention of industry watchers. In a Feb. 27 press release, Broadway Gold Mining Ltd. (BRD:TSX.V;BDWYF: OTCQB) announced the onset of underground drilling at the 100%-owned Madison project. The phase 1 underground drilling program is being conducted in tandem with a phase 2 surface drilling program announced in a Feb. 21 press release. The company states the underground drilling program has two goals: “testing the down dip continuation of the copper and gold mineralization on the 600 Level; and exploring the newly discovered mineralization to the west of the decline.” Broadway’s surface exploration program, which got underway in January, was expanded earlier in February, when “alteration and mineralization observed in the eight holes drilled to date provide[d] confidence that … Continue reading

Alkane in Position to Benefit from Hafnium Demand Rise

Hafnium may not be a household word, but demand for the element is growing, and Alkane Resources is gearing up to take advantage. Although hafnium is used in electronics, in alloys for aerospace applications and in control rods for nuclear reactors, the market is quite small. Hafnium is not rare, but it is not found alone in nature. It is almost always found with zirconium and must be separated from it. Only about 70 tons are produced each year, but demand is expected to increase. Tom Vulcan noted in that “while the demand for hafnium from the electronics industry (for chips) appears to be increasing slightly, there is strong demand growth for the metal both in air plasma applications and superalloys. . .it is, however, from the nuclear industry that the greatest growth in demand may arise.” According to the World Nuclear Association, 60 nuclear reactors are under construction … Continue reading