Will Gold Prices Finally Pull Back or Continue Marching Ahead?

By GoldSilverWorlds Gold prices are up more than 11% since bottoming last December. Their gains last week took the gold market right up to its 50-week moving average. In 2015, attempted rallies reversed at the 50-week moving average. Could this level once again serve as a barrier to further price advances? Either way, long-term gold bulls shouldn’t sweat this particular technical level. Major bull markets need to pull back and reconsolidate periodically. Whether that starts happening this week, or later on at higher price levels, a downturn of some magnitude is inevitable. One indicator that may be pointing toward a pullback sooner rather than later is the negative divergence in gold mining stocks which are often leading indicators for the yellow metal. Despite gold spot prices rallying along with the broader U.S. equity market last week, the HUI Gold BUGS (Basket of Unhedged Gold Stocks) Index fell by 3.8%. That … Continue reading

China closing 150 gold mines

By analyst By Frik Els China’s official news agency Xinhua is reporting that the country is set increase annual gold output to 500 tonnes by the end of the decade from around 450 tonnes currently. China overtook South Africa as the number one miner of the metal in 2007. China’s Ministry of Industry and Information Technology (MIIT) expects gold output to grow by an average 3% annually through 2020. Last year output rose less than 1% to 453.5 tonnes according to the ministry: [The MIIT] aims to consolidate and upgrade the industry by reducing the number of gold miners to around 450 from more than 600, and shutting down 40 tonnes of outdated production capacity by the end of 2020. Last year, global gold demand increased 2% to 4,309 tonnes, the highest since 2013, but the improvement was mainly on the back of investment purchases in the West as physical … Continue reading

Millennium Minerals, an Accident Waiting to Happen

Bob Moriarty of 321 Gold dissects Millennium Minerals’ latest moves in Australia. I wrote a piece about Novo Resources recently and mentioned Millennium Minerals Ltd. (MOY-ASX), an Australian company that has a mill nearby to Beaton Creek. I made a comment in the piece that Millennium was running out of ore and it might make sense for them to do some kind of deal with Novo; either toll milling or a purchase of Beaton’s Creek. One of their shareholders wrote me a rather snotty email informing me that Millennium was doing just great and adding high-grade ounces like crazy. Well, actually their share price has been doing just great but they do have a giant problem with future feed. Their latest press release about drilling and news reserves concealed a lot more than it revealed. I went back and looked at a report that came out just over a year … Continue reading

Three Outstanding Opportunities in the Natural Resources Sector

Aside from the exuberance surrounding the tops of bull markets, the general investment public is uninterested and underinvested in natural resource equities, says Matt Geiger, founder of MJG Capital Limited Partners. Geiger views the general apathy toward natural resources as an opportunity, and profiles three companies that he believes are in position to break away from the herd. For those underweight natural resources, it is not too late to adjust one’s portfolio—here is still plenty of money to be made in this current bull cycle. We are seeing signs that the next eight years will be starkly different from what we’ve seen over the past eight, which were the rising U.S. dollar, low interest rates, currency devaluations in the Western world, rising stock markets, falling commodity prices, low inflation, etc. Times are changing, and it would be prudent to shift exposure from the S&P 500 to natural resource equities. The … Continue reading

Pretium Resources Adds Capital to Brucejack’s Accelerated Operations Schedule

Pretium Resources is ramping up Brucejack ahead of schedule and the $100 million offering the company just closed will fund working capital requirements for its start-up. On Feb. 14, Pretium Resources Inc. (PVG:TSX; PVG:NYSE) announced the closing of a US$100 million convertible senior subordinated notes offering, including the full exercise of the over-allotment option. Pretium will use the proceeds as working capital for its 100%-owned Brucejack gold mine project and for general corporate purposes. The news comes on the heels of the company’s Feb. 3 announcement that the Brucejack project timeline had been accelerated “with dry commissioning now scheduled to commence in March 2017 and wet commissioning scheduled to commence in early April 2017.” Heiko Ihle of Rodman & Renshaw sees a big positive with the new schedule, highlighting in his Feb. 6 report, “that the updated timeline is ahead of our estimate for mid-year commissioning; therefore, we are increasing … Continue reading

Oil Prices Surge and Investors Become Bullish in Wake of OPEC Deal

With OPEC producers complying with a deal to reduce output to address the oil glut that drove prices down in 2016, the oil price has rebounded above $55 per barrel, and investors are optimistic about a bullish energy market. According to a Reuters report today (Feb. 27), “Oil prices rose on Monday as investors showed record confidence in prices rising further, though gains were capped by the prospect of faster growth in U.S. oil production.” U.S. oil exports are also up. In an article published Feb. 23, Bloomberg’s Sheela Tobben reported that “producers and traders shipped out 1.21 million barrels of crude a day from the U.S. in the week that ended February 17, the most in Energy Information Administration data going back to 1993.” According to the report, domestic output was 9 million barrels per day in the week ending Feb. 17, and U.S. stockpiles swelled to record levels. … Continue reading

Canada Zinc: Right Time, Right Metal

321 Gold founder Bob Moriarty turns his attention to Canada Zinc, a company that has a giant zinc deposit in northern British Columbia. In 2013 I wrote about an interesting company named Canada Zinc (CZX-V) with a giant zinc deposit in Northern British Columbia that had $6 billion worth of silver, lead and zinc in the ground. The company had an absurd market cap of $31 million while they had $15 million in cash. They were $0.22 a share. Yawn, yawn. I covered them again a year later as they climbed to $0.38 a share. Nothing much had changed in a year but Teck and Korea Zinc did option three of Canada Zinc’s projects. The big zinc companies have been saying for years that there was a big shortage of zinc production right around the corner. Yawn, yawn. So why should you consider buying a stock that has done little … Continue reading

Tesla’s Battery Revolution Just Reached Critical Mass

Three new plants in California show how lithium-ion storage is ready to power the grid. by Tom Randall January 30, 2017, 5:45 AM CST Tesla Motors Inc. is making a huge bet that millions of small batteries can be strung together to help kick fossil fuels off the grid. The idea is a powerful one—one that’s been used to help justify the company’s $5 billion factory near Reno, Nev.—but batteries have so far only appeared in a handful of true, grid-scale pilot projects. That changes this week. Three massive battery storage plants—built by Tesla, AES Corp., and Altagas Ltd.—are all officially going live in southern California at about the same time. Any one of these projects would have been the largest battery storage facility ever built. Combined, they amount to 15 percent of the battery storage installed planet-wide last year. Ribbons will be cut and executives will take their bows. But this is a revolution that’s just getting started, Tesla … Continue reading

Jack Chan’s Weekly Gold and Silver Update

Technical analyst Jack Chan charts the latest moves in the gold and silver sectors. Our proprietary cycle indicator is up. 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. 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. Insert chan fcx We are long FCX from 10.64, holding for longterm gains. Silver is on a long-term buy signal. SLV is on a short-term buy signal, and short-term signals can last for days to weeks, more suitable for traders. Summary The gold sector is on major buy signal. The cycle is up. We are holding FCX for long-term gains. Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko … Continue reading

Chevrier Gold Project: A New District-Scale Start With Lots Of Upside For Genesis Metals

The Critical Investor takes an in-depth look at Genesis Metals, which is developing a new geologic model for its 100%-owned flagship Chevrier Gold deposit in Quebec. Being established at the peak of the last precious metals bull market as its predecessor Entourage Metals, junior explorer Genesis Metals Corp. (GIS:TSX.V; GGISF:OTC) didn’t have the easiest of times to make a name for itself. Despite a set of very prospective claims and a very experienced team of well-known geologists, things went south during the bear market as significant new discoveries couldn’t be made at the time. After Entourage Metals acquired Tawsho Mining on March 1, 2016, in an all-equity deal, they received ownership of the Chevrier Gold project in Quebec, and changed their name into Genesis Metals, effective on March 2, 2016, as they became a different company with a much more advanced asset. The Chevrier Gold project is the current flagship … Continue reading