Rare Earths Sector ETF $REMX Booming Again On Trade War With China

Summary

1)Rare earth critical mineral crisis heating up as China Retaliates against Trump Tariffs.

2)Rare Earth Shortage could cripple tech giants such as Apple and Tesla.

3)Rare Earth ETF $REMX was over $100 during last rare earth crisis in 2011 now its under $15.

4)If Chinese cut off rare earths, prices could skyrocket in parabolic rise.

5)China Controls Rare Earth Sector which was invented in USA.

Over eight years ago I wrote about a crisis that could unfold in the United States related to rare earth imports from China.  Remember the Chinese control the rare earth market.  These rare earths are used in your phones, Ipads, and hybrid/electric vehicles.  Just think of rare earths in all your advanced technologies which involve magnets like hard drives and speakers.  Some think the rare earth boom has been and gone...but I think its coming back and it could be very soon.

 

In this article published back in September of 2011, I warned about a potential   rare earth critical minerals crisis which could cripple the United States economy especially technology companies that use rare earths (REMX) such as Tesla (TSLA) and Apple (AAPL) when tensions with China flare up again.

China usurped the rare earth industry away from America back in the 1980's when GM sold its magnet technology to the Chinese.  No one cared back then as the metals were kind of obscure and the American Public cared more about Michael Jackson.  But the Chinese knew that these metals would be the guts of the new mobile technology and defense systems.

I tried to get Obama to make an emergency executive act back during the Credit Crisis to boost jobs and develop a secure USA rare earth supply chain.  All I heard was crickets.

Back then they ignored the fact that these metals are behind our top defense systems, guided missile programs and technologies the public is still unaware as its being kept top secret.  For years I warned that America was becoming a client state of China as the elites sold our most advanced industries for pennies.  As I said back then, "We are now on the verge of reaping the whirlwind resulting from our short sightedness on rare earths."

The new administration under Trump has listened to a large segment of the population who know their businesses have been shutdown by the Chinese shrewd game of catering to the corporate elites.  Those who have allowed our uranium and rare earth secrets to be sold over the past 30 years should be tried for possibly treason.  Such a tragedy as we are now in such a weak position with the Chinese.

Our technology depends on rare earths and Trump should consider what I requested Obama to do almost 10 years ago to make an emergency executive order to fast track American rare earth and battery metal development.

China is shrewdly gaming us into positions of weakness and dependency. To ignore the global chess game being developed by China is close to an act of treason or at least malfeasance by our elected representatives.  It is survival time on a national level.

Recently Lynas (LYSCF) one of the only publicly trade rare earth producers may be signaling to the market that America may be the place for rare earths as they are planning to build the first rare earth separation plant with an American Chemical company.  I wrote years ago that Lynas should do that rather than build an expensive facility in Malaysia which has shown to be an unfriendly jurisdiction from an operating perspective.  They have had a lot of local opposition in Malaysia. Glad they are finally listening to investors like me that said to invest in USA.

It is noteworthy that there was a huge presence of short sellers in rare earth and uranium stocks.  Almost eight years ago we were almost ready to start rare earth production in the USA before the Chinese cut the prices dramatically.  All development stopped and Molycorp went bankrupt as well as many of the junior developers.  China with a single click destroyed the sector which was trying to get started and all the investors who had the foresight.

 

Remember China has a bullet on how to respond to Trump's tariffs right now.  All they have to do is restrict rare earth exports crippling the US Economy as they did 10 years ago.

Unfortunately, It may take 10-15 years now to restart industry.  A lot of the American expertise from the 1950's were around 10 years ago but now are way past retirement.

There is speculation that the Chinese are prepared to shut down rare earth exports in response to Trump.  Share of the rare earth etf (REMX) were up yesterday on record volume as Bloomberg reported the President of China visited a rare earth facility to send clear message to Trump.

Investors should be prepared for Chinese retaliation with rare earths which could send prices soaring like it did in the past.  The Chinese have warned the US that they have tools at their disposal to retaliate against Trump.  That weapon of choice may be rare earths.

Remember the Rare earth ETF (REMX) hit a high above $100 back during the last crisis in 2011...now its trading under $15.  No one remembers what happened 10 years ago but we do.  The market has totally ignored rare earths until this week when we saw this record volume as sources are saying the Chinese may retaliate with rare earths.  If they do get ready for the next bubble in rare earths which may even surpass the 2010 run.

 

Disclosure: I am/we are long REMX.

Sun Metals $SUNM.V $SMTTF Shedding Light on a Whole New Disruptive Discovery in Canada

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It was in the late 1990's when I was just graduating high school that I decided I wanted to go into junior mining.  I remember studying the life of Herbert Hoover who went from being a poor farm kid to President of the United States based on his background in mining exploration.  I studied the history of some of the top American Families and realized it was the shares of natural resource stocks growing exponentially in value that created that generational wealth.

I was blessed to start out in this sector at a major bottom around the turn of the century.  After September 11th and the beginning of the Iraq War gold started an uptrend which lasted 10 years.  It was so easy picking gold stocks, especially if they were US listed and sponsored by institutions.  The explosive market even allowed some of the lower quality juniors to jump higher as the gold price continued to climb.

After multiple quantitative easings in 2010 and soaring sovereign debt levels investors thought inflation could climb to double digits.  Gold and silver soared to $1900 gold and $50 silver.

However, the majority of investors did not predict stocks and real estate to rise with no inflation of commodity, precious metals or food prices yet.  Stocks and housing have soared while commodities and precious metals have based for over 8 years.  The recent cover of a major financial publication was entitled "Inflation is Dead".

Its during these psychologically challenging bear markets that a mining investor really has to show if he knows his stuff and can make it through one of the most difficult bear markets of all with a declining gold and silver price and when all the weak hands are shaken out.

Most producers or developers will struggle in these environments unless they make a new high grade discovery.

Notice this year numerous examples in junior mining where despite 90 out of 100 stocks declining, a handful can show incredible relative strength if they are building value finding high grade orebodies in exciting mining jurisdictions.

Untitled 7This is a market where you need to stick with the mining explorers telling you where the high grade can be, not the engineers telling you what is wrong with a project at the Feasibility stage after sometimes 100's of millions have been put into the project.  I notice companies announcing these economic studies and they rarely go up after publishing them instead they mostly go down as it usually is a reality wake up call to the market.

You need to know the people behind the company.  This is an area that can be challenging because bad actors weasel into what looks like kosher situations. Make sure to download the filings and reference check the management and directors.  Do they have a track record of making money for their shareholders or are they in it just to get a paycheck to support their high priced lifestyles.  If you see a Chairman and CEO with a track record of major value creation that's a good sign.

One example in this really tough junior mining market which we have been writing about for over a year is one that could have that rags to riches potential as it is what could be classified as a "disruptive discovery".

A "disruptive discovery" is when the consensus of experts thought something couldn't be there.  Its happened in the past with Eskay Creek up in BC which became one of the worlds richest mines and it could be happening now with Sun Metals finding a carbonate replacement deposit in BC which up until this point has never yet been found.

Usually they are found in places like Ecuador and Mexico, not B.C. Canada.  I highlighted this company last summer before drilling hole 421 which was one of the best high grade drill holes in the World last year.

Even after this hole was announced the stock went down as investors were stoned off cannabis stocks.  It wasn't until Teck came in and took 11% of the company, that investors started to realize that Sun Metals may just be getting started into this high grade CRD system.

Untitled 5Sun Metals also has cleaned up the structure, consolidated 100% ownership now of the Project and eliminated royalties.

Now watch Sun Metals $SUNM.V $SMTTF this week as they head to the Las Vegas Money Show to tell their story.  I heard they are on a panel with Brien Lundin next week.  Remember these are the same guys who built Fronteer Gold into a billion dollar company in Nevada back in the last cycle.  Some of my smart mining analyst friends think this could even be better?

 

When Dr. Mark O' Dea and Dr. Peter Megaw who have made fortunes for investors in these type of deposits says this drill hole is a game changer pay attention.  These are some of the best explorers in the mining business.  CEO Steve Robertson was also hugely instrumental in the Red Chris Discovery that Newcrest just bought up in BC.SUNM Interview Template

Sun Metals is bouncing off the 50 DMA in a clear uptrend and could be on the verge of a breakout as they announce the kickoff of the next drilling program which will follow up drill hole 421.  It's going to be an exciting summer and I suggest you reach out to management before the drills start turning to ask the tough questions while you can before the news flow starts.

Its been over two decades since I started investing in the mineral exploration business. During this time I have come to recognize the true leaders in our industry who consistently win for their shareholders.

If you have followed my blog since I started in 2009 you will remember one of my first favorites Fronteer Gold $FRG which I wrote about for years before it was purchased by Newmont for over $2 billion in 2011. That win was huge for my readers and for me personally. In addition it was nice to be recognized and to build my reputation in the mining industry.

I unfortunately didn’t know at the time that would be the end of that gold bull cycle which I rode from the beginning in the early 2000’s. This correction since 2011 for now 8 years has caused many weak companies to go under or move into other fast money sectors like weed or bitcoin for a quick blip.

What is the benefit of these bear markets? Its nature’s way of weeding out many of the low quality management teams and underperforming fund managers. It becomes quite apparent during these corrections the blue chip management teams which consistently reward their shareholders with major buyouts.

Donald McInnes and Mark O’Dea from the Oxygen Group now have sold 5 companies. The one we witnessed firsthand was Fronteer’s Long Canyon in Nevada and I believe we may be onto our second major win with this group which might even be more disruptive than opening the entire eastside of Nevada as Fronteer did back in 2011.

This new discovery made by Oxygen Group’s Sun Metals $SUNM.V $SMTTF last year with drill hole 421 was amazing to me and immediately when I saw the news I shared it with all of you on my website back in November of 2018. It is unheard of to find in Canada a CRD like this with such high grades and size. This could be a disruptive discovery. Drill hole 421 intersected 100M of 5% Copper into the heart of what could be a major mineralized system.

This could be just the start like early stages of Long Canyon but better. There is extremely high grade gold plus high grade base metals.

Carbonate Replacement Deposits (CRD’S) are famous in Mexico where billion of ounces of precious metals have been mined for hundreds of years for a very simple reason. They are huge, simple to mine and they are high grade.

They have precious metals and base metals. Chemistry of the carbonates or limestone minimizes the oxidation so the metallurgy of these systems are simple. CRD’s can be the most profitable mines and have made early stage mining investors a fortune. A lot of Mark O’Dea’s wins have been CRD’s.

Its very rare to find a CRD in Canada which is one of the best places to mine from a geopolitical perspective. That is why Teck $TCK the large NYSE producer who does impeccable due diligence bought into $SUNM.V at a premium. This was a huge vote of confidence in the project.Despite the mining market malaise $SUNM.V Sun Metals is in an uptrend showing great relative strength. Drilling to follow up on the area of drill hole 421 one of the best intersections in Canada for 2018 is starting within weeks.  Listen to my recent interview with Sun Metals $SUNM.V SMTTF CEO Steve Robertson below.

Disclosure:
Author (Jeb Handwerger) owns shares in SUNM.V and they are a featured sponsor company. Sponsors are website advertisers so that means I have been compensated and have a conflict of interest to help boost awareness of this story. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content.


 

 

First Cobalt $FCC.V $FTSSF Next Battery Grade Cobalt Supplier For EV Market in North America

 

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First Cobalt $FCC.V $FTSSF just put out news today.  See my interview with First Cobalt $FCC.V $FTSSF CEO Trent Mell.

 

-successfully produced a battery grade cobalt sulfate using the First Cobalt Refinery flowsheet.

-closer to recommissioning the only permitted primary cobalt refinery in North America.

-discussions currently underway with automotive companies, cobalt miners and capital providers can now move to a more advanced stage.

See the full news release by clicking here... https://www.firstcobalt.com/investors/news/first-cobalt-produces-battery-grade-cobalt-sulfate

Disclosure:

Jeb Handwerger is not a registered investment advisor! Junior Mining Stocks are very risky! Buyer Beware! Assume Author (Jeb Handwerger) owns shares in featured companies and that I want to sell them for a profit. Sponsors are website advertisers so that means I have been compensated and have a conflict of interest to help boost awareness of this story. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

#Gold $GLD and $GDX #GoldMiners Forming Cup and Handle Breakout

Pullback in gold today could be an opportunity!

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For informational purposes only.  This is not investment advice.  May contain forward looking statements.

Disclosure: Author (Jeb Handwerger) owns shares and I want to sell them for a profit.  Lorraine is a sponsor.  Sponsors are website advertisers so that means I have been compensated and have a conflict of interest to help boost awareness of this story. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

Will Guyana Be Barrick’s $ABX Next Big Jurisdiction or Newmont $NEM?

For many months I've been highlighting a small junior miner in Guyana run by some of the top geologists and engineers in the business.  It was ignored for most of 2018 but this year in 2019 has been one of the best performers in junior mining as they have made a new high grade and shallow gold discovery which has raised the eyebrows of the smartest decision makers in mining.

Lots of smart people are following Guyana as its a jurisdiction largely underexplored and where there can be massive large scale gold discoveries.  Barrick's new President and CEO Mark Bristow loves Guyana and recently made an approximately $4 million investment in a small grassroots explorer.  This could be just the beginning of investments made in Guyana.  Guyana is an English speaking country with British Law and a stable democracy. There could be a major mining and natural resource boom in Guyana in 2019.

Although Barrick is investing in grassroots or what some may think "moose pasture", I'd prefer to stick to projects already derisked with economics with a PEA or Pre- Feasibility with no environmental or social issues and is ready to go right into production.  I like to see new high grade shallow discoveries already near existing infrastructure.

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There is a little junior adding high grade gold ounces every day with two rigs turning with a deposit open in many directions and at depth.  The new discovery is 1.5 km away from its major project.  They announced news today that the new high grade deposit is expanding and is open to depth and along strike.

GXS-NR-2019-3-06-Figures-3

Now this little rapidly expanding junior miner is planning another step out 100 m along strike to better define this new discovery as this new mineralized zone could transform this little junior and attract the major miners like Barrick, Newmont or possibly Iamgold who currently produces in this area and already owns 4% of this junior.

Listen to my recent interview with this 40 year miner who worked at the top of BHP for many years by clicking here... 

GXS Interview Template

See today's news release by clicking here...

See the excellent geological diagrams and maps from recent drilling by clicking here...

Check out the company's latest presentation by clicking here...

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Please see my disclaimer by clicking here…
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Tell your friends! Please forward this article to a friend or share the link on Facebook, Twitter or Linkedin.

For informational purposes only.  This is not investment advice.  May contain forward looking statements.

Disclosure: Author (Jeb Handwerger) owns shares and I want to sell them for a profit.  Lorraine is a sponsor.  Sponsors are website advertisers so that means I have been compensated and have a conflict of interest to help boost awareness of this story. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

#South32 $SOUHY Partnership Could Mean Huge Gains Ahead

For months now I have been highlighting that the commodities could be one of the best places to be in the late stage of an economic boom.  There is no doubt stock and housing markets globally have been quite high fueled by record low interest rates and commodities in relation to these markets are incredibly cheap.  Base metals especially copper could represent a discount buying opportunity not seen in at least 20 years.

Gold has already rallied since this past August, yet base metals such as copper and zinc are just beginning to breakout but could make huge run as inventories have been dropping rapidly over the past few months.

Now we are finally seeing a copper breakout into new 6 month highs.  The critical $3 mark may be not very far off.  As I told my readers that when the selling in copper does end we could see a "V" shaped violent reversal which we have witnessed since the beginning of the year.  This could rapidly accelerate if the tensions of the Trade War between China and the USA die down.

I have been highlighting the strength of some of the largest miners in the world hitting new highs and generating increasing free cash flow and profits.  Most notably I highlighted these two stocks on Twitter.

South32 which is a spin off of BHP has shown increasing profits and revenues.  They have made major moves into the junior market by buying Arizona Mining for $1.3 billion and partnering with Alaskan copper miner Trilogy Metals $TMQ back in 2017.  The stock is up now more than 350% from that news.

Today South32 announced partnership with another junior copper developer near Fairbanks Alaska which I have been featuring for months now at ridiculously low levels.  Check out the news today which is just starting to get noticed by my readers as I have been the only one discussing this stock other than Paradigm Capital which has a 7x target.  See the news today and contact the company asap before the market realizes the opportunity here...

For full disclosure please know I am a shareholder of this little Alaskan company and they are a website sponsor so conflicts of interest apply.

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Sign up for my free newsletter by clicking here… 

Please see my disclaimer by clicking here…
To send feedback or to contact me click here
Tell your friends! Please forward this article to a friend or share the link on Facebook, Twitter or Linkedin.

For informational purposes only.  This is not investment advice.  May contain forward looking statements.

Disclosure: Author (Jeb Handwerger) owns shares and I want to sell them for a profit.  Lorraine is a sponsor.  Sponsors are website advertisers so that means I have been compensated and have a conflict of interest to help boost awareness of this story. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

 

 

Its Like 1999 All Over Again For TSX Venture $CDNX Investors

I would never of thought it but its like 20 years have gone by and TSX Venture investors are at same value as 1999.  At that time copper was under 75 cents a pound.  Now its close to $3 per lb.  Gold was under $300 now its above $1200.

The junior mining space is the cheapest its ever been and I believe it could be a once in a lifetime opportunity.  Meanwhile, the stock and bond market may have already topped.  The US dollar is about to be manipulated lower as the US needs to pay back the huge debts with cheaper dollars.

Check out my video update by clicking here...

https://www.youtube.com/watch?v=DC6bDmmYtMA

There is a lot of press on how electric vehicles are going to need a lot of #batterymetals especially #copper.  The big miners are actively looking to replace many of the old mines that are getting shutdown especially with high grade deposits in mining friendly jurisdictions.

See the big news this week in Canada of a huge new copper discovery in BC?  Check it out by clicking here...

https://www.youtube.com/watch?v=YG53GLwg4xE

Have a great weekend and remember we only have about six weeks left of tax loss selling before what could be a great rally ahead.

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Sign up for my free newsletter by clicking here… 

Please see my disclaimer by clicking here…
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Tell your friends! Please forward this article to a friend or share the link on Facebook, Twitter or Linkedin.

For informational purposes only.  This is not investment advice.  May contain forward looking statements.

Disclosure: Author (Jeb Handwerger) owns shares in SUNM and LLC and I want to sell them for a profit.  Lorraine is a sponsor.  Sponsors are website advertisers so that means I have been compensated and have a conflict of interest to help boost awareness of this story. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

 

 

Best Drill Hole in Canada in 2018 $SUNM.V $LLC.V Stardust Property ???

Some times the best buys are at the times when you have to hold your nose.

Market volatility has increased this October with rising US rates and a crashing Global currency crisis.   Gold should come back into favor as stocks continue into bear market territory.  The Fed may start to scale back on interest rates if stocks continue to crater.  This could turn real rates negative and push capital into precious metals and the junior miners which have already been in a 10 year bear market.

The rotation from stocks and bonds into commodities hasn't even really gotten started yet.   Nobody is looking at the juniors and there isn't much research coverage now as investors rely on blogs and social media forums to get good information these days.

Despite this horrible bear market in junior miners that has been ongoing for several years.  This month we saw a major discovery hole come out of BC with Mark O'Dea's Sunmetals $SUNM.V drilling the best intercept ever hit at the property in North Central British Columbia and possible the best drill result in Canada in 2018.  They hit over 100 meters of 5% copper equivalent.  That is spectacular!  Lots more hopefully to come this year.

The excellent management and technical team thinks they are in the guts of the high grade system and there are lots of assays pending.  I take these guys seriously as we made a lot of money with them on Fronteer's Long Canyon discovery which was acquired by Newmont for over $2 billion at the height of the last bull cycle in junior miners.  



Sunmetals has optioned the property from Lorraine Copper $LLC.V $LRCPF.  I own both but Lorraine may be another way to play this discovery.  Remember there may be more than a dozen holes still not released yet.  Could be a long way to run here?  

Listen to my interview with Bill Morton CEO of Lorraine Copper $LLC.V $LRCPF who made the deal with Sunmetals to make this great new discovery in BC.  Bill was early on this property and this is some of the best results in Canada this year. Bill has held positions with companies such as Giant Mascot, Sumitomo and Imperial Metals.

Lorraine Interview Template

https://www.youtube.com/watch?v=YG53GLwg4xE

Best wishes,

Jeb Handwerger 

Disclosure: Author (Jeb Handwerger) owns shares in SUNM and LLC and I want to sell them for a profit.  Lorraine is a sponsor.  Sponsors are website advertisers so that means I have been compensated and have a conflict of interest to help boost awareness of this story. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

Gold Stocks Are Cheaper Than Manure, Uranium and Cobalt Breakout

#Uranium and #Cobalt Breaks Out This Week on Supply Concerns $KBLT.V $CCJ See this private video update here https://youtu.be/OdNyS3cVmQc

At the end of August I turned bullish on uranium price. Now just two months later the are breaking out led by bellwether $CCJ#Cameco which I just bought on the triple top breakout yesterday.SharpChartv05-3.ServletDriver

 say there could be a Huge year end rally in #cobalt ??? Look at year end over past 3 years.  Glencore's Katanga Mining just got shut down due to radioactive contaminants.  This will cause major supply concerns very soon.  Cobalt stocks could rally hard into year end.

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Thanks to Jaime Carrasco for this chart showing how cheap gold stocks have become.  They are cheaper than manure! This could be the cheapest time to buy gold ever.

Gold Makes Bullish Breakout as Investors Fear Higher Interest Rates $GDXJ

By Jeb

Its been a great week for the beaten up gold investors as capital sought safety as a market panic started. In reality, the stock market was way overbought and needed at least a shakeout which it has done pulling back to the rising 200 DMA. For months I have been early seeing declining momentum and insider selling in the Large Caps. Despite that the share price of large cap equities continued into nosebleed territory. I was taught years ago that the smart investors sell into rising markets and buy into declining markets. That’s how the intelligent investors get in early. You can witness this phenomenon possibly through the divergence between momentum and price as we see in chart below. The trend is a friend until its broken on huge volume. During this week’s market selloff gold remained the true safe haven not crypto as was promoted by the young 20 year old know nothings.

If that moving average does not hold then the 7 year bull market in the S&P 500 could be ending. This fear has helped the beaten down Junior Gold Mines ETF (GDXJ) make a reverse head and shoulders breakout crossing above the 50 DMA and closing above 3 month downtrend. Since the selloff in mid August Momentum has been increasing which usually happens before a classical technical breakout. Smart money buys when prices are declining and before a turning point you can see momentum increasing. When you take inflation into account gold is the cheapest its ever been.

What is causing all this ruckus in the markets? All eyes are on US interest rates which have been dangerously rising to levels not seen since before the 2008 credit crisis. The Chinese may be already selling bonds to fight against Trump Trade Wars. Rising interest rates are already hitting transportation stocks especially auto makers. Soon I expect housing and real estate to get hit and then possibly the banks. Avoid margin debt and adjustable rate loans in this financial environment.

During this brutal bear market in gold and silver as investors chased fake and ridiculous fads, I have maintained my faith in positioning in high quality and well managed junior miners with the ability to survive. Don’t let these manipulated and crazy markets shake you out especially when the fundamentals for gold have never been better. There is about to possibly start a massive short covering in gold if we can possibly hit $1250. This recent summer capitulation combined with record short position on gold could cause a dramatic move once the tides start reversing which may have started this week.

Any more panics or black swan events could cause a possible $100 move in gold. Recently the emerging markets especially in South America, Asia and Mid East are struggling with crashing currencies. JP Morgan CEO Dimon says rising interest rates, declining emerging markets and geopolitical flareups could possible derail the economy.

For months I warned about rising rates and possible margin calls from investors overextended. The USA has a major student loan crisis that could be even bigger that the housing bust.

How am I focusing my holdings? I’m looking for new gold and silver discoveries that could gain recognition from major investors. Exploration has been ignored for years and that is where I see greatest opportunity.

1)I’m interested in the Pilbara Gold Rush in Australia and have been following Pacton Gold $PAC.V $PACXF which is still relatively unknown but could be on a fast track to a discovery. They released news this week which you should read by clicking here… Exploration is underway on two properties. They just acquired more land around Novo $NVO.V and with just a $34 million market cap they have become one of the largest land holders in the Pilbara.

2)Check out $tml.to $tsrmf which I bought some this week which is possibly the most undervalued gold developer in Canada right in Ontario between Goldcorp’s Red Lake and New Gold’s Rainy River. Cash costs could be the lowest of advanced Canadian Developers! Could move higher as gold price improves. Takeout target?

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For informational purposes only. This is not investment advice. May contain forward looking statements.

Disclosure: Author (Jeb Handwerger) owns shares and I want to sell them for a profit. Sponsors are website advertisers so that means I have been compensated and have a conflict of interest to help boost awareness of this story. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers …read more

From:: GoldStockTrades.com