January 14, 2019
Technical Traders Ltd. is issuing new analysis which indicates the US and global markets may be poised for a dramatic upside price swing over the next couple months. Recent events have driven asset class values to new valuations that may change the dynamics of markets for a few months. Prior to August/September 2018, many traders were fearful of the expectations of the US Federal Reserve, Global Trade Issues and the US Elections. Combine this with the end of the year liquidity issues and the threat of a US government shutdown over the wall funding and we have almost a perfect storm brewing for uncertainty and fear.
Now, it appears, our custom global market indexes are showing signs that a bottom may have formed over the past few weeks and that the global equities markets may be poised for an upside move in the range of +10% to +20% over the next 2-4 months.
“What changed over the past month?”, you might be asking? Valuation levels have changed. The chart below is a Weekly chart of our Custom Smart Cash index. We use this as a measure of global equity market valuation and to determine if and when pricing levels are changing in terms of total market capitalization. We can see from early 2018, the global markets peaked and began to move lower. Even though the US markets pushed higher throughout this time, the total global markets continued to deteriorate. Now, the valuation levels are near historic channel support and have begun to flip back to the upside (at least in the immediate term). If this continues as capital re-enters the global capital markets in search of undervalued opportunities, this capital will find quite a few opportunities in beaten up global equities. Pay attention because this could be the setup of a market bottom with relatively strong upside potential.
One item to pay attention to is our Custom China/Asia index. This chart, below, is a Monthly Custom China/Asia market index. It may be somewhat hard to understand with all of these Fibonacci Arcs drawn on it, but to us, this is a very clear chart. These Arcs are an advanced way to look at Fibonacci price support and resistance. We look for how these arcs relate to price activity and how they converge in past and future price points. Our belief is that each price move initiates and perpetuates with a certain energy level and frequency. If we are able to identify this level and frequency, then we may be able to attain greater knowledge of the future price turning points, support, resistance, and other key information. As you can see, the bottom on this chart occurred right within the Top Arc’s primary frequency levels near 4.5x the base frequency level – or 2x the immediate frequency level. This is a fairly common level for the price to form tops/bottoms. 2X equals 200% of an immediate price level energy frequency.
We believe China/Asia may experience an upside price swing of nearly +8 to +15% over the next couple of months as the global markets attempt a price recovery. This means that there may be some opportunity in the Asian markets through April/May 2019. We urge investors to be cautious of the Summer months of 2019 because we don’t expect this move to last long.
This means skilled traders will be able to find and execute a broad range of successful and profitable trading opportunities over the next 2 to 4 months. Get ready for 2019 to be a very good year for traders and learn how our daily market research, stock, ETF, and futures trading signals can save your time and money. Start executing the best opportunities today with www.TheTechnicalTraders.com.
PRETIVM INITIATES INQUIRY INTO TRADING OF ITS SHARES
Today I saw this press release from Pretium Resources
VANCOUVER, British Columbia, Jan. 10, 2019 (GLOBE NEWSWIRE) — Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”) reports that it has retained independent legal counsel to initiate an investigation of unusual trading activity in its shares.
Pretivm is a low-cost intermediate gold producer with the high-grade underground Brucejack Mine in northern British Columbia
For further information contact:
Joseph Ovsenek Troy Shultz
President & CEO Manager, Investor Relations & Corporate Communications
Pretium Resources Inc.
Suite 2300, Four Bentall Centre, 1055 Dunsmuir Street
PO Box 49334 Vancouver, BC V7X 1L4
(SEDAR filings: Pretium Resources Inc.)
So, what is really going on?
This is not rocket science. Insiders (officers and directors) have been selling shares in PVG from May 17, 2018 through December 24, 2018.
8 insiders, all sellers in the open market have reported to authorities and via my subscription to INKResearch.com, I see it all.
Perhaps PVG does not need an attorney to investigate trading activity, just ask their own officers and directors why ‘they’ are selling.
Total shares valued at C$9,178,605 have been sold from May 17 – Dec 24, 2018.
Ovsenek J.J. – President & CEO
Smith, D. – Director
Paspalas, G.N. – Lead Director
McNaughton, K.C. – VP & Chief Exploration Officer
Vip, T. – Executive, VP & CFO
Romero, M.A. – Executive VP and Corporate Affairs & Sustainability
Quartermain, R.A. – Executive Chairman
Board, W. – VP, Geology & Chief Geologist
From my personal experience, when 1 or 2 insiders are selling, I don’t get too alarmed. But, when you have 8 insiders selling as in this situation, well, to me, something is going on (news) that has not yet been reported by the company. (Only time will tell)
I have never personally owned shares in PVG and do not have a short position, but I keep my eyes are hundreds of companies and the insider activity. I saw this selling going on a couple of months ago and thought about an article at that time. But with today’s press release I just had to do something.
Interesting to me that the press release above, stated for additional information contact,
Joseph Ovsenek, President & CEO.
Mr. Ovsenek is one of the insiders selling a total of 160,175 shares.
I have always enjoyed following the insider trading activity on all of my personal positions and other high profile companies, like PVG.
Many times, insider buying can alert us to great opportunities and in this situation, insider selling at a minimum, must be a big caution flag, if not, an out right sell signal.
I am sure this article will get a lot of views and responses, but folks, it is what it is and I am only the messenger.
If you would like to know more about my services, visit the links above.
Note from Dudley Pierce Baker:
We are pleased to share this news release as Equinox Gold shares and warrants
are one of my top personal positions. Things are looking good……
Equinox Gold Reports 2018 Highlights and 2019 Guidance
JANUARY 8, 2019
All dollar amounts are expressed in US$
Equinox Gold Corp. (TSX-V: EQX, OTC: EQXFF) (“Equinox Gold” or the “Company”) today announced its 2018 highlights and 2019 guidance. Equinox Gold produced approximately 26,000 ounces (“oz”) of gold in 2018 from its recently acquired Mesquite Mine in California, and expects to produce 230,000 to 265,000 oz of gold in 2019 from Mesquite and its Aurizona Mine in Brazil at all-in-sustaining costs1 (“AISC”) of $900/oz to $950/oz.
“Equinox Gold has achieved tremendous growth over the last year and will soon become a multi-mine gold producer,” said Christian Milau, CEO of Equinox Gold. “This momentum will continue in 2019 as we plan for construction at our Castle Mountain Mine, capitalize on growth opportunities at our existing assets and continue to assess accretive acquisition opportunities.”
- Acquired Mesquite Gold Mine and produced approximately 26,000 oz of gold from October 30 to December 31, 2018 (full-year 2018 production of approximately 140,000 oz)
- Advanced Aurizona construction for commercial production around the end of Q1-2019
- Completed Castle Mountain prefeasibility study outlining a long-life, low-cost gold mine producing 200,000 oz/year
- 480% increase in proven and probable reserves to 5.7 million oz of gold
- 350% increase in measured and indicated resources to 8.3 million oz of gold (inclusive of reserves)
- New gold discoveries at Aurizona and Castle Mountain
- Completed spin-out of Solaris Copper to Equinox Gold shareholders and sale of the Koricancha Mill
- Cash balance (unrestricted) at December 31, 2018 of approximately $60 million (unaudited) with an additional $10 million available to draw under the Aurizona construction facility
The 2018 production and cash figures are preliminary and are subject to change when the Company releases its Q4 and annual audited 2018 financial results in March.
Equinox Gold’s 2019 production and cost guidance provided below is based on information available at January 8, 2019. The Company may revise guidance during the year to reflect actual and anticipated results. Key assumptions used to forecast 2019 total AISC include a gold price of $1,250/oz and an exchange rate of BRL3.6 to USD1.
|Mesquite||145,000 – 160,000||$950 – $1,000||$11 M||$4 M|
|Aurizona||85,000 – 105,000||$800 – $875||$16 M||$31 M|
|Total||230,000 – 265,000||$900 – $950||$27 M||$35 M|
1 AISC is a non-GAAP measure. See All-in Sustaining Costs in Cautionary Notes.
The 2019 production guidance includes gold ounces produced at the Aurizona Mine prior to the commencement of commercial production, which is expected around the end of Q1-2019. Combined gold production is expected to increase substantially in Q2-2019 with Aurizona in commercial production.
Equinox Gold has budgeted a total capital spend of $62 million at the Mesquite and Aurizona mines during 2019. At Aurizona, the Company expects to spend $31 million to complete construction and commissioning during Q1-2019 and an additional $16 million of sustaining capex over the year that includes completion of the second tailings storage facility lift. At Mesquite, the Company expects to spend $11 million in sustaining capital primarily related to capitalized waste stripping within the open pit as well as $4 million in non-sustaining costs primarily related to drilling mineralized waste dumps and leach pads that are expected to be classified as ore.
Mesquite Gold Mine
Mesquite is an operating open-pit heap leach gold mine in southern California that Equinox Gold acquired during Q4-2018. Activities at Mesquite during 2019 will focus on:
- Executing on opportunities to increase production and reduce costs
- Completing a $4 million drill program focused on mine life extension, including targets in and peripheral to the existing open pit as well as mineralized waste dumps and leach pads on site
- Applying for permits to explore and drill new concessions
Aurizona Gold Mine
Aurizona is an open-pit gold mine in northeastern Brazil where the Company commenced full-scale construction in January 2018. Activities at Aurizona during 2019 will focus on:
- Completing construction and commissioning the plant during Q1-2019 to achieve commercial production around the end of Q1-2019
- Completing construction of the next tailings storage facility lift
- Completing preliminary assessment of the potential for an underground mine at Aurizona
- Updating the resource based on near-mine drilling completed during 2017 and 2018
- Exploration at Tatajuba and other targets in the second half of 2019 to extend the open-pit mine life
Castle Mountain Mine
Castle Mountain is a past-producing open-pit heap leach gold mine located approximately 200 miles north of Mesquite in California. Based on the July 2018 prefeasibility study, Castle Mountain is expected to produce 45,000 oz of gold per year during Phase 1 (years 1-3) and more than 200,000 oz of gold per year during Phase 2 (years 4-16). Activities at Castle Mountain during 2019 will focus on:
- Completing engineering and final permitting for Phase 1 and arranging financing in order to commence Phase 1 construction around mid-year at a capital cost of approximately $50 million, with the objective to achieve first gold production in the first half of 2020
- Advancing permitting and development of water wells for the Phase 2 expansion, and completing the Phase 2 feasibility study by year-end 2019
- Executing on infrastructure, equipment and administrative synergies between Mesquite and Castle Mountain
James (Jim) Currie, P.Eng., Equinox Gold’s Chief Operating Officer, and Scott Heffernan, MSc, P.Geo., Equinox Gold’s EVP Exploration, are the Qualified Persons under National Instrument 43-101 for Equinox Gold and have reviewed, approved and verified the technical content of this news release.
About Equinox Gold
Equinox Gold is a Canadian mining company with a multi-million-ounce gold reserve base, gold production from its Mesquite Gold Mine in California, and near-term production growth from two past-producing mines in Brazil and California. Construction is well advanced at the Company’s Aurizona Gold Mine in Brazil and on schedule to achieve commercial production around the end of Q1-2019, and the Company is advancing its Castle Mountain Gold Mine in California with the objective of achieving Phase 1 production in the first half of 2020. Further information about Equinox Gold’s portfolio of assets and long-term growth strategy is available at www.equinoxgold.com or by email at email@example.com.
Equinox Gold Contacts
Christian Milau, CEO
Rhylin Bailie, Vice President Investor Relations
Tel: +1 604-558-0560
Cautionary Notes and Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation and may include future-oriented financial information. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements or information in this news release relate to, among other things: future financial or operational performance, including estimated production of gold and estimated mine site AISC in 2019; the ability of the Company to successfully complete construction activities and the planned restart of production at Aurizona; to operate Mesquite, including with respect to production; development and timing of anticipated production at Castle Mountain; and the growth potential of the Company. Forward-looking statements or information generally identified by the use of the words “will”, “advancing”, “strategy”, “plans”, “budget”, “anticipated”, “expected”, “estimated” and similar expressions and phrases or statements that certain actions, events or results “may”, “could”, “should”, “will be taken” or “be achieved”, or the negative connotation of such terms, are intended to identify forward-looking statements and information. Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, undue reliance should not be placed on forward-looking statements since the Company can give no assurance that such expectations will prove to be correct. The Company has based these forward-looking statements and information on the Company’s current expectations and projections about future events and these assumptions include: tonnage of ore to be mined and processed; ore grades and recoveries; prices for gold remaining as estimated; the construction and planned production at Aurizona and Castle Mountain being completed and performed in accordance with current expectations; currency exchange rates remaining as estimated; availability of funds for the Company’s projects and future cash requirements; capital, decommissioning and reclamation estimates; the Company’s mineral reserve and resource estimates and the assumptions on which they are based; prices for energy inputs, labour, materials, supplies and services; no labour-related disruptions and no unplanned delays or interruptions in scheduled development and production; all necessary permits, licenses and regulatory approvals are received in a timely manner; and the Company’s ability to comply with environmental, health and safety laws. While the Company considers these assumptions to be reasonable based on information currently available, they may prove to be incorrect. Accordingly, readers are cautioned not to put undue reliance on the forward-looking statements or information contained in this news release.
The Company cautions that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this news release and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in gold prices; fluctuations in prices for energy inputs, labour, materials, supplies and services; fluctuations in currency markets; operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, usual or unexpected geological or structural formations, cave-ins, flooding and severe weather); inadequate insurance, or inability to obtain insurance to cover these risks and hazards; employee relations; relationships with, and claims by, local communities and indigenous populations; the Company’s ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; changes in laws, regulations and government practices, including environmental, export and import laws and regulations; legal restrictions relating to mining; risks relating to expropriation; increased competition in the mining industry; and those factors identified in the Company’s management information circular dated June 20, 2018 and in its MD&A dated October 30, 2018, which are available on SEDAR at www.sedar.com. Forward-looking statements and information are designed to help readers understand management’s views as of that time with respect to future events and speak only as of the date they are made. Except as required by applicable law, the Company assumes no obligation and does not intend to update or to publicly announce the results of any change to any forward-looking statement or information contained or incorporated by reference to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements and information. If the Company updates any one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements. All forward-looking statements and information contained in this news release are expressly qualified in their entirety by this cautionary statement.
This news release refers to expected AISC per ounce which is a non-GAAP (generally accepted accounting principles) measure. This measurement has no standardized meaning under International Financial Reporting Standards (“IFRS”) and may not be comparable to similar measures presented by other companies. This measurement is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Cash costs include mine site operating costs, but are exclusive of amortization, reclamation, capital and exploration costs and net of by-product sales and then divided by ounces sold to arrive at cash costs per ounce. AISC per ounce starts with total cash costs and adds net capital expenditures that are sustaining in nature, mine site general and administrative costs, capitalized and expensed exploration that is sustaining in nature and environmental reclamation costs, all divided by ounces sold to arrive at AISC per ounce. Management believes AISC is a measure commonly used in the gold mining industry and is useful for monitoring the performance of operations and the ability of mines to generate positive cashflow.
Reserve and Resource Estimates
Equinox Gold’s proven and probable reserves total 5.7 million ounces of gold at 0.62 g/t gold, with 150.7 million tonnes of proven reserves at 0.63 g/t gold for 3.0 million ounces, and 131.9 million tonnes of probable reserves at 0.62 g/t gold for 2.6 million ounces. The Company’s measured and indicated resources, inclusive of reserves, total 8.3 million ounces of gold at 0.62 g/t gold, with 174.1 million tonnes of measured resources at 0.63 g/t gold for 3.5 million ounces, and 177.3 million tonnes of indicated resources at 0.63 g/t gold for 3.6 million ounces. Mesquite resources and reserves have been summed for the purposes of this news release as they are typically reported exclusive of each other. Reserves and resources for Aurizona were disclosed in the “Feasibility Study on the Aurizona Gold Mine Project” prepared by Lycopodium Minerals Canada Ltd. with an effective date of July 10, 2017. Reserves and resources for Castle Mountain were disclosed in the “NI 43-101 Technical Report on the Preliminary Feasibility Study for the Castle Mountain Project” prepared by Kappes, Cassiday and Associates with an effective date of July 16, 2018. All technical information related to Mesquite is based on the “Technical Report on the Mesquite Mine, Imperial County, California, U.S.A.” prepared by Rosco Postle Associates Inc. for New Gold Inc. dated February 28, 2014. To the best of the Company’s knowledge, information and belief, there is no new material scientific or technical information that would make the disclosure of Mesquite mineral reserves misleading. The Company will release a new technical report for the Mesquite Mine in March 2019. All of the technical reports are available for download on the Company’s website at www.equinoxgold.com and on SEDAR at www.sedar.com.
Information regarding reserve and resource estimates has been prepared in accordance with Canadian standards under applicable Canadian securities laws and may not be comparable to similar information for United States companies. The terms “Mineral Resource”, “Measured Mineral Resource” and “Indicated Mineral Resource” used in this news release are Canadian mining terms as defined in accordance with NI 43-101 under guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on May 10, 2014. While the terms “Mineral Resource”, “Measured Mineral Resource” and “Indicated Mineral Resource” are recognized and required by Canadian regulations, they are not defined terms under standards of the United States Securities and Exchange Commission. Under United States standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve calculation is made. As such, certain information contained in this news release concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the United States Securities and Exchange Commission. Readers are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into Mineral Reserves. In addition, the definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” under CIM standards differ in certain respects from the standards of the United States Securities and Exchange Commission.
Dudley Baker of Junior Mining News Recommends Kootenay Silver (TSX-V:KTN/OTC:KOOYF)
In this segment of The Ellis Martin Report, Dudley Baker opines opportunities in the precious metals sector including Kootenay Silver and more!
Dudley Baker of Junior Mining News Recommends Kootenay Silver (TSX-V:KTN/OTC:KOOYF) In full disclosure, Dudley currently owns shares and warrants of Kootenay Silver as it is one of his top 10 holdings. In this segment of The Ellis Martin Report, Dudley Baker opines opportunities in the precious metals sector including Kootenay Silver and more! .Click on Video Above or Listen Here: … Continue reading
January 3, 2019 @ 3:52 pm MARK SKOUSEN. Named one of the “Top 20 Living Economists,” Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books. “Fiat money and fiduciary credit are the pillar and post of our age of inflation.” — Hans F. Sennholz “The establishment of central banking removes the checks of bank credit expansion and puts the inflationary engine into operation.” — Murray N. Rothbard When the Federal Reserve was created in December 1913, it had two purposes: (1) To defend the gold standard and the dollar against inflation, and (2) To be a lender of last resort during a banking crisis. It turned out that in the first 30 years of the Fed, it kept its promise more with the #1 goal than the #2 goal. During the economic collapse of 1929-32, the Fed failed miserably to be a lender of … Continue reading
January 04, 2019
By Nick Giambruno
Advocates of sound money have dreamed of a gold-backed digital currency for many years.
Now, with the advent of blockchain technology, the dream of a viable, gold-backed digital currency is finally coming true. And the potential is enormous. Dozens of gold-backed digital currencies are sprouting up.
Peter Grosskopf, CEO of Sprott, called it “the most important thing to happen to the gold market in the last several decades.”
He was referring to the marriage of gold with the blockchain. Shortly thereafter Sprott launched Vaultchain, a gold-backed crypto it developed with its partners.
When Sprott makes a big move into the gold-backed crypto space it’s a definitive sign of where things are headed.
That’s why I recently spoke with Doug Casey and Rick Rule, both of whom are excited about what the huge potential of a gold-backed crypto.
It’s hard to think of two other people who have had more experience and success in the resource market — and gold in particular — than Doug and Rick.
Here’s what they told me:
Nick Giambruno: Rick, you’ve been in the resource market for decades. But recently we discussed how you’re looking very closely at gold-backed cryptocurrencies. It really seems to be this is where there is an intersection of the resource market and the technology of the blockchain and decentralized databases.
So, what made you interested in gold-backed cryptos?
Rick Rule: Well, first we believe that the potential audience for gold and cryptos is very similar. The people who believe that there should be mediums of exchange that aren’t government sponsored will adopt both to cryptos and gold.
Second, we saw how the distributed ledger could make the inefficiencies of the gold trade go away to the benefit of all users.
Third, we saw a circumstance where there was a proliferation of crypto products that were in and of themselves faith-based currencies, floating abstraction. Dogecoin is an example that started off as a joke, and then got a bid.
We believe that using the distributed ledger technology to make gold trading more effective was something that the market wanted, and secondly a logical extension of the Sprott brand, which is in some investors’ minds synonymous with precious metals. We already manage well in excess of $4 billion in exchange traded precious metals on the New York Stock Exchange, and thought an extension of our brand to a crypto product was a logical thing to do.
What was holding us back was the technological capability internally to cause that to occur, and when IEX (Investors Exchange) — the sort of flash boys guys — came into the equation and in fact approached us about being their partner in enabling distributed ledger and blockchain technologies in gold, that was just an offer too good to pass up.
Nick Giambruno: Doug, you’ve talked a lot about sound money over the years, so how does a gold-backed crypto play into your notion of sound money and the characteristics of it?
Doug Casey: Very well. One of the disadvantages of gold is that it’s hard to transport. While today it’s not illegal to cross borders with gold, in two separate countries on two separate continents when I was carrying about a dozen silver one-ounce coins and both times they stopped me at the x-ray machine and examined them. No problem because it was silver and they weren’t worth anything, but if they had been gold it would’ve been a problem.
So it’s not illegal to transport gold, but it’s becoming inconvenient to do so. I think that a gold-backed crypto will kiss that and make it better.
Nick Giambruno: Rick, you mentioned how the blockchain helps take away some of the inefficiencies of traditional gold warehousing companies. Can you elaborate on that?
Rick Rule: Sure. If one of your readers wanted to go out and buy, say, ten ounces of physical gold, the spot price is the reference price. But the truth is at many bullion dealers they’ll pay a 3% or 3.5% markup.
Should they change their mind two hours later and decide to sell it, they wouldn’t get spot on the sell side either. They’d get a 3% or 3.5% markdown, meaning that the simple act of buying and selling ten ounces of gold can cause the investor to experience 7% or 700 basis points of friction.
On top of that, one often pays to store and insure that gold, and they also pay for shipping and receiving.
If you eliminate the vast bulk of those transaction fees, you can see the incredible increase in economic efficiency for buying and selling gold through distributed ledger, through the blockchain.
And that was really the most important thing that appealed to us. We just wanted to make the gold trade much more efficient for those investors who believed that gold was a savings product, that gold was money.
Nick Giambruno: Doug, I personally believe there will never be a gold-backed crypto that can completely stand in for gold. There is simply no substitute for owning physical gold that you can readily hold in your hand.
However, owning large amounts of physical gold presents its own challenges. It’s hard to store securely, move long distances, and break down into smaller amounts. A gold-backed crypto can help address these drawbacks.
That said, any gold-backed crypto will have inevitably have some counter party risk. Physical gold in your direct possession does not.
Instead of being a substitute for owning physical gold in your own possession, I believe gold-backed cryptos are complimentary tool for individuals all around the world to access sound money.
What’s your take?
Doug Casey: I think it’s a great innovation. The reasons why cryptos are catching on in the developed world are pretty obvious. We don’t need to go about that here. I think the real future for cryptos, and this is especially true of gold-backed cryptos, is going to be in the Third World, because 75% of the people on the planet have to use toilet paper currencies — like the Zambian Kwacha, the Argentine peso, or the Venezuelan Bolivar — that have little value within their countries of issuance and no value at all outside of the borders.
Especially since these people tend to understand gold, it’s tangible, it’s more understandable than just the idea of a cryptocurrency if they see it represents gold, I think this type of this is eventually going to catch fire in these Third World countries where they’ll be able to save and transfer wealth in something that’s of real value as opposed to just some locally issued government toilet paper. This is a wonderful innovation not just for us but for the little impoverished people out there in the world.
Nick Giambruno: Exactly… why would anyone abandon their wealth to a constantly depreciating government fiat currency, sitting in an insolvent fractional reserve bank when you can easily save a gold-backed crypto?
On that note, how does a gold-backed crypto help one with political diversification? Is it a new tool in the toolkit?
Doug Casey: I want to emphasize, especially for Americans, that it’s not just a question of what you have and what you’re doing in the market, but where you’re keeping these things. Everyone, not just Americans, should try to have half of their gold, cash, and investments outside of their countries of citizenship and/or residence. You don’t want all of your assets within easy reach of whatever government considers you its milk cow.
Nick Giambruno: Rick, what features does a gold-backed crypto need to be credible… redemption, reputable partners, auditability?
Rick Rule: In answer to your question, the answer is yes, all of that is important.
The first thing is that there will be and there have been numerous crypto scams where the promoters of the crypto either caused or paid to cause rapid price escalation in a token that had no intrinsic value, and whose price ultimately fell to its intrinsic value, which is zero.
It’s important that investments are made in the architecture of the distributed ledger product, and in the maintenance of the distributed ledger product.
The distributed ledger does not — contrary to popular opinion — maintain itself.
Bitcoin is an example. That whole process is sustained by miners who are rewarded with Bitcoin. In the absence of something like that a system crashes.
I think it’s important that crypto gold be redeemable and be audited.
In the case of Sprott I think one of the reasons why we were chosen as a partner is because we already manage well over $4 billion in exchange traded gold products, and we have 20 years of experience with people who want to trade their certificates for physical precious metals and get delivery. We do it every day.
Doug will hate me for this, but our gold is stored at the Royal Canadian Mint. We joke that our security is provided by NATO.
So I would suggest to you examine the architecture of the system, the reliability of the sponsors, and the redeemability and security of the gold behind gold-backed cryptos very carefully.
One of the things that’s given me personally great comfort is that of the three-dozen some odd entrants to the market that we’re aware of, we are the ones that have had the broadest adaption from the gold mining community.
If you look at our shareholders registered: Goldcorp, Wheaton Precious Metals, Iamgold, Agnico Eagle, we’ve done transactions already where Goldcorp transferred 3,000 ounces of gold to us in return for ledgers because it saved them hundreds of thousands of dollars in transaction fees already.
Nick Giambruno: A gold-backed crypto necessarily must have one foot in the real world and one foot in the digital world. If it has a foot in the real world it’s going to be susceptible to governments coercing them somehow, unfortunately.
There are plenty examples of crypto projects and precious metals initiatives thinking they could flout regulations, no matter how ridiculous they may be. What inevitably happens is they end up painting a big, red target on their backs. The government eventually shut them down.
How could a gold-backed crypto today avoid a similar fate?
Rick Rule: Well, when we began in conjunction with our partners developing our own product, we were very aggressive in communicating what we were doing and soliciting feedback from various regulators in both the United States and Canada.
While in an ideal world that wouldn’t be a requirement, that’s not the world that Sprott as a regulated entity inhabits. The consequence of that is that we didn’t surprise the regulatory authorities with anything, and we didn’t make any claims whatsoever that we were exempt from regulations that would become proposed.
With our product — because it isn’t a token, it’s really a deposit receipt or commodity receipt on the distributed ledger rather than a token — and because we were unsure of the way that the SEC would regulate the product, we decided to comply with know your customer regulations.
I won’t bore your readers with the arcane details, but it’s important that people understand that this distributed ledger receipt represents actual gold stored by us at the Royal Canadian Mint. It’s redeemable for gold and it’s exchangeable.
We have chosen internally to believe that gold-backed cryptos will ultimately attempt to be regulated by the CFTC or by the SEC or one of the banking regulators, and the consequence of that is that to participate in our offering you do need to open an account with a participating financial services firm.
The lesson that we’ve learned managing institutional money, managing ETFs, is that if you are going to play in investment markets and financial services markets, and think you’re going to circumvent regulation, you’re mistaken. That may or may not sit well with all your readers, but it’s the truth nonetheless.
Nick Giambruno: The value of Bitcoin and other cryptocurrencies can be wildly volatile. This is a problem for anyone looking to use cryptos in the regular course of business.
Gold-backed cryptos, on other hand, should have relatively stable prices. They also can give people the ability to send and receive gold as easy as sending email.
This should make them appealing to merchants, lenders, businesses, investors, escrow services and the like… anyone who wants to conduct business in gold — but also wants the convenience of cryptocurrencies.
Businesses could use gold-backed cryptos to pay rent, salaries, or other ordinary expenses. The possibilities are enormous. I think that could open a huge new ecosystem.
That’s why I think gold-backed cryptos could create a genuine revolution in finance and why I’m so excited about them in general.
The demand for gold-backed cryptos — which is really the demand for sound and convenient money — is potentially enormous. It can be useful to anyone.
Do you see this evolution in the gold-backed crypto space playing out?
Rick Rule: I absolutely do. If you look at the trading volume and liquidity that gold enjoys today and you add that to that the incredible economic efficiency of the distributed ledger, the ultimate applications that you’re talking about as a transfer mechanism, as a store of wealth, as collateral, an entirely new ecosystem, really are limitless.
Nick Giambruno: Doug and Rick, thank you for your time. If readers would like more information about Vaultchain they can send an email to TradeWind@sprottglobal.com.
By January 3, 2019– Published on
VRIC 2019 Featured Speaker: Jeff Clark
The world is filled with toppy markets, financial bubbles, and bloated debt levels in virtually every segment of society. And it’s all taken place within a global monetary system where, for the first known time in history, all currencies are fiat.
This financial and monetary cocktail has pushed risks high, and not for just investors but citizens. It’s crucial that gold and silver comprise a meaningful portion of one’s asset base. Given the nature of similar crises in the past, they will not only preserve purchasing power but are likely to lead to extraordinary capital gains.
And of the two metals, silver has the most explosive potential.
Why it’s Important: There are many reasons why silver tends to outperform gold. But there’s one major factor that is set to make the silver price scream higher in the next bull market. I’ll point it out in my talk, “The Silver Slam-a-Rama: The #1 Reason Silver & Silver Stocks Will Explode Higher.”
The investment opportunity: In a soaring metals environment, silver equities have the potential to provide extraordinary gains, especially coming from such a historically low undervaluation. And some silver stocks are set to rise the most.
Don’t Miss Out: This is an incredible time to come catch Jeff Clark at The World’s Largest Resource Investment Conference that happens only once a year. Register for VRIC before it’s too late.
Note from Dudley Pierce Baker
I have maintained a subscription to INKResearch.com for many years allowing me to track insider trading in Canada and the U.S. markets. This is a general market comment from INK and I thought worthy of sharing with you.
MORNING INK REPORT :: CP CEO sold stock after lauding share buyback program
January 3, 2019
Yesterday, we highlighted insider selling at Canadian National Railway (Cloudy; CNR) and said that it did not give us any comfort regarding the potential for railway stocks to avoid getting hit by economic slowdown fears. Today, we visit Canadian Pacific Railway where CEO activity gives us the outright chills about the outlook for the stock.
On October 17th, Canadian Pacific Railway (CP) announced its intention to launch a share repurchase program. In the accompanying press release, CEO Keith Creel said, “With the new share repurchase program, we are renewing our commitment to return cash to shareholders in a disciplined, opportunistic manner”. The TSX accepted the company’s notice for the buyback program two days later. In the following month, Mr. Creel sold $16.5 million in company shares after exercising options.
Generally, we have a hard time with the idea that it is in the best interest of shareholders to use cash to buyback shares when the stock is soaring near all-time highs and debt lingers on the balance sheet. When such buybacks are accompanied by insider selling, we view it as a negative sign. When one of those insiders selling is also a board member, it is a bigger negative. This is the type of behavior and attitudes we tend to see in frothy and toppy environments. Sometimes those tops take a long time to form. In this case, we will stick our necks out and suggest the top for CP stock is probably in for a long time.
Canadian Pacific Railway (CP)
|Buys (000’s)||Sells (000’s)|
|SEDI Market Volume (Last 10 Days)||2,000||0|
|Quoted Market Value||$34,649,478,339|
|Holdings % of QMV||0.04%|
On November 8th, Canadian Pacific Railways (CP) CEO Keith Creel exercised 60,000 Options at an exercise price of $115.78 and sold the same number of Common Shares in the public market at an average price of $275.23. The CEO currently holds 88 Common Shares on a direct holdings basis, and 2,322 Common Shares on an indirect holdings basis.
Also on November 8th, the company repurchased 40,000 Common Shares at $275.01. Since October 19th, Canadian Pacific Railway has reported repurchasing 1,222,200 Common Shares at an average price of $268.12.
The stock currently holds a cloudy INK Edge outlook on the equally weighted V.I.P. criteria of valuations, insider commitment and price momentum which places it in the bottom 30% of all stocks ranked. INK outlook categories are designed to identify groups of stocks that have the potential to out- or under-perform the market. However, any individual stock could surprise on the up or downside. As such, outlook categories are not meant to be stock-specific recommendations.
INSIDER FILING TRENDS (SEDI DATA)
|Number of TSX Companies with Sell/Buy Filings|
|Number of Venture Companies with Marker Trades|
|Last Trading Day’s TSX Most Active (January 2, 2019)|
|ProMetic Life Sciences||PLI||6,808||Buying|
|Last Trading Day’s Venture Most Active (January 2, 2019)|
|Auxly Cannabis Group||XLY||2,948||N/A|
|HIVE Blockchain Tech||HIVE||1,733||N/A|
|Last Trading Day’s TSX Price Gainers (January 2, 2019)|
|Issuer Name||Symbol||D/D Gain||Insiders|
|Fairfax Financial Holding||FFH||$3.06||Buying|
|Bausch Health Companies||BHC||$2.22||Selling|
|Last Trading Day’s Venture Price Gainers (January 2, 2019)|
|Issuer Name||Symbol||D/D Gain||Insiders|
|Cobalt 27 Capital||KBLT||$0.50||Buying|
|Galaxy Digital Holdings||GLXY||$0.40||Buying|
|Emerald Health Therapeuti||EMH||$0.27||N/A|
|Last Trading Day’s TSX Price Losers (January 2, 2019)|
|Issuer Name||Symbol||D/D Loss||Insiders|
|Boyd Group Income Fund||BYD.UN||3.05||Selling|
|Restaurant Brands Intl LP||QSP.UN||2.23||N/A|
|Restaurant Brands Intl||QSR||1.56||Buying|
|Last Trading Day’s Venture Price Losers (January 2, 2019)|
|Issuer Name||Symbol||D/D Loss||Insiders|
|Pacific Booker Minerals||BKM||0.10||Selling|
|Eastwood Bio-Medical Ca||EBM||0.10||N/A|
|Last Trading Day’s TSX Percentage Gainers (January 2, 2019)|
|Issuer Name||Symbol||D/D %Gain||Insiders|
|First Mining Gold||FF||42.86%||Buying|
|ProMetic Life Sciences||PLI||37.25%||Buying|
|Faircourt Split Trust||FCS.UN||21.53%||N/A|
|Last Trading Day’s Venture Percentage Gainers (January 2, 2019)|
|Issuer Name||Symbol||D/D %Gain||Insiders|
|Volcanic Gold Mines||VG||50.00%||Buying|
|Galaxy Digital Holdings||GLXY||40.00%||Buying|
|Pure Energy Minerals||PE||33.33%||N/A|
|Last Trading Day’s TSX Percentage Losers (January 2, 2019)|
|Issuer Name||Symbol||D/D %Loss||Insiders|
|Brompton Oil Split||OSP||-10.46%||Buying|
|Scandium Int’l Mining||SCY||-9.52%||N/A|
|Last Trading Day’s Venture Percentage Losers (January 2, 2019)|
|Issuer Name||Symbol||D/D %Loss||Insiders|
|True North Gems||TGX||-60.00%||N/A|
|Strategic Oil & Gas||SOG||-25.00%||N/A|
|High Mountain Capital||BUZD.P||-23.53%||N/A|
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