Archive for Metals

Gold Speculators sharply lowered their bullish bets by most in 5 weeks

May 25th – By CountingPips.comReceive our weekly COT Reports by Email

Gold Non-Commercial Speculator Positions:

Large precious metals speculators cut back on their bullish net positions in the Gold futures markets this week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.

The non-commercial futures contracts of Gold futures, traded by large speculators and hedge funds, totaled a net position of 88,805 contracts in the data reported through Tuesday May 21st. This was a weekly decline of -35,731 net contracts from the previous week which had a total of 124,536 net contracts.

The week’s net position was the result of the gross bullish position (longs) lowering by -22,733 contracts (to a weekly total of 203,628 contracts) while the gross bearish position (shorts) gained by 12,998 contracts for the week (to a total of 114,823 contracts).

The net speculative position fell for the first time in four weeks but dropped by the highest weekly amount since April 16th. Gold speculative bets had previous gained for three straight weeks and ascended to the highest net position since February before cooling off this week.

Overall, the gold spec position remains in a relatively strong bullish position and has been in positive territory for twenty-seventh straight weeks.

Gold Commercial Positions:

The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -107,938 contracts on the week. This was a weekly gain of 29,245 contracts from the total net of -137,183 contracts reported the previous week.

Gold Futures:

Over the same weekly reporting time-frame, from Tuesday to Tuesday, the Gold Futures (Front Month) closed at approximately $1273.20 which was a decline of $-23.10 from the previous close of $1296.30, according to unofficial market data.

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) as well as the commercial traders (hedgers & traders for business purposes) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators).

Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).

Article By CountingPips.comReceive our weekly COT Reports by Email

Silver Speculators sharply boosted bearish bets to most since November

May 25th – By CountingPips.comReceive our weekly COT Reports by Email

Silver Non-Commercial Speculator Positions:

Large precious metals speculators sharply added to their bearish net positions in the Silver futures markets this week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.

The non-commercial futures contracts of Silver futures, traded by large speculators and hedge funds, totaled a net position of -14,662 contracts in the data reported through Tuesday May 21st. This was a weekly change of -12,453 net contracts from the previous week which had a total of -2,209 net contracts.

The week’s net position was the result of the gross bullish position (longs) falling by -2,060 contracts (to a weekly total of 75,482 contracts) while the gross bearish position (shorts) increased by 10,393 contracts for the week (to a total of 90,144 contracts).

The net speculative position has now had rising bearish bets three straight weeks and for eight out of the past nine weeks as speculator sentiment for Silver has clearly turned negative.

This week’s fall by over -12,000 net positions was the largest one-week decline of the past eleven weeks and puts the current standing at the most bearish level since November 13th of 2018 (-17,145 contracts). Silver net positions spent a total of seventeen weeks in bearish territory from August to early December before turning bullish in December (and strongly bullish during the December stock selloff).

Silver Commercial Positions:

The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -5,183 contracts on the week. This was a weekly gain of 7,595 contracts from the total net of -12,778 contracts reported the previous week.

Silver Futures:

Over the same weekly reporting time-frame, from Tuesday to Tuesday, the Silver Futures (Front Month) closed at approximately $1441.00 which was a loss of $-40.20 from the previous close of $1481.20, according to unofficial market data.

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) as well as the commercial traders (hedgers & traders for business purposes) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators).

Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).

Article By CountingPips.comReceive our weekly COT Reports by Email

Copper Speculator bets slid further into bearish territory this week

May 25th – By CountingPips.comReceive our weekly COT Reports by Email

Copper Non-Commercial Speculator Positions:

Large precious metals speculators continued to push their bets deeper into bearish territory in the Copper futures markets this week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.

The non-commercial futures contracts of Copper futures, traded by large speculators and hedge funds, totaled a net position of -21,719 contracts in the data reported through Tuesday May 21st. This was a weekly change of -2,353 net contracts from the previous week which had a total of -19,366 net contracts.

The week’s net position was the result of the gross bullish position (longs) sinking by -889 contracts (to a weekly total of 72,490 contracts) while the gross bearish position (shorts) gained by 1,464 contracts for the week (to a total of 94,209 contracts).

The net speculative position has now had increasing bearish bets for five straight weeks (by a total of -27,031 contracts) and for six out of the past seven weeks. The current standing is at the most bearish level since January 29th when the net positions stood at -21,913 contracts.

The copper price, strongly correlated to the net speculator position, has been on the decline lower and is almost down by 20 percent from its January high.

Copper Commercial Positions:

The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of 19,398 contracts on the week. This was a weekly rise of 3,686 contracts from the total net of 15,712 contracts reported the previous week.

Copper Futures:

Over the same weekly reporting time-frame, from Tuesday to Tuesday, the Copper Futures (Front Month) closed at approximately $271.50 which was a fall of $-1.00 from the previous close of $272.50, according to unofficial market data.

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) as well as the commercial traders (hedgers & traders for business purposes) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators).

Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).

Article By CountingPips.comReceive our weekly COT Reports by Email

Seasonal Dysfunction: Why Generations of Investors Are Having Such Difficulty

By The Gold Report

Source: Michael Ballanger for Streetwise Reports   05/22/2019

Sector expert Michael Ballanger discusses the demotivating effects of current market trends.

With great apology, I am late with this week’s missive largely due to the arrival of boating season and the fierce need to secure a new vehicle, which should have taken (only) two days but didn’t. Having arrived at the marina on Friday evening, I expected a rather smooth transition as it was the first year in four that I asked our local service fellow to do all of the end-of-year maintenance, instead of me draining the lines and winterizing the water tank and changing the engine oil and all of those things I loved to do in my 40s but that have become a royal pain in the ass twenty years later. Call it “geezer-itus” or “baby-boomer angst,” I agreed to let the local marina service group do all those debilitating tasks and simply threw them the keys while shouting “See ya next spring!”

I fully expecting a boat functioning this past weekend in exactly the condition in which it was functioning last October. Well, with great deference to Mr. Murphy and that obnoxious law named after him, my lovely little Freshwater Pearl was a mess of the highest and most irritating order, floors most foul, upholstery seams ripped, and obvious dings and dots from the reentry-to-the-water exercise. However, what really set me off was that my most-excellent winch-powered dinghy caddy was nonfunctional, and after five hours with limited workspace, I removed what I thought was the faulty part.

By this time, the Fido-beast has leapt off the boat and off the slip and, in an visceral reaction to my multitudinal “expletive deleteds,” bounded off into the woods in search, I am sure, of a somewhat saner master—one who might never opt for such an horrific linguistic diatribe.

To be truthful, there is another reason I am late with the weekly missive. Alas, I am finding it increasingly difficult to come up with anything different, witty or interesting to write about. I feel like a CD player caught in a repetitive loop where a Robbie-the-Robot voice keeps saying: “Warning! Warning! Buy gold! Buy gold!” I almost want to throw myself, instead of the quote monitor, out of the ninth-floor window.

Here is the drill I have to go through to maintain my sanity as the average subscriber/investor peppers me with questions:

Investor: “Gold is trading really weird these days.”
MJB: “It’s rigged. Get over it.”
Investor: “Silver looks cheap relative to gold. The ratio of silver to gold is just shy of 90!”
MJB: “Yeah, and until JP Morgan is prohibited from trading it, the ratio could see 120.”
Investor: “Stocks should be correcting as the trade war has got to hurt earnings.”
MJB: “What do earnings have to do with stock prices? You have 50 traders at the NY Fed under orders to support them so just buy the dips because the Fed has our backs.”
Investor: “Gold mining stocks with new discoveries don’t seem to attract the attention that they did back in the 2000–2011 period.”
MJB: “Why should they? The Millennials could care less. If they drilled 90 meters of THC, they would care.”

These types of conversations actually both frighten and disturb me because they are rife with a subtle dose of cynicism and a hefty dose of resignation. To wit, I am growing increasingly more cynical of our institutions and I have nearly resigned myself to a never-ending world of aberrant behaviors, all the product of this generational acceptance of government interventions and interference. The problem is that I can never accept these interventions. But the newer generations readily accept and, in fact, expect them, as if an entitlement bestowed upon them at birth. As we Baby Boomers age and lose power and relevance, adherence to the belief in the return of sound money and fiscal sanity is sadly a losing proposition.

On the weekend, I watched all three episodes of Grant Williams’ brilliant interview ( https://www.realvision.com/) with the co-author of The Fourth Turning, Neil Howe, during which they discuss where we are in the generational cycle of the four “turnings”—high, awakening, unraveling and crisis. It came as no surprise that here in 2019, we are in the late stages of the “unraveling,” where institutions are the increasing focus of distrust and where career and behavioral individualism is revered. These are all periods of cynicism and bad manners, when civic authority feels weak, social disorder feels pervasive, and the culture feels exhausted. An example of a Third Turning (unraveling) would be the Roaring Twenties, which led to the Stock Market Crash of ’29 and the 1930s Great Depression.

There are at least ten terrific interchanges between Grant and Neil but the one that got me was where it is pointed out that we, as a race of humans, are in the transition between the Third and Fourth Turnings. It is, according to the theory advanced in the book, a period where if you are a late Boomer or early Gen Xer, you are having the most difficult time of your investing lives because you were trained/socialized/educated in a post-crisis period—the high. For us, this was the post-WWII rebirth, and for the next sixty years we have been applying skills and mindsets applicable to that period and to the Second Turning (awakening), both periods of prosperity and growth.

However, I would peg the beginning of the Third Turning (unraveling) at around 2000. Since then we have watched the Baby Boomers try to fight the inevitable arrival of the Third Turning—despite the dot.com crash in 2001, 9/11, the subprime meltdown in 2008, and more recently, the stock market bailout in late 2018, all classic examples of a generation trying desperately to preserve the status quo by way of increasingly desperate interventions.

In other words, Millennials and Echo Boomers are navigating with ease these days while the older generation, having resisted the arrival of a new generation of attitudes and changes, is watching old, tried-and-true methods of investing get dashed on the rocks of algobots, social media and government interference.

So, if any of you are wondering why I have trouble these days find ideas I think will interest you, there, in a nutshell, is the reason. I feel like many times I am talking to room full of ghosts, as in James Cameron’s “Titanic,” where at the end they were wandering through the halls of the sunken ship with flashbacks to pre-disaster moments of glory and grandeur. And talking to ghosts is anything but a healthy pastime.

The two charts shown above are a vintage illustration of the apathy, desolation, abandonment and lethargy surrounding the gold and silver space. The other day I read one of those old e-mail blasts, in which we are offered “35 Reason to Own Gold NOW!” After reason #11, I threw it in the bin. It is all the same dialogue of “too much debt” and “fiscal insanity” and “Chinese demand” or “Indian demand,” but I don’t care whether it was Martian demand or Ballchinian (“Men in Black,” 1997) supply, you (and I) have read it or heard it all before.

It is true that silver is cheap relative to the S&P, and it is also true that gold and silver mining shares are cheap relative to bullion, but that does not constitute causation in terms of a trading idea. In 2019, everyone is a trader operating in the Greater Fool Theory of causation. You buy something at any price because you just know there is some moron out there willing to buy it off you at a higher price. Earnings, trade wars, price/earnings ratios, etc. all mean absolutely squat today, and that is why in a Utopian world of “The Fed’s Got Our Backs,” gold and silver offer little in the way of utility. This is especially true in the “unraveling” stage, because the younger generations willing to take all the risk see little need for safe havens in a world of cannabis 30-baggers and the raging FANG stocks.

As I wrote about a few weeks back, there really is nothing dire about the technical picture for gold, but in saying that, I refer to the optics of the chart pattern only; the predictive nature of the chart pattern is nonexistent at best, and counterintuitive at its malevolent worst. Based upon the dramatic drop in open interest in the past few sessions, and since the end of the latest COT week last Tuesday, this upcoming COT report should have the Commercials rapidly covering the shorts they put on during that brief pop last week to above $1,300. Worst case scenario: a quick flush to the 200-daily moving average, at $1,258, at which point we back up the truck (but I doubt that happens). . .

The COT from last Friday simply confirmed what the open interest spike implied: The Commercial Cretins, in full view of regulators and justice departments, were allowed to offer several thousand contracts of phony gold to cap any hope of an advance at around $1,300—which are now being covered $30 lower. Generations of younger investors join the price management party and sell the rip, where by contrast, over in the S&P pit, they do the reverse because they have been trained to place wagers “with the house,” where the odds of winning are undisputedly higher. Not to beat upon a deceased nag, but these constant and malodorous takedowns are again the reason why I find it sometimes difficult to write any words of encouragement. But at the same time, gold got pounded on Tuesday down under $1,270, yet the HUI managed to eke out a small gain despite gold’s weakness, always a good sign in the near term.

I am now 100% long the JNUG at an average price of just under $7 (offside), and I own a 50% position in NUGT June $15 calls (also offside). But where I have been adding quite aggressively is through the unduly depressed shares of Getchell Gold Corp. (GTCH:CSE) (on-side), by way of the $0.15 unit, which is certainly preferable to paying $0.25, where it traded over 70,000 shares on Tuesday.

I have always held that full disclosure is a policy most appreciated by readers and subscribers so let it be known that I am a (paid) consultant to the company. And yes, I would like to generate some interest in this highly prospective exploration program, because resource delineation will be exciting but costly, in the event there is an initial discovery on this phase two program. As we all know, you must use the excitement of discovery momentum to finance at progressively higher prices. The problem with so many juniors these days is that they have all had to finance in the $0.05–$0.25 range, so when the discovery arrives, the excitement gets muted by the torrent of cheap paper hitting the bids. If any of you know a way to convince these privileged shareholders the wisdom of holding onto the cheap stock and, rather than selling it, buy more because you are simply “averaging up” into a value-add discovery, you should contact a ghost writer, then a publisher and wait for the book-signing events. Half the population of Vancouver would be lined up, from Granville and Howe to somewhere in the B.C. Interior.

So there you have it. I was actually able to assemble eleven paragraphs of quasi-literate, pseudo-intelligible commentary on the topic of “markets.” I admire my fellow scribes, who are able to hyperbolize on the merits of gold and silver ownership without losing sleep and getting winded.

I also worship those who jumped ship and defected to the “Dark Side” of cannabis and artificial intelligence and crypto, notwithstanding the fact they are front-running momentum junkies with zero knowledge of the history of money. I am sick and tired of making excuses for my trading ideas, which are based on the tried-and-true moments in history when markets were free. They are today not free. They are corrupt.

The layers of dysfunction you feel every time you look at your month-end statement are synonymous with the layers of betrayal you feel when you look at the transition we are seeing in the leadership demographic. The old regime of the “First Turning” are now gone, and all that are left are people like me, who are astute analysts of the history of markets as I recall them. Pity those who are ignorant of the sands of the hourglass and the significance of history. They dwell in the House of Modern Glory, which shall soon be a fleeting memory.

We will have our day. Make no mistake.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

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Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Getchell Gold Corp. My company has a financial relationship with the following companies referred to in this article: Getchell Gold Corp. I determined which companies would be included in this article based on my research and understanding of the sector. Additional disclosures are below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Getchell Gold Corp., a company mentioned in this article.

Charts courtesy of Michael Ballanger.

Michael Ballanger Disclaimer:
This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

( Companies Mentioned: GTCH:CSE,
)

China Threatens to Stop U.S. Imports of Vital “Rare Earth” Metals; Celente: An Oil Shock Could Drive Gold Higher

By Money Metals News Service

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.

Coming up the top trends forecaster Gerald Celente of the Trends Journal joins me to discuss a myriad of topics. Gerald gives us more insight on why the precious metals are struggling, why he recently changed his economic forecast and also shares why he believes a continuation of the rising tensions in both Venezuela and the Middle East could lead to a spike in oil prices that the world simply cannot afford. Don’t miss another wonderful interview with the great Gerald Celente, coming up after this week’s market update.

As global stock and commodity markets gyrate, gold and silver markets are gaining some safe haven strength.

Gold prices moved back into positive territory on Thursday but is little changed for week now. The yellow metal is up a slight 0.4% since last Friday’s close to trade at $1,284 per ounce.

Silver has been beaten down this spring but is at least showing some signs of life here during the later part of the week, or at the very least has appeared to stabilize a bit. The white metal is now up a 0.9% for the week to bring spot prices to $14.61 an ounce.

Turning to the platinum group metals, platinum registers a weekly loss of 2.2% to trade at $805. And finally, palladium shows a 0.7% decline to come in at $1,332 per ounce as of this Friday morning recording.

Crude oil prices plunged 8% this week on the heels of rising U.S. inventories and fears that trade wars will crimp global demand. An even more dramatic move was seen earlier this week in some of the so-called rare earth metals. Rare earths and related equities catapulted to the upside as rumors spread that China may seek to restrict exports of these critical elements.

News Reporter: There’s speculation that rare earth elements will act as the next bargaining chip for China in the ongoing trade war with the U.S. after President Xi Jinping visited a local company specializing in the sector earlier this week.

David Stringer – Bloomberg News: Rare earths are a collection of about 17 elements. And when they’re processed in their mineral form, they turn into these industrial chemicals that are absolutely critical for things like magnets and motors used right across the electronics sphere. These are things that are contained in missiles to electric vehicles to wind turbines and consumer electronics. They really are absolutely ubiquitous throughout the devices that we carry around and rely on. So clearly, any move to restrict exports out of China, to restrict the flow of these materials into the U.S. would be very problematic for the U.S. The US relies on China for about 80% of its imports of rare earths.

Beijing currently has a stranglehold on over 80% of the global market for rare earth metals. The Chinese have previously leveraged their near total control to win concessions in geopolitical clashes. In 2010, China briefly blocked exports to Japan over a territorial dispute.

Trade wars can quickly escalate into resource wars. With U.S. domestic oil production continuing to rise, America is relatively secure on the energy front – at least for now. But when it comes to rare earth metals and precious metals, the country remains heavily reliant on output from hostile and unstable countries including China, Russia, and South Africa.

South Africa is a major supplier of gold and the world’s leading producer of both platinum and palladium. But in recent months, mining output there has been declining.

Fears of a chronic supply deficit drove palladium to record highs earlier this year. No such move has occurred in the other precious metals. But they too face potential long-term supply shortfalls.

Many mining industry analysts believe peak gold and peak silver have arrived. If so, then global production of precious metals will enter a period of annual declines. Prices are disconnected from this fundamental threat. The currently low prices further disincentivize exploration and development of new mines.

At under $15.00 an ounce, some primary silver mines are actually producing at a loss. This situation obviously can’t sustain itself for long.

Historically, when a metal sells for right near its cost of production, it tends to be a good long-term buy. But the silver market will put your patience to the test. Lately, it’s been consigned to the bargain bin.

It won’t stay there forever. But for those who simply want to accumulate ounces of hard money at the lowest cost, the bargain bin is the place to shop.

If you don’t mind buying silver products that may be tarnished, scratched, or dented, then you’ll want to check out bargain bin silver from Money Metals. Our bargain bin silver includes a mix of pure silver coins, silver rounds, and different silver bar sizes…all as close to the spot price as possible.

Bargain bin silver is for those investors who know that silver is silver, and know that it’s prudent to pay as little over the silver spot price as possible. Our bargain bin products come in any variety of forms. They could be highly scuffed sovereign minted coins. Or they could be unusual silver rounds or bars that we do not carry in bulk. But they’re all pure silver, and that’s what matters most.

Maximizing the number of ounces you get for your money is always going to be a winning strategy in an up market. If silver prices rise substantially, the value of your silver will rise in tandem. With any luck, you’ll be able to sell back into the market when silver is a hot commodity rather than the bargain it is today.

Well now, without further delay, let’s get right to this week’s exclusive interview.

Gerald Celente

Mike Gleason: It is my privilege now to welcome in Gerald Celente, publisher of the renowned Trends Journal. Mr. Celente is perhaps the most well-known trends forecaster in the world and a regular guest on many financial programs, including right here on the Money Metals Podcast.

Mr. Celente, it’s a pleasure as always, and thank you for joining us again.

Gerald Celente: Always my pleasure to be on, thank you.

Mike Gleason: Well Gerald, stock markets flinched right after the recent announcement that tariffs on Chinese goods would increase to 25% but stock prices have since resumed the rally, for the most part, that has been going on since last December. At this point we don’t know what it would take to make stock investors cautious. Trade wars, P/E ratios at epic highs, escalating tensions with Iran. There was a time when these things might have worried some people, but not today. It isn’t even clear how many actual “people” are making buy and sell decisions in the equity markets anymore with all the high frequency trading going on. What do you make of the action in stocks? Do you think what we’re seeing is an honest market, are real people making judgments about what and when to buy or sell or have artificial forces completely taken over? Basically give us your thoughts on the state of the stock markets here, Gerald, as we begin today.

Gerald Celente: Well, it’s a combination of the two. Back in September of 2018, we closed for an economic 911. The reason being is that the Federal Reserve said they were aggressively going to raise interest rates. The next day, the S&P 500 peaked on September 20. Then the market started to decline, we saw bear markets going down 20% around the world. In the United States, the Dow had its worst December since the Great Depression. Then on January 4, 2019, Fed Chair Jerome Powell, after we had strong employment numbers, 300,000 plus joined the employment force, wages increased the most in 10 years, for the entire year. He announced that they were going to be “patient” in raising interest rates, and we did a 180 degree turn on our forecast. And we said the markets are going to go back up. It’s very simple: It’s monetary methadone. More cheap money that they’re throwing into the system. And so, what happened?

When we go back to just less than a month ago, the S&P 500 and NASDAQ hit all-time highs. And now again, they backed off with the talk about trade wars. The trade war talk is nothing but talk. They’ve been saying this now for three years, and the markets keep hitting new highs. It’s not going to bring the markets down. What’s going to bring the markets down is number one, are higher interest rates. Because all this is, is letting gamblers gamble cheap, and particularly the stock buy-backs, which just saw a record last year; we’re headed for another record this year. So they’re borrowing money cheap, buying back stocks, driving up the markets.

We just came out with the new edition of the Trends Journal, and our economic forecast is that yes, there’s going to be a recession, but not this year, because we’re hearing, well, the Fed just came out again, said, “No. Rate moves are coming for ‘some time’ even if the economy improves.”

So, when people ask, “Does the President have power over the Fed?”, well obviously they do, because Trump has been pushing the Fed to push down rates, and now they say they’re not going to raise them. And when you go back to Richard Nixon telling Burns not to raise them before the election. Paul Volcker, former head of the Federal Reserve under the Reagan Administration in his last book, saying that he was brought into the White House and told by James Baker not to raise rates before the election. We see what’s going on in Turkey, whether it’s India… you name the country. Yes, the President has power over the Fed. And we’re going into this, this is the Presidential Reality Show in the United States. Trump wants to get re-elected, and he’s going to do everything he can to keep rates lower, to keep juicing the economy. So it’s basically cheap money that’s pushing the markets up. Our forecast is the markets are near peak, because we’re also seeing, in our forecasts, that corporate earnings are peaked.

So that’s the way we see it at this moment. And yes, you know, a lot of it’s algorithm, but it’s also, they are the real players behind it as well, making decisions. So, it’s a combination of the two, but again, what we’re seeing now, there’s basically a global slow-down. The only reason you’re seeing markets going up around Japan, and China, and in the United States, is cheap money, more quantitative easing at different levels, and of course, negative bond yields. And now we’re hearing the OECD coming out and saying that in Europe they have to do more to stimulate the economy.

So it’s going to be artificially propped up, and that’s all it is, it’s an artificial market, and they’re going to keep propping it up as much as they can.

Mike Gleason: Staying on point there to the extent we have seen artificial forces take over, what do you think that will mean for people, including metals investors, who are still investing based on fundamentals? Would it be wiser to just throw in the towel and stope fighting the Fed, so-to-speak? Buy stocks, buy bonds and sell gold. We’ve seen some clients doing that, and their logic isn’t hard to follow, but it seems to us people are forgetting that central bankers don’t always have a stellar track record. They blow bubbles, and bubbles inevitably pop. That said, we suppose it’s worth examining whether this time may be different. So tell us what you think? Is this time different, Gerald?

Gerald Celente: Well, no. It’s not different. It’s just, it’s going to wait. It’s going to take longer. And the debt bubble, that’s the other part that we wrote in the Trends Journal, this is over $250 trillion. And you’re hearing warnings coming out from the IMF about corporate debt and personal debt and government debt. And you’re also having warnings coming out from people like Bain Capital warning about the great corporate debt that’s been taken on because of merges and acquisitions. So, let’s go back to the program again, and what happens. Well, if interest rates go up, how are they going to pay back this debt? So the fact is, they’re going to keep interest rates lower, and as we said, we’re forecasting the Fed is going to lower interest rates this year and next year if and when the economy slows down, and we believe it is going to slow down, because you’re looking at situations here, where it just cannot sustain itself with higher interest rates.

And it’s true for around the world. And you don’t need any more clearer facts than, go back to last December. We saw home sales, for example, in Southern California, plunge 20% when the 30-year mortgage hit around 5%. Now what’s the latest news? Mortgage refinances surge 8%. You know why? Because the 30-year mortgage now is at around 4.33%, and we believe it’s going to go under 4% by the time of the elections in 2020 in November.

So, no, the bubble’s going to pop at some time, but what’s going to make it happen will probably be wildcard event, we just don’t know what that’s going to be. It could be spiking oil prices, it could be war, which is ramping up in Iran and with Venezuela. The gold is the safe-haven asset, and right now, the prices are stuck where they are because there’s no feeling of a safe-haven need at this moment.

Mike Gleason: We aren’t far off from the 2020 campaign cycle really kicking into gear. We’re less than 18 months from the election, and it’s hard to know what things are going to look like, say, a year from now, in terms of the field of Democrat candidates that will challenge Trump. Give us your thoughts on the election cycle trends that you’re looking at, Gerald. What are some of the main topics on the campaign trail as you see it. Will we see a true socialist become the Democrat nominee? Talk about that and anything else you might want to comment on regarding the campaign silliness, let’s hear it.

Gerald Celente: Well, our forecast at this moment, again it’s in the Trends Journal, it’s about swing states. It’s as simple as that. Trump didn’t win the popular vote, he won the swing state vote. And what we’re seeing now is that the majority of society, on the Democratic side, they want stability and tranquility and safety. And that’s why you’re seeing Joe Biden leading in the polls. The millennials, which have a voting population almost the size of the baby boomers, are pro- Bernie Sanders, but only by about 2%. So, going back to the swing states, again it’s hard to say at this time, there are so many wildcards between now and a year-and-a-half from now when the elections come.

But if the elections were held today, and remember, we were the first magazine in May of 2016 to pick Trump the winner, we would say it would be Biden. Because Biden has strong swing state support, particularly in Pennsylvania where he was born. And he plays the card about he’s Uncle Joe, everybody loves him, he hugs you, and shakes your hand, smiles, says nothing and knows how to play the game. And that what the people are looking for right now. So, we don’t see it being between socialism and capitalism, although we’re seeing more and more people swinging toward, as the polls are showing, wanting to be more socialist. But again, it’s the presidential reality show and we have to see the way the acts play out, particularly with the debates. And, but at this time, if the election were held, we would say Biden would beat Trump because Trump will lose to Biden in key swing states such as Ohio, Michigan and Pennsylvania.

Mike Gleason: If you are going to get hug from Biden on the campaign on the campaign trail, just make sure you keep it short.

Update us on the latest news and trends that you’re seeing in Europe, Gerald. Is it still hotbed over there with the Yellow Vest Movement in France, and the contention over Brexit and other social and political issues? Give us your thoughts.

Gerald Celente: Well, when you look at Brexit, you can see what a freak show most governments are, including ours. And you name the country, and it’s another freak show, Yellow Vests as well. The big thing to watch right now, Mike, are the Parliamentary, excuse me, the European election. The European Parliament elections that are coming up beginning Thursday, in the next few days, to see where they go. And if you start seeing more and more going toward the populist movements, whether it’s the Five Star Movement, Lega in Italy, or in France with Le Pen’s Party, or the Alternative für Deutschland and AFD Party in Germany, it depends on what we see there. That’s going to be a real key element of where it’s moving. If it stays status quo, and that’s what you’re going to get, then things like Yellow Vest and the Brexit Movement will quiet down.

And again, going back to the Presidential Reality Show in the United States, there is no movement for a new party, for a new way, and a new type of system. It’s just more of the same. And so we don’t see much change happening in the United States. But it’s very important to watch the EU elections that are going to be happening this week.

Mike Gleason: How about metals, here. Gerald? Do you see the headwinds continuing to weigh down gold and silver, or will we eventually get the spark that we’ve been looking for in order to finally get them moving to the upside? I know you’ve been talking about the $1,380, $1,385 level in gold being that key mark that we need to take out. We’re about $100 below that, as we’re talking here on Wednesday afternoon. Talk about the metals and what you’re seeing there.

Gerald Celente: Just to make it clear, I’m heavily invested in metals, so it’s not like I don’t want them to go up. But I call it as I see it, and I’ve been saying basically the same thing now for a number of years. And that is that gold has to break the $1,385 mark to hit $1,450. When it hits $1,450, then it goes to $2,000. We need an event that has to bring gold up to the level of being a safe-haven asset. And again, the ones that we see happening that can do that is what’s going on with the United States against Venezuela, and particularly against Iran in the Middle East. Because if war breaks out in the Middle East, you’re going to see oil prices spike to above $100 a barrel. The globe can’t afford that. So what does that mean? Well the dollar’s getting stronger, it’s not getting weaker. That’s another reason why gold is staying weak, because the stronger the dollar goes, the weaker gold goes.

So, going back to oil. As the dollar gets stronger, many currencies are declining in value. Dramatically. So, when oil prices are petrodollars, if your currency is getting weaker, the price of oil is much higher, you have to pay a lot more for your energy. The more that goes into the gas tanks, the less goes into the cash registers.

So, that’s what we see as a black swan event that could drive gold prices higher, and that is if oil prices spike. Because it’s very important to remember, Mike, that the last five recessions were preceded by spiking, or followed, I should say, spiking oil prices. So that’s the one that we’re looking at the most, as well as war. But as far as the economic fundamentals as they are, we don’t see the debt bubble popping as long as they keep pumping more money into the system, to artificially inflate it at this time.

Mike Gleason: Well, so we wrap up here, any final thoughts, or anything else? Any other trends you believe people should be focusing on, or looking for or paying attention to, as we move into the middle part of the year?

Gerald Celente: I think we’ve covered it pretty well. What’s very important, in talking about this, is not to buy the lines that the media and the government are putting out, that the media is just repeating – the ‘press-titutes” as I call them. Because the people in the media just get paid to put out by their corporate johns, and their Washington whoremasters. So, people are being led in directions without substantial knowledge of the facts, and they’re just following the lead that they’re being taken on by the government, or by special interests, without knowing the facts behind them. So, as this war talk heats up and the war drums keep growing louder, stay in tune to the current events forming future trends. And of course, you can do that with the Trends Journal, because the media’s not doing that. But it’s very important at this time, because we’re very concerned about the direction we’re going in now.

Mike Gleason: Well, we’ll leave it there, Gerald. We always enjoy it, and appreciate the time, once again today. Now before we let you go, tell listeners a little bit more about the wonderful Trends Journal and any other information they should know about the Trends Research Institute and the various ways that they can follow your work on a regular basis.

Gerald Celente: Well, the Trends Journal is a monthly. We just came out with a new edition. And, of course, we do Trend Vision 20/20 Podcasts, and Trends in the News broadcasts. We get those every weekday night. And we do Trend Alerts each week. It’s only $129 a year, money-back guarantee. It’s the only magazine, only information source in the world, where you’ll read history before it happens.

Mike Gleason: Well, thank again Mr. Celente. It was a pleasure as always, take care and enjoy the Memorial Day weekend.

Gerald Celente: Thank you Mike, and thanks for all that you do.

Mike Gleason: Well, that will do it for this week. Our sincere thanks, again, to Gerald Celente, publisher of the renowned Trends Journal. For more information, the website is TrendsJournal.com, be sure to check that out.

And check back here next Friday for our next Weekly Market Wrap Podcast. Until then, this has been Mike Gleason with Money Metals Exchange. Thanks for listening and have a great weekend everybody.

 


The Money Metals News Service provides market news and crisp commentary for investors following the precious metals markets.

Stocks Topping, Dollar Up, Gold Getting Closer (Audio)

By TheTechnicalTraders.com

Chris Vermeulen joined us today. He believes that the stock market is topping out if it hasn’t already. This will lead to increased volatility and a move back to safe haven assets, i.e. gold. He believes that oil will break down briefly into the ’50s and then come roaring back shortly thereafter. The bigger and faster the decline, the fast the bounce back. Interest rates are headed lower.

 Click Here to Listen to the Audio 

 

By TheTechnicalTraders.com

Miner to Become ‘Intermediate Precious Metals Company,’ Rerating Expected

By The Gold Report

Source: Streetwise Reports   05/20/2019

The company’s Q1/19 numbers and the impact of its latest acquisition are discussed in a ROTH Capital Partners note.

In a May 16 research note, analyst Jake Sekelsky reported that ROTH Capital Partners raised its target price on Great Panther Mining Ltd. (GPR:TSX; GPL:NYSE.American) to US$2.25 per share from US$1.80 (versus about US$0.70 today) after incorporating the Tucano mine acquisition and an in line Q1/19 into the company’s model.

ROTH forecasts consolidated 2019 production, including that from Tucano, to be around 175,500 ounces (175.5 Koz) of gold, which “elevates the company to intermediate producer status and should pave the way for a rerating,” Sekelsky highlighted.

Tucano should produce 125–135 Koz of gold at all-in sustaining (AISC) of $1,100–$1,200 per ounce, according to Great Panther’s management. ROTH’s estimate falls within that range, at 130 Koz at an AISC of $1,114 per ounce.

Sekelsky pointed out that capital expenditures will likely remain elevated in 2019 for development and optimization of Tucano. However, this should “moderate” in 2020 once Great Panther has fully integrated the Brazilian project, which is “well underway.”

The company commissioned a supplemental oxygen plant at Tucano earlier this month, which already led to an increased grade of gold produced to 1.7 grams per ton, a level that should remain stable now, the analyst added. “We view this improvement as tangible evidence that management’s turnaround efforts are beginning to bear fruit and expect continued improvements throughout 2019.”

As for Q1/19, the company reported a net loss of $0.05 per share on revenue of $16.7 million versus ROTH’s projected loss of $0.03 per share on revenue of $14.7 million. “We attribute the slightly higher loss to increased costs associated with the closing of the Tucano acquisition as well as higher-than-anticipated operating costs in Mexico,” commented Sekelsky.

The analyst concluded that “investors should maintain focus on the strides being made at Tucano as we expect the project to be the main value driver over the next year.”

ROTH has a Buy rating on Great Panther Mining.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from ROTH Capital Partners, Great Panther Silver, Company Note, May 16, 2019

Regulation Analyst Certification (“Reg AC”): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

ROTH makes a market in shares of Great Panther Silver Limited and as such, buys and sells from customers on a principal basis.

Shares of Great Panther Silver Limited may be subject to the Securities and Exchange Commission’s Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.

( Companies Mentioned: GPR:TSX; GPL:NYSE.American,
)

Silver Looking Weaker than Gold

By The Gold Report

Source: Clive Maund for Streetwise Reports   05/20/2019

Technical analyst Clive Maund charts silver and finds that it looks “considerably weaker than gold.”

Silver looks considerably weaker than gold, although that is normal at this stage in the cycle. It is still considered likely that it is forming a Double Bottom with its lows of late 2015, and if so then the support at those lows should hold.


On silver’s 1-year chart it still looks like it is moving to complete a Cup & Handle base, because the pattern roughly parallels the pattern completing in gold, although the downwardly skewed Handle is driving the price back down towards the vicinity of the lows of the Cup. A breakout from the Handle downtrend will be bullish although this doesn’t look likely short-term because of adverse seasonal factors.


In contrast to gold, silver’s latest COT chart is already starting to look positive, although there is room for further improvement which may occur, meaning still lower prices for silver in coming weeks, due to June being the most negative month seasonally for silver, although this will clearly not be the case if Iran is attacked.


Silver’s seasonal chart does not bode well for coming weeks, although it should be emphasized that this is a background factor and silver has already dropped quite a lot and is approaching support, so we are not expected to see much more downside. The key bullish development to look out for is a breakout from the Handle downtrend shown on the 1-year chart, although that may still be some weeks out.


The conclusion is that the big picture for gold and silver continues to look strongly positive, although we may first have to contend with weakness between now and July due to the current downtrend coupled with negative seasonal factors until the end of June, which should present a window of opportunity to build positions across the sector ahead of the expected late summer advance that promises to be very substantial if gold succeeds in breaking above the key $1400 level.

Originally published on CliveMaund.com on May 19, 2019.

Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

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Disclosure:
1) Statements and opinions expressed are the opinions of Clive Maund and not of Streetwise Reports or its officers. Clive Maund is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Clive Maund was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Charts provided by the author.

CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

Delrey Metals Goes Definitive on a Blockbuster Vanadium/Iron/Titanium Property

By The Gold Report

Source: Peter Epstein for Streetwise Reports   05/21/2019

Peter Epstein of Epstein Research discusses the company’s latest option to acquire 80% of a large vanadium project in Newfoundland and Labrador.

Delrey Metals Corp. (DLRY:CSE; DLRYF:OTCPK; 1OZ:FSE) owns 100% of five promising properties in Canada. Four are prospective for vanadium, totaling 10,856 hectares, one is a cobalt–copper-zinc opportunity that Cobalt 27 Capital Corp. acquired a 2% NSR on. In addition, on May 21st, management signed a definitive agreement on an option to acquire an 80% interest in select mineral licenses in the Four Corners project in Newfoundland and Labrador, and establish a JV with the seller. This is a giant, bulk-tonnage deposit that could contain 10 billion tonnes of rock, much of it mineralized, with lower-grade vanadium, plus iron and titanium. Drilling this year will seek to validate the large scale of the deposit and identify additional mineralized zones.

Four Corners is a 7,655 hectare [recently upsized by 51%] property in Newfoundland and Labrador that has had significant historical work done on it. The project hosts titanium-vanadium enriched magnetite with evidence of significant and consistent metal accumulations. This is a massive, (potential mineralized strike length >16 km) deposit, in a great jurisdiction. Selective grab samples assayed >40% Fe, 5% Ti and 0.30% V205 and as high as 56.9% Fe, 15.1% Ti and 0.39% V205. In 2012, SRK Consulting completed promising preliminary metallurgical work that showed concentrate samples of 0.643% V205 and recoveries of vanadium of >90%. Importantly, there are at least five highly prospective targets, only one of which has been drilled.

The Burgeo Highway provides access to an ice-free deep-water port within 40 km, and there’s a commercial airport and industrial service center in the nearby town of Stephenville, (a potential brownfield site for primary and secondary processing). Low exploration and development costs are anticipated as there’s no need for helicopter or camp support, and there’s a government rebate of as much as 50% of select exploration expenditures (up to a max of $150,000/year). Management characterizes community relations as excellent; Newfoundland and Labrador consistently ranks as a top global mining jurisdiction by the Fraser Institute. This year it ranked in the top eighth of over 80 jurisdictions.

Morgan Good, president & CEO, commented,

Finalizing the Definitive Agreement with Triple Nine Resources on The Four Corners project, and substantially increasing the property size, cements Delrey’s positioning within the energy metals sector. We recently completed a site visit and spent time with not only Vic French and the Triple Nine team, but also senior officials from the Department of Natural Resources. Newfoundland & Labrador is clearly a world class mining & exploration jurisdiction.

Our objective of rapidly developing the Project is in line with our partners at Triple Nine. We now have a plan in place to unlock the value shown by their excellent prior work. Keating Hill East in particular, and 4 other high priority target zones, will be our initial exploration focus. We intend to expand on, and validate, ample historic work, and bring the Project up to NI 43-101 compliant standards as soon as possible.”

Land Position at Four Corners Increased by 51%

In the May 21st press release, the company announced the acquisition of an additional, contiguous ~2,577 hectares. The new claims cover all of the roughly 4k m x 4.7 km Four Corners magnetic anomaly and the Bullseye magnetic anomaly, which has a selective outcrop sample that assayed 48.18% Fe203, 8.93% Ti02 and 0.327% V2O5. The enlarged land package [7,655 ha], allows Delrey to add further value through regional exploration in and around the company’s main Keating Hill East Zone.

The primary target, Keating Hill East, was mapped by the Geological Survey of Canada for at least 4,500m, with widths ranging from 400 to 1,100m. Mineralization extends from surface to 590m depth and remains open, representing a very large potential target. An airborne EM survey conducted in 2011 identified four new promising targets, increasing the potential mineralized strike length to >16 km. Surface sampling confirmed the same style of mineralization found at Keating Hill East is producing the geophysical anomalies. Follow-up work is planned later this year.

For further commentary on the Four Corners project, I turned to Director, Mike Blady.

Peter Epstein: At current spot prices, do you believe that all three metals, vanadium, titanium and iron, could potentially be economically recoverable? Are there any other metals of possible interest?

Mike Blady: At current spot prices we would most likely need at least two of the three metals for the project to be economically viable. We have not done enough work on the economics yet to be certain. In addition to V – Ti – Fe, there are also some PGE and minor gold showings on the Four Corners project.

Peter Epstein: Can you estimate the size of the Four Corners deposit, not the mineralized portion, the overall size, of which the mineralized portion would be a subset? Is the deposit open in any directions and/or at depth?

Mike Blady: The deposit could be 10 billion tonnes on a recently expanded footprint of 7,655 hectares. It’s open in all directions. There are many other targets (mag/sampling) that could potentially increase the overall grade of a future resource.

Peter Epstein: What exploration activities are expected to be carried out at Four Corners between now and year-end?

Mike Blady: As mentioned, we plan to advance this Project at a rapid, but prudent pace. Exploration will include, geophysics, mapping, sampling (grab, chip and channel) and diamond drilling. The amount and timing of drilling depends on the results of the geophysics, mapping and sampling. Material news on the exploration/prospecting front will be announced as it is received.

Peter Epstein: Might Delrey Metals be in the position to deliver a maiden mineral resource this year? Or, is it next year’s business?

Mike Blady: Due to the consistent and homogeneous nature of the cumulate style of mineralization, Delrey could potentially deliver a maiden resource over the winter. However, this is contingent on the grade and size being in-line with what we have seen in historical drilling, and the anticipation that we would be able to incorporate additional higher grade zones.

Peter Epstein: What portion of the 7,655 hectare [recently upsized 51%] Four Corners property has been explored? By explored I mean more than just grab samples, actively explored with drilling and/or surveys.

Mike Blady: That’s a good question. Less than 10% has been targeted by drilling. However, the majority of the claims have been explored with some sort of geophysics (airborne/ground). We have a number of attractive targets to go after, we are in the process of choosing the best ones.

Phase II Exploration on Star, Porcher and Blackie Looks Good!

On May 16th, Delrey announced highlights of a recent Phase II exploration program done on its 100%-owned Star, Porcher and Blackie properties near Prince Rupert, BC, Canada. Delrey is one of the few vanadium juniors actively exploring their properties. 125 rock samples were collected from the three properties, with assays as high as 0.51% V205 (49% Fe and 4% Ti). Prospecting focused on the strongest magnetic anomalies mapped during the Phase I airborne magnetic surveys (see news release April 15th). Management is very encouraged by the consistency of V205, titanium & iron enrichment on all three properties, and has submitted five-year area-based permit applications to establish a total of up to 40 drill sites on the Blackie, Porcher and Star properties.

Blackie Highlights

Selective outcrop sample results up to 0.513% V2O5, with 5 of the 21 samples returning >0.30% V2O5. Strong V2O5 enrichment was mapped over approximately 800 m x 300 m, centered on the magnetic anomaly identified in the Phase I survey.

Porcher Highlights

Selective outcrop sample results up to 0.422% V2O5, with 11 of 61 rock samples returning >0.20% V2O5 along a strike length of 1 km. An approximately 2.8 km x 1.8 km strong magnetic anomaly remains to be ground-truthed in the southern portion of the property.

Star Highlights

Assay results at Star are highlighted by 11 of the 43 selective outcrop samples returning >47% Fe (up to 61.2%) from exposed northwest-southeast oriented semi-massive to massive magnetite outcrops along a strike length of approximately 4.7 km. V2O5 enrichment in massive magnetite samples returned as high as 0.10% V2O5. Strong vanadium in-stream sediment results of between 447 to 637 ppm V2O5 suggest that higher concentrations in bedrock may occur elsewhere on the property.

NOTE: Grab samples are selective in nature and not necessarily representative of the mineralization hosted on the properties.

Morgan Good, Delrey president & CEO, stated,

The Delrey team is very pleased with our Phase II results as the assays not only show excellent continuity with the Phase I geophysical anomalies, but include some impressive vanadium, iron & titanium grades. A systematic approach to exploration at Blackie, Porcher and Star has allowed us to put the second piece of the puzzle into place on our BC assets. We’re optimistic we will be in a position to initiate our Phase III work program consisting of diamond drilling this summer on all 3 properties, further enhancing the value of Delrey for its shareholders.”

Latest Press Releases.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University’s Stern School of Business.

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Disclosures: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about Delrey Metals, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] 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. [ER] is not directly employed by any company, group, organization, party or person. The shares of Delrey Metals 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 or registered financial advisors before making any investment decisions.

At the time this article was posted, Peter Epstein owned no shares of Delrey Metals and the Company was an advertiser on [ER].

Readers should consider me biased in favor of the Company and understand & agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] 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. [ER] is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
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4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: DLRY:CSE; DLRYF:OTCPK; 1OZ:FSE,
)

Gold in the Desert: High-Grade Project Nearing Fruition in Arizona

By The Gold Report

Source: Streetwise Reports   05/21/2019

Under the leadership of a new CEO, this miner expects to start producing gold in 2020.

Located in the fault- and gold-riddled desert lands between Phoenix and Death Valley, Kerr Mines Inc.’s (KER:TSX; KERMF:OTC; 7AZ1:FRA) Copperstone Mine is gearing up to recommence production in 2020, stated newly appointed CEO Giulio T. Bonifacio.

Because it is blessed with existing infrastructure—a mill, water, power, labs, repair shop, warehouses, offices, tailings pond and extensive underground development—reinvigorating Copperstone is a low capex project.

Copperstone’s historically productive high-grade gold deposit was profitably mined as an open pit in 1987 by Cyprus Minerals Corporation. Within six remarkable years, Copperstone delivered more than 500,000 ounces gold from 5.6 million tons of ore grading at 0.089 ounces per ton (oz/t) gold (3.05 grams/tonne).

Copperstone’s next owner, American Bonanza, further developed Copperstone with drilling, underground development at the base of the open pit, while also permitting the project. This was followed by the construction of a 600-ton-per-day flotation mill. The company extracted 16,900 ounces of riches from ore grading at 0.104 oz/t gold (3.57 grams/tonne) during 2012 before terminating operations in early 2013 as the gold market turned and Copperstone went temporarily fallow.

Copperstone and its adjacent property was subsequently acquired by Kerr Mines in 2014 at a discounted price that did not reflect the significant historical costs that approximated US$100 million, Bonifacio noted. Kerr Mine’s wholly owned Copperstone project straddles 19.2 square miles (50 square kilometers) of surface area and mineral rights in La Paz County, Arizona. The Toronto-based company controls the property’s 546 federal unpatented mining claims (10,920 acres) and two Arizona state mineral leases totaling 1,338 acres.

In late 2017, Kerr Mines completed a combined surface and underground drilling exploration program, adding 800 feet of additional underground access. Bonifacio stated the company plans to start mining and processing 600 tons of ore per day at Copperstone in 2020, pending advancing detailed engineering, minor permit modifications approval and finalizing terms of a current financing package with Sprott Resource Lending Corp.

Last year, Kerr Mines’ Copperstone preliminary feasibility study calculated the underground Proven and Probable to hold 175,093 ounces at 6.79 g/t with a mine life of 4.5 years. In 2019, a further 15,000-meter drill program is targeted with the objective of extending the estimated life of the mine to 8–10 years based on extracting 320,000 ounces of gold, Bonifacio noted.

“To date we have only modestly tested the Copperstone project with exploration work covering approximately only 10% of the project,” Bonifacio stated. “We see a pathway toward capturing multimillion-ounce potential with further drilling and testing several prospective targets that have been identified.”

Kerr Mines’ proposed mining method is a mechanized cut and fill using rock fill and cement rock fill. Cut and fill was chosen for its flexibility in handling the low vein dip angles. The project is designed to operate on two 10-hour shifts; the region has an ample supply of experienced workers and is mining friendly.

In an interview with Streetwise Reports, Bonifacio said, “There is a comfort zone involved, in that Copperstone has already produced more than a half million ounces. The grade is high for underground at plus six grams. Additionally, with several very prospective targets in hand and a land package that has been relatively underexplored, there is a strong likelihood that we are sitting on a million-ounce deposit and a pretty low cost to get at the deposit.”

Bonifacio explained, “The US$100 million investment by Copperstone’s previous owners in existing infrastructure is saving us tens of millions in capital expenses. And the mine has all of its major permits. I’m quite excited about the large land position that came with the acquisition, which we will explore and develop after Copperstone goes on line.”

Bonifacio joined Kerr Mines in April from Nevada Copper, which he retired from in early 2018. Bonifacio told Streetwise Reports that he founded Nevada Copper in 2005 and directed efforts at every stage of the company’s development, which included exploration, resource expansion, feasibility studies and the successful permitting of both the underground and open-pit deposits and construction at the company’s Pumpkin Hollow project located in Nevada, which is scheduled to commence production in Q4 2019. Bonifacio is a Chartered Professional Accountant with 30 years of executive experience in operations, project finance, capital markets and mergers and acquisitions. Bonifacio has himself raised US$700 million in capital through equity and project debt financings; he has participated in more than US$1 billion worth of corporate transactions.

Bonifacio has put his money where his mouth is, too. Kerr Mines has completed a non-brokered private placement offering of 3,350,000 shares at a price of CA$0.14 per unit for gross proceeds of CA$469,000. Bonifacio personally subscribed for 3 million shares; Peter Damouni, a Kerr director, subscribed for 350,000.

Retail investors currently hold only about a third of Kerr’s shares with directors, insiders and family funds and offices holding the rest.

Bonifacio said, “We’ve got the budget on hand to continue the study work, and we are looking at lenders and our current financing package with Sprott Resource Lending to advance the project fully into production. We are also very excited about the drilling results to date so we ideally would like to further advance our drilling efforts with an aggressive targeted success driven drill program.” Bonifacio went on to state, “We also have the best in class mining professionals to further advance Copperstone, which is critical to our future success.”

Is now the right time?

“There are very few already built-out, ready-to-go projects like Copperstone. That is what sets us apart from the crowd,” Bonifacio observed. “A bump in the gold prices is inevitable, it is a law of the market—that is why I put so much of my own skin in the game!”

Mining investment experts are cheering for Bonifacio and Copperstone. Technical analyst Clive Maund, analyst Siddharth Rajeev with Fundamental Research and industry observer Jeff Nielson all view Kerr Mines as a worthy investment that has the potential to glow with even a modest uptick in gold prices.

The nine-member board of directors of Kerr Mines is loaded not just with mining operations experts with the background to bring Copperstone to fruition, but also with several heavy weight capitalists.

Chairman Fahad Al Tamimi is a Saudi-based businessman with global investment activities. Previously, he was president and CEO of SaudConsult, the largest engineering firm in Saudi Arabia, responsible for many large infrastructure and construction projects in the country.

Executive vice-chairman Claudio Ciavarella, who has advanced Copperstone since its acquisition, is a CPA and private business owner who operates international businesses in construction and manufacturing.

Direct investor and board member Peter Damouni has over 18 years of experience in investment banking and capital markets, with expertise in mining and oil and gas. Damouni has worked on and led equity and debt financings valued over $5 billion.

Director Ayman Arekathas over 35 years of strong banking, finance, investment and business management experience working with Chase Manhattan Bank, Merrill Lynch, Deutsche Bank, Investor, Abraaj Capital and Tamimi investments.

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Disclosure:
1) Peter Byrne compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Kerr Mines. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Kerr Mines. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Kerr Mines, a company mentioned in this article.

Additional Disclosures

Clive Maund does not own shares of Kerr Mines and he or his company has not been paid by Kerr Mines.

Fundamental Research Corp: FRC and the Analyst do not own shares of the subject company. Fees were paid by KER to FRC. The purpose of the fee is to subsidize the high costs of research and monitoring. FRC takes steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage. Our full editorial control of all research, timing of release of the reports, and release of liability for negative reports are protected contractually. To further ensure independence, KER has agreed to a minimum coverage term including an initial report and three updates. Coverage cannot be unilaterally terminated.

Jeff Nielson may or may not own securities of Kerr Mines.

( Companies Mentioned: KER:TSX; KERMF:OTC; 7AZ1:FRA,
)