Archive for Metals

Gold Speculators lifted bullish bets after 3 down weeks

March 23rd – By CountingPips.comReceive our weekly COT Reports by Email

Gold Non-Commercial Speculator Positions:

Large precious metals speculators increased their bullish net positions in the Gold futures markets this week following a recent cool off in bets, 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 88,396 contracts in the data reported through Tuesday March 19th. This was a weekly rise of 9,577 net contracts from the previous week which had a total of 78,819 net contracts.

The week’s net position was the result of the gross bullish position (longs) declining by -925 contracts to a weekly total of 204,325 contracts but was sharply overcome by the drop in the gross bearish position (shorts) which fell by -10,502 contracts for the week to a total of 115,929 contracts.

The net speculative position had fallen for three straight weeks and for four out of the previous five weeks before this week’s rebound. The gold position remains in bullish territory for the eighteenth straight week after a dip into negative territory in November.

Gold Commercial Positions:

The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -115,659 contracts on the week. This was a weekly fall of -7,185 contracts from the total net of -108,474 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 $1306.50 which was a gain of $8.40 from the previous close of $1298.10, 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 cut back on their bullish bets for 3rd week

March 23rd – By CountingPips.comReceive our weekly COT Reports by Email

Silver Non-Commercial Speculator Positions:

Large precious metals speculators reduced their bullish net positions in the Silver futures markets again 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 23,310 contracts in the data reported through Tuesday March 19th. This was a weekly lowering of -3,772 net contracts from the previous week which had a total of 27,082 net contracts.

The week’s net position was the result of the gross bullish position (longs) decreasing by -987 contracts to a weekly total of 75,196 contracts that combined with the gross bearish position (shorts) which saw a rise by 2,785 contracts for the week to a total of 51,886 contracts.

Speculator net positions have dipped for three straight weeks and are now down by -35,003 contracts over that period. The speculative position, with strong gains in January and February, streaked to its best level since November 2017 with bullish bets above +58,000 contracts on February 26th. The recent cool off in positions has brought the current standing to the lowest level in the past twelve weeks.

Silver Commercial Positions:

The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -43,700 contracts on the week. This was a weekly increase of 2,561 contracts from the total net of -46,261 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 $1537.20 which was a loss of $-4.10 from the previous close of $1541.30, 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

Copper Speculators reduced bullish bets for 2nd week, to 4 week low

March 23rd – By CountingPips.comReceive our weekly COT Reports by Email

Copper Non-Commercial Speculator Positions:

Large precious metals speculators decreased their bullish net positions in the Copper futures markets again 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 16,355 contracts in the data reported through Tuesday March 19th. This was a weekly decline of -9,212 net contracts from the previous week which had a total of 25,567 net contracts.

The week’s net position was the result of the gross bullish position (longs) lowering bets by -6,807 contracts to a weekly total of 82,765 contracts that combined with the gross bearish position (shorts) which saw a rise by 2,405 contracts for the week to a total of 66,410 contracts.

The net speculative position fell sharply this week and is down for a second straight week with a total decline of -14,901 contracts over the 2-week period. The current position for speculators has now dipped to the lowest level of the past four weeks.

Despite the recent decreases, copper spec positions remain in bullish territory for a sixth straight week following the previous eight weeks in bearish territory.

Copper Commercial Positions:

The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -21,069 contracts on the week. This was a weekly increase of 8,600 contracts from the total net of -29,669 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 $292.30 which was a shortfall of $-0.55 from the previous close of $292.85, 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

U.S. Silver Production The Lowest In 70 Years

By Money Metals News Service

With the latest release by the USGS, silver production in the U.S. is now the lowest in more than 70 years. We have to go all the way back until the year after World War II ended to see U.S. silver production less than it was in 2018. While many reasons can be attributed to the decline, the main factors are falling ore grades and mine economics.

Unfortunately, there just aren’t too many economic silver deposits in the United States, especially with the high level of environmental and governmental regulations. Instead of dealing with all the bureaucracy, companies are looking to Mexico and South America to open new silver projects.

U.S. Domestic Silver Production 2017 vs 2018

Regardless, U.S. silver production declined by more than 100 metric tons last year, or 10% in 2018, mainly due to the ongoing closure of the Lucky Friday Mine in Idaho. The Lucky Friday Mine has been shut down ever since the United Steelworkers went on strike on March 13, 2017. However, the dropoff in silver mine supply can’t all be blamed on the Lucky Friday Mine. Domestic silver production has been trending lower for the past two decades:

U.S. Domestic Annual Silver Production 2000-2018

In 2000, the U.S. produced 63.7 million oz (1,980 metric tons) of silver compared to just 29.7 million oz (923 metric tons) last year. Thus, U.S. silver production has fallen by more than 50% in less than two decades. Silver production in the U.S. ramped up significantly during the 1990s due to the McCoy-Cove Silver Mine in Nevada. At its peak, the McCoy-Cove Mine supplied 20% of the total U.S. silver production:

McCoy / Cove Mine & Nevada Silver Production

I don’t have a chart of U.S. silver mine supply over the past 100 years, but I checked the USGS data, and in 1946, the country produced only 713 metric tons (mt) of silver. Interestingly, while silver production had declined due to the war focusing its efforts on other strategic metal mining (2,090 mt in 1941 to 903 mt by 1945), the significant drop off in 1946 was also due to mine strikes at base metal mines and smelters. Because most of the silver is a by-product of base metal mining, the strikes had a profound impact on overall production.

So, even though the shut-down of the Lucky Friday Mine reduced U.S. silver production by 3-4 million oz, it doesn’t account for the additional 30 million oz lost since 2000.

At some point, Americans will become aware of the monetary properties of gold and silver. However, when they finally do, domestic silver mine supply will likely not be enough to satisfy the demand.


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

Aging in the New World Order of Managed Markets

By The Gold Report

Source: Michael J. Ballanger for Streetwise Reports   03/20/2019

Precious metals expert Michael Ballanger discusses the influence of governments in the future direction of markets.

After over 40 years in the world of money and markets, I have arrived at the conclusion that aging can be a double-edged sword where the advantages created by many years of experience are many times odiously offset by innate biases that become ingrained over time. It came to me while listening to a fascinating interview with Felix Zulauf, a former money manager and member of the legendary Barron’s Roundtable. During the session, brilliantly hosted by Realvision TV’s Grant Williams, Felix made reference to a real and present danger looming on the horizons for global financial markets, which is the growing influence of government in the future direction of markets—ALL markets.

Sexagenarians such as I were weaned in the very early years of free markets long before central banks took control of everything from foreign exchange to soybean prices. We were educated to believe that the really BIG wins always occur when you feel like the loneliest person on the planet when taking on a new position. If you recall the book (and movie) “The Big Short,” you felt the pain of people like Michael Burry whose clients were ready to lynch him in the early days when Goldman Sachs refused to properly mark his month-end (bearish) positions. You were also cheering from the end blues when subprime imploded and Burry has the last laugh (and payday). To deem it “magical” would be understatement.

I recall as if it were yesterday the year 2001, sitting in a kitchen with a group of young working mothers who had just found out that I was in the investment business and proceeded to pepper me with questions. These were people I had never met before and after a few moments, two of them asked me what I thought of Nortel Networks, one of the last companies standing in the latter stages of the tech bubble of 1990–2001. I proceeded to tell them that “if I owned it, I would sell it before you have your morning coffee because it is going to zero.” Not noticing that the cheers had turned to jeers and the smiles on those hopeful faces had been replaced with scowls of contempt, I further added, “…and if you DON’T own them, I would find someone who does, borrow them; promise to give them back the shares in twelve months; and then sell them before you have your morning coffee.”

Now, most of these nice ladies had grown openly hostile so after a few derogatory remarks, the room cleared out except for one bespectacled young mother who asked why, so I told her my reasons as plainly as possible. After thanking me for the “insights,” she then proceeded to tell me that everyone at the party (herself included) worked for Nortel and had their life savings and 100% of their retirement funds in Nortel stock. Needless to say, I was speechless and after being shunned for the entire room for the next hour, I departed after apologizing to the host for accidentally attempting to earlier swallow both of my feet.

Well, fast forward to a year later and Nortel had dropped from $125 per share to under $1.00 before going to zero and being delisted from the TSX and NYSE exchanges, and as I am walking through the Upper Canada mall, I hear my name being called and lo and behold, it is the bespectacled lady from that “Nortel party.” She proceeded to thank me about a dozen times because the first thing she did that following Monday, after our kitchen discussion, was to phone her broker and liquidate every Nortel share she could find in all of her accounts. She even called her mother and father and told them to do the same as well as all of her co-workers. “How did THAT go over?” I asked to which she responded, “Not very well. They unfortunately held on and three of them have not only lost their jobs, but also their homes.”

In the days around 2001, companies with negative cash flow eventually got trashed and if the accounting practices were fraudulent (as were Nortel’s), the executives usually (not always) went to jail. However, in 2001 with Nortel cruising at $125, literally EVERYONE owned it and even the mailroom clerks could recite five reasons WHY it was going to $500. The moral to the story is this: In the era before social media and germ-colony progressive cheerleading, one could take a contrarian view on a specific company or a specific market and expect to be proven either right or wrong based on veracity of one’s investment thesis. There was no such beast as a software-driven “algorithm” juicing a specific stock or market in the face of declining performance or economic conditions. You were rewarded within a reasonable period of time because you were operating in a FREE MARKET environment.

Take the example of Tesla (TSLA:US), a company whose fundamentals, according to most of the analysts I have listened to, are eroding rapidly amidst growing electric-car competition from the big auto makers in both the U.S. and Europe. Despite the overwhelmingly bearish data, I am terrified of shorting TSLA because of one major risk: social media. One tweet from CEO Elon Musk has been known to advance the stock price 20% in a day despite numerous warnings and sanctions from regulators and yet, the poor slob that is short the stock is in need of new knickers and is on specialty blood pressure pills.

Similarly, if you have been a holder of precious metals or the companies that explore for or produce them, you have been watching for the better part of 30 years a system of government and regulatory collusion in suppressing the prices in an ongoing effort to fortify the U.S. currency regime.

One last example of the disappearance of the free market is that very U.S. dollar and its role as the global reserve currency. Total government debt for the U.S. exceeds $22 trillion, which is $13 trillion greater than the second most-indebted country, the U.K., at $8 trillion. In a free market system, investors would question the soundness of any country so heavily in debt and unanimously reject its currency. However, the world appears to be collectively “short” dollars and are scrambling to own more dollars into every dip and for all of the (apparently) wrong reasons. The reason for this lies in one word: DEBT.

At the end of the day, the American spin machine has convinced the world that it will NEVER default on its debts because, after all, America is the heart and soul of free market capitalism and the driver of wealth creation the world over. However, like Nortel 17 years ago and Tesla 17 minutes ago, once you have lifted the hood and start doing compression tests on the cylinders, you rapidly realize that the American engine of growth, the middle class, is in deep trouble and in need of new rings and valves.

Notwithstanding the fact that America is a wonderful country with some of the warmest, nicest people on the planet, its leaders have been forced to maintain and prolong a massive, multi-generational Ponzi scheme designed to finance the NATO war machine, spearheaded by the U.S. military. As I have typed for years upon years, the only way that changes is when the USS Nimitz pulls into Gibraltar for a refitting and they refuse the credit card. In other words, the Achilles Heel of the U.S. is the dollar—the exact weakness being targeted by those that would seek to eliminate the petrodollar and the SWIFT payments systems. Make no mistake, that IS happening as we speak.

The growing number of sexagenarian money managers who have returned money to investors and opened “Family Offices” (meaning they run only their own money) is a testament to the stark disadvantages of having been trained in a free market environment. In today’s world of handheld devices and mass communication apps, the Millennial and GenX/GenY investor class pay little heed to anything that vaguely resembles fundamental analysis and prefers instead to run with their social media brethren to gang attack any form of “story stock” in a type of group-infestation where sheer volume of buyers creates the momentum to promulgate the validity of the prevailing investment thesis.

That seems to be the prevailing sentiment these days as we have gone from a “Fed Hostile” environment to a “Fed-Friendly” one inside of 90 days with stock traders totally ignoring the bond market’s message. To have 10-year yields collapse from over 3.25% to 2.60% inside of three months is frightening because 20% drops in yields are what usually occur when administered rates like Fed Funds are lowered in response to a financial shock like a market crash. Now the MSM is more focused on the distance to all-time highs than the yield on the 10-year, and there isn’t a day that goes by without one of the CNBC commentators mentioning it. It is this “seasoned veteran’s” opinion that ignoring sharp changes in bond yields is analogous to ship captains ignoring large, shiny, white objects floating on the horizon when steaming across the North Atlantic. Not very wise.

The last trades I put on were the gold/silver calls plus JNUG/NUGT call option combo on March 6, and last Friday when I decided to be the last standing bear in the world by accumulating calls of the triple-bear SPXS ETF, which peaked on December 24th at over $38 and which Tuesday hit an intraday ALL-TIME low at $20.50 before rebounding to $20.91. I am underwater on the SPXS trade by a few pennies but with RSI for the S&P twice popping (today) above 70 only to close at 66.98, I smell a downside reversal coming and given the extreme levels of the MACD and Histograms, I can envision a short-term pop to $24 into long-overdue profit-taking from a market five days on the upside and ahead over 17% since Christmas Eve. Of course, there is ample opportunity to see a sideways consolidation with little downside volatility while the bull catches its breath and while I am not completely ruling out the Working Group on Capital Markets (who take their orders from the White House) pulling off an “in-your-face” assault on the all-time highs of 2,941, that 2.60% 10-year yield keeps flashing its irritating little red light in my rear-view mirror reminding me that enormous money flows are seeking the safety of U.S. Treasuries over the upside excitement of the stock market. Hence, I am alone in the room, despised by all, and attempting to short the market, right here and right now, and taking a sledgehammer to the locks on the liquor cabinet.

While I am almost embarrassed to discuss the junior miners, be they explorers or developers, I have to mention Getchell Gold Corp. (GTCH:CSE) and the recently announced private placement at $0.15 per unit. I have to take an EFFING framing hammer to my forehead to remind myself that it was only three and a half months ago that I was “working the deal,” asking investors to pony up $0.45 per unit to help finance the exploration effort in Nevada. Today, I am again “working the deal,” asking investors to pony up more of their hard-earned AFTER-TAX cash to FURTHER invest in GTCH at one-third the price of the November funding at the Honest Ed’s pricing level of fifteen cents per share.

To my dear friends that actually enjoy reading my work and to the wonderful people that have followed me into the various deals over the last several years, Getchell Gold and the Hot Springs Peaks project represent, without argument, the BEST prospect with which I have been involved since the early 1990s. The ’90s were a period of years during which I made a ton of money and, more importantly, a ton of like-minded friends with whom I still communicate, albeit in a far more muted fashion due partly by age but more so by the abysmal state of the junior mining exploration market. I am getting to know the man in charge of delivering to us a MAJOR GOLD DISCOVERY (please forgive the caps), project geologist and V.P. Exploration Tim Masters. Suffice it to say that Getchell has the right man in the field; I have been reaching out to my geologist friends for assistance in handicapping this drill program and I was doing so for a number of reasons, including my own investible capital which has, like the rest of you, suffered with the mercilessness of this junior mining debacle. The point I make is this: In any speculation where risk is involved, one must always assess the odds and where one can invest $1 with the possibility, however remote, that it could return $10-20 from exploration success, one MUST take that risk and make that investment. The Hot Springs Project is just that type of project and carries just that type of potential return.

Wednesday is the final day of the FOMC meetings with the political class doing its best to maintain the “status quo” with the professional money managers seriously underweight equities going into “end-of-quarter” Judgment Day. If the next few days turn down in a big way, I think those overweight will think about paring back with the other side waiting until April to redeploy capital. As the chart would indicate, it has been a non-stop, V-Bottom ramp job engineered and managed by Stevie Mnuchin’s New York Fed soldiers designed to enhance the legacy of the Trump Presidency. They want the 2020 electorate to feel good about the Trump Directives and they will engage any and all tools in an effort to swing sentiment in favor of the current administration. However, there is a voting bloc of seriously large weight and stroke that is in full disagreement with the notion that “all is well” and that bloc is called the FIXED INCOME investor class. Whenever they are moving at large and en masse to safety, common share ownership is at risk. Hence, I am overweight cash, long gold and silver, and moderately short U.S. stocks.

Please deliver the contact info for all reputable psychiatric personnel with whom you have favorably interacted as well as all spare quantities of sedative and stimulative substances with which I may efficiently cope with the New World Order of Managed Markets.

Thank you in advance.

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. My company has a financial relationship with the following companies referred to in this article: Getchell Gold. 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,
)

Dollar Breakdown on Fed Was Much Worse Than It Looks

By The Gold Report

Source: Clive Maund for Streetwise Reports   03/21/2019

Technical analyst Clive Maund explains why the dollar breakdown after the Fed’s rate announcement is good news for precious metals.

The Fed statement that it won’t be raising rates again this year had a dramatic effect on both the dollar and the precious metals sector. The dollar had been struggling to make further progress for some time and the Fed statement kicked the crutches out from under it, and it broke sharply lower, as we can see on its latest 1-year chart below. It broke below its 200-day moving average, the 1st time it has been below it for almost a year, and it also broke it down below its uptrend. This was a development made all the more serious and decisive by the fact that it is currently tightly bunched with its moving averages, which means that it is at a key inflexion point—it could have broken either way, but the Fed has decided its direction with its stated policy not to raise rates this year.


The dramatic impact on the dollar of the Fed’s statement is made clear by the 1-day chart for dollar proxy UUP shown below. The Fed spoke at 2 pm, and almost immediately the dollar cratered.


Action in gold proxy GLD, which had looked shakier earlier in the day, was positive, with it advancing to close near to its highs, and it looks like it is starting another upleg within the large parallel uptrend shown.


Precious metal stocks were set up to tumble in the event that the Fed was hawkish on rates, with a potential Head-and-Shoulders top evident on the GDX chart, but the Fed’s weak and accommodating stance ripped the rug out from under the dollar, which was, of course, great news for the precious metals sector, which is why GDX closed with a prominent bullish candle on its chart, after testing the support of its trendline earlier in the day.


The conclusion is that the dollar looks set to tip into a serious decline, which means we should see a strong upleg in the precious metals sector and in commodities generally. This will likely result in the long awaited gold breakout above $1,400.

In closing I want to bring your attention to Vista Gold Corp. (VGZ:NYSE.MKT; VGZ:TSX), which has always been something of an “index slave,” i.e., when the sector goes up it goes up. It is looking well placed to advance anew here having reacted back near to its rising 50-day moving average and unwound its earlier overbought condition.

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Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
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. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. 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 Vista Gold, a company mentioned in this article.

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.

( Companies Mentioned: VGZ:NYSE.MKT; VGZ:TSX,
)

Rates Fall, Commodities Strengthen; David Smith: Risk/Reward in Silver Favors Buying Now

By Money Metals News Service

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

Coming up David Smith, Senior Analyst at The Morgan Report and MoneyMetals.com columnist joins me and reviews the key reasons why we ought to own precious metals — and discusses the risks of NOT acting now when the price of silver is still cheap. He also discusses why he believes the set-up for the next bull leg higher in metals is going to be different than the false breakout we saw back in 2016. Don’t miss a fantastic interview with David Smith, coming up after this week’s market update.

Well, as bulls and bears battle for control of the gold and silver markets, doves have gained full control of monetary policy at the Federal Reserve. On Wednesday, the Fed announced no change in interest rates – a decision which was expected. But policy makers went further and suggested there would be NO rate hikes at all for the REST of the year.

Bloomberg News Anchor: Doves fly, the pause continues, no change in the Fed’s target rate and they are done for the year. The Dot Plot now calls for no rate increase in 2019.

Supporting the change, big downward revisions to the economic outlook. The growth median is now 2.1% for this year, that’s down from 2.3% in their December forecast. Growth next year will be just 1.9%. The statement notes that the growth of economic activity has “slowed.”

So, if Jay Powell and company wanted to reassure investors the doves are in control here, it looks like they have done that.

The newly dovish Fed will also stop shrinking its balance sheet by the end of September. The Fed’s shift back into easy money mode reflects either a dramatic downgrade in the economic data or a craven capitulation to political pressure.

A case can be made that both the data and the politics helped push the Fed to completely abandon its former plans to continue gradually hiking rates this year. We can only speculate as to what words may have been exchanged between Federal Reserve Chairman Jerome Powell and the Donald Trump administration’s Plunge Protection Team late last year when markets were on the verge of crashing. But that period clearly served as an inflection point for monetary policy and the stock market.

Since then, stocks have surged higher. They rallied again following the Fed’s dovish pronouncements this week. In fact, virtually all asset classes got a boost from the Fed – stocks, bonds, commodities, and precious metals to some extent.

Gold prices currently check in at $1,311 per ounce, up 0.6% this week. Silver shows a weekly gain of 0.5% to bring spot prices to $15.43. Platinum is up 1.9% since last Friday’s close to trade at $851. And finally, palladium posted yet another record high this week. The supply constrained metal has pulled back a bit here the last couple of days and currently trades at $1,573 per ounce after advancing 0.8% on the week as of this Friday morning recording.

The move in gold and silver markets following the Fed’s announcement wasn’t as dramatic as bulls had hoped for. The money metals probably won’t accelerate to the upside in a big way until something breaks the uptrend in the S&P 500 and drives more safe-haven demand.

In the near term, momentum could take the major U.S. equity averages back up to test their old record highs. Around there, the markets could see some major technical resistance.

Investors will have to ask themselves whether they want to buy stocks trading near all-time highs when the economy is headed for a slowdown by the Fed’s own admission and the earnings picture is deteriorating.

Yes, a dovish Fed is supportive of higher equity prices – all else being equal. But that doesn’t necessarily mean equities will be the best performing asset class going forward.

Bonds caught a bid this week as interest rates fell and the yield curve flattened. Rates on Treasuries going out 10 years are now all close to 2.5%. There appears to be little room left for bonds to rally from here — unless the Fed starts cutting rates or investors are willing to accept lower yields on bonds than the short-term rate set by the Fed.

If the yield curve fully inverts and long-term paper yields less than short-term paper, that would represent an ominous sign for the economy. Historically, an inverted yield curve signals a coming recession.

On the other hand, commodity markets are coming back to life. Crude oil has been on fire of late, with West Texas Intermediate climbing above $60 per barrel this week as U.S. imports of Venezuelan oil shrank to zero for the first time in decades.

The plunge in oil prices in the fourth quarter of 2018 had contributed to disinflationary pressures. The Fed, in turn, lowered its inflation outlook. Central bankers now expect the inflation rate to trend slightly below their arbitrary 2% target over the next year. But if inflation pressures rise unexpectedly later this year, the Fed will be handcuffed by its own pronouncement to markets that it’s done raising rates.

While some investors are concerned about the risks of a slowing economy, virtually nobody on Wall Street is paying attention to the potential inflation threat. As a consequence, inflationary assets including energy stocks, mining stocks, and precious metals remain the most heavily discounted assets in an investment universe where good values, or even decent values, are hard to come by.

For the first time in years, U.S. monetary policy is now conducive to higher precious metals prices. The Fed isn’t the only factor that drives these markets, of course. But over time, being on the right side of the Fed usually leads to profitable outcomes.

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

David Smith

Mike Gleason: It is my privilege now to welcome back David Smith, Senior Analyst at The Morgan Report and regular contributor to MoneyMetals.com. David, it’s been too long. How are you my friend?

David Smith: It’s been a while and I’m happy to be back, Mike.

Mike Gleason: Well, David, for metals investors who got started after the 2008 financial crisis, it has not been an easy ride, as we both know. Prices rose sharply between 2008 and 2011, driven by the crisis and the Fed’s response to it, 0% interest rates and massive amounts of money creation. Then the metals markets began to flounder. Some of the safe haven demand for metals dried up as the equity markets recovered and fear dissipated. Price rigging and suppression in the futures markets has progressed from conspiracy theory to conspiracy fact. Metals prices are not being set in free or fair markets, so it is not easy for some investors to hang in there. But the reasons to own metal are still there, bigger than ever.

So, now might be a good time to review some of them. You talk a lot about precious metals role as insurance. Would you mind going over how metals act as a form of insurance for our listeners, David, as we start out today?

David Smith: Well, there’s several iterations of the insurance piece. As David Morgan of The Morgan Report always talks about, you buy the physical first and you buy that for insurance first and profits second. But if you look back, and a lot of people would not even believe this until they saw the chart. But gold held since 2000, has doubled the appreciation of the stock market, the overall stock market.

So, in spite of the big plans that we’ve seen, that we saw from $1,900 down to about $1,050 and then the move in 2016, we had, which gave most of it back and gold ended up for the whole process from that point, down about 45%. Silver down about 70% from 2011. In spite of that, the metals are still using their role as insurance of helping you diversify, of helping contradict other price changes in investments you may have and then, providing liquidity for you. So they, historically, have done that very well, that role of insurance and they continue to do so.

Mike Gleason: You talk about metals as a source of liquidity. What do you mean by that?

David Smith: It means that if you need money, if you have some kind of an expense you need to deal with right away, you can sell the gold right now at any gold operation, any salesmanship. Whether it’s a jewelry store or an operation like Money Metals and you can get your money for that to pay that expense.

You can’t do that with property. You can’t do it with real estate, in general and collectibles and things like that. So, it gives you a real good opportunity. I always like to tell people from time to time, when you buy gold and silver, you don’t think of it as buying something like a car or a fishing rod or a camera or something like this. You’re exchanging one form, of which I would argue is inferior money, fiat money that’s not backed by anything… you’re exchanging that for a form of historic sound, honest money. You’re not making a purchase per se. You’re making an acquisition of a greater ability to have a financial element that can do really well for you and offer diversity.

Mike Gleason: Kind of leads me right into my next question. You’ve described why metals are a good alternative to saving dollars in a bank account. Elaborate on that if you would and why an investment in bullion can be considered a type of savings.

David Smith: Well, one of the advantages over having fiat money, that amount of money in the savings account, is that it’s yours. Nobody else has a claim to it. I think even today, most people that have bank accounts in the United States, which is most people, I think they don’t realize that when they put that money into their account, the bank really owns that money. Granted you have the FDIC insurance up to $100,000 per calendar, this sort of thing.

But the reality is if they choose to use some of that money because they’ve gotten in trouble investment wise or for some other reason, they can take that and you can have a hard time getting it back. So the money’s in your name in a sense, but it’s really not yours, where you can get ahold of it. Not to mention, if you try to take out a significant amount, you go and try to take out $1,000, they ask you what you want to do with it, as though it’s any of their business. There shouldn’t be an assumption that you’re going to do drugs or do something illegal. It’s your money and if you want to take it out and give hundred dollar bills out in the street, that should be your business.

Mike Gleason: Yeah. Not to mention if you want $5,000 or $8,000 in cash, good luck. Call a day in advance. Make sure they’ve got that money there when you come in because often banks don’t even have that much of the paper money that they’re dealing in. It’s kind of scary actually when you think about it, in terms of what could happen if we do get some kind of a crisis and you have a run on the bank, for instance.

David Smith: Not only that Mike, but there’s actually a reporting form that banks have to fill out if you try to get out $10,000 or more at one time, or if you take out lesser amounts, such as 2 or $3,000 and then, maybe $4,000 it’s called structuring and their assumption is you’re guilty until proven innocent and that you must be wanting to do something nefarious for it. This whole idea of standing on the head, the idea that you’re innocent until proven guilty, is being turned around and I just don’t like that attitude either.

Mike Gleason: Switching gears here a little bit. One of the interesting things about silver as an investment that is very unique and different than other asset classes right now, like stocks or real estate, is that at present value, silver would need to triple in price just to reach the nominal all-time high of around $50 an ounce that we hit both back in 1980 and again, in 2011.

You would have to think that if it did get to $50 again and we could see it break through there, that could be off to the races, like palladium, for instance. That market keeps going higher and higher, now that we’re in this uncharted territory. But silver still needs to triple just to get back to that all-time, nominal high. Comment on that if you would, and touch on what a tremendous value proposition there is in silver right now, as a result… because you really can’t say the same about other markets and other sectors or investment classes right now.

David Smith: Well, silver is one of the few metals, that has not traded at all-time nominal highs. Granted it hit almost $50 in 2011. But as you’ve mentioned, it’s dropped since then and it hasn’t gone to say, $60 or $70 or $80. Whereas gold, which traded at $850 in 1980, hit $1,923 in 2011.

So, that’s not an inflation adjusted high, but it is a nominal high, as you were mentioning. And I really think what’s going to happen, it’s hard to predict the future, but I think there’s a real good chance of this happening. I think we’re going to see, silver over the next couple of years, move up pretty sharply and at some point it’s going to challenge $50. And when that happens it might have to bang his head against that resistance a few times. But when it finally breaks through, I think it will be a lot like palladium.

If you remember palladium when it was trying to go through $1,000, it played around and it did $1,050 and $950 and dropped down to $800, this type of a thing. Then it went up and it just tick, tick, tick, tick against the top and all of a sudden it broke through and it wasn’t a $100 move. It was just $5 or $10 and then, it just kept going and going and going. In a very semi gradual. It was not a vertical run at all. It was just a solid movement that was always contained on the downside and moved on up.

If you think about it, if you go back and you look at the move between $1,050 and where it is now over $1,500, it almost takes your breath away, how far it’s gone and how quietly it’s done it. And people have watched it all the way and who knows how much farther it’ll go.

But the point is, I think when silver gets above $50 and builds a bit of a base, I think you’ll see $75 or $80 silver very quickly and it’s going to be three digits, in my belief. And I believed this since the beginning, we’ll see three digit silver at some point in the next few years. And one of the things about waiting for prices to go where you thought they were, is by the time you decide to do something about it, it’s already there and the risk is a lot greater. Or it may be inconvenient for you to do it and you don’t do it at all and you get to watch the whole darn thing.

Mike Gleason: Getting back to palladium for second here, David. We’ve talked with you a lot about that metal over the years. Several years ago you were on this very program and telling people that, that was a great investment opportunity. We were still in the triple digits, well below $1,000 at the time and it’s been a fantastic play for the people that followed your advice.

Just comment about where we are right now. I mean, how high can it go? I guess, is the first question. Then also, if you would comment about this potential breakdown in the futures market in palladium, this physical shortage that we’re seeing and how that potentially could be a precursor to what we might see one day in the gold and silver markets.

David Smith: The palladium breakdown, they really do have very small supplies. Most palladium comes from Russia or from South Africa or from Zimbabwe. And the deficit has been building for several years. It’s really pretty interesting because an awful lot of what palladium is used for in catalytic converters, which I believe tends to be a regular (gasoline powered) cars as opposed to diesel engines which platinum is more frequently used for. They can be substituted, but you can’t just change it on a dime.

Rick Rule was talking about this not too long ago and he said it could take a couple of years to retool to get back over, so that the palladium that is now being used could all can be utilized as platinum (instead). So, in terms of where the price could go, it could go up another $500 to $1,000. But the risk is absolutely enormous, at this point, to try to buy it now and personally, I wouldn’t recommend it.

I think platinum because it usually is $200 or $300 above gold and is now well below it. It’s about $850 versus gold at $1,300 and this has persisted for quite a long time. At some point, the bull market in palladium will be over and the platinum market will do catch-up. But I remember when the last time this happened, which is, I think about 10 or 12 years ago… might’ve been a little farther back… but Ford Motor, they panicked, and they bought a lot of palladium. And they ended up selling and a $1.5 billion loss a few months later. So, whether you’re a manufacturer or an investor or whatever, the market is pretty high here and it could go a lot higher. But when it finally turns around, it could be really interesting to watch on the downside.

Mike Gleason: Some of my recent podcast guests have been talking about that very dynamic. I think it was Craig Hemke at TF Metals that pointed out that, back then in the early 2000s, when palladium shot up like it did and Ford Motor Company and the other automotive manufacturers started to hoard the metal, Boris Yeltsin in Russia… of course, Russia controls a lot of that supply and is the main producer of it, like you mentioned… he bailed out the market and supplied a lot of physical palladium, at the time. It seems somewhat unlikely that we’re going to get the same type of cooperation from Mr. Putin. So that’ll be an interesting market to watch.

How about rhodium, David? We talk even less about that market, but that’s another one that has seen some pretty attractive gains. It’s not maybe as white hot as palladium, but it’s still performing quite well. Any quick comments about rhodium?

David Smith: Well, rhodium is a real esoteric market. It’s a very small market, even compared to platinum and palladium. Especially palladium, which are not big markets. It’s my understanding that most of the pricing takes place by appointment. I do know that, for example, you can buy a 1-oz rhodium bullion bars.

I think there’s about a three or $400 deficit when you sell. So that’s a pretty big spread in both directions. But it’s used for some of the same things platinum and palladium are. To me, it’s fun to watch. But, in terms of getting deeply involved in it, not so much. I’d rather do silver and gold.

By the way, there’s so many things that are pointing towards this buildup of a very, very strong gold and silver market over the next several years. One of the things I read just a couple of days ago is that silver purchases in India, not gold, but silver have reached a four year high. That’s been almost under the radar screen because people focus on how much gold India buys, which is quite a lot. But silver is absolutely maintaining a very, very strong upward trend in purchases in India. And last year, 30% of the world’s production of silver was purchased by the third quarter by India alone. So, we’re going to wake up one of these days and we’re going to find out that there’s a whole lot more buying pressure across the board for both of these metals than we thought was the case.

Mike Gleason: I wanted to ask you about your expectations about how well the metals will work as an investment or its ability to generate returns for investors over time. The metals’ role as insurance and is a better form of money or perhaps more important reasons to own them. We’ve already discussed those, but let’s face it, most people buying gold and silver are anxious to see profits on their investment. That is what they have missed in recent years and it is frustrating.

But there’s little reason to think that the next several years will be a repeat of the past. You and I were speaking offline about the potential set up right now, in the metals markets. That we’re looking at potentially some good gains over the next few years and maybe instead of, maybe what was a little bit of a false breakout in 2016 when we had a nice rally. It could be a little bit different this time around. Give us your thoughts there.

David Smith: I really believe so. I’m deeply involved in the mining stocks as an analyst for The Morgan Report with David Morgan, I do a lot of work on my own, a lot of investment. I buy a lot of stocks that I don’t write about… they’re not on our formal allocation table…. something that I happened to get interested in. I hold a couple of stocks, for example, now that they’re mining in Japan or exploring in Japan and they’ve done well lately.

But I think what we’re facing here, and I get it when people say, “It’s been so depressing the last few years. I bought the metals and they either stayed flat or they declined.” And I understand why people have given up, some who’ve been at it for 30 years. But the thing is, usually before the biggest opportunities is when the day appears to be darkest.

I can tell you honestly, and I’ve told this to several of my friends, I’ve been involved in the metal since the mid-70s. In the 1970s, I did mostly physical and futures in the metals. The period between 1980 and about 2002 was 22 years of pretty much an unremitting, bear market in gold and silver and especially silver. It went from $50 to a little under $5.

I can tell you honestly, that the time between 2011 and say last fall, was more difficult for me emotionally, which is a period of about seven years or so, seven a half years… it was more difficult than the 22 years I spent waiting for another silver bull market. So, I understand that what’s going on. But I’m telling you, I look at these charts and nothing’s ever a guarantee, but I think the probabilities favor a market over the next three to five years, maybe longer, but certainly at least about three years, that I think will absolutely shock people when we end up seeing where things are in just a few years. There are so many things that indicate that the risk-reward, in addition to the probabilities of a very strong, sustained secular move, is right ahead of us.

Mike Gleason: Yeah, we talked about it before, about how this is not a time to lose your nerve. The reason why you bought gold and silver in the first place, that being just a ridiculous amount of debt and credit all over the economy, those reasons are still very much there today, if not even more out sized and more out of control. Golden and silver didn’t just become a bad alternative to paper money over the last few months or few years and people need to keep that in mind. You want to continue to hold it as a hedge against what may be coming. And I think we both agree that it’s not just a matter of if, but when the wheels finally do come off.

Well David, thanks so much for your time today and for your enlightening comments as always. We always enjoy catching up with you and hope we can do it before long. I hope you enjoy your weekend and we’ll talk soon. Thanks very much.

David Smith: Very good Mike. You have a good weekend.

Mike Gleason: Well that will do it for this week, thanks again to David Smith, Senior Analyst at The Morgan Report and a regular columnist for MoneyMetals.com, and the co-author, along with David Morgan of the book Second Chance: How to Make and Keep Big Money During the Coming Gold and Silver Shock Wave, which is available at MoneyMetals.com and Amazon. Pick up a copy today.

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 everyone.


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

Gold Gains Limited As USD Recovers Strongly Post-FOMC

By Orbex

Gold: USD Recovery Caps Gains

The yellow metal posted a third consecutive positive week. Gold prices took advantage of the initial USD weakness in response to the latest FOMC meeting. The Fed kept rates on hold as expected. The bank noted that growth was lower than expected over the first part of the year, despite solid labor market conditions and subdued inflation. Looking ahead, the Fed reaffirmed its commitment to keeping rates on hold saying it would be maintaining a “wait and see” approach to incoming data as well as highlighting the need for keeping an eye on global developments.

USD was quickly shunted lower as the market reacted to the decision and statement, allowing gold to trade further higher. However, a sharp USD recovery over Friday and Thursday has capped gold upsidefor now. The BOJ and ECB monetary policy is still at cycle lows. And the Bank of England confirmed that it will also be keeping rates on hold amidst ongoing Brexit uncertainty. As such, it seems that rate differentials still favor USD.

News of the EU offering the UK a conditional delay to Article 50 has also helped shore up risk appetite into the end of the week. There was some nervousness among investors regarding the Boeing investigation and Google fine. So, the market has definitely welcomed the news that the UK might remain in the EU for a further two months beyond the original March 29th deadline. This again capped gold upside here.

forex gold trading

Gold has run into some interesting levels over recent trading. After piercing the 1316.96 level, gold prices sharply reversed lower. It traded back down below 1309.12 support to test the 1303.11 level before recovering back to the former level. Still trading within the bullish channel which has framed price action since the March lows, if price can stay above 1309.12, the focus is on a further push higher. The structural zone between 1322.98 and 1326.12 is the next focus point for bulls. Bears will need to see a break of the rising channel base and structural support around 1303.11 to gain a conviction in further downside.

Silver: Gold-Silver Ratio At Historic Lows Points To Upside Risk

Silver prices have broadly tracked the moves we’ve seen in gold this week. The metal traded higher initially on a weaker USD, before retracing some of these gains on the greenback’s sudden recovery. Prices are still fighting to recover from the sharp sell-off in February. However, many investment banks are still forecasting higher prices.

Many players have long been projecting higher levels linked to expectations of increased demand from the auto sector. Nevertheless, many are now also pointing to the historic lows in the gold-silver ratio. If we see a mean-reversion in this ratio, which is at its lowest levels since the 90s, this would quickly drag silver prices higher. The most likely candidate to cause and support this shift is a further slowing of the US economyThat, as well as the further reduced Fed rate hike expectations.

xagusd

After breaking above the mid-February lows to trade highs of 15.6351, silver prices have fallen back below 15.5359. This is now holding as resistance. Price needs to get back above this level to keep bias on further upside, in line with the bullish channel which has framed price action since the March lows. Bulls will be targeting a run up to the next structural level around 15.7342 next.

By Orbex

 

Testing Shows Firm’s Formulas Extract Palladium, Gold in High Percentages

By The Gold Report

Source: Streetwise Reports   03/19/2019

The company continues to optimize the chemical and leaching conditions for its recovery process.

EnviroLeach Technologies Inc.’s (ETI:CSE; EVLLF:OTCQB) proprietary formula can extract palladium out of a multi-metal source and reduce it to an aqueous solution, it announced in a March 18, 2019 news release.

Specifically, on initial testing, the company’s product recovered 90% of contained palladium from ceramic-based catalytic converters in about two hours’ time. Electrowinning tests showed, on one sample, an 83% palladium recovery from a solution, which was achieved within 40 minutes.

The global automotive catalytic converter market report is expected to reach $183.4 billion by 2022, for a resulting CAGR between 2016 and 2022 of 7.7%, the release cited from an Allied Market Research report.

EnviroLeach will conduct further in-house testing to optimize chemistry and leach components, after which an external laboratory will evaluate them for validation.

Study also is being conducted on the use of EnviroLeach’s technology to extract other platinum group metals, such as platinum. Testing on a pilot scale in that regard could take place in Q3/19 or Q4/19.

A news release from March 11, 2019 announced results of testing by the outside firm SGS on the ability of EnviroLeach’s technology to extract gold. EnviroLeach contracted with this inspection, verification, testing and certification entity to conduct validation testing on its proprietary formulas.

SGS did the first set of leach tests on high-grade gravity concentrate tails and flotation concentrates. On tests using oxidized material resulting from autoclaving and roasting, the firm achieved more than 94% recoveries within two hours. It extracted 85% gold from the table tails and 90% from the flotation concentrate, both within 24 hours.

The second set of tests resulted in 96% recoveries on the autoclaved sample and 94% on the roasted sample, both within two hours.

“These positive, impartial test results are similar to hundreds of previous tests performed by our company and independent metallurgical labs all across North America,” EnviroLeach Executive Vice President Ish Grewal said in the release. “These test results also highlight the accelerated leach kinetics using EnviroLeach formulas on both the autoclave and roasted samples.”

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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.

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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 shares of Environleach, a company mentioned in this article.

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Rise Gold Drills 90.4 g/t Gold over 4.7 Meters

By The Gold Report

Source: Bob Moriarty for Streetwise Reports   03/19/2019

Bob Moriarty of 321 Gold provides an update on a company with a past-producing gold mine in California.

Rise Gold was the subject of a piece by me back in early 2017. Anyone interested in the company should read the piece. The purchase by the company of the Idaho-Maryland gold mine for $2 million was an extraordinary deal for Rise.

Rise just released the most interesting results. Remember, this is a former gold mine shut down in 1942 as a result of the war. At the time it was the 2nd highest-grade gold mine in the US showing a head grade of over ½ ounce gold per ton. The latest assays showed 90.4 g/t over 4.7 meters and another assay of 35.6 g/t Au over .90 meters. Historic records show the mines had reserves of 705,000 ounces of gold at a grade of about 23 g/t in 1942. The gold hasn’t gone anywhere since.

This would be just another boring story about a former high-grade gold mine in California that some promoters are pushing in a pipe dream about going into production again except for one tiny factor. In their March 1, 2019 press release Rise reported that Yamana (YRI-T) bought an additional 10 million shares bringing their total up to 28 million shares and 14 million warrants.

Yamana is not buying shares in some pipe-dream junior with grandiose ideas about the future in the hope of making a profit on trading the shares. At some point they will make an offer. Look for it to be a lot higher than today’s price.

Rise Gold was an advertiser two years ago. They are not an advertiser today. I participated in a private placement years ago and have picked up shares in the open market. I am biased. Do your own due diligence.

Rise Gold Corp.
RISE-C$0.115 (Mar 19, 2019)
RYES OTCQB 116.1 million shares
Rise Gold website.

Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Rise Gold. My company has a financial relationship with the following companies mentioned in this article: None. I determined which companies would be included in this article based on my research and understanding of the sector.
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( Companies Mentioned: RISE:CSE; RYES:OTCQB,
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