Archive for Opinions

The Silver Roadmap

Peter Krauth, the editor of Silver Stock Investor, looks at silver’s bull markets since the 1970s and discusses what he thinks lies ahead.

Source: Peter Krauth for Streetwise Reports   01/19/2021

There’s no consensus on whether silver is in its second or third secular bull market since the 1970s. That’s because people define bull markets in different ways.

But as I’ll show you, it’s not that important.

What we do know is that silver enjoyed a huge bull market from about 1971 until 1980, and then another major bull run from about 2001 until 2011.

Most secular bull markets run through a period, usually about half-ways on the time scale, where the commodity’s price falls by about 50%, sometimes more. This is an observation by the legendary commodities investor Jim Rogers.

In my own experience that’s in fact often the case, although sometimes the price correction is less severe if it’s drawn out over a longer time. Corrections are typically short and deep, or long and shallow. There is no rule, and it’s never the same.

Let’s dig into these previous bull markets to give us an idea of how silver has behaved. This will provide somewhat of a roadmap for what may lie ahead. Spoiler alert: looking back on how silver performed in the past points to much bigger gains ahead.

Past Is Prologue: Silver Bull Markets

In the 1970s silver rose from a low near $1.40 in 1971 to peak at $49 in 1980. That produced a whopping 36 times return, or 3,600%. Every $1,000 became $36,000.

Then, silver eventually bottomed in 2001 at $4.20, before rising all the way back to $49 in 2011. Investors who had positioned themselves early enjoyed a 1,160% return.

Now let’s dissect both of these bull markets in more detail, because understanding how they behave can help you better prepare. As you’ll see, silver is volatile. But if you want to benefit from its big gains, you have to be willing to hold on through what is sometimes a wild ride.

As I said, silver bottomed near $1.31 in October 1971. That’s when its 1970s secular bull market began.

It then peaked at $5.78 in February 1974. That was a 340% gain in less than 3½ years. But then silver started to lose ground.

That correction took it from $5.78 to $3.97 in January 1976. It was a relatively shallow, but drawn-out correction. By October 1978 silver had surpassed $5.78, and eventually went onto a blow off mania high near $49 in January 1980, gaining 1,130% from its 1976 low. (Note that the $49 high in 1980 doesn’t appear in this chart because it shows monthly prices).

Silver’s gain from the 1971 low of $1.31 to its $49, 1980 high was an astounding 3,640%.

Two decades later, it would do something similar…again.

In November 2001, silver bottomed at $4.14. No one was paying attention, and no one wanted it. Silver was the perfect contrarian trade. It then launched into a new bull market, rising to $19.89 by February 2008, producing a 380% gain.

Silver then corrected from $19.89 to $9.73 in October 2008, putting in a relatively short but sharp 50% correction. It then went on to climb all the way to $49, reaching that level in April 2011, for a 403% gain from its 2008 low.

But during its decade-long run that started in 2001 up to its peak in 2011, silver gained 1,080%. That’s a tenfold gain.

Prepare for Silver Corrections

Silver is volatile. There’s no denying it. But that’s also part of its appeal.

Between 2002 and 2006, silver dropped 10% or more four separate times.

Then, between 2006 and 2011, more short but sometimes deep corrections came, with silver dropping 13% or more three times.

Overall, from 2001 until its peak in 2011, silver gave back 20% or more four times. But the real takeaway is that anyone who held on from the beginning enjoyed an astounding 1,080% gain.

And one final point to consider; silver stocks offer tremendous leverage to silver itself.

This chart compares the performance of SLV, a silver ETF that mimics the price of silver, with SIL, a silver ETF made up of mostly large silver miners. The chart runs from mid-January to early August 2016.

The black line is SLV and the blue line is SIL. During this six-month period, SIL was up 240%, dramatically outperforming SLV which gained a very respectable 48%. Silver stocks were up by five times as much as silver itself in just six months.

That’s why I want to own silver stocks, as well as silver itself. The leverage can be tremendous.

Where Silver Stands Today

Given the extreme and unprecedented levels of stimulus, money-printing and debt in the last few decades, my view is that we are still in the midst of the silver bull market that started in 2001.

I think silver’s bull could run for a total of about 25 years starting from 2001. With that in mind, we could have another 5-6 years in front of us, maybe more.

From silver’s $49 peak in 2011 to its $12 bottom this past March, silver lost 75%.

The fact that silver bottomed at $12, which was almost triple the $4.14 low in 2001, suggests to me that we are still in the same powerful multi-decade bull market.

My target price over the next few years is for silver to reach at least $300. How I reach that number is a topic for a future article. But before you think I’m crazy, I can assure you that it’s an estimate relating to the gold price, and based on how gold and silver have performed in previous bull markets.

If silver reaches my target of $300, that will be a 1,150% return from its current price near $25.

While that’s a tremendous return, you need to expect volatility and future corrections. But you’ll only benefit if you’re willing to stay the course. There will be opportunities to lock in profits along the way, especially in silver stocks, but you need to have a core position you’re willing to hold through corrections for maximum gains.

I’ve written a detailed Silver Report (click here) explaining why silver has tremendous upside, and is heading much higher in the years ahead. In it I cover both the demand and supply side dynamics for silver, showing why the metal is fundamentally still very cheap, but how the outsized opportunity is in explosive silver stocks.

Bull markets do their best to bring along the fewest participants. Just don’t let the silver bull shake you off.

–Peter Krauth

Peter Krauth is a former portfolio adviser and a 20-year veteran of the resource market, with special expertise in precious metals, mining and energy stocks. He is editor of two newsletters to help investors profit from metal market opportunities: Silver Stock Investor, www.silverstockinvestor.com and Gold Resource Investor, www.goldresourceinvestor.com. In those letters Peter writes about what he is buying and selling; he takes no pay from companies for coverage. Peter has contributed numerous articles to Kitco.com, BNN Bloomberg, the Financial Post, Seeking Alpha, Streetwise Reports, Investing.com, TalkMarkets and Barchart, and he holds a Master of Business Administration from McGill University.

 

Disclosure:
1) Peter Krauth: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Global X Silver Miners ETF (SIL). 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. 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. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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Bitcoin price drops to be used as buying opportunity: deVere CEO

By George Prior

– The Bitcoin price drop will be used as a key buying opportunity by savvy investors, predicts the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The observation from Nigel Green, the chief executive and founder of deVere Group, which has $12bn under advisement, comes as the price of the cryptocurrency plummeted 11% on Thursday.

Earlier this month it valued at $42,000. On Friday at 12 noon (CET) one Bitcoin was valued at $31,400.

Mr Green says: “Bitcoin bashers and crypto cynics have been revelling in this week’s price drop.

“However, for many savvy investors, falling prices will be used as a key buying opportunity.  They know the long-term trajectory of digital currencies – like stock markets – is upwards.

“They will be, sensibly, treating the volatility in cryptocurrency markets as they would in traditional markets.  By topping up their portfolios when prices are lower and/or taking advantage of lower entry points, they can often considerably strengthen their position. The crypto market is no different.”

He continues: “I believe we can expect further pull-back in the price in Bitcoin in the near-term, which too will be used proactively by traders.

“But make no mistake, in the long-term, prices are going in one direction: up.

“Why? Because of the digitalisation of economies and every aspect of our lives, including our financial lives, that shows that there will be an increasing demand for digital, global, borderless money – characteristics that are inherent to the likes of Bitcoin.

“Also, due to the consistently surging interest from institutional investors, multinational companies, household name investors and government agencies.

“This was evidenced, once again, last year with the decision by PayPal, one of the biggest payment companies in the world, to allow customers to buy, sell and hold Bitcoin.”

Last week, the deVere boss championed greater regulatory scrutiny of cryptocurrencies such as Bitcoin as they play an increasingly normalised role for investors.

He noted: “There is sustained and growing interest in the likes of Bitcoin from both retail and institutional investors. They are now increasingly handling the assets as they would any other asset in the portfolio –for example, sometimes profit-taking, sometimes reinvesting, using the volatility to their advantage, and using these alternatives to help with all-important diversification.

“These mainstream, normalised investor strategies demonstrate that cryptocurrencies must come into the regulatory tent and be held to the same standards as the rest of the financial system.”

Mr Green concludes: “Volatility in the crypto market, as in all financial markets, is not necessarily a bad thing for investors and can be capitalised for their long-term financial gain. Harnessed effectively, it can be a very powerful strategy.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

Recent triggers in these sectors suggest US Stock Markets may enter a rally phase

By TheTechnicalTraders 

– Recently, our Best Asset Now (BAN) Hotlist generated a new trigger on the SPY chart.  Typically, this type of trigger suggests the SPY is starting a new, potentially explosive, upside price rally.  But what really interests us is the potential that the strongest sectoral ETFs may continue to see a much stronger upside price rally as a result of this new trigger.

Recent BAN SPY Trend Trigger

The strength of the BAN Hotlist is not the general market triggers it gives, such as the SPY, Dow Jones, or NASDAQ, but instead the ability to align these major market triggers with the strongest performing sectoral ETFs. This allows those using the Hotlist and BAN strategy to take advantage of the best-performing assets in the markets in any market trend.  The new SPY trigger, seen on the chart below, suggests the US stock markets may be starting a new upside price trend, which will cause capital to rotate into different sectors.  Our simple BAN Hotlist and strategy helps us identify these sectoral opportunities.

QQQ Generates A Similar Type Of Breakout Trigger

Traders love when ideas drawn from one chart is corroborated by other charts. As we can see from the chart below, the QQQ appears to have confirmed this BAN trigger with a similar type of upside price breakout. This upside move in the QQQ aligns with some of our recent research that suggested the Technology sector had stalled after having been one of the fastest-growing sectors for several months now.  We may start to see certain sub-sectors of technology really start to advance faster than the SPY/QQQ – which creates explosive opportunities for traders/investors.

Recently, we published a research article suggesting a lower US Dollar would prompt major sector rotations in the US and global markets. Within that article, we highlighted the fact that the Materials, Industrials, Technology, and Discretionary sectors had been the hottest sectors of the past 180 days, but the Energy, Financials, Materials, and Industrials had shown the best strength over the past 90 days.  Technology had fallen/stalled dramatically over the past 90+ days.

Overall, we believe the best performing sectors are likely to be sub-sectors of the SPY and QQQ. Potentially, certain components of the Technology, Health Care, Discretionary & Utility sectors.  Beyond that type of general analysis, we rely on the BAN Trader system to rank the “Best Assets Now” and tell us when new trade entry triggers are generated. It is very likely that this new SPY BAN trigger will prompt an extended upside price rally across a number of assets over the next few days/weeks.

Are you ready for these big market rotations expected in 2021?  Do you want to learn how BAN can help you find and trade the “Best Assets Now”? You too can also trade Best Assets Now with no proprietary indicator, scanners, or algorithms just by watching my FREE webinar. Not only will it show you a strategy you can implement tomorrow, but you will also receive over $100 worth of free goodies designed to make you an even better trader… no strings attached. Go ahead and watch the webinar now – click here to start! If you want to improve your own trading strategy and win-rate, then you need to subscribe to BAN Trader Pro to get my daily BAN Hotlist, my pre-market video walkthrough of the charts every morning, and my BAN strategy trade alerts.

Happy Trading!

Chris Vermeulen
Chief Market Strategist

TheTechnicalTraders.com

Stock Market: Why You Should Prepare for a Jump in Volatility

This volatility indicator “has made a series of higher lows” — and it’s not a good sign

By Elliott Wave International

Stock market volatility is like a roller-coaster ride — extreme ups and downs.

However, unlike thrill-seeking roller-coaster riders who often rise from their seats after the ride with a smile, investors often exit with a frown.

That’s because extreme volatility after a stock rally often ends with prices much lower.

Having said that, many investors — even professionals — do not anticipate a jump in volatility right now.

Indeed, the San Diego Union-Tribune asked the senior principal of a financial advisory firm on Jan. 15:

Will 2021 be a volatile year for the stock market?

He replied:

NO: If 2020 had not been a volatile stock year — what with the pandemic, recession, elections, and riots — then it is reasonable to expect that 2021 should be relatively stable.

Yet, a key stock market indicator is revealing.

Here are insights from the Jan. 15 U.S. Short Term Update, a thrice weekly Elliott Wave International publication which provides near-term forecasts for major U.S. financial markets:

The chart shows the DJIA in the top graph and the CBOE Volatility Index (VIX) in the bottom graph. We’ve inverted the scale of the VIX so it aligns with stock prices. This index measures investors’ expectations for market volatility for the coming 30 days. Most of the time, the VIX trends and reverses with stocks. When the behavior changes, it’s time to watch both stocks and the VIX closely. The most recent intraday low in the VIX occurred at 19.51 on November 27. Since then, the DJIA has made a series of higher highs while the VIX has made a series of higher lows. This divergence is denoted with a red trendline on the chart.

The Jan. 15 U.S. Short Term Update goes on to describe a “clue” in spotting when volatility might start to spike.

Moreover, subscribers are provided with the Elliott wave labeling of the DJIA, which provides even more precision in ascertaining when to expect a change of character in the market.

The Wall Street classic book, Elliott Wave Principle: Key to Market Behavior, offers more insight into the utility of the Elliott wave model for forecasting financial markets:

Although it is the best forecasting tool in existence, the Wave Principle is not primarily a forecasting tool; it is a detailed description of how markets behave. Nevertheless, that description does impart an immense amount of knowledge about the market’s position within the behavioral continuum and therefore about its probable ensuing path.

Would you like to learn more about the Wave Principle?

If your answer is “yes,” then here’s some good news: Elliott Wave International has made the online version of Elliott Wave Principle: Key to Market Behavior available for free to Club EWI members.

Club EWI is the world’s largest Elliott wave educational community and free to join.

Follow the link and you’re on your way to having the Wall Street classic on your computer screen in moments: Elliott Wave Principle: Key to Market Behavior — free and instant access.

 

US Dollar Decline creates New Sector Opportunities to Trade

By TheTechnicalTraders 

– The weakness in the US Dollar, which initiated after the Covid-19 peak in March 2020, has entered an extended downward price trend which is nearing a key support level near 88.33.  One key factor related to this trend is a weakness in the US Dollar, which means other foreign currencies become comparatively stronger.  This transitional currency valuation phase creates an environment where localized foreign investments may become much more opportunistic than the US stock market/sectors if this US Dollar decline continues.  Simply put, foreign investors will suddenly start to realize they are losing alpha in US Dollar based investments compared to stronger, foreign currency-based investments over time and move their capital to profit from the US Dollar’s decline.

US Dollar Index Monthly Chart

The 88.33 level on the US DollarWeekly chart below is, in our opinion, critical because a breakdown below this level will likely initiate a downside trend that targets the 82.50 level, a 9% decline for the US Dollar.  Recent support in the US Dollar has helped to continue to US stock market rally over the past few weeks.  Everything hinges on if the 88.33 support level holds or if it is broken.  We believe if this support level is broken in the near future, the US stock markets may experience a broad market rotation in trend which ould very likely be in excess of 8%.

What happens over the next 2 to 4+ months with the new US President, policies, and Federal stimulus plans could prompt a big US/global market/sector rotation as investor’s expectations shift to address these new opportunities.  If the US Dollar holds above 88.33 while these new stimulus packages and policies are enacted, then the US stock market indexes may continue to push dramatically higher over time.  If the US Dollar breaks lower, below the 88.33 level, then there is a strong potential that global investors will identify strength in foreign market assets/stock in localized currencies and pull money away from US assets.

S&P500 Index Monthly Chart

The Monthly S&P 500 Index chart below highlights the very clear RSI Technical Divergence pattern that has set up across the peaks originating from the January 2018 highs.  Each subsequent high price peak has setup a lower RSI peak – resulting in a “Divergence” technical pattern.  Even the current breakout rally after the November 2010 elections has established a higher price level and a lower RSI level than the January 2020 RSI peak.

Be sure to sign up for my FREE webinar that will teach you how to find and trade my BEST ASSET NOW strategy on your own!

Our researchers believe this longer-term technical divergence patter may be indicative of a “capital shift” process that could take place in 2021 if the US Dollar continues to slide below the 88.00 level.  Weakness in the US Dollar will shift expectations away from US Stock Market strength and towards foreign market strength – just like what happened between 2010 and 2014 when Emerging Markets rallied while the US Dollar flat-lined near 80.00

If this type of capital shift happens over the next 3 to 6+ months, US market sectors are very likely to shift focus as foreign capital moves away from US equities and begins to chase Alpha in localized capital market assets and foreign market ETFs.  This can already be seen in major US sectors by looking at the 90-day performance compared to the 180-day performance data.

For example, over the past 90 days, Energy, Financials, Materials, and Industrials have been the strongest S&P sectors.  Yet, over the past 180 days, Materials, Industrials, Technology, and Discretionary sectors have outperformed.  This suggests a shift is already taking place where Discretionary and Technology sectors have stalled in their advance while Energy and Financials have started to rally.  Just recently, Energy, Health Care, Utilities, Financials, and Real Estate have all started to increase performance while Staples, Technology, and Comm. Services have shown increased downside performance metrics.

It is becoming very obvious that capital is being shifted away from Discretionary, Technology, Comm. Services, Industrials, and Materials and being deployed more heavily into Energy, Health Care, Utilities, Financials, and Real Estate based on this data.

90 Day S&P Sector Performance

source: https://stockcharts.com/freecharts/perf.php?[SECT]

 

180 Day S&P Sector Performance

source: https://stockcharts.com/freecharts/perf.php?[SECT]

Our research suggests a number of big price trends and rotations are likely to take place in 2021.  Our “What to expect in 2021” research article highlighted potential weakness in February/March 2021 and broader market weakness in August/September 2021.  We feel the transitional capital market shift, as a result of the declining US Dollar, will accelerate this capital/sector shift over the next 6+ months and put foreign market assets, Emerging markets, and currency trends firmly ahead of US stock market performance this year.  If the 88.00 level is broken on the US Dollar chart, then this currency/foreign market focus will become even more critical.

2021 is a year for traders to be prepared for broad market sector rotation, big trends in ETFs and currencies, and increased volatility in the US markets – somewhat similar to 2013 through 2016. The downward trend in the US Dollar may setup some very big moves in foreign ETFs, US ETF sectors, and many US Stocks.  It also appears that Energy, Financials, Materials, and Utilities are currently outperforming Technology, Comm. Services, Industrials, and others.  If you are not watching these trends shift, you will miss some really big trading opportunities.

I teach you how to find the hottest sectors and trading opportunities in my free BAN strategy webinar. For those who want to cut the research out entirely, the BAN Trader Pro newsletter service will help you navigate the big trends, high volatility, stimulus, and new US government policies. The time is now to learn and trade the Best Assets Now Hotlist using our proven sector rotation strategy. Our BAN Trader Pro strategy is proving to be an incredible advancement that allows us to dominate and generate Alpha. We urge you to take advantage of the BAN Trader Pro newsletter service to prepare for the big trends that we expect to continue throughout all of 2021 and into 2022 and beyond.

Stay safe!

Chris Vermeulen
Chief Market Strategist

TheTechnicalTraders.com

Divide and Conquer, American-Style, the Dollar and Precious Metals

Sector expert Michael Ballanger explores how fluctuations in the value of the U.S. dollar and the gold and silver markets have played out over the last week.

Source: Michael Ballanger for Streetwise Reports   01/18/2021

It was several months ago, in the midst of heated and widely accepted civil disobedience, looting and civic trespassing by members of Antifa and the Black Lives Matter movement, that I opined that the “demonstrations” (as opposed to “armed insurrections”) in cities like Portland and Seattle were not symptomatic of left-vs.-right, white-vs.-non-white, or liberal-vs.-conservative divides cleaving American society with butcher-like finality. I said then, and I say again now, that these blatant examples of unlawful social unrest were (and are) the direct result of the fiscal and monetary policies of the banco-politico cartel and their precision-like and very purposeful implementations. The result is a bifurcated economic divide between those that “have” and those that “have not.”

As the brilliant humourist George Carlin once said “It’s one big club and guess what? You ain’t in it.”

In just a few days, the most powerful nation on earth installs a new commander-in-chief, amidst a battle-zone Washington backdrop with the National Guard and the military displaying a presence never before seen at a presidential inauguration. In fact, one of those lame media sources was complaining that it was a “sad state” when celebrants are vastly outnumbered by armed security, lest that dastardly throng of “deplorables” attempt another assault.

As a former resident of the U.S., I see a nation that now has three two-level chess games being played out, with one contest between the polarized masses (Antifa, BLM anti-Trump, pro-Trump), and the second—and much more important—contest being between those fortunate members of “the club” (the “haves”) and those destined for eternal exclusion from “the club” (the “have-nots”). Make no mistake, the far more insidious contest is the latter, because integral to the maintenance of the status quo in America is the surgical division of the “have-nots” while creating a “divide-and-conquer” narrative, pitting one side versus the other.

The mainstream media (particularly CNN) cannot go ten minutes without pounding the drum for a second Trump impeachment and conviction, an event that would prevent the disgraced leader from ever again seeking Federal office and which would eliminate his pension and his security staff. The sad reality is that the media cannot see the forest for the trees, and by way of the Trump obsession and hatred, they play right into the hands and pocketbooks of the banco-politico cartel, mesmerized by symptoms yet ignorant of causes. When they allowed the corporate elites to gut America’s middle class by exporting the manufacturing sector to China and Mexico, they were inviting an equal and opposite reaction. All in the name of “globalization,” and now it has returned home to bite them squarely in the backside.

It was one year ago today that I posted a picture of the CNN Fear-Greed index sporting a near-historic 97 reading for “Extreme Greed.” The number is somewhat subdued today at 60 (“Greed” without the “Extreme”), and I find that astonishing given the deflationary headwinds that now prevail. In fact, I find myself in the same quandary today that I was in last January, where monetary policy was decidedly bullish for precious metals but where the technical action for the shares was tentative at best. I opted to stay way from the big miner exchange-traded funds (GDX and GDXJ), ultimately re-entering on March 16 (GDX sub-$20), in what was my best call for 2020.

But here in January 2021, there are two conditions combining to create a formidable headwind—the long overdue rebound in the US Dollar (USD) Index and the overvaluation in the broad stock markets.

Now, there are those precious metals gurus out there that have been calling for $5,000 gold and $400 silver since 2002, with dozens upon dozens of junior mining recommendations now in the graveyard of broken dreams and failed expectations. I do not aspire to join that group, which is why I keep the number of companies I cover down to less than half a dozen, because close attention to the few yields far superior performance than peripheral attention to the many.

My bullish case for the commodities sector as a group, and precious metals as the centerpiece, lies in my use of history as a roadmap for asset and sector allocation. The main argument for inflation being proffered by the analytical community for 2021 and beyond is central bank policy initiatives coupled with fiscal stimulus. Massive increases in the supply of currency units the world, over chasing finite supplies of goods and services, can only result in a reaction in the cost or price of those goods and services. That is Econ 101, right from the textbook.

However, from a demand-supply standpoint (assuming finite money supply growth), there are two different types of inflation. Demand-pull inflation (like 2002–2011) saw voracious Chinese demand for commodities like iron ore and copper pull prices higher. Cost-push inflation (like the 1970s) is where restricted supply creates shortages (oil), resulting in higher input costs that, in turn, are reflected in inflated end-user or consumer prices.

While the pandemic has seemingly caused a deflationary decline in demand, the offsetting fiscal and monetary stimulus handed out by the central banks and their government puppets has largely wound up in elevated stock and real estate prices, the latter being the ultimate collateral for the member banks. However, once the stimulus effects dissipate, demand must naturally soften, so demand-pull inflation is unlikely.

On the other hand, the globe is now running a very real risk of a disruption in the supply chain for all commodities, including iron ore and particularly copper, where LME inventories are plummeting to fie-year lows.

The result is that, assuming the vaccine is effective (and that is an enormous “if”), the normalization of global demand is going to be challenged by the supply problem. Even if it takes longer for the global economy to recover, the supply disruption is going to create dislocations around the globe, resulting in ultimately higher prices everywhere. That brings us to the short-term outlook for the precious metals and the commodities sector.

The short-term pricing structure is being dominated by the USD Index, where the recent COT report shows a lopsided long position held by managed money versus an equally lopsided position held by the commercial traders. On Friday, the US dollar had a sharp rebound and the result was a $24 drop in gold, a $0.97 drop in silver, a $0.063 drop in copper, and a $1.42/barrel drop in crude oil. I see the potential for a move to 93-94 for the USD Index, which would invite even more algo-driven computer bombings in the commodities pits for at least the next two weeks. While the inauguration week might see the return of the US dollar rout, rebounds usually take longer.

As for the gold and silver arena, I have spoken about the Commercial Trader short position being in the historically hostile 300,000-plus rage for what appears to be an eternity, and I commented last week after that Friday’s US$78 crash that the COT would undoubtedly see Commercial short-covering “of substance,” along with a purge in the massive long position held by Large Speculators (350,000 contracts). Well, one look at this week’s COT and now you know. There is just too much money on the table.

Given the rout we just went through this past Friday, in everything, expect the Commercials to have covered even more, which is bullish looking out a few months. But it can take weeks of Spec long liquidation and bullion bank short covering before a tradable bottom appears. Is this what I expected once 2020 tax-loss selling ended? The answer is “yes,” as to the move in the HUI from under 300 to over 325, but “no” as to the mid-January crash to 284.

The gold chart looks less than friendly, with major support now at US$1,775/ounce and that big oppressive downtrend line sitting at US$1,950. If the USD rally persists next week, we could see a test of support in a hurry.

Silver was in better technical shape than gold, but now that the 100 daily moving average (dma), at US$25.14, has been breached, there is a little support at $24, but much larger support at $22.50. Again, it appears to be all USD-related.

We remain in a period of strong seasonality for precious metals and the miners, and as there is no argument about the strength of the fundamental case for gold producers given the extraordinary vault in free cash flow, that argument is largely falling on deaf ears. To the extent that investors could care less about the extraordinarily weak fundamentals for companies like Tesla Inc. (TSLA:NASDAQ), where free cash flow is nonexistent, one has to ask at what point do prices start to reflect anything fundamental?

Like the rest of you, I see the tweets out there, where portfolio managers and newsletter writers keep asking why the miners are acting so poorly, given the profits they are generating, and the only answer I can muster up is this: We better pray that the action in the miners is not a barometer of future metals prices. We better pray that the historical “lead indicator” status of gold and silver mining share prices is a “fake-out” brought about by temporary pandemic-related aberrations in price behaviors. For now, I am going to lay blame at the foot of the U.S. dollar “crowded trade” altar, and when the current bounce exhausts itself, I will reassess. If the bear market in the USD resumes and our metals fail to rally, I will be forced to reduce exposure across the board.

In the interim, rabbit’s feet, four-leaf clovers, salt-over-the-shoulder, and Midnight Masses are in order, stacking Lady Luck and the other relevant deities on our side. And add Jack Daniels as a back-up.

Follow Michael Ballanger on Twitter @MiningJunkie.

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.

Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: None. My company has a financial relationship with the following companies referred to in this article: None. 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. Please click here for more information.
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 Tesla, a company mentioned in this article.

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.

Ride the Biden Bounce – but judiciously, investors warned

By George Prior

– Investors should ride the “Biden bounce” in the markets this week – but judiciously, warns the CEO of one of the world’s largest independent financial advisory and fintech organizations.

The warning from Nigel Green, chief executive and founder of deVere Group, comes as Joe Biden becomes the 46th president of the United States this week with the best stock market performance between the election and the inauguration for any president going back at least five decades.

Mr Green says: “History teaches us that we can expect the markets to react favourably to the inauguration of a new president – and this time around it is likely to be no different.

“Indeed, Biden moving into the White House could drive markets into a bull run more sharply than previous inaugurations because it is hoped the incoming administration will bring stability and possibly a halt to a period of uncertainty following the fiercely contested election.

“Investors will also be buoyed by the $1.9 trillion fiscal stimulus announced by Biden, the Federal Reserve’s willingness to support markets, the new president’s multilateral trade agenda and his plans for stepping up the vaccine rollout.  All of this will encourage confidence and optimism.”

He continues: “Investors should ride the Biden bounce in the markets this week – but do so judiciously for three key reasons.

“First, a market rally is going to be difficult to sustain indefinitely due to the enormous economic scarring caused by the pandemic.

“The major long-term headwind is mass unemployment, which is hitting demand, growth and investment on Main Street and which, ultimately, will have to impact Wall Street.

“Second, the new administration will have new policies that will have an effect on different sectors of the economy. There will be a readjustment period that needs to be taken into account.

“And third, not all shares are created equal and stock markets are heavily unbalanced at the moment. A handful of sectors are bringing up entire indexes.

“An experienced fund manager will help investors seek those most likely to generate and build their wealth over the long-term.”

The deVere CEO concludes: “Investing over the long-term on stock markets remains, as ever, one of the best and proven ways to accumulate wealth.

“But it’s essential that investors remember not to be complacent when confidence grips the markets.

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

 

The Dark Forces behind American Insurrectionists

By Dan Steinbock

– On January 6, 2021, a mob of white supremacists stormed the U.S. Capitol, presumably to overturn Trump’s defeat. Their final goal may have involved assassinations of elected officials, however.

After the “failed insurrection,” dozens of the mob were found to be watch-listed in the FBI Terrorist Screening Database. Most are suspected white supremacists. But the ultimate goals of some may have been even darker.

In a court filing, federal prosecutors have targeted one of the mob’s most colorful figures, Jacob Anthony Chansley; the shirtless “QAnon Shaman” with a headdress of coyote skin and buffalo horns. “The intent of the Capitol rioters,” the prosecutors believe, “was to capture and assassinate elected officials in the US government.”

Insurrectionists’ bedfellows

At the “Save America” rally on the morning of January 6, Donald Trump, Jr. urged the mob to “take back our country” and march over to the Capitol, while former mayor Rudy Giuliani called for “trial by combat.” Seconded by several Republican members of Congress, they called action to undermine the “stolen presidency.”

After reaching the Capitol and overwhelming police barricades, the protesters assaulted police officers and journalists, erected a hangman’s noose and waved a Confederate flag, while proudly wearing white supremacist paraphernalia, including an Auschwitz concentration camp shirt.

Trying to take lawmakers hostage, they looted House Speaker Nancy Pelosi’s offices, occupied the empty Senate chamber and planted improvised explosive devices (IEDs) on the grounds and the offices of the Democrats and Republicans. As news images evidence, some police officers were taking selfies with the far-right protesters, opening up gates and guiding the rioters in the Capitol.

After nearly half a dozen deaths, hundreds of injuries and significant property damage, the FBI has opened more than 160 investigations into the events, while the House of Representatives has voted to impeach Trump for “incitement of insurrection.”

Democrats seek to preempt Trump’s re-election opportunities, while Republicans hope to distance Trump from their party. But it may be too little too late; a number of Republicans have already embraced white supremacists’ war rhetoric and some are adherents of the quasi-idiotic QAnon conspiracy ploy (that US government is run by a cabal of Satan-worshipping pedophiles).

Infiltration of US law enforcement

Since the creation of the Ku Klux Klan in 1865, white supremacists have maintained ties with law enforcement agencies. In the past two decades, those links have grown deeper, however.

According to recent report by former FBI special agent Michael German, police associations with militias and white supremacists have been uncovered in many states. When President Trump arrived in office in early 2017, there were 100 active white nationalist and as many active neo-Nazi groups in the US. According to US Department of Homeland Security, white supremacist violent extremists “have been exceptionally lethal in their abhorrent, targeted attacks in recent years.”

Eight virulent white supremacist groups espouse white ethno-nationalism and National Socialism. Neo-Nazi groups, such as the National Socialist Movement, Hammerskin Nation, and Atomwaffen Division, no longer bother to disguise their supremacy doctrines.

Emboldened by the 2017 white power rally in Charlottesville, Virginia, which Trump refused to condemn, Capitol insurrectionists included members of the ultranationalist Proud Boys mingling with notorious hardcore nativists and white nationalists;

During the 2014-15 unrest in Ferguson, Missouri, the white supremacist Oath Keepers patrolled streets and rooftops with semi-automatic rifles. In Washington DC, the group’s founder Stewart Rhodes, a former soldier and Yale law school graduate, stood outside the Capitol building. The veteran militia group has pledged to ignite a civil war on Trump’s behalf.

Billionaire financiers, ultra-conservative politicians

In the past two decades, US campaign finance has been transformed into a money game dominated by big corporations and the hyper-wealthy 1% to 10% of the population. Ultra-rich financiers favor ultra-conservative Republicans.

It is this tiny group of funders that’s also behind the politicians favored by the insurrectionists and led by the Club of Growth; an anti-tax group sponsored by billionaires, such as the shipping-supply giant Richard Uihlein and options-trading king Jeffrey Yass. Both have been eager to overturn the US elections results.

Through its Super-PAC, the Club donors include the far-right billionaire Peter Thiel whose Palantir Technologies made fortunes in the Trump era; hedge-fund manager Paul Singer who has used debt to default entire nations from Congo DR to Argentina; and most prominently, hedge funder Robert Mercer, Trump’s financier.

Some $20 million was steered to these politicians in the 2018 and 2020 campaigns, led by Ted Cruz and Josh Hawley, as well as Marco Rubio. Along with the far-right gun-rights activist Lauren Boebert, Cruz and Hawley have pushed the unfounded conspiracy theory that the 2020 election was “stolen from Trump” inciting turmoil that led to the storming of the Capitol.

They are not alone. The Club has supported the campaigns of more than 40 conservative Republicans who recently voted to undermine US election results.

Shrinking middle class, rising insurrectionists

In America, the rise of the insurrectionists reflects extensive social collateral damage following four decades of neoliberal economic policies. Since the ’80s, the nation’s 1% hyper-wealthy elite has prospered more than any other social group, whereas the middle class has shrunk dramatically.  Meanwhile, institutional racism prevails, as evidenced by deep gaps between whites and blacks in income and wealth.

As progressive taxation has been undermined, while corporate taxation has been largely offshored to tax havens, US welfare state is bleeding. The redistributive mechanisms that ensure not just economic growth but social equity have shrunk.

Hence, too, the rising morbidity and mortality of middle-aged white (non-Hispanic) Americans. As the Nobel-awarded Angus Deaton has warned, the trend is unique among rich-income economies. And it fueled Trump’s 2016 election triumph.

The tumultuous but deadly insurrection is only a beginning. January 20 inauguration could witness counter-inaugurations. So could Biden’s State of the Union address in February. Or more could follow when and where complacency returns.

After four decades of economic polarization, deep political divisions, misguided forever wars, coupled by four years of appeasement of far-right supremacists by the White House, a new, harder and more unpredictable era has begun in America.

Fueled by longstanding economic, political, social and military forces, these trends are structural. They won’t go away anytime soon.

About the Author:

Dr Dan Steinbock is the founder of Difference Group and has served as research director at the India, China and America Institute (USA) and visiting fellow at the Shanghai Institutes for International Studies (China) and the EU Center (Singapore). For more, see https://www.differencegroup.net

Bitcoin needs greater regulatory scrutiny – and here’s why: deVere CEO

By George Prior

– Greater regulatory scrutiny of cryptocurrencies such as Bitcoin must become a priority as they continue to play an increasingly normalised role for investors, says the CEO of one of the world’s largest independent financial advisory and fintech organizations.

deVere Group’s chief executive and founder Nigel Green – a long time advocate of cryptocurrencies – is speaking out after both the UK’s Financial Conduct Authority (FCA) and the president of the European Central Bank (ECB) called for more robust regulations for cryptocurrencies this week.

The calls follow the price of Bitcoin jumping more than 300% last year and gained a further 40% earlier this month to reach an all-time high.

Mr Green says: “The calls by financial watchdogs and central banks for greater regulatory scrutiny must be championed as digital currencies, including Bitcoin, are set to play an ever greater role in the international financial system.

“What’s needed is a strong regulatory framework to be established and approved at an international level.  The forthcoming UK-hosted G20 summit might prove to be the ideal opportunity.

“Such regulation will help protect investors, tackle cryptocurrency criminality, and reduce the potential possibility of disrupting global financial stability, as well as offering a potential long-term economic boost to those countries which introduce it.”

He continues: “There is sustained and growing interest in the likes of Bitcoin from both retail and institutional investors. They are now increasingly handling the assets as they would any other asset in the portfolio –for example, sometimes profit-taking, sometimes reinvesting, using the volatility to their advantage, and using these alternatives to help with all-important diversification.

“These mainstream, normalised investor strategies demonstrate that cryptocurrencies must come into the regulatory tent and be held the same standards as the rest of the financial system.”

Previously, the deVere boss has said that one of the best ways to address the regulatory issues is via the exchanges.

“Nearly all foreign exchange transactions go through banks or currency houses and this is what needs to happen with cryptocurrencies. When flows run through regulated exchanges, it will be much easier to tackle potential wrongdoing, such as money laundering, and make sure tax is paid,” he has noted.

“For this to happen, banks will need to open accounts for exchanges, which is why they must be regulated.”

Mr Green concludes: “Cryptocurrencies in some form or another are here to stay – and the market is only set to grow.

“There can be no doubt that regulation of the crypto ecosystem is required and, I believe, it should be a priority.

“The work being done by many international financial watchdogs, lawmakers and central banks, such as the FCA and the ECB, in this area is something I fully support.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

Highest Grade Nevada Gold Junior that No One’s Heard of?

Source: Peter Epstein for Streetwise Reports   01/12/2021

Peter Epstein of Epstein Research discusses the investment case for Walker River Resources, which is exploring for gold on its Nevada property.

Walker River Lapon Map

Walker River Resources Corp. (WRR:TSX.V; WRRZF:OTCQB) is a high-grade gold junior with a compelling and sizable project in Nevada. There are >60 companies with all or substantially all of their precious metal properties in the state, but I believe Walker River stands out.

To say that this company is unknown would be an understatement. This story has gone largely untold because Walker River had been cash-starved for years. Now, management is cashed up, and fully funded for at least 60, but up to 90–100 holes—finishing around July. This is BIG NEWS, because all prior holes drilled in the Shear zone of Lapon Canyon (40 in total, reported over five annual programs) hit gold mineralization.

CEO/founder Michel David had been aware of this promising claims group since 1994, but they were scattered across private owners. It was not until nearly 20 years later that he was able to consolidate a meaningful number of claims.

On very tight budgets in 2015–2019, five successful drill programs were completed, with the 2019 season hitting the best results to date (10 holes have been drilled so far in the 2020 campaign, starting at the end of November). Initial results are expected within 30 days. This current campaign will be larger than all five prior drill programs (57 RC holes/48 at Lapon Canyon) combined!

More holes in current drill program than drilled from 2015-2019!

These campaigns were not large, but each delivered high-to-very-high-grade gold intervals. In looking at these very impressive intercepts, one wonders why a lot more drilling hasn’t been done. Readers should note that Walker River also has a second project, Garfield Flats (3,120 acres), that could see limited, first-ever drilling later this year.

Simply put, the gold market wasn’t nearly as inviting for most of the last ten years as it is today. In the five-year period from 2015–2019, the gold price averaged $1,267/oz, (lows in each year ranged from $1,050 to $1,270/oz). Compare that to today’s price of ~$1,850/oz (down ~11% from its all-time high of ~$2,070/oz. last summer).

On top of a relatively weak gold price for years up until 2020, Walker’s management team was hindered by a lack of historical exploration—virtually no maps, no drilling, no data. Claims were held by a slew of families, mined by old-timers more than a century ago. As one might imagine, only the easiest to find, safest (logistically) and highest-grade ore was exploited.

Gold recoveries were very low and it was back-breaking work. Yet at great cost and considerable effort, miners built a 2.5 mile road up the mountain. Why would they spend so much time and money on a road? Because the prize at the top of the mountain was well worth it!

Old-timers probably needed a troy ounce per (short) ton of gold (34.28 grams/metric tonne) to make it work. Except for Walker River’s recent drill campaigns, surface sampling and other activities, no modern exploration or development work has been done. Old-timers drilled for production only, not for exploration or development.

Huge potential on underexplored property hosting past-producing mines

Therefore, the potential of finding new zones of high-grade mineralization is believed to be very good. And, areas of past production likely have excellent grade material by today’s standards. Needless to say, access to the claims has greatly improved since mules hauled miners and equipment up the mountain.

The project lies within the Walker Lane Trend, structural terrain that hosted the historical Bullfrog Mine where Barrick Gold produced ~2.3 million ounces gold, plus ~3.0 million ounces silver from 1989 through 1999.

Other companies with a substantial presence in the Walker Lane Trend include Kinross, AngloGold, Hecla Mining, Coeur Mining, Corvus Gold, West Vault Mining, Augusta Gold and Eclipse Gold (recently merged with Northern Vertex).

The world famous Walker Lane is a shear zone, a 100-km-wide structural corridor extending in a southeast direction from Reno, Nevada. The Lapon gold project includes Lapon Canyon, Pikes Peak (4 km to the north), and Rattlesnake (3 km to the west, and >600 meters below current drilling activities at Lapon Canyon). Combined, the three properties total 3,960 acres, with Lapon Canyon alone accounting for 2,940 acres.

Nevada’s better known Cortez and Carlin trends are dominated by Barrick and Newmont Corp. The Walker Lane Trend has been nearly as prolific, but less exploited. Majors like Kinross and AngoGold that already have footprints in Walker Lane are likely looking to expand, as operations in Nevada are increasingly preferable to places like West Africa and Russia (where Kinross derived a combined 44% of 2019 production from).

Mid-tier and major players care about the Walker Lane Trend

Mid-tier and major precious metal companies that do not yet have a Nevada footprint would greatly benefit from diversifying their global operations with assets like those the safe, high-grade deposits owned by Walker River Resources.

In the junior company peers chart above, notice that well regarded gold/silver juniors in Canada and the U.S. trade at an average enterprise value (EV) to gold ounce equivalent (Au Eq.) of C$88 EV/Au Eq.. Notice also that Walker River could have a grade that’s 2–3x higher than the peers’ average of 1.4 g/t.

Make no mistake, Walker River is pre-resource estimate, but if management can deliver 1.0–1.5 million ounces in a maiden mineral resource estimate (or in the first update to the maiden resource), then it’s trading at a cheap valuation.

To recap, fractured ownership, a severe lack of exploration, no near-site infrastructure, a remote location—there were plenty of easier claim blocks to pursue. But, Mr. David persevered. By 2010, he had accumulated a fairly large contiguous block, now totaling 198 claims (3,960 acres).

On November 30th, Walker River commenced a substantial, fully funded, RC drill campaign at its Lapon gold project. At least 60, and as many as 90, holes are possible across three distinct targets from December 2020 into summer of 2021. About 10 holes have been completed to date. The ongoing program consists of systematic drilling for geological modeling purposes and for new discoveries.

The Rattlesnake and Pikers Peak claims cover more than 8 km of possible extensions of mineralization to the west, north and south of Lapon Canyon. They contain numerous historical mining and milling areas consisting of adits, shafts and underground workings. Very little exploration work was done on these claims prior to Walker River taking over.

Lapon Canyon hosts historical zones of high-to-very-high-grade gold, with >2,000 ft. of underground workings and three adits. Underground work returned numerous assays in the ounce per ton (“opt”) range, including one sample at the end of the A adit of 20.6 opt / [~705 grams/tonne].

Investors love the words “high-grade” and “past-producing”

Gold mineralization at Lapon Canyon is contained in a 300 meter wide zone, with >4 km of strike length. Gold is present throughout the property as an envelope of lower-grade mineralization (~0.5 to 2.0 g/t Au) surrounding distinct high-grade structures that have been drilled over a strike length of 750 meters and a vertical extent of 400 meters.

Examples of shallow high-grade drill hole intercepts [all <100 meters depth] across several holes include; 48 g/t over 13.7m; 39 g/t over 12.0m; 31 g/t over 13.7m; 96 g/t over 13.7m (incl. 547 g/t over 1.5m, 115.4 g/t over 1.5m and 199 g/t over 1.5m) and 95 g/t over 6.1m (including 305 g/t Au over 1.5m) and 346 g/t Au over 1.5m at a depth of 3m.

In the Pikes Peak section, Walker completed access for future exploration. Mapping and sampling are under way with initial results returning values of up to 9 g/t gold, plus up to 2.22% copper from outcrops. Significant historical milling and mining workings are present. At least 10 holes are planned there.

The Rattlesnake zone hosts historical adits and extensive historical gold placer mining was done within the altered sheared zone encountered at Lapon Canyon. At least 10 holes are planned there.

Conclusion

At a time when >100 Canadian and U.S.-listed gold juniors are up 500% (or more) from 52-week lows, Walker River Resources (TSX-V: WRR) / (OTCQB: WRRZF) trading at $0.10, is up just 67% from its $0.06 low.

The last time the company announced meaningful drill results, in January 2020, the stock briefly hit $0.19. However, this time drill results will be arriving all the way into the fourth quarter [10 holes completed so far, first results expected within 30 days].

When shares hit that $0.19 level, the gold price was about US$1,490/oz. At today’s US$1,850/oz., gold is up 24%, yet the share price is down 47%. In 1Q 2019, the share price hit $0.265 on the back of the best results to date.

At that time, gold was around US$1,340/oz. Clearly, the lack of consistent news flow and excitement has caused investors to lose interest. However, 2021 should be entirely different with drill results extending through most of the year, and no capital raises anytime soon (unless in response to success-based blockbuster results).

Now’s the time for readers to dig deeper into the Walker River story. If the next batch of drill results are strong, the share price should move higher. And, since the valuation has underperformed, the share price could rise more than some are expecting.

Please remember, every single hole drilled in the Shear zone of Lapon Canyon (40 in total, reported over five annual programs) reported gold mineralization. Thirteen, one-third, of those 40 holes returned high-to-very-high gold values. {see intercepts at top of page}. Walker River’s market cap is under $20 million; it might not remain there much longer.

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.

 

Disclosures / disclaimers: The content of the above article is for information only. Readers fully understand & agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about Walker River Resources, 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, professional 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 Walker River Resources are highly speculative, not suitable for all investors. Readers understand & agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed & agreed upon by readers that they will consult with their own licensed or registered financial advisors before making investment decisions.

At the time this article was posted, Walker River Resources was an advertiser on [ER] & Peter Epstein owned shares in the Company.

Readers understand & agree that they must conduct their own due diligence above & 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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2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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) 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 decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.