Saturday, August 31, 2013

Peter Schiff: When Investors Wake up the Gold Price Will Soar GLD, GDX, GDXJ, MUX, TNR.v



  Euro Pacific Capital is covering McEwen Mining.

Chart of the week - Gold Rebounding in All Currencies


McEwen Mining Up 11.7% On 7 Mil Shares, Trading Above 200MA $MUX, $TNR.v

"McEwen Mining is strongly Up today - more than 11% on 7 mil shares. With Gold and Silver markets down after recent breakout we can anticipate some news from the company.  Rob McEwen was taking about upcoming Los Azules Copper PEA in September and M&A ideas to combine with another Gold Mining company to reach his goal of being included in S&P 500."

Citi Asks "How High Can Gold Ultimately Go?" GDL, GDX, GDXJ, MUX, TNR.v

"Zero Hedge reports that Citi joins our A Team calling for the Bull Gold Market and much higher prices."

Gold Breakout: Jim Sinclair - The three entities that called the $1900 in gold are back long. GLD, SLV, GDX, MUX, TNR.v

"Now we have the full A Team calling for the New Bull Leg in Gold. Summer doll drums time out is officially over. Gold was over 1400 intraday and Silver is over 24 now. Junior miners are exploding to the upside with McEwen Mining pushing 3 dollar mark. Survived Juniors will show this Fall what is called the ten baggers again."
Enhanced by Zemanta

Powered By Lithium: Top 10 Electric Cars 2013 (6 months of sales) LIT, ILC.v, TNR.v, RM.v



  Electric cars are here and now you have different models to chose from. Tesla is leading the electric mobility revolution with Model S. It is not surprising considering the quality of proposition from Elon Musk even with the highest price range. Quite interestingly is Ford's quiet rising in the ranks of electric cars makers: it has gained a significant presence across all its electric models.


Powered by Lithium: Elon Musk: Electric Cars Majority Sold in 10 Years TSLA

"Elon Musk is very bold with his predictions and people should listen now. Every single new Tesla Model S is proving his point. Tesla Model S is driving the electric revolution now and Tesla Gen 3 Model for mass market will be the game changer for electric cars."


Global demand for lithium expected to rise significantly LIT, ILC.v, TNR.v, RM.v

"Euro Pacific Canada has produced the very interesting report Lithium Industry - A Strategic Energy Metal, we can expect now the push of Lithium Investment story into the market place on the back of Tesla Model S success in the market place. International Lithium is mentioned as well with its strategic partner from China Ganfeng Lithium in the report."



Enhanced by Zemanta

Friday, August 30, 2013

Citi Asks "How High Can Gold Ultimately Go?" GDL, GDX, GDXJ, MUX, TNR.v

  

  Zero Hedge reports that Citi joins our A Team calling for the Bull Gold Market and much higher prices.

Gold Breakout: Jim Sinclair - The three entities that called the $1900 in gold are back long. GLD, SLV, GDX, MUX, TNR.v

"Now we have the full A Team calling for the New Bull Leg in Gold. Summer doll drums time out is officially over. Gold was over 1400 intraday and Silver is over 24 now. Junior miners are exploding to the upside with McEwen Mining pushing 3 dollar mark. Survived Juniors will show this Fall what is called the ten baggers again."

McEwen Mining Up 11.7% On 7 Mil Shares, Trading Above 200MA $MUX, $TNR.v

"McEwen Mining is strongly Up today - more than 11% on 7 mil shares. With Gold and Silver markets down after recent breakout we can anticipate some news from the company.  Rob McEwen was taking about upcoming Los Azules Copper PEA in September and M&A ideas to combine with another Gold Mining company to reach his goal of being included in S&P 500."




ZeroHedge:


Citi Asks "How High Can Gold Ultimately Go?"




Via Citi FX Technicals,
Gold looks to have found a base...
Following the multi-year surge in Gold the recent fall took us 14% below the 55 month moving average. That is exactly what happened in 1976 during Gold’s correction after a multi-year move higher.
Once that moving average was regained on a monthly close basis the uptrend re-established itself and Gold rallied for the next 3 years. (included in that period was the “supply shock” driven move higher in crude)
The rally in the Equity market after the 1973-1974 “crash” peaked 4 weeks after that corrective low was placed in Gold.
SO FAR the trend peak in the stock market (DJIA and S&P) has taken place 5 weeks after the corrective low was posted in Gold.
After that peak in late 1976 the Equity market entered into an 18 month long 27% correction.
Gold weekly chart- Prior support now good resistance
The pivotal breakdown level on Gold was at $1,522-1,527 and should now be pivotal resistance in this rally.
Gold broke below this level during the week of 08 April 2013. It is unlikely that it is a coincidence that that precipitous fall took place in the same week that the S&P 500 regained its 2007 highs.
So, do not be surprised that IF , as we expect Gold heads higher to re-test this $1,522-1,527 area in the weeks/months ahead that the S&P is re-testing the break out point of 1,576 again...
........
We still retain a view that we can see a “low to high” percentage move in this bull market similar to what we saw in the bull market of 1970-1980.
If we extract the final leg of that move in December 1979-Jan 1980 which was totally driven by the USSR invasion of Afghanistan almost doubling the price of Gold over 5 weeks then we end up with a target of around $3,500 over the next 3 years or so.
The charts below are compelling in that respect, but before we look at them we will indulge in some pontification.
We are at a point of change of leadership at the Fed with two primary candidates being mentioned. (Janet Yellen and Larry Summers). We are NOTgoing to opine on who it should be but rather make observations about why we think it is going to be one rather than the other.

When President Obama spoke on the Charlie Rose show about Chairman Bernanke’s tenure it was obvious that it was coming to an end. The question to ask was why? If we (He) was happy with the path being followed, why not just ask Ben to stay on. (We also firmly believed that if asked Ben would have stayed). It is therefore not a stretch to believe that the President was less than convinced about the “efficacy” of QE. Reasons for this could well have been (supposition on our part):
  • Sub-par economic growth of 1.7-2.0% and very low nominal growth given the low level of inflation
  • A falling unemployment rate... yes (7.6% at the time)... but not of the magnitude and quality that we associate with an economic recovery(Lowest participation rate since 1979 flattering the rate;underemployment at the time (U6) at 14.3%; the majority of jobs being created are part time jobs with the 55-69 year old age group the primary demographic beneficiary)
  • Housing recovering but very gradually compared to previous cycles and a view in a lot of circles that a significant chunk of demand was private equity buying distressed assets
  • An Equity market rallying about 140%+ (The rich get richer, the gap gets wider)
  • Banks et all benefiting from never ending cheap money and being encouraged to misallocate capital in financial assets that are being made almost risk free by the Bernanke, ever expanding, “QE to infinity” put
  • Provides a benefit to the marginal borrower while “crucifying” the whole savings base
  • Continued QE created a back stop to allow congress to push harder on budget cut and debt limit negotiations (Play hardball)
Let us say that some or all of that was true. Would the President really want to appoint somebody who to a very large extent would be likely to follow the same “prescription” (Yellen)? Why? If you wanted to continue that policy then would you not do that with the “guy” who engineered it and took us through the crisis (Bernanke)? Or do you feel that your financial “Churchill”…the man to fight the war is no longer the direction you want to go. We firmly believe that “change is afoot” and that change goes by the name of Larry Summers.

Why is that important?

Nothing suggests that Summers is a “hawk”. However, there are suggestions that he questions the “mix” of policy. It looks like he would be much more likely to try and “draw a line” under this unorthodox monetary policy experiment by bringing QE to a conclusion. This will not be a “shock and awe” change but rather a gradual wind down of purchases and eventually the Fed balance sheet through the maturity schedule.(We believe this could happen irrespective of the economic backdrop)

What would this mean?

If, as we believe, we have some potentially significant headwinds coming in markets and the economy then this is going to “throw the ball” right back into the “arms of Congress”. (Is Larry Summers the 21st century’s Paul Volcker?) If the independent Fed is no longer prepared to expand monetary policy “ad infinitum” to support the economy and the economy is slowing what will Congress have no choice but to do???? Stimulate again through fiscal policy.This will mean deficits once again widening and the debt limit rising. It will be a shift back not to tight but to “less loose” monetary policy and looser fiscal policy (This will also likely benefit the USD)
That is why the chart below remains one of our favourites.
Gold and the US Debt Limit
It is no coincidence in our mind that these two have expanded together over the last 10-12 years
As we continue to spend more than we earn and shift that liability to the next generation Gold has shown itself to be a very effective hedge against that policy. The recent “squeeze in Gold” has sent it significant below this “stairway to hell” chart (Debt limit) which has continued higher. As we said earlier, we do not believe that this fall in Gold will be sustainable and expect new highs in the trend eventually. As we also said above , we have retained a long term target of about $3500 for some time on this Gold price based on a comparison of this period and that seen in the 1970’s
As we headed towards the last Presidential election there was a considered view in the markets that by the end of President Obama’s 2nd term the debt limit could be as high as $22 trillion. Then we got the sequester, a more rosy economic outlook, tapering talk and all this has been forgotten. For how long?
The market dynamics above combined with the change of leadership at the Fed may well be “resurrecting that thought”. If so our 2nd favourite Gold chart comes into play.
Gold and the US debt limit (Again): So what would a debt limit of $22 trillion over the next 2-3 years suggest for the Gold price?
How about $3,500
We firmly believe that the Gold correction has “run its course” and that much higher levels will be seen in the years ahead."

Enhanced by Zemanta

Thursday, August 29, 2013

McEwen Mining Up 11.7% On 7 Mil Shares, Trading Above 200MA $MUX, $TNR.v

  

McEwen Mining is Breaking Up after the brutal correction.


  McEwen Mining is strongly Up today - more than 11% on 7 mil shares. With Gold and Silver markets down after recent breakout we can anticipate some news from the company.  Rob McEwen was taking about upcoming Los Azules Copper PEA in September and M&A ideas to combine with another Gold Mining company to reach his goal of being included in S&P 500.
 
"TNR Gold provides even more risky and leveraged special situation play and now depends on Rob McEwen's Midas Touch - company holds 1 million shares of McEwen Mining and have back-in right into the part of Los Azules project. Insiders are accumulating the company shares, holding the majority stake in the company and provided long term debt which has financed Shotgun Gold project 43-101 resource estimate in Alaska this year."


Rob McEwen Shares his Views on Market Conditions and Future of McEwen Gold Mining Projects in Mexico, Argentina and Nevada MUX, TNR.v



Update 27.08.2013 P&F McEwen Mining Chart has printed $5.00 target price after yesterday Double Top breakout.

  

  "The whole picture has been set up for the major move in Gold and Silver now. McEwen Mining will enjoy its high leverage to the Gold, Silver and Copper price. Rob McEwen is on the road telling his story and delivering results.


  Shorts are busy now covering their 27 million shares Short Position in McEwen Mining as of August 15th, 2013 and it will provide the fuel for the upside breakout."





Don Coxe: "The Trend Has Shifted" For Commodities GDX, GDXJ, MUX, TNR.v

"His observations about the changing trend in the commodities are extremely important - he is widely followed by the institutional investment community and they can start to reallocate their assets accordingly. The help to the commodities  markets came from the places least expected: China reviving growth and Europe coming out of recession.
  This move will be highly beneficial for our darlings: McEwen Mining and TNR Gold with world class Los Azules copper deposit unlocking its value."

Eric Sprott: Gold and Silver Stocks Are In The Bull Market Again GDX, GDXJ, MUX, TNR.v

"Eric Sprott has spell it out for the rest of us: Gold and Silver Stocks Are In The Bull Market Again and Gold to follow.  Eric Sprott calls this market situation as the most spectacular in his investment career. His Gold Bull margins calculations and projections for the share prices for Gold and Silver Stocks make our morning bright today."


Rick Rule On Gold & Resources: "The Stage Is Set For An Absolutely Dramatic Recovery" TNR.v, MUX

"To make this dramatic and pleasant for Survivors picture come true we need just one thing - Pros with the money coming into the market, without them it will always be only the wishful thinking. We can see them coming now."



Please Note our New Legal Disclaimer on the Blog, including, but Not limited to:



There are NO Qualified Persons among the authors of this blog as it is defined by NI 43-101, we were NOT able to verify and check any provided information in the articles, news releases or on the links embedded on this blog; you must NOT rely in any sense on any of this information in order to make any resource or value calculation, or attribute any particular value or Price Target to any discussed securities.



We Do Not own any content in the third parties' articles, news releases, videos or on the links embedded on this blog; any opinions - including, but not limited to the resource estimations, valuations, target prices and particular recommendations on any securities expressed there - are subject to the disclosure provided by those third parties and are NOT verified, approved or endorsed by the authors of this blog in any way.


Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advice on this blog and there is no solicitation to buy or sell any particular company.



Enhanced by Zemanta

Grant Williams: If Gold Shorts Miscalculate "There Is Going To Be Hell To Pay" MUX, TNR.v

  

  Grant Williams was spot on all recent developments in the Gold market and coming Short Squeeze. His view from Singapore on the markets in Asia and Gold are extremely important. Shorts in Gold, Gold and Silver Stocks are heading for a serious trouble these days.

Rob McEwen Shares his Views on Market Conditions and Future of McEwen Gold Mining Projects in Mexico, Argentina and Nevada MUX, TNR.v

"The whole picture has been set up for the major move in Gold and Silver now. McEwen Mining will enjoy its high leverage to the Gold, Silver and Copper price. Rob McEwen is on the road telling his story and delivering results.
Shorts are busy now covering their 27 million shares Short Position in McEwen Mining as of August 15th, 2013 and it will provide the fuel for the upside breakout."

Grant Williams: West Is Now Running Out Of Physical Gold GLD, GDX, MUX, TNR.v

"Grant Williams was guiding us through this brutal attack on Gold market with his brilliant presentations and his observations on the real things happening now in Asia with Gold are very important."

King World News:

If Gold Shorts Miscalculate "There Is Going To Be Hell To Pay"


Today one of the most highly respected fund managers in Singapore told King World News that the gold bears are in serious trouble at this point in the gold market.  Grant Williams, who is portfolio manager of the Vulpes Precious Metals Fund, also warned that if the shorts miscalculate, “there is going to be hell to pay.”  Below is what Williams had to say this powerful interview.

Williams:  “We have seen some real weakness (in stock markets) in Asia.  We have a lot of the smaller markets in Asia really getting pounded.  So far this year, the Bombay indices are down almost 30% in currency-adjusted terms, with the fall in the rupee.

We also have the Indonesian stock market down 24%, and Thailand down 14%.  In dollar terms we are seeing some real plunges.  Thailand has fallen 20% in the last month.  This is all capital flight out of Asia.  And there are some drastic measures being put in place by governments to try to stem this, including the ban of imports of gold coins in India....

“Asian governments are very, very concerned about this.  This is how the Asian currency crisis started in 1998.  Unless they can get a handle on this fairly quickly, these 2% falls will become 5% plunges, and then 8% nosedives.  Pretty soon they will have a real crisis on their hands.

As we approach the September Fed meeting, and this taper that everybody has been talking about -- there are more and more reasons for them not to do it now.  But, of course, having talked tough and already said they were going to ‘do it’ -- if they do back down, and the weakness in these Asian markets certainly could be a valid reason to back off, along with some of the weaker data we have seen in housing and durable goods in the United States -- I think what’s left of the Fed’s credibility is probably shredded at that stage.

So my concern for a while now has been, what happens if the Fed doesn’t taper and the markets fall anyway?  I think that’s a very real possibility, and if it happens it’s going to be fairly explosive to watch.”

Eric King:  “Tom Fitzpatrick, Ron Rosen, Eric Sprott, and others on KWN, have been discussing the idea that global stock markets may now experience a major decline, but they believe gold and silver would skyrocket in the face of plunging markets.  As the Asian markets were tumbling overnight, I noticed that gold and silver were showing signs of strength.  Fitzpatrick was also pointing out that in the 1976 to 1980 time frame, stocks really struggled and yet gold and silver skyrocketed in the midst of that market weakness.  Are these guys right that we could see plunging stock markets, but a massive move higher in the metals like we saw in the late 1970s?”

Williams:  “Yes, that’s not a crazy idea by any stretch of the imagination, particularly with the added problems in the Middle-East right now.  If you look at the S&P, that market is very near all-time highs, but if you look here in Asia, since May, which is when the taper talk started, a lot of these markets are already down 25% in dollar-adjusted terms, and even 30% in some cases.

So equities have already had big falls, but we just haven’t seen it yet in the headline markets such as the FTSE, the Dow, the Nasdaq or the S&P.  But markets here in Asia are certainly sounding a warning about where major markets are headed.  All of this seems to point to one thing and one thing only, and that’s more printed money. 

This is why I don’t think the case for gold has ever been stronger than it is today.  Even when gold was up at $1,900, I don’t think the case for gold was as strong as it is now.  And the fact that gold is now $500 lower just strengthens that case even more.

With what has gone on in the last few months in gold, the fact that the physical backing for these futures contracts is in such short supply, this adds a whole new dimension to the bullish case for gold.  If we do see people really starting to sell paper gold on the COMEX exchange once again, readers should remember that this has done nothing to decrease demand for physical gold. 

And with physical gold being in such tight supply down at these price levels, I think any quick selloffs will be met with massive physical buying.  This will mean the recoveries in the gold price will be very sharp indeed.”

Eric King:  “John Ing was saying in his KWN interview that right now we are seeing this squeeze in gold, but he also expects the squeeze to accelerate over time.  This is related to the tightness and the shortage in the physical market.  From now on he expects the shorts to be squeezed at future option expirations.  What are your thoughts on what Ing is saying?”

Williams:  “I agree 100%.  I think that’s one of these enormous changes that’s happened over the last few months.  There is such a tight supply of physical gold that any kind of ‘gaming of the system’ you can play around options expiry is very limited now.  This is a big change in the gold market.

The reasons for this is there are plenty of people who understand the tightness in supply, and these people will buy into any weakness and stand for delivery.  This will force the shorts into sending them physical gold.  So, suddenly this little game that’s been going on around Non-Farm Payrolls and option expiries, those games are very, very difficult to play now.  You’ve got to be very nimble now if you are shorting.  If you miscalculate there is going to be hell to pay.”

Williams also added:  “There’s been a great deal of noise made in the mainstream media about the gold bear market.  But gold is now 20% off the lows, and yet you are not going to hear an awful lot of talk in the mainstream media about a new bull market in gold. 

Now that gold is through $1,400, it is important for readers to understand that we have breached that key level with a ‘bullet.’  So I think the roadmap from $1,400 to $1,500 could be very quick indeed for gold.  This situation is just going to feed on itself.  We will have setbacks along the way but as gold goes higher, the reasons it is going higher won’t matter simply because all of this physical gold has been taken out of the market.

If there are buyers of gold for any reason at all, it’s just going to exacerbate this physical tightness we are already seeing in the gold market.  This will simply serve to push the price much higher, and much faster.”

Enhanced by Zemanta