Metals and Mining Shares

Posted by on September 14, 2017 - 7:20 am

It’s hard to believe at times that for about 30 years, I spent much of my business life in the world of metals and mining. For several years, I would travel (about once a month) to Toronto to appear on Canada’s equal to CNBC. I spoke at dozens of conferences around the world and did literally hundreds of radio and TV interviews (my last conference was NY in 2013 pictured above in the Kitco booth).

While Mark Twain was on to something when he suggested a gold mine is a hole in the ground with a liar standing over it, I do, on rare occasions, miss it and a handful of good people in an overall not so good industry.

My September 7th blog posting said this about gold:

“I spoke about gold breaking out above the neckline of the technical “W” formation of this year. That it did. With Trump talking about opening the debt floodgates, much of the world still in easy monetary conditions, and a whole host of geopolitical issues worldwide, gold can make a run at $1,400. But it won’t be easy, nor do I think sustainable from this point straight up as the market is fairly overbought. I would sooner see the next few weeks be a period of consolidation. I see a correction now with the risk to the downside appears to be the previous neckline at $1300.”

CFTC data this past Monday showed money managers held their largest net-long gold position this year. This was too tempting for the professional gold shorts who have raped and pillaged on the Crimex (Comex) for decades. And to those who deny manipulation and called those of us “nuts” for claiming so – read here

The $1375 – $1,400 area has been major resistance for about four years. The correction the last few days comes as no surprise and is actually healthy for the rounding bottom 4-year chart formation. When (not, “if” in my book), we bust through $1,400, we will have built a foundation to not only support it but give it the base to eventually make a new nominal high at $2,000+ in the next few years. And if you think I’m nuts, memorializes one of the most ardent bears overall ever since I was in the business (and an allied to the gold cartel who have manipulated gold for years IMHO). Even he now recognizes gold’s new secular bull market. Watch here.

In regards to copper (a base metal I felt was way ahead of itself), here’s what I said last week on it:

“I like to continue seeing copper above $3 but can’t. Much of this up move has been on the back of a belief of a much stronger Chinese economy. I think such expectations will be proven wrong and see copper closer to $2.75 versus $3.50. I would welcome consolidation to the $2.75 – $3 area.”

Last night, the China bulls were brought back to earth with much weaker economic numbers and copper is down near $2.90 after almost hitting $3.20 just four trading sessions ago. Here too, consolidation is welcomed if your views on it go past your nose.

Finally, you can’t look at these metals without observing the U.S. Dollar. It was deeply oversold, but it’s counter trend rally so far has been about as exciting as the NY Giants offense this past Sunday evening. Longer term:

In regards to my two metals-related stocks that I own:

This latest research report on NSU appears to be a worthy read.

The TV appearance of Teranga Gold’s CEO on Canadian TV and the content in a recently-published article, is consistent with my personal assessment.

You can learn more about the company today just after noon time here

Posted in: Matters of Finance, News
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