3 Big Reasons Chart Expert Believes You Should Own This Gold Stock

Source: Clive Maund for Streetwise Reports   10/15/2018

Technical analyst Clive Maund charts a young gold explorer that he expects to soar.

American Pacific Mining Corp. (USGD:CSE; USGDF:OTC) looks set to soar on the back of a rising gold price, after negative sector sentiment has hammered it down to a silly price.

It’s always nice to pick up a stock that experts are raving about when, by waiting a few months, you can buy it at a little over a quarter of the price it was at earlier when they started talking about it, and such is the case with this one.

You can read about the fundamental story in Why Five Industry Experts Have This Gold Explorer on Their Radar Screens. Technically, the outlook for the stock could scarcely look better, as we will now proceed to see.

Our 8-month chart for the U.S. traded stock shows it from when it started trading back in April. After moving sideways for a few weeks from inception it went into a stubborn and rather severe downtrend that was aggravated by the worsening and terminally negative sentiment towards the sector that persisted until very recently, and only really started to improve last week. Notice, however, how upside volume has started to kick in over the past month and especially in recent days, that has driven both its volume indicators shown steeply higher. This is a very bullish development that usually precedes a change of trend, and there is certainly plenty of scope for this stock to recover after its severe decline of the past five months, and given that it is a prime takeover candidate as made plain in the article linked above, there is potential for the appreciation of the price of this stock to be very rapid indeed, as when a big buyer shows up.

All this means that there are three big reasons to buy this stock. One is that it is cheap, having lost almost three-quarters of its value from inception, two is that it has a highly prospective property in one of the richest gold mining areas in the world, three is that the sector is about to take off higher after a prolonged period of severe depression, and it is a classic takeover candidate. Wait a minute, that’s four big reasons.
American Pacific Mining is accordingly rated an immediate strong buy here. It trades in reasonable volumes on the OTC market and there are a relatively modest 32.5 million shares in issue.

American Pacific Mining website.

American Pacific Mining Corp, USGDF on OTC, USGD.CSX, closed at $0.08, C$0.105 on 12th October 18.

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

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

Charts provided by the author.

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

( Companies Mentioned: USGD:CSE; USGDF:OTC,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/10/15/3-big-reasons-chart-expert-believes-you-should-own-this-gold-stock.html

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Three Resource Companies: Drilling, Waiting and a Rebirth

Source: Adrian Day for Streetwise Reports   10/15/2018

Money manager Adrian Day looks at three resource companies in his portfolio, one the latest addition with lots of activity; the second, a waiting game; and the third, a re-emergence.

Evrim Resources Corp. (EVM, CN, 1.49) received this past week its eagerly awaited permit to drill the Cuale project, and has already got crews on the property ready to commence the drilling. Evrim is planning a minimum of 3,000 meters comprising 10-15 holes.

Initial drilling will focus on the La Gloria deposit which was the site of the spectacular trench results in the spring, to test the depth of the high-grade mineralization. Drilling will also test four step-out areas.

It could be big!

High-sulphidation systems such as Cuale can grow rapidly. If drilling confirms the high-grade results of the trenches, if the mineralization continues to depth, and if any of the step-outs suggest another high-grade deposit (the last two adding volume to grade) then Cuale could attract interest very quickly. Many senior miners are watching closely. Given the excellent infrastructure and strong political jurisdiction, the 100%-owned project (subject to a 1.5% royalty on precious metals and 1% on base metals) would be worth a multiple of current value if the drilling is successful. We should have results before year end.

Before the permit was received, Evrim has released additional trench results that extended the La Gloria zone both to the northwest and east with consistent mineralization. Soil sampling indicated a larger footprint. All these results were very positive; the “truth machine” (aka known as the drill) now takes over!

Lots of activity on other fronts

Separately, Evrim has been busy on other fronts. Initial drilling has begun at an under-explored project, Cerro Cascaron, in Chihuahua, Mexico, which hosts several gold and silver mines. Junior Harvest Gold is earning into the project by paying for the program.

The company has also reached an agreement with First Majestic on its Ermitaño and Cumobabi projects whereby the options have now been exercised with First Majestic owning 100% of both projects, while Evrim owns net smelter royalties, 2% and 1.5% respectively. First Majestic paid Evrim US$1.5 million as part of the settlement. Drilling at Ermitaño has proven an inferred 40.8 million silver-equivalent ounce resource very close to the mill on First Majestic’s Santa Elena mine, where ore is running out. First Majestic said Ermitaño “has the potential to become a near-term source of production.”

Evrim remains a buy particularly if you do not own it or on any dips. Remember, exploration is by its nature speculative; if the drill program were a complete dud—highly unlikely—the stock would fall back rapidly to its pre-Cuale price, losing half its value overnight. However, the C$125 million market cap is backed by C$14 million cash, the royalty on Ermitaño (with a back-of-the envelope valuation of around $30 million), plus other joint-ventures and wholly owned properties giving Cuale a valuation of C$60 million at most. Success would value it much higher.

Waiting until the fat lady sings

Nevsun Resources Ltd. (NSU, NY, 4.41) and prospective acquirer Zijin Mining have mailed circulars to shareholders in connection with the latter’s tender offer for Nevsun at C$6 per share. Closing has been set for December 31. Under certain conditions, the closing period can be significantly shortened. Absent that, we have requested that the company extend the closing date into 2019 so U.S. shareholders can postpone their tax bill.

If you need the funds for some other purpose, by all means sell now (though I’d wait for a bounce back to the mid-C$4.40s). But, though the possibility of another bidder is remote—and becomes more remote with each passing day—the shares are below the tender price (C$5.73 vs C$6), with minimal risk of the transaction not closing. So there is upside in holding, particularly if the closing date can be extended into next year.

The phoenix arises

Reservoir Capital Corp. (REO, Toronto, 0.03 x 0.04) has resumed trading following an eight-month halt following a restructuring. At the beginning of the year, Reservoir withdrew from its Serbia hydropower projects and entered into an agreement with a company owning part of Nigeria’s leading hydro company. The net result is that Reservoir now owns a 1.3% economic interest in the company owning two operating plants on the Niger River. Reservoir’s CEO said the company’s focus was on producing hydropower investments in frontier regions and that this transaction represented “an important first step” in this strategy. Hold for now.

Top buys following recent market turmoil: Gladstone Investment Corp. (GAIN, Nasdaq, 10.56, 8.8% yield); Ares Capital Corp. (ARCC, Nasdaq, 16.37. 9.5% yield); Loews Corp. (L:NYSE); Franco-Nevada Corp. (FNV, NY, 66.01); Royal Gold Inc. (RGLD, Nasdaq, 77.55); and Lara Exploration Ltd. (LRA, To., 0.57).

Adrian Day, London-born and a graduate of the London School of Economics, heads the money management firm Adrian Day Asset Management, where he manages discretionary accounts in both global and resource areas. Day is also sub-adviser to the EuroPacific Gold Fund (EPGFX). His latest book is “Investing in Resources: How to Profit from the Outsized Potential and Avoid the Risks.”

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Disclosure:
1) Adrian Day: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Evrim, Nevsun, Lara Exploration, Franco-Nevada, Royal Gold, Gladstone Investment, Ares Capital. 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. Funds controlled by Adrian Day Asset Management hold shares of the following companies mentioned in this article: Evrim, Nevsun, Reservoir Capital, Lara Exploration, Franco-Nevada, Royal Gold, Gladstone Investment, Ares Capital, Loews. 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.
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 and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports (including members of their household) own securities of Evrim, Nevsun, Reservoir Capital, Lara Exploration, Franco-Nevada and Royal Gold, companies mentioned in this article.

( Companies Mentioned: EVM:TSX.V,
NSU:TSX; NSU:NYSE.MKT,
REO:TSX.V,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/10/15/three-resource-companies-drilling-waiting-and-a-rebirth.html

Silver’s Time Is Coming

Source: Clive Maund for Streetwise Reports   10/14/2018

Technical analyst Clive Maund charts silver and discusses the factors that he believes will lead silver upward.

Unlike gold and precious metals stocks, silver did not break out strongly on Thursday – although it rose, it did not break out at all, nor was volume exceptional, as we can see on its latest 6-month chart below. However, this is not a cause for concern, because in the early stages of sector bull markets gold leads, so we can expect silver to “follow suit” shortly. This is worth knowing, because it means that it is still possible to pick up a lot of silver stocks (and ETFs) at knock down silly prices before it really starts to move.

Silver’s latest COT chart, like gold’s, is most encouraging too, with the dumb and wrong Large Specs emboldened to try shorting it again – good luck with that.

Click on chart to pop-up a larger, clearer version.

Meanwhile the silver Hedger’s chart is showing record bullish extremes.

Click on chart to pop-up a larger, clearer version.

Chart courtesy of sentimentrader.com

On silver’s latest 10-year chart we can see that the pattern may have morphed from what we earlier – and erroneously – thought was a downsloping Head-and-Shoulders bottom into a potential Double Bottom. It should turn up, especially given what gold and PM stocks did late last week. While this chart viewed in isolation doesn’t look too inspiring, you will feel a lot better about it after you take into consideration the powerfully bullish COTs and Hedgers charts that we looked at above.

The conclusion is that it is time to take positions in silver, silver futures, ETFs and stocks before everyone else gets the same idea. Speculative short positions in silver are huge and could drive a big spike once silver really starts to move against them.

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

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

Charts provided by the author.

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

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/10/14/silvers-time-is-coming.html

The 7-Year Bear Market Phase for Gold Is Over

Source: Clive Maund for Streetwise Reports   10/14/2018

Technical analyst Clive Maund uses charts to explain why he believes the gold bear market is over.

Thursday was a momentous day for the precious metals sector with gold, GDX and other índices, and giant gold ETF, GLD all breaking out on impressive volume, and this development was all the more extraordinary because it happened when the broad stock market was crashing. This is viewed as a strong sign that instead of being dragged lower still by a crashing stock market, the precious metals sector will soar. Silver hasn’t broken out yet, but it should soon follow suit.

In recent weeks we have been wary that, despite highly favorable COTs and Hedgers charts and rotten sentiment indicators, etc,. a general asset liquidation might drag the precious metals sector even further down, but Thursday’s extraordinarily positive action by the sector serves to allay those fears. Of course, it’s not hard to see why the precious metals sector might do the opposite to what it did back in 2008 when the market crashed, and it nosedived too. There are two very big differences this time. One is that, before the 2008 crash, the precious metals sector was actually quite elevated. That is in marked contrast to now where it is beaten into the ground with sentiment in the basement – basically it is so unloved and neglected that the only way is up. The other big difference between now and 2008 is that while a major asset liquidation cycle will result in a flight to cash that could drive the dollar significantly higher, beyond that the longer-term outlook for the dollar is grim, with much of the rest of the world, tired of U.S. bullying in the form of sanctions, military threats, and now trade wars, and its unquestioning support of rogue states like Saudi Arabia and Israel, committed to freeing themselves from dollar hegemony – and plans in this direction are now well advanced, with countries like China and Russia having built up big gold reserves that can at some point be used to back their currencies, and workable substitutes for the SWIFT payments system at the trial run phase. Subjected to continuous provocation, China may at some point decide to go for the “nuclear option” and dump its huge Treasury hoard, sending the Treasury market reeling and interest rates skyrocketing, which will cause the US economy to buckle and implode – the U.S. appears to be overlooking that China has this power.

Let’s now review the charts to assess the significance of Thursday’s breakout. We start with gold where we see on its 6-month chart that it staged an impressive high-volume breakout from a rectangular trading range that formed following the low in mid-August. Right up until the breakout the pattern was ambiguous with the price being pressured by the falling 50-day moving average, so that it could easily have broken down again. Thus this big up day, with the price breaking clear above not just this average but also the resistance at the top of the pattern, was certainly an event of significance. The minor reaction on Friday is normal and provided us with an opportunity to pounce on the sector, having grasped the magnitude of Thursday’s action.

We don’t need to dwell much on the latest COT chart for gold, beyond pointing out that it is the most bullish COT we have seen since 2001, with the dumb Large Specs actually shorting gold to a significant degree as of last Tuesday night. A chart like this means that gold has the potential for huge gains from here.

And how about this latest gold Hedgers’ chart – folks, it just doesn’t get much better than this (above the dotted green line is very bullish)…

Chart courtesy of sentimentrader.com

How does what is going on on gold’s chart fit into the larger picture? To get a handle on that we will now take an updated look at gold’s 10-year chart. You may recall that when gold crept up to the resistance at the top of the presumed giant base pattern earlier this year, we did not expect it to drop back again, or at least, not by as much as it did, but having dropped back more than we expected – and lambasted precious metal stocks in the process – it has arrived back in the broad zone of quite strong support shown. Now what appears to be going on is that it has just marked out another “shoulder” low of a complex Head-and-Shoulders bottom with multiple shoulders. Certainly, the now powerfully bullish COTs and Hedgers charts strongly suggest that it isn’t going any lower, and it was heartening to see that it was not perturbed at all by the broad market cratering last week – on the contrary, it loved it! This is the strongest indication we could hope to see that this time, gold and the precious metal sector are going to go contra-cyclical and rally when the broad stock market drops, or during a general asset liquidation.

Emphasizing the importance of the breakout in gold on Thursday was what happened in the giant gold ETF, GLD, which acts as a massive conduit for investors in gold bullion. GLD gapped above its 50-day moving average on huge volume, the biggest in well over two years, and closed clear above the resistance level at the top of its recent rectangular trading range, like gold itself. This is viewed as very bullish action indeed and as a sure sign of a major trend change. Notice also how, as with gold, this breakout was preceded by a progressive easing of downside momentum as shown by the MACD indicator.

Now we come to the precious metal stocks’ big breakout on Thursday, which we will examine on the chart for GDX. While we certainly recognized that the pattern forming in GDX was a potential Head-and-Shoulders bottom, we remained suspicious of it right up until the breakout for two reasons. One was the unfavorable volume pattern while it formed resulting in a weak accumulation line (which was also the case with gold and silver), and the other was the fear that precious metal stocks might be taken down by a crashing stock market – but happily the opposite seemed to be the case, with precious metal stocks seemingly thriving on the general mayhem – and why not? – as the most unloved sector around for years it’s time for a change of fortune. In any event, as you can see, what must have been an internal improvement ahead of the breakout was heavily camouflaged, which was why we didn’t buy ahead of it, but the big volume on this breakout, especially in GLD, means that it should be “the real deal” and not a deceptive pop, especially as it happened when the broad market tanked.

The latest chart for the Gold Miners Bullish % Index shows that there is still a low percentage of investors bullish on the sector, which is of course positive.

A very important point for would be investors in the sector to grasp is that you shouldn’t be put off by missing Thursday’s breakout and having to pay higher prices for most larger gold stocks. They may in some cases be about 5% higher in price than they were last Tuesday or Wednesday, but that is NOTHING compared to the massive gains that these stocks are capable of making from here – don’t forget that this sector has been ground into the dirt by a 7-year bear market and has huge ground to make up, and the great news is that more the broad stock market gets clobbered, the higher the precious metals sector will go. Buyers now have the assurance of knowing not just that the sector has broken out, but also that it has the capacity to rally strongly when the rest of the market is cratering, as it has just demonstrated.

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

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

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

Charts provided by the author.

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

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/10/14/the-7-year-bear-market-phase-for-gold-is-over.html

Volatility Breeds Contempt

Source: Michael Ballanger for Streetwise Reports   10/14/2018

Precious metals expert Michael Ballanger discusses the stock market volatility of the last week and what it may mean for precious metals.

When asked about the dominant theme for the markets last January, I said that the one thing I looked forward to was a return of “VOLATILITY” as the Federal Reserve Board moved to “normalize” the interest rate structure, now commonly referred to as quantitative tightening. What has actually transpired since then was a brief volatility spike in February during which the UVXY tripled in ten days but other than that, markets screamed higher, hitting new high after new high with annoying complacency and irritating certainty while “VOL” collapsed.

Despite the U.S.-China trade friction, rising yields, weak overseas markets and increasing geopolitical tensions, the NASDAQ has been on fire while Canadian weed deals have dominated water cooler conversations for most of 2018. Volatility has been largely absent – until last week, when it snuck into the upstairs bedroom under cloak of darkness and removed all cash and jewelry from the room. The S&P 500 (after Thursday’s close) had given back 7.2% from its 2,940 peak seen in September when every anchor or commentator in the financial media was breathless with glee. S&P began the Friday session up a mere 2.05% YTD, which is still positive for the year, and remains superbly superior to gold’s 6.24% decline since 2018 arrived.

In February and in May, gold and stocks were neck and neck but once the Donald decided to ratchet up the trade war, interventions became epidemic and the S&P quickly took off with gold doing the reverse. The gold gurus point to the “China Peg” as the bogeyman in the precious metals bedroom but the reality is that the algobots picked up the correlation and as they did with the gold-yen and the gold-euro pairs in earlier times, they tend to stay with the correlation “that is working” for longer than you can say “rational.” I will refrain from debating whether it is a Chinese “policy” peg or an “algo-gone-anal” peg but the reality is that IF the West wants the Chinese currency UP versus the U.S. dollar, all it needs to do is move gold to $2,000 per ounce and the currency issues will be summarily corrected. (As will my net worth issues as well.)

S&P 500 Chart

Chart

Thursday’s $34 move in gold was a reaction of classic proportions to stock market routs occurring around the world with alarming frequency but what was bothersome was that silver failed to catch the slightest of bids closing up a tad despite the impressive move in gold. As you all know by now, precious metals advances that have “teeth” include silver outperforming gold and the miners outperforming the metals so Thursday’s action was incomplete in firing up the adrenalin. I tweeted out my intention to add to my holdings on Friday in selected junior explorcos as well as buying the GLD Dec $115 calls for under $3.00. I wanted to see the silver market outperform the gold market Friday (which it did) AND I needed my trusty canine Fido to come out from under the tool shed (which he did) in order for my bravery level to allow me to pull the trigger on these positions.

Chart

Back on August 27, I published my letter under the title of “Back up the truck…” in response to the terrific technical action of gold as it was coming off the $1,167 lows since from August 16 with a proviso that I needed the market to remain above the $1,200 level for more than a millisecond in order for me to go “ALL-IN.” For the next five weeks, gold meandered over and under $1,200 a dozen times with the lows being in the mid-$1,180s while the omnipotent COT Report (tongue firmly planted “in cheek”) failed to ignite anything more than a yawn despite the more-than-often-right Commercials actually long gold for the second time in 20 years and amazingly long silver for the first time ever.

Coupled with record shorts held by Large Speculators in both gold and silver, the potential for a short squeeze was high and rising then and even higher and rising now. However, I still need to see the dips be bought and the rallies left alone in order to convince myself that this is finally the point where money flows back into the U.S.-dollar denominated price of gold, which in turn will send the stock jockeys piling into the Junior and Senior Miner ETFs as well as the little explorcos. I believe this is an ongoing process that will accelerate as returns in the NASDAQ fade and money moves in search of alternative returns as happened in 2002 and late 2015. In Canada, as soon as the weed deals get crushed, money will also gravitate back to mining so the right course of action is to accumulate physical gold and silver in advance of this “Great Rotation” out of paper assets and into hard assets.

This past week’s highlight was Thursday’s big rally in gold but as of Tuesday, the bullion banks had accumulated the largest long position in gold futures since the CME began reporting the COT numbers. Up until this week, COT structure extremes had gone largely unnoticed as the algobots continued to press their short bets while the Commercials were tickled pink to accommodate. Thursday’s action was terrific in that I got a chance to witness what happens when a large amount of emotion spills over into the relatively miniscule precious metals markets and catches the ‘bots on the wrong side. Being devoid of emotion, the ‘bots simply follow the signals and if it is time to cover shorts or initiate new longs, they do it “at market” and will keep at it until either the software commands it or the price managers pull the plug.

To have a $6 pullback after that massive move on Thursday was a large “NOTHING” but next week I will need to see (and EXPECT to see) a follow-through surge with silver coming out of the starting blocks on fire. I cannot stress enough the significance of this COT report; it is historic. The net long position of the always-short Commercials is 42,617 contracts and that compares with the December 2015 bottom at $1,045 when they came in at a wildly bullish net short of “only” 2,911 contracts. What followed was a truly massive rally in bullion (37%) and a 280% advance in the HUI. We are coming off an August/2018 low that is $122 above the December/2015 low with the HUI 54 points above the January 2016 capitulation low of 99.17.

With sentiment so drastically negative, the potential exists for a multi-quarter advance that can resemble that spectacular eight-month rally in 2016 but if you want to know the truth, I say it will be more akin to 2002, where those positioned in silver at $10 even after it was up 300% saw another 500% advance by 2011. As for the outlook for the miners, Goldcorp was a $4 stock in 2002; it peaked at over $45 in September 2011. Think about it.

COT Chart

Gold Chart

If we get a move north of the 100-dma at $1,240 next week, the stage will be thoroughly set for an advance to 200-dma at $1,295 where it will need to spend a great deal of time consolidating as the magic $1,300 was a major area of support in May until it got crushed on June 21. For now, I am confident that the mid-August lows are your stop-loss floor and the assault on $1,400 is now officially underway. I backed up the proverbial truck and filled up the bed back in August-September but with the weekly chart looking so positive, it is finally time to find something with a tad more cargo space and just to give you an idea of how bullish I am for Q4/2018 and beyond, the appropriate vehicle to be loaded this time is a large ocean liner or an oil supertanker.

One final note: You may have noticed a trace of exasperation in my writings of late and if indeed you did, you are distinctly on the money as there is no question that my affinity for gold hit a career low last month but it had nothing to do with gold or silver. It had to do with an almost perverse sense of regret in recommending and investing in Western Uranium. I have consistently made above-average returns in trading gold and silver since I entered the securities industry in 1978 but the recent arrival of the algos into the gold pits have taken away from me the ability to use gut feel or tape sense or pit instincts to make decisions and execute. I liked Western Uranium in 2016 after meeting the principal investors in the deal but the timing was wrong and I saw my $1.70/unit investment go into terminal crash-dive mode as uranium continued its death spiral to $18/lb. I assisted with the financing effort six weeks ago at $0.68 per unit (including a half-warrant at $1.15) and watched with amazement as investors decided out of nowhere that vanadium was undervalued and then followed it up with a similar revelation for uranium.

Call it morbid curiosity or outright cynicism but I have become so engrained with the dismal action in gold and silver and the miners that to see WUC scream out of the gate and quintuple eight weeks after the placement closed put me squarely into a state of disbelief. Since the financial crisis of 2008, we have watched no fewer than twenty-five events that should have taken gold through $2,000 per ounce but constant interventions and manipulations continually to plagued precious metals price performance in truly maddening fashion. As gold investors, when was the last time that we had a gold stock go from $0.68 to $3.32 in two months on a valuation reset? Therein lies the root of my angst. After all I have tried to convey over the years, when was the last time a gold (or silver)-related security actually became a brilliantly successful trade? A few have, but the majority are usually doomed to the mediocrity of shitty markets or shitty management, both of which I deem a most-convenient cop-out.

The frustration I feel lies in the truth that underlies the 2018 landscape; the elite class want the bankers, politicians and regulators to ignore 5,000 years of history. They would instead prefer to demand that their appointed central banker like Greenspan or Yellen or Powell simply follow the plan that was originated after the 1987 market crash and ensure that markets behave according to the carefully crafted script, which means gold and silver are the enemy, stocks are our saviors, and bonds don’t count. As stated earlier, the bullion banks that have been pointed to as the major culprits in the gold and silver rigging scheme are now heavily positioned for an up move and have been since August. The inevitability of the Commercials crushing the hedge funds is the reason I expect the miners to begin to perform like the uranium/vanadium stocks, where REAL supply and REAL demand ex-interventions create a free and natural upward hydraulic so absolutely critical to properly-functioning markets.

This coming week will tell us whether can welcome a new paradigm for the precious metals or whether we simply devolve back into the status quo. Stay tuned and cross your fingers.

It is time.

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

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Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Western Uranium & Vanadium Corp. 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 referred to in this article: Bonaventure Explorations Limited is owned by me and my wife and has earned consulting fees from Western Uranium & Vanadium in the past. 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. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Western Uranium & Vanadium. 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) 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 one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Western Uranium & Vanadium Corp., a company mentioned in this article.

Charts courtesy of Michael Ballanger.

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

( Companies Mentioned: WUC:CSE; WSTRF:OTCQX,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/10/14/volatility-breeds-contempt.html

Canadian Metals Explorer Now Offers ‘Attractive Entry Point’

Source: Streetwise Reports   10/13/2018

A Fundamental Research Corp. report relayed this company’s investment highlights.

In an Oct. 9 research note, Fundamental Research Corp. analyst Siddarth Rajeev indicated that Golden Arrow Resources Corp.’s (GRG:TSX.V; GAC:FSE; GARWF:OTCQB) recent share price drop represents a current buying opportunity. Fundamental has a CA$0.98 per share fair value estimate on Golden Arrow; the company’s stock price is now around CA$0.29 per share.

The average enterprise value:resource ratio of the other junior silver companies in Fundamental’s coverage universe has decreased to CA$1.63 per silver equivalent ounce from CA$2.29 since May, when the research firm initiated coverage on Golden Arrow, due to the decrease in silver prices. Golden Arrow’s shares are trading at CA$0.54 per ounce, much lower than the average.

Aside from its current valuation, Golden Arrow is an attractive investment, in part, Rajeev pointed out, due to its joint venture partnership, with SSR Mining, in Puna Operations Inc., which is composed of the Chinchillas and Pirquitas projects. Golden Arrow owns 25% of Puna; SSR owns 75%.

This year, 3 to 4.4 million ounces of silver are to be produced at Chinchillas, according to SSR Mining estimates. “GRG will receive a 25% share of the net profit,” Rajeev emphasized. Ore from Chinchillas will be processed at Pirquitas, and that should begin soon.

Also, Golden Arrow owns the Antofalla project in Argentina, which recently yielded “encouraging” drill results, indicated Rajeev. They included 3 meters of 191 grams per ton silver, 1 meter of 283 grams per ton silver and 2.1% zinc.

Rajeev reiterated that Golden Arrow is rated Buy.

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

Disclosures from Fundamental Research Corp., Golden Arrow Research Corp., October 9, 2018

The opinions expressed in this report are the true opinions of the analyst about this company and industry. Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary. FRC and the Analyst do not own shares of the subject company. Fees were paid by GRG to FRC. The purpose of the fee is to subsidize the high costs of research and monitoring. FRC takes steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage. Our full editorial control of all research, timing of release of the reports, and release of liability for negative reports are protected contractually. To further ensure independence, GRG has agreed to a minimum coverage term including an initial report and three updates. Coverage cannot be unilaterally terminated.

( Companies Mentioned: GRG:TSX.V; GAC:FSE; GARWF:OTCQB,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/10/13/canadian-metals-explorer-now-offers-attractive-entry-point.html

‘Another Prospective Oxide Gold Target’ Identified at Nevada Project

Source: Streetwise Reports   10/13/2018

This discovery further expands the Canadian company’s pipeline of exploration opportunities in the Railroad District.

Gold Standard Ventures Corp. (GSV:TSX.V; GSV:NYSE) delineated another oxide gold target with further exploration potential at its Railroad-Pinion project in Nevada’s Carlin Trend.

The new LT target, 3 kilometers north-northwest of the company’s Pinion deposit, was revealed in the results of 70 surface rock samples taken from a 400 meter by 200 meter area.

Assay highlights included 12.9, 11.2, 6.65 and 4.5 grams per ton gold. The values overall spanned from less than 0.005 to 12.9 grams per ton gold. In comparison, previous rock sampling in the area ranged from less than 0.005 to 4.99 grams per ton gold.

“LT is further evidence of the robust, district scale of the Railroad-Pinion mineral system. . .we believe that LT is not the last new target we will find this year,” CEO and director Jonathan Awde commented in the news release.

He noted LT is located further north and west than any areas Gold Standard has explored on the property to date. It bears the same characteristics of discoveries at Dark Star, Jasperoid Wash and Dixie “but with better surface gold exposure.” The release explained that “gold mineralization is hosted in decalcified, silicified and oxidized multilithic dissolution collapse breccia proximal to a north-striking igneous dike.”

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

( Companies Mentioned: GSV:TSX.V; GSV:NYSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/10/13/another-prospective-oxide-gold-target-identified-at-nevada-project.html