Category Archives: Precious Metals

Record Volume In GDXJ Junior Gold Miners Could Indicate a Bottom

Record Volume In GDXJ Junior Gold Miners Could Indicate a Bottom
In a recent landslide election, Republicans took back control of the Senate and House. President Obama's approval rating is very low.  Although there a few making money in the stock market, the majority of the American people are fed up with close to 100 million people not working.  Welfare and entitlement spending is out of control.  The debt is still soaring close to $20 trillion and the dollar is rising making it even harder for politicians and banks to avoid default. Somehow irrationally despite billions of dollars being printed under the guise of QE, the US dollar is rising. The question I ask is how long do you really believe this dead cat bounce in the US dollar will last? It may be just a bounce in a long term downtrend and is only relative to the other fiat currencies in fast decline.  Smart investors should be accumulating gold and silver coins and high quality junior mining stocks trading now at historic lows.  It should be noted that coin sales are picking up especially mint grade numismatics.
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Chart Shows A Potential Double or Triple in the TSX Venture

Chart Shows A Potential Double or Triple in the TSX Venture
Clearly, the strong global economy purported on CNBC has not yet been reflected on the TSX Venture Exchange yet. However, that may change over the next 3-5 years and now may be the time to buy up the best resource assets at historic lows. Over the past decade, The TSX Venture has at least doubled or tripled from these historical low levels where it is currently trading.
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Gold and Silver Still In Major Uptrend On Long Term Charts

The Chinese and Russians were some of the largest acquirers of physical gold. Also large hedge funds some managed by industry giants such as Paulson, Soros, Rogers and Einhorn began buying ETF's and junior miners. This led to a parabolic and overbought move in precious metals, which I cautioned my readers about in the referenced article above. It should be noted a few days after this article was published silver topped at $50 and gold rolled over a few months later at $1900.
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Strong Accumulation May Follow Selling Capitulation in Junior Gold Miners

Strong Accumulation May Follow Selling Capitulation in Junior Gold Miners
Look for huge volume and accumulation in gold and silver and the junior miners over the next few weeks and in some high quality junior mining stocks. Selling capitulation followed by strong accumulation could be the indicator that the smart money expects gold and silver to bottom. The question for many is when this will occur. Do not forget we are seeing increased interest into the junior miners with oversubscribed financings. What is driving this investor demand for junior gold miners when gold and silver are testing and hitting new lows?
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Uptrend in Junior Gold Miners Forecasting Bottom In Precious Metals

Uptrend in Junior Gold Miners Forecasting Bottom In Precious Metals
The Post Labor Day rally in precious metals I expected has turned into the Post Labor Day Selloff for precious metals and many mining stocks.  Many investors came back from Labor Day and sold their precious metals in favor of the U.S. dollar.  This could be the worst possible trade right now.  This could be the shakeout before the breakout in the precious metals.  Generally this is a seasonally strong time for gold and silver.  We may bounce off new lows below $1200. Despite gold testing new lows, the junior miners are still in an uptrend since December of 2013.  Is the outperformance of the junior miners indicating that gold may bottom here around $1200?
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Are The Junior Miners Going To Benefit From Severe Large Cap Correction?

Are The Junior Miners Going To Benefit From Severe Large Cap Correction?
One sign is a huge uptick in volume in the Market Vectors Junior Gold Miners ETF. The volume increase in the first seven months of 2014 has been exceptional, whereas volume is decreasing in a rising market in the SPDR S&P 500 ETF (SPY:NYSE), an ETF tracking the S&P 500. The rising volume in the juniors may indicate accumulation, whereas decreasing volume in a rising market may indicate that the rally in the S&P 500 is overbought and running out of steam. The equity market has not had a significant correction in more than three years and it's dangerous territory for a correction.
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Why This Junior Gold Miner in Nevada Soared 200% in 2014

Why This Junior Gold Miner in Nevada Soared 200% in 2014
At the end of 2013, I predicted the junior gold (GDXJ) and silver miners (SIL) would outperform the S&P500 in 2014. I was right so far in 2014. THe GDXJ is up over 36% on the year while the S&P500 is up under 5%. However, one of the junior gold miners that I predicted would be a major winner back in December of 2013 has far outpaced the mining and overall market indices by a wide margin. The small junior miner is up over 200% in 2014. Find out which one and why.
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Could This Be The Next Major Gold Producer In Colombia?

Could This Be The Next Major Gold Producer In Colombia?
Red Eagle is only weeks away from publishing a Bankable Feasibility Study on a project which I believe will come into production in the next 18 months. The 320 sq. km Santa Rosa Gold Project in Antioquia has already produced a Preliminary Economic Assessment (PEA) that shows the potential for production of around 50k ounces per year with low cash costs around $620 an ounce. This means that possibly within 18 months Red Eagle has the ability to cash flow over $60 million of profit if gold stays around $1300 an ounce. Red Eagle flies above the others as the project has one of the best economic profiles in the junior mining business.
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Why Capital May Be Flowing From Equities to Junior Miners in 2014

Why Capital May Be Flowing From Equities to Junior Miners in 2014
The gold (GLD) and silver (SLV) price may be reversing over the next couple of weeks. The junior miner gold ETF (GDXJ) is reversing above the 50 day moving average and breaking above its recent three month downtrend. When the huge cash positions waiting on the sidelines or taking profits in the equity market rising on low volume return to the ignored resource sector the gains could be huge. Already the volume in GDXJ in 2014, has jumped outpacing 2012 and 2013. On the other hand the S&P500 has been rising on light volume which is often a warning sign that the extended rally is getting exhausted. This indicates to me that possibly the large institutions are accumulating the juniors after all the retail investors jumped ship. Prices could jump rapidly in the Toronto Venture Exchange where most of the legit junior miners are traded. These small cap juniors could gap higher as the major institutions are hardly exposed to the mining sector at all. It appears that some of my charts are showing a potential reversal in the precious metals. Get ready for an incredible bounce higher in precious metals. Here are five reasons why.
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Why These 2 NYSE Gold Producers are Buying This Junior During a Bear Market

Why These 2 NYSE Gold Producers are Buying This Junior During a Bear Market
Gold is gaining strength as it may soon close above the 50 day after reversing above the 200 day moving average after falling below that level last week. That may have been a shakeout of weak hands below the 200 day as it appears in 2014 money has been moving from the overbought equity market into the undervalued commodities in the form of junior miners. Look for a close above the 50 day at $1310. Investors may be preparing for the eventual reinflation, which may have been sparked by Yellen's taper. The U.S. dollar and general equity market appears to be forming a rounding top while gold, silver and the junior miners are seeing increased accumulation a higher lows typical of new bull market moves. The key now is asset preservation in a rising interest rate, inflationary environment. I still believe gold, silver and the industrial metals specifically PGM's, nickel and uranium could soar. These are the areas that I believe are the safest to be when interest rates are negative and when Central Banks are continuing to fire up the printing press engines. The overbought social media and marijuana stocks with no earnings could be just beginning to bust. Look at all the IPO's in social media and pot stocks reminding us of the Dot.Com craze. While these stocks come back to earth the junior miners could actually soar as The Fed may have to reverse their taper moves and actually increase quantitative easing to deal with the aftermath of the tech/marijuana bubble bursting.
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