By: Nicholas LePan, Senior Mining Reporter at GoldSeek - 8 February, 2019
It was back in September 2018 when America’s newest gold and silver producer, Northern Vertex (TSX-V: NEE) (US: NHVCF) announced commercial production, at its 100-per-cent owned Moss Mine located in Northwestern Arizona, just a couple of miles off the old route 66.
However, as any mine developer knows the past few years have been a challenge to secure financing on good terms to ensure a mine project keeps moving forward; a good opportunity for those with money, not so much for those looking for it.
Northern Vertex was no exception, by the time the company announced commercial production it had accumulated over US$20 million in debt to be paid back over a short two-year window. A heavy obligation for many new miners, especially for a start-up gold heap leach operation, which can sometimes take months to optimize its operation. In response to making the required heavy monthly payments , the company recently announced a $28-million (USD) refinancing to strengthen its balance sheet and pay off its creditors. Full Story
By: Adam Hamilton, Zeal Research - 8 February, 2019
The bottom line is this young gold-stock upleg is really gathering steam. Technically it has rallied higher on balance for months now in a strong uptrend, carving higher lows and higher highs. GDX has broken out above three major resistance lines, and just flashed a key Golden Cross buy signal! All this has really started to shift sentiment back to bullish, which will attract in lots more capital to chase the momentum.
And these mounting gold-stock gains are fundamentally justified by gold’s own growing upleg. Gold-stock earnings amplify underlying gains in gold, making big stock-price surges righteous. Now is the time to get deployed relatively low, before most traders figure this out and start piling in. The evidence suggests a major gold-stock upleg is underway and mounting, and they tend to average gains far bigger than today’s. Full Story
But, since this is not likely a determination we will have to make until 2020, I think we all need to focus on the buying opportunity which will likely be setting up over the next few months, which will then point us up towards that larger degree target overhead. We are finally approaching a very critical time in the metals market. So, let’s keep our emotions in check, and stay focused on what the market is telling us. There is a lot of money to be made in the coming years in this complex. But, we need to keep everything in appropriate perspective. Full Story
By: Rick Ackerman, Rick's Picks - 8 February, 2019
This is a logical inference, given that the E-Mini S&Ps have begun to roll down from a midpoint Hidden Pivot at 2732 where buyers were likely to cough ominously, if cough they have. The pattern itself is unfortunately not of the highest quality, and so I am prepared to see stocks come roaring back next week — led, of course, by AAPL, whose iPhone troubles have suspiciously melted away in recent weeks. If that is what happens, I hope you will pardon this digression. Think of it as a fleeting moment of sanity in a crazy world. Full Story
By: Rick Ackerman, Rick's Picks - 7 February, 2019
Wednesday’s asphyxiating tedium was a reminder that DaBoyz are in no rush to take stocks higher, especially if the short-covering needed to do so is absent. Usually, bear buying-binges are driven by “good” news. On this particular day, however, the headlines concerned a State of the Union speech that held little interest for Wall Street. Toss in the usual bilge concerning political bickering, Mueller’s supposed investigation and such, and you begin to see why ginning up a rally would have been so difficult. Full Story
USA and Russia withdrawing from the INF treaty should be bullish for gold, silver and other safe havens. The impact will be serious. Global economic conditions do not warrant an interest rate hike by any central bank. If US February nonfarm payrolls matches January, then chances of June interest rate hike by the Federal Reserve will be very high. US economy continues to shine in January but fears persist. Full Story
We ask the question. Did the Fed blink? Following months of Fed and Jerome Powell open criticism from President Trump the Fed this week said they will be “patient” on future interest rate hikes. As well they are prepared to slow reduction of their bond holdings. That ignited the stock market and the precious metals. Then came Friday’s unexpected jump in nonfarm payrolls but as usual when one digs under the numbers seasonal revisions helped inflate the numbers despite the government shutdown. The unemployment rate jumped as the participation rate rose with more people seeking work. We feature the job numbers as our “chart of the week”.
Bonds rallied with the Fed statements then backed up with the job numbers. The recession spread was largely unchanged. Consumer confidence is sliding and housing sales are tipping over even as prices continue to rise. But manufacturing numbers remain positive. World trade is starting to slide and Italy and Germany could be leading the Eurozone into a recession. China is slowing as well and one has to be concerned about there massive amount of debt particularly in the corporate sector. The so-called economic boom of the past decade has been fueled by record low interest rates, massive doses of liquidity through QE, and debt. In the U.S. it has taken $3 of new debt to purchase an additional $1 of GDP an unsustainable pace.
Precious metals (gold, silver) continued their recent rise and are now at their best level in months. But is the rise become frothy? Not quite yet. Commodities in relation to the stock market are at a level only seen on two other occasions in the past 50 years, the early 1970’s and the early 1990’s. Could we be on the cusp of another commodity boom? Very possible. Full Story
By: Rick Ackerman, Rick's Picks - 4 February, 2019
HUI, the Gold Bugs Index, is close to triggering its first buy signal on the weekly chart in more than two years. The first proved to be a dud, and it sent this popular trading vehicle into a ratcheting downtrend that would have driven most bulls to the edge of despair. As a result, skepticism toward the current rally undoubtedly is high. But traders should be prepared for a pleasant surprise if it touches 177.73, where the buy signal would occur (see inset). At that point we would raise our sights to a 224.34 ‘midpoint Hidden Pivot’ as a minimum upside objective. It is associated with a target at — better sit down for this — 317.56 that presumably would usher in a new era for the mining industry. Full Story
We stay long our broad market inverse ETFs and deploy as much capital as we can into the Precious Metals sector which looks like it is building up to a powerful advance, and an important point to note here is that once gold breaks above key resistance in the $1400 area it probably won’t look back, and the sector will spike higher, affording little opportunity to buy on pullbacks as there may not be any. Full Story
Sure, closing above $1300 was a breakout for Gold. But that’s hardly significant. If and when Gold surpasses the wall (resistance at $1350-$1375), it will mark a real breakout.
The good news is Gold is currently in a much better position both fundamentally and technically than it was in 2016, 2017 and 2018. Full Story
By: Chris Waltzek, GoldSeek Radio - 3 February, 2019
The show kicks off with the current theme of mergers in the gold-mining industry suggesting further industry acquisitions in small gold-miners. Suppressed prices have minimized exploration and related mining operations, all to the benefit of stockholders.
China and other BRICS nations are stockpiling palladium amid a global shortage - the price recently reached parity with gold.
Similar to the epic palladium bull rally, silver also has a highly inelastic demand curve with thousands of industrial uses.
Below is a weekly chart for the GDX we’ve been following for a long time watching the two and a half year falling wedge completing about 8 weeks ago when we finally got the breakout. The backtest to the top rail took about seven weeks to complete with this weeks price action possibly beginning the impulse move higher. To be honest I still can’t rule out another backtest to the top rail and the 30 week ema, but at this point it appears the breaking out and backtesting process looks to be complete.
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