Tag: Newmont Mining Corp. (NYSE:NEM)

Position Yourself for Fall Fireworks

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The Gold Report: On June 11, on GoldStockTrades.com you wrote, "Some of my charts are showing a potential reversal in the precious metals." What are those charts telling you in late July?

Jeb Handwerger: In early June it appeared that the junior miners tracked by the Market Vectors Junior Gold Miners ETF (GDXJ), which I use as a proxy for the junior gold miners was making an inverse head-and-shoulders pattern between $34 and $35. Then the junior miners had a very strong rally in June, with an intra-day high of $46. Now we're forming what I believe is a potential crossing of the 50-day and the 200-day moving averages a golden cross. This could signal the final turn from a secular bear market to the beginning of an uptrend.

TGR: Is gold close to a golden cross? Continue reading "Position Yourself for Fall Fireworks" →

Miners Must Control Costs to Improve Share Prices: Byron King

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The Gold Report: Byron, gold is above $1,300/ounce ($1,300/oz)although not by much and silver topped $20/oz. What was holding their prices down, and what are the fundamentals that will move the prices going forward?

Byron King: The short answer is that, for all its faults, the dollar has strengthened, which holds down gold and silver prices. The longer answer is that gold and silver are manipulated metals. That is, the world's central banks have an aversion to things they can't control, and one of the things that they can't control is elemental metals like gold and silver.

Let's ask why the dollar has strengthened. The U.S. is probably in its weakest geopolitical situation in decades. The Wall Street Journal on July 17 had a front-page story about the confluence of crises across the world Ukraine, Middle East, Southeast Asiaall of which are profound challenges to American power militarily, diplomatically and economically. But the dollar is still holding up. Why?

I believe the dramatic recent increase in U.S. energy production is what's behind the stronger dollar. With more oil and natural gas from fracking, the U.S. is the world's largest energy producer. In addition, we're importing far less oil and exporting a lot more refined product. It helps the dollar.

Still, when I look at the big picture for gold, I see a resource whose production is challenged on the best of days. Output is declining in the major traditional sources: South Africa is in decline; Australia is challenged; some of the big plays in Nevada are getting long in the tooth. Continue reading "Miners Must Control Costs to Improve Share Prices: Byron King" →

When The Major Equity Market Bubble Crashes, Michael Berry Will Take Refuge in These Gold Stocks

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The Gold Report: Mike, you've been watching the stock market and, by extension, the precious metals markets very closely for signs of a larger equity market blow-off that could send gold higher. What makes you think the Dow Jones Industrial Average and the NASDAQ are in a bubble? What are the signs that a crash might be imminent?

Michael Berry: I have been watching bubbles since 1987. In September of that year I correctly predicted the 25% crash of October 19. We have been blowing through mini and maxi bubbles for 30 years; this one is nothing new.

The solution to our macroeconomic issues has been to inflate new bubbles, to inflate asset values to soften the blow from the last bubble, all the while creating the conditions for the next one. That is how we ended up with the current equity market bubble. It is driven solely by the Federal Reserve's liquidity. Always remember that liquidity begets liquidity. I also see a debt market that I consider to be a bubble. These markets are just not sustainable. I can't say when, but we have an equity market decline coming, maybe a severe decline.

TGR: The housing bubble and the tech bubble were, by definition, confined to certain niches initially and then the impact reverberated to other sectors. Are you predicting a market-wide crash where everything falls or will it be confined to certain sectors? Continue reading "When The Major Equity Market Bubble Crashes, Michael Berry Will Take Refuge in These Gold Stocks" →

Put Your Trust in Precious Metals, Not Governments

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The Gold Report: You've expressed astonishment at the record highs of world stock exchanges. Given the sluggish world economy, can we expect this trend to end, or have equities become completely disconnected from economic reality?

Leonard Melman: Equities have become somewhat disconnected from economic reality. We've heard comments from the European Central Bank, the U.S. Treasury and the Bank of Japan calling for more inflation because dramatic action is needed to improve the world economy. How does that coincide with the bull markets in equities?

TGR: Is there a connection between these bull markets and quantitative easing (QE)? Continue reading "Put Your Trust in Precious Metals, Not Governments" →