Tag: the gold report

Jack Chan Sees New Major Buy Signal For Gold But Is Patient

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Technical analyst Jack Chan has examined the charts and says the gold sector is on a new major buy signal, which could signal a new bull market. But he is patiently waiting for confirmation.

Chart 1

The gold sector is on a new major buy signal, therefore opening the opportunity of a new bull market. However, Commitment of Traders (COT) data remains in bear market values and is now at levels of previous tops. I remain patient and wait for confirmation, which is when speculation according to published COT data has returned to bull market values, and the 2015 high in gold prices near $1,300/oz is exceeded to the upside.

$HUI is on a new long-term buy signal, ending the sell signal from early 2012. (See chart above).

Long-term signals can last for months and years and are more suitable for the long-term investors. Continue reading "Jack Chan Sees New Major Buy Signal For Gold But Is Patient" →

The Gold-to-Silver Ratio: A Truly Generational Opportunity

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Precious metals expert Michael Ballanger says that owning silver versus owning gold is a high-probability trade that could be the 2016 Trade of the Year.

Daily GDX Chart

This week's Gong Show in the global financial markets reminds me of the early 1980s before the advent of the Internet or online trading or blogs and especially before 30-something financial "advisors" were allowed to go on the national (and international) airwaves or Internet websites and babble on for what seem like days how "The Fed has our back!" as an excuse for buying stocks at 23 times forward earnings.

Back then, at 4:15 every Friday night, there would be a line-up of brokers and analysts (even the janitor) next to the old teletype machine (I am imagining more than a few raised eyebrows among the kids out there as they quickly Google search "teletype machine" on their Smartphones while sipping a $10 cup of fancy-ass coffee) in expectation of the all-important "Money Supply" numbers that everyone supposed was going to give them a hint as to when interest rates would start to decline from 16%-plus nosebleed levels of the early 1980s. Continue reading "The Gold-to-Silver Ratio: A Truly Generational Opportunity" →

Zero-Hour For The Precious Metals…

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This morning I actually got excited for a split second when the silver price shot northward to $15.85/oz and I almost fired off a tweet (can't believe I am actually using Twitter) saying that "Silver could easily become the Cartel's Achilles Heel" because as silver was creeping up, gold was sliding down, so these Criminal Cretins just continued to lean on gold down to $1,235/oz from $1,262/oz and the algo-bots did the rest with silver succumbing to the intervention/manipulation and now sits at $15.37/oz, down $0.23 instead of up $0.20.

Daily Chart of GLD
All images/charts courtesy of Michael Ballanger

The blogosphere has been abuzz since the end of PDAC last Wednesday about the impending "Melt-Up" in gold and silver prices, and when I read the litany of rationale behind the impetus for the move, I thought I was reading an old archive from Harry Schultz in 1976. All of the Keynesian diatribe nonsense that gets shoveled in front of us day in and day out is all designed to deflect attention away from this massive global exercise in currency debasement, and thus far, it has been working. Stocks are at five-week highs and the Dow is again above 17,000 with the SP 500 sporting a 20-handle while Mario Draghi talks about the European Central Bank buying every listed stock on the European bourses. The policy "errors" coupled with moral hazard has been transformed into policy "madness" and moral "lunacy" as the bankers around the planet scurry about trying anything and everything to avoid the ultimate day of reckoningsovereign insolvency. So, in order to create an aura of calm and "business as usual," the first order of execution is always "Take care of that goddam gold market!" so sure enough, after a soft-ish close to the Crimex session, the Globex geek squad decided to play tap dance through the Access Market tulips and added another $10 downside between 1:30 and 4:00 p.m. when the GLD closed for the day. Continue reading "Zero-Hour For The Precious Metals…" →

Veteran Investor Rick Rule Reveals a Unique Arbitrage Opportunity

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One of the hardest things for a mining executive to do may be nothing. But in a market that is not rewarding companies for pulling resources out of the ground, Sprott US Holdings Inc. CEO Rick Rule would prefer to see what he calls "optionality" rather than dilution from companies looking to justify salaries. In this interview with The Gold Report, he praises innovative precious metals streams on base metal projects and one Canadian company that is adding value and being rewarded for it.

The Gold Report: In November, you called the bottom for precious metals. Do you still believe that we're in the bottom?

Rick Rule: Yes, as long as you can define a bottom gently. I said in that same interview that the most important factor in gold pricing was the fact that it was priced in U.S. dollars, and we see a topping in the U.S. dollar. In fairness, Karen, if you had asked me that same question two years ago, I would have responded in the affirmative and been quite wrong. But I do think the upside in gold is both larger and closer than the downside in gold.

TGR: Now that the Federal Reserve has increased the key interest rate slightly, the expectation is that the value of the dollar will increase relative to other currencies. How could that be the sign of a bottom for gold? Continue reading "Veteran Investor Rick Rule Reveals a Unique Arbitrage Opportunity" →

Marin Katusa: Follow the Good Guys in Mining

Posted on by The INO.com Team

The most valuable resource in a mining company is often the people. Good management can attract the right investors and add value regardless of the market. In this interview with The Gold Report, Marin Katusa, founder of Katusa Research, shares his litmus test for which mining companies are worth his hard-won dollars and which ones he is avoiding for the foreseeable future.

Gold vs. US Dollar YTD Chart

The Gold Report: You seem much more positive about gold right now than when we talked in June. Based on the chart you have on Katusa Research of the U.S. dollar versus gold and in the wake of the Federal Reserve's inaction at its last meeting, what's your thesis for gold for the rest of 2015?

Marin Katusa: As I said in the spring, I don't see the Fed raising rates this year. Using some simple game theory, for the Fed not to raise rates is the best decision. I still believe that. Gold has fared well compared to the price of the U.S. dollar, better than any other hard commodity. Gold is holding its own. The reality is, because the commodity markets are down, very little capital is being invested to replace the production of gold.

In the long run, I'm very bullish on gold. It's something I'm paying very close attention to through my fund. We've started writing checks on assets that I believe are very cheap and well priced in today's currency commodity markets and that I believe a major will want in its portfolio in a few years. Gold is the currency of kings and silver is the currency of gentlemen; it always has been, and always will be. When you see living legends such as Stanley Druckenmiller and well-known successful fund managers plowing hundreds of millions of dollars into gold, it's obvious gold is appealing at these prices.

TGR: Will the power of gold help the majors or the juniors more? Continue reading "Marin Katusa: Follow the Good Guys in Mining" →