The PDAC and Investor Mood - Gold, the Dow & the C$ - Points to Ponder
March 11, 2018
Dear Friends:
Re: The PDAC and Investor Mood - Gold, the Dow & the C$ - Points to Ponder
The PDAC and Investor Mood
As Consultants to Klondike Silver Corp. Mining Interactive attended the Klondike Booth at the PDAC (Prospectors & Development Association Conference). The attendance by Investors from all over the world was fantastic and Tom Kennedy, Dave Makepeace, Theresa Szeto and I were busy from early in the morning to late in the evening.
Although, we had many Investors at our Booth and we answered many, many questions about Klondike, its Silver and Zinc values and it efforts moving forward.
It was clear that Investors were not ready yet to part with their cash and start to buy shares not only of Juniors but, of Major mining companies as well.
As an example of this mindset one Investor told me:
“I will start buying when the market turns around”.In other words, he will follow the crowd and start buying when everybody else has started to buy ahead of him.
I suggested that if he did that then he would have to pay much more for the shares of Companies he liked and wanted to buy their shares.However, I could not change his mind.
The above example was the mindset of most Investors attending the PDAC. They will buy into the Majors and Juniors like Klondike Silver with its tremendously high Zinc values as high as 45.9% from Grab Samples once the crowd has started to Stampede.
Gold, the Dow & the Canadian Dollar
NY Gold Nearest Futures
On Friday Adam Hamilton said this regarding the price of Gold:
“The small contrarian gold-mining sector remains deeply out of favor, universally ignored. Thus, the gold stocks are largely drifting listlessly, totally devoid of excitement. But that’s the best time to buy low, when few others care. The gold stocks continue to form strong technical bases, paving the way for massive mean-reversion up legs. And they remain exceedingly cheap relative to gold prices, which drive their profits.
Being a gold-stock investor feels miserable and hopeless these days. The gold stocks have been consolidating low for 14.2 months now, stuck in a seemingly-endless sideways grind. There are still gains to be won, but they are mostly within that low-trading-range context. We haven’t seen one of the huge up legs gold stocks are famous for since the first half of 2016. So, most traders have given up and moved on.
That’s understandable psychologically, but unfortunate for multiplying wealth. Sometimes it takes a while for gold stocks to catch a bid, but once they get moving they often soar. This sector is so small relative to broader stock markets that even minor shifts in capital flows can drive enormous gains. While it’s hard waiting for gold stocks to return to favor, the vast upside when they do is well worth the buying-low pain.
The leading gold-stock measure and trading vehicle is the GDX VanEck Vectors Gold Miners ETF. It was the original gold-stock ETF launched in May 2006, and still maintains a commanding advantage in popularity. This week, GDX’s net assets of $7.7b were 24.0x larger than its next-biggest 1x-long major-gold-stock-ETF competitor! GDX is as big as all the other gold-stock ETFs trading in the US combined.
GDX’s price action shows why gold stocks are such compelling investments when everyone hates them. After gold stocks were universally despised in mid-January 2016, GDX soared 151.2% higher in just 6.4 months! After the previous time sentiment turned so overwhelmingly against gold stocks in October 2008, GDX rocketed 307.0% higher over the next 2.9 years. Buying gold stocks low has proven very lucrative.
That quadrupling of GDX after 2008’s first-in-a-century stock panic was actually the tail end of a vastly-larger secular gold-stock bull. Many years before GDX was even a twinkle in its creators’ eyes, that gold-stock bull started stealthily marching higher out of total despair. It can’t be measured by GDX since that ETF started too late, but the classic HUI NYSE Arca Gold BUGS Index reveals the magnitude of that bull run.”
We now have less than three (3) weeks left before end of the 1st Quarter and if the Socrates forecast is correct and Gold does go below $1,000 I will be a happy camper. Socrates has forecasted that Gold will go below $939.50 and when it goes above that $939.50 number again then we will have a clear signal that Gold will go up and up and up from thereon in.
Canadian Dollar
Martin Armstrong: “The political shift in Canada to the left is also being seen as a political risk for the years ahead.A monthly closing BELOW 7305 on the futures will signal the collapse of the C$ is underway once again.”
Dow Jones Industrials Index Cash
In the past week the Dow closed very nicely at 25,335.74 and up 440.53 points and once again we and our Paid-for Subscribers had a very profitable week trading the Dow and US Indexes.
There is no Market runaway to the upside yet however, a serious correction does not seem likely for now.
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Points to Ponder
1. March 10, 2018 – The Economic Confidence Model and Why there are 6 waves
My Take: This Economic Confidence Model 51.6-year Wave (6 x 8.6 years) is the Private Wave which ends on 2032.95.That is the time that there will be a shift in economic power from the West to the East and at that time New York as the world Financial Capital will be replaced and the Financial Capital will then be in Shanghai, China.
2. March 10, 2018 – State Run Funds v Private – Why Politicians Cannot be Trusted with Investments/Pensions
My Take: As Martin Armstrong says: Politicians should NEVER control investment decisions – N E V E R ! ! ! ! ! !
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The material in the “Trading Based on Martin Armstrong Socrates Alerts” and the “Stock and Private Placement” alert letter published by Nick L. Nicolaas is for informational purposes only and is not intended to and does not constitute the rendering of investment advice or the solicitation of an offer to buy securities. The “Trading Based on Socrates” and the “Stock and Private Placement” alert discussion contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (The Act). In particular when used in the preceding discussion the words “plan,” confident that, believe, scheduled, expect, or intend to, and similar conditional expressions are intended to identify forward-looking statements subject to the safe harbor created by the ACT. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward looking statements. Such risks and uncertainties include, but are not limited to future events and financial performance of the company which are inherently uncertain and actual events and / or results may differ materially. In addition we may review investments that are not registered in the U.S. We cannot attest to nor certify the correctness of any information in this note. NLN owns shares in Meadow Bay Gold Corporation, Ashanti Gold Corp; Klondike Silver Corp; Northern Dynasty Mines; Exeter; Arrowstar Resources, Klondex Mines and Dynasty Gold. Please consult your financial adviser and perform your own due diligence before considering any companies mentioned in this informational bulletin.