Wealth Creation Through Natural Resources
During the week ending November 17th large futures speculators (hedge funds, CTAs, etc.) piled on short positions in precious metals futures at one of the fastest paces on record: Between both gold & silver futures large speculators … Continued
Gold producers’ cash costs are still well below the current price of gold with the 90th percentile of costs coming in just above $800/ounce: Notice how the gold price tracked the 90th percentile of cash costs very closely for … Continued
Despite the recent sell-off in the mining sector, mining equities’ valuations have not yet reached trough valuations that have coincided with recent market lows: However, a further sell-off over the next 1-2 weeks that brings the sector’s discount to … Continued
The gold miners (GDX) took a beating last week, losing 10% as market participants fled the sector out of fear that a Federal Reserve rate hiking cycle will continue to put downward pressure on precious metals. The technical damage was … Continued
Aside from drawing arrows in Christmas colors the following chart serves to highlight an unmistakable relationship that has existed between Treasury yields and gold during the last year: 30-year US Treasury Bond Yield (top) vs. Gold (bottom) The inverse … Continued
The recent trend in economic data is, to put it nicely, poor. Factory orders, new home sales, corporate profit margins, and various indicators of global growth are all trending lower with many reaching lows not seen since 2009: Factory orders … Continued
The latest Commitments of Traders data from the CFTC (as of market close 10/20/2015) shows that both hedge funds and smaller traders alike have piled into gold & silver futures in recent weeks as commercials (mining companies and bullion banks) … Continued
After a rip roaring start to the month of October which saw gold miners (GDX) gain nearly 30%, we have seen a healthy pullback over the last few days: Both the trajectory and volume of the pullback are indicative … Continued
Sabina Gold & Silver (SBB.TO) has been exhibiting signs of strong accumulation in recent weeks and broke out above a key resistance level last week: SBB.TO (Weekly) After falling hard at the end of 2014 SBB has put in … Continued
Gold has staged an impressive ~$90/oz rally during the last 3 weeks. However, some consolidation between the flat 200-day simple moving average and the round number psychological $1200 level could be in order: The rally has stalled at the … Continued