Saturday, 8 November 2014

Gold and Commodities: What Is next - Major Reversal Or Another Bloodbath?



  We had a small party this Friday with Gold short covering in a full action. Will this Reversal hold to its promise now? All hope was lost for the Gold bugs and all miners were obliterated in capitulation last week. This is when the bottoms are formed. No buyers and everybody who can has already sold. Last few weeks we had no bids in any junior miners and if any volume came in it was sold at any price. It is The Capitulation. I have seen it before and not a lot of people out of our industry can believe it, but we have hit even the lower low than in the middle of financial Panic in 2008 in our sector!
  Nobody knows the future and I am not a trader any more. I have to stick with my companies moving forward, building up the assets even when nobody cares any more. But when the turn-around comes the move from insanity Low to another side is the most dramatic of all as well. You just have to stay in one piece before it. Have we reached this level?
  The chart above could be the answer. Everybody is Bullish on US Dollar and Markets. Everybody is Bearish on Gold and Miners. Sentiments are at the total extremes.  Fundamentals are supporting much higher Gold, Silver and Copper prices. The most important: smart money - Industry Insiders are buying the best assets now.
  Please notice the fist Candle when USD started this rally in May 2014, the move was dramatic and uninterrupted. Now we have the Reversal Candle just formed. What will bring the downward pressure on US Dollar now? I do not know, but Nothing grows up into the Sky. Strong US Dollar means that Deflation can become the reality. Who will risk it now? We will see very soon and the next week will be very important. The real short squeeze has not even started yet. 
  Alan Greenspan talking about Gold as Premier Currency, Charles Nenner calling the cycle bottom and China buying record amount of Gold could be the signs of the tide coming up now to the gold market.
  You can find my previous posts links to showcase my Big Picture view on this blog and I will remind you about our assets in International Lithium and TNR Gold, as usual.


TNR Gold Los Azules Copper M&A: Barrick In Talks With Chinese Miner Zijin On Pascua-Lama Investment.

  

  "Argentina comes to the forefront of mining M&A activity with this report about Barrick's talks with another Chinese miner. Los Azules copper is located in the same province San Juan in Argentina and will benefit from any potential development at Pascua Lama. China is very active in Argentina. Trade and military cooperation agreements were signed and currency swap line is in place now. Recent change to the investment rules will allow more investment into the very lucrative shale oil sector in the country. Next year elections should be changing the investment climate for the better as well continuing this trend. Read more."


International Lithium Corp. and Ganfeng Lithium Finalize Joint Venture on Mariana Lithium Brine Project, Argentina.





China Rolls Out Welcome Mat for Electric Cars: Ganfeng Lithium Partners with International Lithium in Argentina and Ireland.



“Ganfeng has an army of lithium-focused geologists who looked at projects in every corner of the planet,” stated ILC president Kirill Klip in an exclusive interview, “but they chose ILC to do business with. This is a big de-risking factor for our current and future shareholders. The Chinese do their homework. They believe in the geology of our assets, our management and our development strategy.” Read more.



International Lithium And Ganfeng Lithium: Avalonia Lithium Project, Ireland.