Friday, 6 September 2019

Gold In The USA, Alaskan Elephant Country: Incrementum - "Gold In The Age Of Eroding Trust".

The sky is falling down on Earth in the Gold market for some people, I do hope that it is not the case for many following our discussions here. Nothing is growing up in the straight line to the skies (apart from debt), all parabolic moves must be consolidated in order to build up the healthy technical picture. Fundamentals are here - "The Paradigm Shifts". It's time to revisit the fundamentals supporting our brave scientific thesis that it is time now to advance "Gold In The USA - Alaskan Elephant Country".

Always make your own research and you will have to pick up the winners. We are talking about the generational Bull Gold market here and the first meaningful correction after breaking out $1,350 resistance zone, taking out physiologically important $1,400 and even assaulting the all crucial $1,500 - for bankers to write those letters to their wealthy clients "The Gold Bull Market Is Back"

After making a double top on the daily chart at $1,555 gold is entering the long-awaited by so many correction. If anything, this waterfall during the abrupt correction is the indication of the bull market. This consolidation will show the strength of this Gold Bull and now even more gold junior names will be joining FED's Gold Party Summer 2019 finally. 

This correction in the gold market means that the master plan to reset the very tired bull in the general equities markets is in the works as we have discussed it. Risk is on - as the annihilation of the global economy is postponed again. As very talented Nicholas Winton is pointing out: CDNX, the home for junior mining in Canada, has barely witnessed the great summer gold rally of 2019 and is only turning up after the multi-year bear market.

This chart demonstrates our thesis that we have seen nothing yet during this Gold Bull better than any thousand words. "Sign of how unloved gold stock rally so far. Gold ETF inflows have been negative every month year to date" in 2019 so far!

Brilliant charts from Northstar can provide you with some maps to navigate your own journey. The most important part driving these ideas: fundamentals for this Gold Bull to stay here for years to come - are brilliantly presented in the Incrementum report: "Gold In The Age Of Eroding Trust." 

Below you can find links to our summer digest providing more information for your DYOR about the development of this Gold Bull and TNR Gold's strategic plan advancing the Shotgun Gold project.

TNR Gold is developing the Shotgun Gold project in the Alaskan elephant country near Donlin Gold mining district. On the links below you can find more information. Barrick Gold received crucial permits to advance Donlin Gold and this new developing mining district in the US can make the promise of "Gold In the USA" providing stable supply feasible again and it can become that solution to "The Gold Mining Reserve Crisis" McKinsey is talking about:
"The Company's strategy with the Shotgun Gold Project is to attract a partnership with one of the major gold mining companies. TNR Gold ("TNR") is actively introducing the project to interested parties," commented Kirill Klip, Executive Chairman of TNR. "We may be at the beginning of a great discovery. There is a clear path on how to move this project forward using the geological and geophysical research currently available to target drilling to expand the resource and form the basis of a preliminary economic analysis. The next step is to acquire a partner that shares our vision and recognizes the growth potential and value to be added to the Shotgun project over time."

Gold And The Last Snowflake Before The Avalanche: Never Fight The FED... and ECB... and BOJ... and SNB.

Chart by Northstar.

Just a few short months ago we all were holding our breath witnessing the end of the brave scientific experiment performed by FED and their fellow visiting Central Bankers from the BIS Club. The surgery was conducted on the live global economy without any anaesthetics. Coming back to life from the last near-death experience after the Great Financial Crisis was very painful for most of us but worth it for a chosen few.

FED was "normalising rates". This normalisation was finished very abruptly last week after just 225 points level with FED cutting 25 basis points for the first time in 11 years and signifying the change in the trend. There is not a lot of room for any policy mistakes now.

"Growth solves a lot of problems", but what to do when it is not there anymore? US Dollar will be the designated victim and gold is already enjoying FED Summer Party 2019. Last week we had a lot of confusion between very well educated people among investors: the FED was cutting rates with markets at all-time highs. But the simple tweet about new tariffs brought crystal clear clarity for the direction sending US Dollar in a knockout, FED on the ropes and Gold pushing $1,450.

It is very important to note that Gold is breaking out from its bear market to the new 6-year highs when the US Dollar is hitting its own highs. With such powerful allies like POTUS, Currency War and race to the bottom will be very dramatic. POTUS needs a lower US Dollar to reignite the stalling economy.

All Central Banks are easing and flooding the financial system with liquidity again. We have discussed in depth the relationship between Negative Real Interest Rates and Gold already. Today I would like to provide you with my thoughts about the big picture and major drivers for the gold market in the form of a summer digest with links to our recent discussions. You can search for that last snowflake which will start the avalanche. I do not know what will be the last one as we have a hale storm already.

Negative Real Interest Rates have brought us to the last all-time high of $1,889.70 in 2011. Now gold will be climbing on the record pile of negative-yielding debt and we are heading to the new all-time high in gold. How high can we go this time? I would recommend the following of the brilliant @Northst18363337 for graphical technical inspirations, his chart is presented opening this post.

On my part, I can only add here that we are in a very good Gold Club company now having Ray Dalio and Judy Shelton among our members. They have their own audience: billionaires and Central Banks are buying gold.

Never fight the FED... and ECB... and BOJ... SNB. The list of most active in the gold market starts with China and Russia and now is wide open up to Turkey, Poland and the Philippines with many others in between. Central Banks are buying gold.

With gold pushing to the new highs, gold miners will start literally "printing the real money" - produce gold with higher margins. Gold exploration and development companies will provide the most upside for the investors who are making their homework right. Gold investing legend Eric Sprott is on the buying spree again. The chart above from Marin Katusa illustrates brilliantly what will be the next catalyst for the valuations of gold companies with the rising price of gold during The Switch. "Rise to the generational average of 0.23% in gold weighting in the S&P 500 could cause gold stocks to skyrocket." I should only add here that some special situations among gold explorations stocks may now provide a truly unique entry point when some motivated sellers among banksters who turned miners are finally fading out of their abrupt disgraceful appearance in the noble mining history. As always, do your own research, read legal disclaimers and consult your qualified financial adviser before investment decisions.

Gold And Snowflakes Before The Avalanche: Something's Broken, Something Unspoken: "After A $354 Billion U.S. Bailout, Germany’s Deutsche Bank Still Has $49 Trillion In Derivatives."

PDAC 2019: TNR Gold Invites Expressions Of Interest For Shotgun Gold Project, Alaska.

Frank Holmes: "The Gold Bulls Just Regained The Upper Hand - Gold And Metal Miners Have Crushed the Market."

Gold In The Alaskan Elephant Country: Kirill Klip On TNR Gold’s Shotgun Gold Project In Alaska.

TNR Gold Shotgun Project: Gold In The Alaskan Elephant Country - Alaska's Donlin Gold Project Receives Crucial Permits.

Gold In The Alaskan Elephant Country. McKinsey: Can The Gold Industry Return To The Golden Age? It’s Time To Dig For A Solution To The Gold Mining Reserve Crisis.

Gold In The Alaskan Elephant Country: TNR Gold Shotgun Gold Presentation April 2019.

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