Saturday, 5 October 2019

GEM Royalty TNR Gold And Energy rEVolution: "Generalist Investors Are Looking To Get Into Mining Again".

Chart by Holger Zschaepitz @Schuidensuehner.

The market is acting bipolar these days and smashing into the Bolinger bands close to all-time highs when FED and other Central Banks are easing and acting like we are already in GFC 2.0 after the crash. QE is on, whatever you call it: floodgates are wide open and Repo scare reversed any attempts to reduce the money supply and "normalise rates" - liquidity is being pumped even before the crash this time.

Chart by Holger Zschaepitz @Schuidensuehner.

And let's be brutally honest, how do we really know that AI is not running all this mad circus with clones and deep fakes already? Who is really tweeting and feeding all those algos? Passive investments ETF bomb has already surpassed active investment management, just wait for all that silicon AI herd try to get out in the market from the same things at the same time. I must confess that I know nothing about AR and what to do in the case of nuclear winter, in all other cases everything will boil down to the basics: hungry people, tanks and ATMs.

Nobody really wants a civil war, hungry people and tanks on the streets. Hong Kong which used to be filled with beautiful young energy of change and opportunities is the best example of how things can escalate and deteriorate very quickly.  Angels of Notre Dame in Paris seems to have fled that beautiful city as well.

My very brave scientific thesis is still the same: the amount of accumulated debt in the global financial system is unsustainable, it will never be repaid and "rolled over debt is not a loss." Now we have more confirmations that all BIS Club of Central Bankers is acting in unison to bring their dark magic and squeeze as much life energy from the future into the troubling reality as they can.

People must be fed in general, tanks must be ready, but not on the streets and ATMs must be giving freshly minted... sorry printed cash out in order to keep social media concerned citizens continue to contribute to the society and pay interest on their debts. The huge build-up in debt and the disbalances accumulated during the era of a global village is preventing the normal economic cycle of wash, rinse, repeat from functioning as before.

Recessions are not allowed anymore. Trade Wars are only complicating this situation. All governments are trying to prolong the borrowed prosperity and debasing their currency. When everybody is racing to the ground with FIAT money they are debasing against the real money - which is Gold. We have the recalibration of the global financial system in place and gold price which is consolidating now at $1,500 and not at $500 is signifying this very important outcome. Another important note is that during recent market selloff gold was finally acting like The Ultimate Hedge and safe heaven and bitcoin failed to provide these qualities.

Negative rates are tearing apart the fabric of the financial universe - time doesn't matter anymore. There is no value of time when it comes to fake FIAT money today. You are being charged in Europe to hold your money in the bank already. Governments and even corporations are borrowing money promising to repay less. Gold which has been mocked for years that it does not produce any yield is shining very bright climbing on the pile of negative-yielding debt now. Another important fact to note here is that this young Gold Bull is very strong and was swimming against the tide of rising US Dollar.

As we have discussed, the strong US Dollar is signifying the global margin call, the economy is chocking up on the strength of USD. POTUS needs the dollar to go down and fast. He is getting his rate cuts already and expansion of money supply is back. This global pump of liquidity is finding its way now into the Gold market first and must spill into the commodity markets next. Next week negotiations witch China will be very important. Even if The Deal will not be made the simple absence of trade war escalation can bring the fireworks to Copper and other metals.

This is where our brave scientific thesis is presented again: I believe that this recalibration of the financial system and global liquidity pump into the election cycle will keep Gold closer to $1,500 than to $500 and all other metals like Copper will have to catch up.

Here lower prices are the best cure from low prices: nobody will be building giant copper mines with prices below $3/lb to address the coming "severe deficit" as Goldman Sachs calls it. We have the Perfect Storm coming in Gold and Copper: dramatically increasing demand and restricted supply.

I will not waste a lot of our time daydreaming that there is actually a way to avoid the escalations of trade, cold and currency wars towards the old fashioned hot war. And that socialism and redistribution of everything is not the solution and never work as well. Electrification of our energy and transportation systems, dramatically reduced military spending and getting off the oil needle can start the electric motors of economic growth again, but it requires very wise leaders.

Even without this life-changing mental breakthrough on part of our fearless leaders, we have the Energy rEVolution ongoing and now you can read about electric cars in daily headlines. Consumers are voting with their wallets and refusing to buy "Clean DIEsel" anymore. As you already know, this rEVolution will require a lot of Copper and Lithium.

TNR Gold is plugged into this Energy rEVolution and we are building The Green Energy Metals Royalty and Gold Company. Our Shotgun Gold project is enjoying more industry spotlight these days. Mining legends like Rob McEwen and Eric Sprott are partnering with Electrum Group in the new mining venture in the quest for the next Donlin Gold in Alaska. Rob McEwen is delivering solid results while advancing giant Los Azules Copper and Ganfeng Lithium is talking about Feasibility Study being produced on Mariana Lithium this year.

Unloved junior mining companies can provide the most upside in case if our general theory about monetary recalibration discussed above is correct and will be further confirmed by money flows into the sector. Article from Jim Wyckoff for Kitco is presenting the observation of this very important for our business trend: "generalist investors are looking to get into mining again".

Chart by Nicholas Winton @HedgehogTrader.

Smart money like Eric Sprott is buying into the best mining opportunities already and those investors who can make their homework right can enjoy the spectacular results during this cycle. Always do your own research and you will have to pick up the winners. Below you can find more information about the positioning of GEM Royalty TNR Gold with our assets in Gold, Copper and Lithium for the coming liquidity tide during the increased allocations to the real assets in investors portfolios.

"Gold Exploration Vital For Future Supply": Gold In The USA - Alaskan Elephant Country.

News about Electrum Group partnering in the new venture with gold mining legends Rob McEwen and Eric Sprott for exploration in Alaska will ignite the new wave of interest to the juniors operating in Alaska. Alaska jumped to the 5th place among safe mining jurisdictions and giant 39 Moz Donlin Gold project is getting more and more attention. Electrum Group is the major shareholder of Nova Gold which is developing Donlin Gold in JV with Barrick Gold.

With gold prices reaching new highs this year some mining analysts are starting to apply the old metrics to value "gold in the ground" when comparing juniors and their projects. Nova Gold was trading as high as $2.4B reflecting its 50% stake in Donlin Gold. It gives more than $120 valuation per oz in the ground. All projects are different, but previous Gold Bull market valuations started at $20 per oz of the inferred resources - the very initial level of resources. New mining deals will give us a better sense of the valuations. Eric Sprott and Rob McEwen will make sure that Alaska is shining bright on the radars of investors now. Increased gold prices are making the great state of Alaska as one of the most attractive in the industry: "leverage in the place where you can keep the rewards". And their own gold price projections can bring real fireworks to the exploration opportunities. As always do your own research and you will have to pick up the winners.

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."

Red Metal Goes Green During Energy rEVolution: Growing EV Infrastructure To Drive Copper Demand For Decades Says Wood Mackenzie.

Oil Is Still Big, Actually, It's Very Big. But Thanks To rEVolution Energy Security Is Not Only About Oil Anymore.


Generalist Investors Are Looking To Get Into Mining Again - Cambridge House

"(Kitco News) - A 32% rally in major gold producers is hard to ignore and general retail investors are finally paying attention, said Steve Davidson, vice president of sales at Cambridge House. 
Cambridge House is hosting the Silver and Gold Summit this October in San Francisco. 
Davidson said the message at this year’s Silver and Gold Summit is relatively simple: “Now is the time for gold and silver.”
He added that in the seven years that he has been organizing resource investments summits he has never see so much interest from generalist investors.

“What gets retail investors excited is seeing the potential gains they can make,” he said. “This is now the time to take advantage of the new bull market in gold and silver. This is the conference where you will get the first-hand information to make informed investment decisions. We are seeing interest from major investors who have never been involved in the resource sector.”

Davidson explained that not only does the conference have some of the best speakers in the resource sector, but investors will be able to organize one-on-one meetings with mining executives.

“As an investor, you will get to meet the teams that are going to be using your investment,” he said. “I believe that we are only at the start of a new strong resource cycle.”

Although the mining sector has seen a big move this year, many analysts see the potential for a long-term uptrend as gold and silver prices continue to be supported by loose monetary policy and financial market uncertainty.

“We continue to see no signs of rate hikes on the horizon over the next several years, and historically have seen gold continue on an upward trajectory beyond the last rate cut,” mining analysts

The Silver and Gold Summit will be held at the Hyatt Regency Hotel in San Francisco. The setting is appropriate given the city’s historical connection to gold mining. San Francisco was the launch pad during the 1848 California gold rush.

“Because of San Francisco’s history, it is one of the few major cities in America that really understand the mining and resource sector,” said Davidson. “Money is finally being made in the resource sector and a lot of investors are trying to find a way to get in; well, this conference will help.’
Some of the speakers at this year’s conference include Rick Rule, president, and CEO of Sprott US Holdings, Inc., Amir Adnani, founder and Chairman of GoldMining Inc. and founder of Uranium Energy Corp and Frank Holmes, CEO and chief investment officer of U.S. Global Investors.

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