Who's Missing the Rally In Gold and Silver Stocks?

As most people are fixated on the price of gold, the miners have been moving. Some of them like McEwen mining have been moving since last July!

Let's look at some of the gains people have already missed in this fledgling market.

Disclosure: I own these stocks except for IAMGOLD. I am not paid to promote these stocks.

IAM: Up 74% from lows.
Impact Silver: Up 97% from lows.
McEwen: Up 126% from lows.
Yamana: Up 72.9% from lows.

It will be interesting to see how long it takes the broader market to figure this out.

Monday I had a day that made my head spin. Many more are coming. Be brave and jump into the cold water!

Gold Miner Stealth Rally

It is my firm belief that too many are watching the price of gold as the miners are telling us that there is a (possibly) new bull market just beginning.

The miners rolled over in 2011 before the price of silver and gold started turning and it looks like the reverse is happening now.

People would rather own gold and silver physically in bear corrections and prefer mining stocks in bulls.

Read the following from Adam Hamilton over at 321gold.com: 

Gold, Miners Rocket Higher 

Feb 05, 2016 

Gold and its miners' stocks are rocketing higher as speculators and investors alike return to this left-for-dead sector. This sudden deluge of capital inflows has crowned gold stocks the best-performing sector of this young new year by far, shocking traders. And this stunning reversal of fortunes in both the metal and the companies producing it is only starting, so it's exceedingly important to understand what's going on. 

More here

Tanzania Joins Other Commodity Usurpers

The Tanzanian government is making a classic folly of a move. When you start seizing the assets of international companies guess what follows? Unemployment, capital outflows, no new investment funds, and other very unpleasant things. Just ask Evo Morales of Bolivia.

Congrats Tanzania. You have joined hands with other tyrannical, banana republics who have no real investment or governing sophistication. Jim Sinclair, whom I respect, may have made a grave error in trusting these people after the investors money has already been spent developing these mines.

I own this stock so this blog post does me no favors.

Tanzanian Royalty's Subsidiary Tanzam Provides Notice of Force Majeure

"This notice of Force Majeure is based upon the invasion and forced occupation by several hundred illegal miners of our mining properties including the South Pit and other areas within the Buckreef site, thereby endangering our team and preventing Tanzam from continuing its mining operations. This continuing intrusion into our mines now at night is well known to the government authorities, as are the active illegal mining operations taking place right on our border...."

"The Deputy Minister requested a meeting onsite in early January. During the meeting cell phones and note books were forbidden by the Deputy Minister's staff, but the Deputy Minister's speech was videotaped. We have the master of this videotape. This same Deputy Minister made many other requests to be accomplished within 14 days that were not contractual obligations or required by mining law. The Company was threatened with extreme sanctions without due process of law if the demands were not met."

"We have invested USD$71,000,000 in Tanzania and been a 99% Tanzanian company since our entry. We expect to bring these matters to a successful resolution, as these developments have been initiated by the new government apparently not familiar with the international contracts that exist between companies and their country."

 

So, said another way, the Tanzanians elected a government who have no idea what they are doing and are quite willing to strong arm and steal from international investors. That never ends well for a country who harms themselves in the international capital markets.

 

The Silver Rig - "Fixed"

Indeed, fixed.

The theft in the silver markets persists. When will we be delivered from these mafiosos?

From Zerohege (of which I am still banned):

Silver Market In Disarray After Benchmark Price Fix Manipulation

The LBMA Silver Price – the crucial daily benchmark used by producers and traders around the world to settle silver products and derivatives contracts – was set at $13.58 per ounce.

At the time of the auction, which begins at 12 noon London time, the spot price was at $14.42 per ounce while the futures price on the CME was at $14.415, leaving a number of market participants extremely confused as to what has happened.

“Unfortunately, it is not [a mistake],” Ole Hansen, head of commodity strategy for Saxo Bank, told FastMarkets. “This could be the end of the fix. It took 14 minutes to find a fix – they obviously found a fix way off of the market.”

Simulacra's Light

Hidden in the wispy shadows of night 
a voice calls out, the antithesis of light.

"Come to me, come to me" it whispers,
"Do not drink of that cup".
"It is with me tonight, that you should sup."

"I can give you food and wine and all you desire"
and the man ran to the voice amongst the funeral pyres.

And swallowing down every last morsel,
He found his hunger grew ever the moreso.

For he had dined not on the truth of light,
But instead had wandered into a terrible plight!

The food had no substance and the wine naught but air,
When he called out to the voice there was no one there.

Frantically he looked and what did he see?
The ethereal, the unreal, simulacra's fantasy.

Though what we see may not be and the din harsh to the ear,
The bright light of truth will burn simulacra's thin veneer.

Saudi's Selling Out?

One has to wonder (that one would be me) if the Saudi's don't see the potential end of their "kingdom" looming on the horizon.

Are the Saudi's gutting the value of their country's resources right before they flee? How many IPO's have we seen where the founders sell out leaving others with a big bag of stink.

How about IPO, make trillions and then let the shareholders discover that Ghawar is about to go into terminal decline? We'll see.

From Zerohedge:

As The Saudi Economy Implodes, A Fascinating Solution Emerges: The Aramco IPO

Earlier today we reported that when it comes to Saudi Arabia, things are going from bad to abysmal, with the market is clearly aware of it. Saudi riyal forwards hit their highest level in almost two decades as oil plummeted: twelve-month forward contracts for the riyal climbed 260 points, and set for the steepest close since December 1996 on growing speculation the world’s biggest oil exporter may allow its currency to slide against the dollar for the first time since 1986 (incidentally, Bank of America's "Number One Black Swan Event For The Global Oil Market In 2016").

More....

Gold Moves Higher This Year

Of course smart money has been positioning themselves for years by taking physical gold out of the market. This game has been played for more than 4,000 years. A bold claim to be sure but I'll be writing more about it in the near future.

Do not delay, the trap is nearly sprung upon the plebes.

From Zerohedge:

A Disturbing Warning From UBS: "Buy Gold" Because A 30% Bear Market Is Coming

As Wall Street axioms (Santa rally, January effect, as goes January etc.) are rapidly falling by the wayside at the start of 2016, following a chaotic but return-less 2015, the UBS analysts who correctly forecast last year's volatility are out with their forecast for 2016. It's simple - Sell Stocks, Buy Gold.
UBS Technical Analysts Michael Riesner and Marc Müller warn the seven-year cycle in equities is rolling over.