November 27, 2018

1. The next Fed meet (and rate hike) is December 19, and just weeks after that, U.S. president Donald “The Golden Trumpster” Trump may be set to unleash a new round of inflationary and growth-crushing tariffs.
2. It’s not easy (to put it mildly) for American business to create new factories to replace the products made by highly productive Chinese factories.
3. So, for 2019, most top U.S. bank economists and money managers are slashing their U.S. GDP growth forecasts and raising their inflation forecasts.
4. Morgan Stanley’s global stock market weightings are legendary in the institutional world, and they just moved America to a horrifying “underweight” ranking for their global stock market positioning.
5. Most big-name economists in America see U.S. GDP growth sliding to sub 2% by mid 2019 while inflation stages an “upside surprise”.
6. Please click here now. Goldman’s top economists clearly have the same view I do.
7. What’s particularly interesting about this forecast is that their top economist is also forecasting four rate hikes from the Fed in 2019.
8. Four hikes would put enormous pressure on the U.S. government’s ability to finance its outrageous debt. It can be argued that these hikes are the Fed’s response to the insane growth of that debt.
9. Whether there are two rate hikes as Morgan Stanley predicts, three as I predict, or four as Goldman predicts, the growth of U.S. government debt is clearly going to put vastly more pressure on the US government bond market (and the corporate bond market) in 2019 than it already has in 2018.
10. In the matter of “tax loss” season, I realize that many gold market investors are nervous that gold stocks will decline into December like they have in recent years.
11. Please click here now. Double-click to enlarge.  I don’t see anything to be concerned about on this daily gold chart.
12. Please click here now. Double-click to enlarge. I don’t see anything on this GDX chart to be concerned about either.
13. GDX and most senior gold stocks are tracking the gold price quite nicely. Gold supply is limited, and top analysts at Goldman and other firms are predicting “Commodities will soar.”
14. Also, 2019 is an election year in India. Morgan Stanley just raised India to “overweight” in its global stock market weightings, as it moved America to that somewhat pathetic underweight ranking.  While GDP growth nosedives to potentially under 2% in America, it should be at least 7% in India for 2019, and I’m predicting it could hit 8%.  GDP growth and upside action in the Indian stock market is good news for gold.  The bottom line:
15. Gold demand in India is rock solid, as it is in China. As commodities begin to rise, Goldman will lead institutional investors into more commodities investing.  Gold, GDX, GDXJ, SIL, and related stocks should have a great year.
16. Please click here now. Double-click to enlarge this CDNX venture index chart.
17. Whether it’s MACD, moving averages, RSI, or a host of other technical indicators, gold and GDX look solid. Unfortunately, that’s not the case with CDNX.
18. Please click here now. That’s a look at the key buy (green) and sell (gold) signals for the high risk venture sector that I cover in my gracelandjuniors.com newsletter.
19. The CDNX and related stocks are susceptible to tax loss selling. Penny stocks are high risk (but also high potential reward) and I don’t expect to get a major buy signal for the CDNX index until gold trades at $1420 on a weekly closing basis.
20. Please click here now. Double-click to enlarge what just may be the world’s most spectacular price chart!
21. Barrick is chaired by former Goldman president John Thornton. Thornton has aggressively bought stock in the open market and has categorically stated that he is not selling a single one of his shares for short term gain.
22. Clearly, Thornton is not playing for peanuts. With the majestic bull wedge and inverse head and shoulders bottom in play, it’s obvious that this man is poised to see himself and all Barrick shareholders gain enormous wealth in what I call the “bull era”.
23. Thornton was the driving force of the Barrick-Rangold merger. That merger was approved by a stunning 95% of shareholders of both companies.  The Chinese government has awarded him the government’s highest award for a non-Chinese person.  Of foreigners who have contributed significantly to Chinese growth, the Chinese government views John Thornton as one of the fifteen most important people in the world.
24. Barrick shareholders are not just in good hands. They are in spectacular hands!  A breakout from the bull wedge with a Friday close over $14 is a rocket launch signal for the entire gold mining sector.  Rather than wasting time worrying about a tax loss season that is going the way of the dodo bird, I suggest that gold stock investors should be positioning themselves, as Goldman clearly is, for the rocket ride of a lifetime, in a fabulous gold bull era!

stewart@gracelandupdates.com

stewart@gracelandjuniors.com

stewart@guswinger.com

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Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form.  Giving clarity of each point and saving valuable reading time.

Risks, Disclaimers, Legal

Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:  Are You Prepared?

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November 20, 2018

1. After breaking upside from a double bottom pattern, gold continues its solid price action. More good times lie directly ahead for precious metals investors, because Chinese New Year buy season begins very soon.
2. Please click here now. Double-click to enlarge. Note the solid position of my key 14,7,7 Stochastics indicator on this daily gold chart.
3. The U.S. stock market’s “traditional end of the year rally” is turning into a veritable turkey shoot for the bears. Gold seems immune to the action, suggesting that unseen inflationary pressures may be larger than most investors realize.
4. Please click here now. Double-click to enlarge. Investors need to understand that as the business cycle matures, volatility in the stock market rises.
5. Any decline could be the start of a bear market. A “buy the dip” approach to the market becomes a death trap as corporate earnings peak, rates rise, GDP peaks, and inflation gains attention.
6. The bottom line: U.S. stock market bears crack the whip, and late cycle price chasers take a horrific trip!
7. Please click here now. Morgan Stanley’s top currency analysts believe the dollar has peaked against most of the currencies it recently rallied against. Hedge fund “superman” Ray Dalio is talking about a 30% dollar devaluation. He proposes monetizing the U.S. government’s huge debt as a “final solution.”
8.  I’ve suggested a “Plaza Accord 2.0” is going to happen. I believe U.S. President Trump will lead preliminary discussions about it from behind closed doors at the upcoming G20 meeting.
9. Please click here now.  As empires peak and then die, the peak usually comes with the nation enveloped in a state of “war worship.”
10.  Massive amounts of money are borrowed by the government to fund the madness, but even that isn’t so enough, so more is extorted via “taxes” from struggling citizens.     
11. In the case of America, more than 25% of the government’s gargantuan debt is easily attributable to war worship.
12. The final nail the U.S. government’s debt coffin likely came when instead of cutting the capital gains tax to zero and beginning a Treasury monthly gold buy program, the government decided to impose tariff taxes to “boost growth and make trade fair.”
13. Import tariffs are the best form of taxation, but only when used instead of income and capital gains taxation.  In this case, tariffs are layered on top of income and capital gains taxes. The bottom line: Instead of becoming a super-sized version of Switzerland, America risks becoming a stagflationary wasteland.
14. Ray Dalio speaks of “other currencies” rising to prominence as the dollar fades. He says he doesn’t want to be specific about it though. Is that because gold is one of those currencies?
15. The U.S. stock market has begun collapsing, inflation is on the move, and junior miners should be looking good. Are they?
16. For the answer to that question, please click here now. Double-click to enlarge. Most of the world’s smallest resource companies are in the Canadian CDNX index.
17. It’s the best indication of the overall health of the global junior mining and junior energy sectors. I highlight key buy and sell action points on my www.gracelandjuniors.com website for many of the CDNX component stocks. This is a look at the signals for the index itself.
18. There’s no significant buy signal yet, but in early 2019 as inflation likely moves higher and U.S. GDP declines, a “America, it’s time to usher in the new year with a new and not so exciting era of substantial stagflation!” welcome mat will be rolled out. 
19. I expect to get a major buy signal for the entire junior mining sector as that happens.
20. Please click here now. Double-click to enlarge. I’m impressed with the price action of GDX on this daily chart.
21. Note how quickly GDX has surged back above the neckline of that pesky H&S top pattern after breaking down. That’s positive action and now there’s a bull wedge in play too!
22.  Please click here now. Double-click to enlarge this long term GDX “Trigger Time” chart.
23. Investors also need to watch the price of Barrick (ABX-NYSE) closely. If it can close above $14.00 on Friday of this week, that will be a major buy signal, and Barrick is my most important lead indicator for GDX and the entire senior gold stocks sector.
24.  All gold stock investor eyes need to be laser-focused on the $22.50 zone for GDX, because if GDX can stage two consecutive Friday closes above that price, I will have a massive buy signal in play!

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form.  Giving clarity of each point and saving valuable reading time.

Risks, Disclaimers, Legal

Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:  Are You Prepared?

Major miners need to boost their reserves, and one way for them to do that is to invest in junior mining exploration corporations to find the next great deposit.

Here is a list of the companies that Barrick Gold (TSX-V: ABX) has invested in.

1) ATAC Resources (TSX-V: ATC)

ATAC is a Yukon-based exploration company focused on developing Canada’s only known Carlin-type gold district alongside Barrick at its Rackla Gold Property. ATAC and Barrick have partnered to explore the Rackla Gold Property’s Orion Project, with Barrick having the option to earn up to a 70% interest in Orion by spending $55 million in exploration.

http://www.atacresources.com/

2) Alicanto Minerals (ASX: AQI)

Alicanto is an ASX-listed mineral exploration Company focused on the exploration and development of a portfolio of gold projects in the prospective geological province of the Guiana Shield in South America.

Its main project, the Arakaka Gold Project, lies in an area that has been the source of more the 1Moz of alluvial and saprolite gold production, with a 100-year mining history. 

The project covers an area of over 300km2 which is 100% held by Alicanto Minerals Ltd. and fully funded by Barrick Gold Corp. earning a 65% interest in the project with a US$10m funding commitment over 4 years from 1 March 2016.

http://www.alicantominerals.com.au

3) Royal Road Minerals (TSX-V: RYR)

Royal Road Minerals was founded in 2010 by the original founders and shareholders of Lydian International Ltd. Whilst at Lydian, the team discovered, financed and developed the +5 million oz Amulsar Gold deposit in Armenia.

Barrick agreed to purchase 9,875,876 ordinary shares at a purchase price of 16 cents per share for for $5-million.   Royal Roads Minerals is exploring for Copper and Gold deposits in Central and South America.    

https://www.royalroadminerals.com/

4) Midas Gold (TSX-V: MAX)

Midas Gold Corp., through its wholly owned subsidiaries, is focused on the exploration and, if warranted, site restoration and development of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.  

Midas Gold Corp. entered into an agreement with Barrick Gold Corp., whereby Barrick will purchase 46,551,731 common shares of Midas Gold for $38,065,907 (U.S.). The investment will result in Barrick owning 19.9 per cent of the issued and outstanding shares in Midas Gold.

Barrick’s investment supports Midas Gold’s continued efforts to permit the Stibnite gold project so that Midas Gold can build and operate a world-class mining operation that addresses legacy environmental impacts and generate economic benefits to the local community.

https://www.midasgoldcorp.com/