Juniors PGEN Marines Update (JMU).
Mar 31- Apr 1, 2016
Junior PGEN Marines Update
- “The few. The proud. The backed by 2.7 billion Chinidians junior pgen marines!”
- Since repetition of basics builds excellence, and wealth, I thought that phase bears repeating. What do YOU think?
- I like steaks and cakes. Gold mine steaks, and uranium yellow cakes.
- Let’s taste some cake. Please click here now: http://gracelandjuniors.com/wordpress/wp-content/uploads/2016/03/2016mar31u1.png That’s the daily uranium fund chart.
- There’s a bit of a violent parabolic downtrend suddenly in play. Note the arrows and big volume bar I showed you back in late December.
- That “should” have been an upside game changer. Instead, it all melted away…. Or… did it?
- Please click here now: http://gracelandjuniors.com/wordpress/wp-content/uploads/2016/03/2016mar31ura1.png That’s the daily URA uranium stocks fund chart.
- While uranium has been tanking, uranium stocks have soared!
- Part of the reason for that is that uranium isn’t a commodity index holding in most indexes, but uranium stocks are viewed as commodity stocks by most fund managers. As they believe an upcycle is coming for the entire commodity sector, they are buying uranium stocks.
- Also, Cameco can be affected by the general stock market, and if it rises, fund managers will buy the other uranium stocks too.
- How does gold revaluation (reval) work? Well, that depends on the country/situation where it is applied. How does it affect junior gold stocks? That also depends on the situation that it is applied to, and by whom it is applied.
- In the case of China, with huge FOREX reserves, some debt, a massive labour force, limited PBOC reserves, modest GDP growth… gold reval takes the form I told you it would take there; modest monthly purchases of gold, consistently, for a long time.
- Reval there isn’t designed to fix anything. It’s a strengthening tool, to strengthen the nation’s fiat, and make it more liquid around the world.
- In the case of America, or a potential world government, where there already is substantial holdings of gold in the treasury, gold reval is essentially a Fed tool that is used to change the nation’s balance sheet from highly negative to neutral.
- The mechanics of an American reval, in the current environment, would take the form of a joint Fed/Treasury operation.
- The Treasury would make a public statement that, with no specified time limit, the Treasury will buy anyone’s gold (meaning any entity, person, corporation, or government) at a certain price.
- Let’s say gold is about $1200 now (it is). Let’s say the Treasury decides on a reval price of $2000. What happens is the Treasury simply says, “We will purchase anyone’s gold in the world who wants to sell to us, at $2000 an ounce”.
- The Fed agrees to print any money the Treasury needs to get that job done. In the case of a poor nation, reval can’t work, because nobody wants to buy that nation’s fiat at the price that nation’s treasury offers.
- In the case of an American reval announced at $2000, a reval causes FOREX traders, futures traders, bullion traders, and OTC gold market traders to immediately adjust their bid/ask price for gold to approx $2000.
- If the Treasury announces the reval, it causes a gap in pricing. Gold is $1230 one moment, and $2000 the next, in that example.
- If you are caught short gold as that happens, you are toast, to put it mildly.
- Gridtime! Please click here now: http://gracelandjuniors.com/wordpress/wp-content/uploads/2016/04/2016apr1chow1.png That’s the daily Chow Tai Fook chart. To turn what has been a barn burner mining stock rally into something vastly bigger, Chinese jeweller Chow Tai Fook needs to start marching higher, adding stores, and growing revenues. I think that’s coming, and the downtrend line has been taken out nicely. A move above the highs of the blue triangle would be a 2nd indication that this is starting to occur. Let’s hit all the junior gold stock gridlines now. I’ll see you there!
Kirk Jr. on the gold explorers bridge, out!