Juniors PGEN Marines Update (JMU).
May 28, 2016
Junior PGEN Marines Update
- What’s coming for gold? Well, for a sneak preview of the fun this fine Saturday morning, please click here now: http://gracelandjuniors.com/wordpress/wp-content/uploads/2016/05/2016may28bit1.png Any questions about whether I’ve corrected annotated this daily candlesticks bitcoin chart?
- I didn’t think so.
- It’s unknown whether bitcoin is really a proven leading indicator for gold, but what is known is that bitcoin is an anti-debt and anti big government entity.
- Bitcoin is not a replacement for gold, but it “on the team”. Government cycle expert Marty Armstrong believes that gold is essentially an entity that indicates the ebb and flow of the power of government.
- He has outlined a rough 64 year cycle for gold. The cycle peaks and troughs correspond with when trust in government is at its lowest or highest, not with exact bottoms or peaks in the price of the dollar and other fiat against gold.
- Marty believes the current upcycle for gold began in 1998. Independently, I follow what I call the Risk Curve, and I’m particularly interested in how large money managers and economists (especially FOREX, the world’s largest market, where most gold trades are based) view the world’s position on the risk curve.
- I told my Merrill clients to move to risk-off mode in Dec 1999. The sell call was a one-time blast, and the gold buying that followed was via pgen.
- I did that because the most conservative and powerful asset of the risk-on world, the US T-bond, appeared to be fundamentally and technically peaking against the undisputed Queen of risk-off, gold.
- Marty understands that gold needs to be viewed in upcycle or downcycle mode more than in bull market or bear market mode. Gold doesn’t just move against the dollar. It moves against a lot of items, including government itself, and Marty understands that. Not many gurus do.
- I’ve talked about a “bull era” which I’ve told you will just for many decades, and perhaps for centuries. If you think about Marty’s 64 year upcycle for gold beginning in 1998, and my risk-off cycle call of 1999, they are very similar.
- The T-bond is the Gman’s ticket to ride. When Queen Gold essentially cancels his ticket to ride, the world makes gold their government, literally.
- “Therefore, while the 64 year model shows an idealized peak for 1998, it is a turning point rather than a particular high or low. The low in gold at that time sets it up for its ultimate high against government 64 years later.” – Marty Armstrong.
- I’ve predicted that gold’s beating on the T-bond, which began when I issued my “get out of risk on now” call in Dec 1999… I’ve predicted that the beating will go on for many decades.
- The T-bond can rally against the dollar within the overall beating timeframe, and so it has, but for it to stage an advance against gold like it did from 1980 – 2000 would require a huge upcycle in government to begin.
- Heads up: A downcycle in government is about to begin, not an upcycle.
- Against that background, there is the love trade for gold. Indian jewellers are the Shanghai Gold Exchange’s main partners. Your mines are poised to participate and profit in the bull era.
- Let’s review some of the action for those mines now: http://gracelandjuniors.com/wordpress/wp-content/uploads/2016/05/2016may27kgji1.png For your mines to do well, China’s jewellery manufacturers and jewellery generally need to do well.
- Technically, gold jewellery manufacturer Kinross (with over $1 billion in sales annually now) looks good, especially in the face of the $100 gold sell-off.
- Note the pattern of higher lows in play. I have some technical concern in a minor way, with the RSI-price non-confirmation, and the wedging action, but keep in mind that it just staged a four bagger advance!
- Please click here now: http://gracelandjuniors.com/wordpress/wp-content/uploads/2016/05/2016may27chow1.png That’s China’s largest gold jewellery retailer, Chow Tai Fook.
- It does have the same pattern of higher lows that Kinross has, but it has not “blasted higher”. Chow does sell jewellery online, as does Kinross, but Chow had a huge store expansion program go awry.
- Also, Kinross may now have larger dealings with Indian jewellers, who have already talked about moving their operations to China anyways, to escape from de facto Prime Minister Arun Jaitley’s attacks on them.
- Please click here now: http://gracelandjuniors.com/wordpress/wp-content/uploads/2016/05/2016may278j1.png That’s the daily GDXJ chart.
- Gridtime! Goldlion was a buyer of a number of junior miners yesterday, as well as gold, but he cautions you not to confuse bankster short covering on the CRIMEX with some sort of “lows are in, and now we go vertical!” fantasy. As I’ve mentioned to the GU crew, seasonality has been distorted for the past 3 years by two horrible monsoon seasons and actions of the Indian mafia in conjunction with Western banksters. Gold seasonally tends to be pretty strong from roughly mid-July to February. Indian Diwali buying tends to begin in July and while it tapers off towards year-end, Chinese New Year buying arrives. So, what Goldlion is telling you is that while the banksters (and he and I) are buyers now, both of bullion and gold stocks, unless there is big action with the Brexit or a shock rate hike that bombs the Dow, gold rallies will occur, but a serious move much higher is not likely to begin for another 2 months or so. Of course, that can be stated another way, which is that the next big move higher in gold is likely to begin for you and your mines, in just 8 weeks from now! In tomorrow’s update I’ll cover more of your mines specifically. Golden Tag is doing a private placement here in the 5 cent a share zone. Most of the bought deals occurred right as the gold stocks peaked, which was great for the directors of the companies that issued themselves bonuses and salary hikes from the deals, but Golden Tag’s deal is more shareholder oriented, coming after a decline. I’ll talk more about the issue of bought deals in tomorrow’s update. Let’s hit the gridlines now. I’ll see you there!
Kirk Jr. on the gold explorers bridge, out!