Tuesday, 4 February 2020

Streamers are the backbone of a miner portfolio

Seasoned investors in mining stocks have seen all of what a commodity cycle brings: fortune but above all hardship. Mining is a 'wasting asset' and anyone expecting 'leverage' on precious metal prices must have realized that such is not uncommon on any upswing of metal prices, but rather general on any decline.

Tuesday, 21 January 2020

Vancouver resource investment conference; VRIC-2020

This article reports on the Vancouver Resource Investment Conference (VRIC) and on the preceding Metals Investor Forum. In this first section, professional mining investor David Erfle offers his insights on the current junior gold sector from the VRIC.

Friday, 17 January 2020

Palladium scramble

Guess there is no better way to call this sudden price spike of palladium, the catalytic converter metal by excellence.

Tuesday, 31 December 2019

Precious metal and miner 2019 overview and outlook for 2020

Best wishes for 2020

This blog article is monitoring the trends over a 6 and over a 12 months time horizon. Therefore the graphs posted here are showing daily observations year-to-date. For the very long term reference frame, see the articles referenced at the bottom.

Saturday, 30 November 2019

How raising capital reduces market capitalization

Highly counter-intuitive, yet that 's exactly what happens more than once. We shed our light at the latest capital raise of McEwen Mining, closed little over a week ago.

Saturday, 26 October 2019

Palladium at almost twice the price of Platinum

By mid October it looked as if Palladium was rallying to twice the price of Platinum, with the price ratio hitting 1.974 at the Comex close on 16 Oct. Less than 2% to go ... Eventually it didn't happen.

Saturday, 28 September 2019

New linear regression between the HUI miners index and the Gold Price

Price trends of individual miners are correlated with the gold price. On an aggregated level, a linear regression between the HUI gold miners index and gold may for hold several years. Presently, an emerging linear regression is revealed, fundamentally different from what was observed before.

Monday, 16 September 2019

HUI to Gold Regression: the 2008-10 recovery

What happened to stocks during the 2008 financial crisis needs little explanation. Whereas the broad stock market kept meandering along the lows till March 2009, gold recovered very quickly.
US Government bailouts such as TARP (Troubled Assets Relieve Program) abruptly doubled the money supply. The FED medicine to ease the pain in the broad economy undermined faith in the dollar and raised fear for an escalating inflation.

Saturday, 31 August 2019

HUI to Gold regression revisited

During the gold rally which took us from below $280/Oz by end 2001 to $1000 in March 2008, we were repeatedly told that the HUI miners index fluctuated around half of the price of gold (in USD). It was a trading rule which wasn't really questioned in depth and it seemed to hold for several years.