A Gold RUSH — Finally

The Calandra Report / By
Xtra-Gold | Interest Rates | Redemption | Reciprocating Blue Chips | Uranium

One of our The Calandra Report/TCR subscribers, Momin Khan in New Hampshire, a financial adviser, tells me he saw a study that showed gold’s best days were on Fridays.

Thus, on days such as today, I get a “Happy Gold Friday” from Momin, who has been in the gold camp about as long as I have, which is, seemingly, forever.

The Friday performance thing probably makes sense in a geopolitical context. That is, wars, crises, fiscal meltdowns do not take holidays.

Holding gold, or silver, or platinum, palladium, on a weekend, though, might be mitigated by traders who wear short-term lenses and want no portfolio risk for two, or bank-holiday three days.

This report, on a Gold Rush Friday, is about bullion 
and the respective explorers, producers ... along 
with the interest-rate relief that is accelerating markets 
of all types this week. Not just precious and industrial 
metals and oil-gas + other dollar-denominated commodities 
(coffee futures, for one --see here please.

It is easy to forget uranium's three-year rally 
on a Gold Rush Friday.

I have not forgotten that we await Wyoming drilling
exploration results from Nuclear Fuels NF URVNF, an obscure, 
sub-$20 million enterprise that is part-owned by serial
start-upper and considerable uranium, gold 
and hard-asset investor Bill Sheriff and his 
Texas looming uranium producer, enCore
Energy EU. 

Michael Collins, a The Calandra Report/TCR subscriber, 
and longtime TCR'er Bill, are CEO and chairman, respectively. 
NF has something like a 26-mile tract of concessions 
along Wyoming's Powder River Basin. I hope to see some 
assays from the rotary drilling next week.

I tripled my stake in URVNF this week. 
As a uranium explorer, NF is at the extreme end 
of the risk spectrum. The shares are finally getting
a trickle of trading this week. -- Thom

Gold-rush Fridays have not come often enough for Momin and me, and for you TCRs. We would like them on Mondays and Wednesdays, too.

As a metals competitor and USD-booster, those belligerent longer-range gov’t bond and corporate interest rates in North America look to be ameliorating, coming down. See: declining gov’t rates. Also: See declining USD vs. DXY basket please.

The 10-year U.S. Treasury Bond over five days and now at 4.528%.

There are those among us who have high hopes for precious metals, for copper, nickel and oil-gas.

TCRs, at any (yield) rate, I gather you saw our reports this week. See the oil-gas head-up the other day — here please.

Also my reminders of the metals equities that are truly non-diluting explorers (and producers) — led probably by Xtra-Gold Resources XTG XTGRF, which now has $12 million USD on its books from primarily gold sales. Non-diluting, as in: ever. See report please.

That is the 10-year T-bond to our left here. The 30-year paper shows the most dramatic drop this week. Below chart. So, folks are buying bonds, scalping their yields. Even TIP inflation-tipped bonds are rising in price and sending their yields lower. See: STIP fund, for example. And the leading TIPS ETF.

The 30-year U.S. T-bond now at 4.706% yield — over one week.

Shorter rates — the 6-month (5.493%) and 1-year paper, for instance, are relieving themselves of lofty levels, too, just not as fast.

My friend Allan Argosino, a professional financial adviser, planner, strategist and numbers whiz in San Francisco, says, “You saw that investors have reduced their likelihood of one more (Federal Reserve) rate hike before the end of the year. A week ago, the Fed Funds Futures were discounting a 66% likelihood of one more rate hike before year end, but as of this morning, with the good employment number, and post Fed policy action, the likelihood has dropped to less than 28%. Thus, we saw a sharp drop in yields across the board with the 10-year yield coming off of 5% to around 4.65%.”

Lower yields are just “the fuel” that we need to have risk0-willing investors embrace precious metals.

It is pleasant that blue chips and other stock market indexes are rising rapidly this week.

Still, as many of you know, I believe at some point, the blast-off for alt.investments, primarily bullion and copper and so-called HARD ASSETS (agriculture, for one), will hit North America and the western world, probably the entire world, will happen when blue-chips and traditional stock market indexes start to lose their lofty status among ordinary investors.

Reciprocating … Reciprocating … Reciprocating

That reversal is called RECIPROCAL GOLD THEORY — please see our half-dozen reports about this thinking.: 30 Years Making The Case For Patient Gold

We have discussed Peter Palmedo‘s reciprocal gold musings here at The Calandra Report/TCR numerous times. Peter is an Idaho fund manager who takes large stakes in explorers and miners and then seemingly holds for ages. West Vault Mining; Vista Gold just two among many for his Sun Valley fund. (I own shares of Nevada shovel-ready West Vault Mining WVM WVMDF)

This week, the quantitative notion of reciprocal gold looks ready, primed perhaps.

The metals equities are gaining (albeit along with non-metals investments). Small to mid-sized producers (and explorers) outpacing the pack, led among our TCRs by Alamos Gold AGI and Victoria Gold VGCX VITFF, Ivanhoe Mines IVN IVPAF, Xtra-Gold, others..

See: 30 L-O-N-G Years

‘When financial asset returns are zero or close to zero, the return on (the physical asset) gold is 20 percent on average yearly. Compound that.’ — Sun Valley Gold fund’s Palmedo

“Liquidity is a coward; it disappears at the first sign of trouble.” — the late strategist Barton Biggs

Research from Yale-trained economist Biggs and others showed a mean reversion function of the S&P 500 Index and gold. As in, financial assets (née blue chips) will boom and the value of gold (and other monetary metals but primarily gold) will sink— for as many as 10 years. Vice-versa, too.

We are I believe starting to see the vice-versa.

Previously at The Calandra Report/TCR:

 

Metals Are Dropping; We Keep Buying (Ouch?)

Featured, The Calandra Report / By 

Kazakhs’ Uranium | Cheap Gold Case | Radisson Mining | Dynasty Gold Pesky interest rates and the strongest USD vs. nearly all currencies (excepting export-star Mexico’s peso) are still bruising most commodity prices. [See Gold Case outtake below please.]  Their attendant equities also are in hurt mode, notably copper, gold, silver, nickel-etc. miners.

Metals Are Dropping; We Keep Buying (Ouch?)Read More »

Please see earlier“Redemption” reports from this month for tags and barrel-bottom reasoning for several titles — explorers in Yukon, Ghana and Jamaica.

Here are the chart and price links for gold, silver, oil, non-ferrous metals such as nickel, lead, zinc.

https://www.marketwatch.com/investing/future/gc00

https://www.marketwatch.com/investing/future/hg00

https://www.marketwatch.com/investing/future/si00

https://www.marketwatch.com/investing/future/gcz23

https://www.marketwatch.com/investing/future/cl.1

https://www.marketwatch.com/investing/index/dxy?mod=home-page

https://www.lme.com/en/Metals/Non-ferrous/LME-Aluminium#Price+graphs

— Thom Calandra (I own shares of Nevada shovel-ready West Vault Mining WVMDF; I own shares of Ivanhoe Mines; I own shares of Xtra-Gold, our second longest holding and profitable for us. I own shares of Alamos Gold, of Banyan, of C3, of Orford and of Newcore. Did I miss something? Oh yes, I own Nuclear Fuels. Ping me, please.)

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Thom Calandra is a writer and an investor. Research and material are meant as editorial opinion. He is not a professional investment adviser. Please do not consider his reporting as a recommendation to buy or sell securities.