2012 and 2013 were years that gold investors would like to forget. Yet at the same time the brutal bear market of 2012-2013 in gold mining shares has planted the seeds for the next bull run. As it stands now, 2014 is shaping up to be the year that the next cyclical bull market in… Continue Reading

Since our “Some Reason for Optimism in the Gold Miners” post from two weeks ago, the senior gold miners have posted nothing short of a 10% rally: Click to enlarge The most interesting aspect of the recent rally in gold stocks is the fact that the metal itself has lagged considerably behind: Given that we… Continue Reading

Three weeks ago gold broke down below support near $1275. At that time it was impossible to find a single bull in the room. Speculators (trend followers) also began initiating fresh short positions and there was a slew of blog posts proclaiming that gold was headed below $1000 in short order. As is often the… Continue Reading

    As the gold mining sector enters its worst time of the year historically (June & July) there is some reason for hope. The weekly chart of GDX (Gold Miners ETF) shows a potential head & shoulders bottom that is nearly symmetrical: Click to enlarge The head & shoulders bottom is virtually symmetrical with… Continue Reading

We just completed an eventful week across global financial markets which included among other things: More all-time highs for US large cap equity indices (Dow, Nasdaq-100, S&P) An unprecedented ECB decision to impose negative deposit rates and enact a targeted 4-year LTRO The May US non-farm payrolls report continued to show a steady pace of improvement… Continue Reading

US equities as gauged by the S&P 500 are now more overbought than they have been in over a year. However, in all likelihood they will become more overbought before undergoing a pullback/correction: Click to enlarge  The relative strength index (RSI-14) is above 70 for the first time since May 2013. However, the breakout above… Continue Reading

ECB President Mario Draghi brought the “goods” this morning and the only question that remains is whether any of this “stimulus” will actually flow through to the real economy – once again the ECB staff projections were very weak and pushed out advances in growth to 2015: Draghi: staff projections 0.7% 2014, 1.1% 2015, 1.4%… Continue Reading

We’re all well aware of the bearish summer seasonality (June & July) for the precious metals sector. However, there are suddenly a few reasons to believe that this summer will break the mold of what investors have become accustomed to: Click to enlarge The sell-off came early this year with a 10%+ decline in GDX… Continue Reading

There haven’t been many bright spots among the wreckage of junior or mid-tier gold miners recently. However, one bright spot has been a name which we have followed for the better part of the last year, Endeavour Mining: Click to enlarge After a blistering start to the year EDV has retraced roughly half of its… Continue Reading

Yesterday, Australian-listed Papillon Resources (PIR:ASX) was halted at the company’s request pending a “potential corporate transaction”.  If Papillon is part of a larger producers’ M&A mandate, then it would represent the 3rd such gold transaction in the past 2 weeks. Last week saw Rio Alto make a friendly, $300 million, bid for nearby Sulliden Gold and… Continue Reading

The gold market is currently experiencing multi-year lows in volatility within the context of a range-bound oscillation: Click to enlarge A near perfect symmetrical triangle has formed during the past two months as the range has continued to narrow with an increasing focus on the $1300 level.  While the current period of tranquility may last… Continue Reading

The downtrodden gold mining sector has a new M and A deal to get excited about this morning, and this transaction is centred around creating a mid tier producer focused on Peru. Alex Black’s Rio Alto Mining is buying Stan Bharti’s Sulliden Gold for roughly $300 million in stock which values Sulliden at approximately $1.12… Continue Reading

After experiencing a year of extraordinary volatility during 2013 the gold miners have turned downright dormant during the past few weeks: Click to enlarge For 9 consecutive trading sessions the GDX has traded within less than a 2% intraday range and for the past two months GDX has remained well contained within a 10% trading… Continue Reading

In a surprising announcement, the young and recently announced President of McEwen Mining (MUX:TSX), Ian Ball, announced his retirement from the company effective July 15, 2014.  Not much clarity on the decision was given in the release.  Could this mean tension between Rob McEwen and his protégé or is this the beginning of a new… Continue Reading