For
the USA stock market to rally, we need to see a couple of things:
Interest rates need to RISE, not fall. Falling interest rates at this point are not stimulating the economy. Banks need a spread between short term deposit rates and long term lending rates. Companies and Companies need a signal that the economy is growing to stimulate cap-X and expansion. If they see a no growth or contracting economy, corporations will sit on cash until there is a reason to put their cash back to work.
Vietnam is expected to be the fifth largest economy in Southeast Asia in 2030.
With an emerging market economy and continued strong growth, Vietnam is set to become one of the most dynamic markets in the world by 2030, according to Euromonitor International, a global market research company. An Hodgson, Euromonitor International’s income and expenditure research manager, said the company’s research database showed that urbanisation, with the associated concentration of income, wealth and population, would propel Vietnam’s commercial success by 2030. Published last month, the research database has found that Vietnam will be the third biggest urban market by consumer numbers and fifth biggest by total spending in Southeast Asia.
Calumet is a Refining
Company Transitioning to a Specialty Chemical Company.
As part of this
transition, Calumet is deleveraging itself. This deleveraging process is about
90% complete.
Published October 12, 2019 by Thomas Linzmeier, editor
LivingofftheMarket.com
CLMT is a major commitment for accounts related to LOTM. A
turn around “has happened” in what was a heavily in debit and inefficient
operating company. This accomplishment is unrecognized by the market.
News from CLMT has been improving month by month. Certainly, the business of CLMT, in the oil industry, is subject to the uncertainty of the oil market. Even with some quarterly uncertainty, Calumet’s turn around since this management team came on board (March 2016) has been remarkable.
PAAS* – The physical silver price popped big yesterday. It is the favored metal at this time. As one of the largest silver miners, Pan America’s price reacted accordingly. Note: we did buy shares in a related account yesterday. I would, money allowing, add to the position, especially on any price weakness. $17.00 dollars, plus or minus $0.20 cents would be our buy in target goal.
GORO* is breaking out. It has one of the best charts in the mining sector in my opinion. Gold Resource’s price has to get above $4.00 to confirm the breakout. The next targets are $4.50 and followed by $5.00. Two Wall Street firms put price targets of $6.50 and $7.25 on GORO. These could end up being conservative targets, if the miners get as hot as I think they will in coming months. Two company has started production in June 2019. The second half of 2019 is expected to have this additional production in the Q3 earnings report so expect good news. Higher silver prices would be on top of the expanded operating production. We like this company for its organic growth as well as physical metal’s added revenue. The price is already above all major moving averages. The shorter term 20-day M.A. is above the 50-day M.A. This is also a positive signal in trend following perspective.
ASM* – Avino, Very nice price action this summer – $0.40 to $0.80 with a pull-back of 50% to just under $0.60 this September. $2.00 to $2.50 is a normal high price resistance area if one were to look at a longer-term chart. $2.50 would be our longer-term price goal
Physical SILVER Price chart:
Silver was up 3.65% yesterday with Gold only up, 0.32% – Action is in Silver
Silver is undervalued to gold. The Silver to Gold ratio is about 82.15. Believe the ratio will go to 60 to one ratio on this move. 60 to 1 is a more historic number. That projects to a price on silver of $25 an oz with gold at $1500 per oz.
Posted: Sept 23, 2019, Tom Linzmeier editor, LOTM
* An account related to LOTM holds a position in this security. Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
This likely will result in a strong US dollar and a strong Gold and Silver market.
This too is not usual activity. Usual activity, is for the US$ to move in one direction and the Precious Metals to move in the opposite direction.
Expect a strong US dollar, a strong precious metals market, and Yes, if the “rubber band”, does not break…. A strong US Stock market. If the rubber band does not break the excess money will go somewhere. Odds are stocks, real estate or precious metal or all of the above. The real question is; “will the rubber band break”? While we wait to see, the only logical choice by people who know what is happening, is to buy Precious Metals. Loss of purchasing power for the US Dollar long term if we skate through this.
See the CNBC interview with Kyle Bass for additional explanation:
LOTM continues to suggest a mix of gold and silver miners as a position in your holdings. Maybe not today because of the pop in price but nibble and add to positions on price weakness.
Royal Nickel RNKLF* $0.56 is acting very well. This is a bit different than the other gold and silver miners. Most miner trade on technical and momentum signals. RNKLF is an evolving story about firming up estimates of reserve and a true growth story within the mining industry. What has been discovered so far has been called the biggest gold find in decades, perhaps of our life time. Now we are in the proving up stage of the initial discovery. Royal own 100% of a “patch” that is four kilometers long and four levels deep. Potentially huge in an era of harder to find and more costly to retrieve gold deposits. We are in an unknowable state as to what the total reserves look like but certainly have odds on the positive side from everything that has been found so far. This is also a very low cost to retrieve gold. So we have positive technical action on the shares. There is a lots of info on YouTube if you are interested. Do a “YouTube” search for “Royal Nickel”
Royal Nickel has not been picked up by Finviz site so not included in the chart of miners below. Reminder that the symbols are linked to charts, news, brokers ratings and insider buying.
