(Radio Show Tue. 12 Noon PT) (newsletter + Important links)

Transcription

1 (Radio Show Tue. 12 Noon PT) (newsletter + Important links) 1

2 A tectonic shift in markets is under way 2

3 Late Major Market Plate Tectonic Shifts Evolving Bull Markets: Precious Metals Commodities Euro Evolving Bear Markets Equity Markets Treasury Debt Markets The U.S. Dollar OliverMSA.Com 3

4 2016 Was a Transitional Year 4

5 The Crackup Boom! Austrian Economic Perspective In 1971 Fake money (fiat) was instituted by Nixon. Like drug addiction Fake Money requires an ever increasing supply to keep the system from withdrawal. But as with drug addiction, there is a physical limit for fake lucre. That limit was apparently met in August Yet Trump looks to defy Mother Nature with debt funded stimulus in spades and restrict current trade structure. Austrian economic theory suggests massive bankruptcies, currency devaluations and massive unemployment are inevitable. Bad for the world exceptionally bullish for gold mining! 5

6 Deficits funded by the Fed are Inflationary. Deficits funded by the public are deflationary. 6

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9 From 1971 to late 2013, federal debt growth explained 94% of gold s rise. What happened to gold in 2013? 9

10 With end of QE-USD rates rise, sending USD higher & gold lower as foreign money flows to USD. But strong USD leads to emerging market & global instability 1930s scenario. 10

11 August 15, Nixon s Most Impeachable Act! Launches American bankruptcy. Closure of the Gold Window financed the American Warfare State, Gradual destruction the global economy and rapid growth of a ruling elite controlled by the Fed and the military industrial Complex. (Eisenhower s warning) 11

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13 It s starting to rise again and now we get Trump! He s going to make America great again by digging us even deeper into debt! Build the wall Build the military Infrastructure program Take care of veterans Cut taxes! 13

14 The reason the Fed must keep interest rates low is that the carrying cost of our nearly $20 trillion of national debt would explode if rates moved substantially higher. Tony Sagami, Mauldin Economics 14

15 Anticipated Policies? Increased taxes? That would be suicidal! Funding by the private sector driving interest rates & the dollar higher? No way! Won t bring jobs back to America. Issuing more debt money? At low rates only the Fed is left to buy. Most likely outcome? Negative real if not negative nominal rates. Possible gold moon shot: A new global monetary infrastructure especially if a Trump induced trade war destroys the dollar system. 15

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17 Negative Real Interest Rates Drive Gold Bull Markets! 17

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19 If < $1, Downgrade from Bullish to Neutral If> $1,190 January close, on to a new gold bull market! 19

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22 My Invitees Corvus Gold Inc. Falco Resources TerraX Minerals Riverside Resources Others Covered Auryn Resources Inc. Millrock Resources Mirasol Resources Osisko Gold Royalties 22

23 Corvus Gold Inc. TSX: KOR USOTC: CORVF Shares: 92.4 million Management: 6.7% Institutions: 49.1% Open Pit oxides Resource: 1,759,899 0z. O/W M+I: 627,730 Indicated: 1,132,160 oz. Market Cap: C$58 million Significant AG Credits PEA: 154,000 oz. gold equiv annual production cash cost of $635/oz. Capital cost per oz. = 206/oz. At $1,200 gold, NPV = $479 million IRR = 53% 2016 drill program suggests mineralized system is getting stronger as exploration moves north. New mineralization should expand pit walls and improve economics. 23

24 Falco Resources Ltd. TSX: FPC USOTC: FPRGF O/W OR: 40.4% Shares: Horn 5 Mine: VMS M+I Resource oz Inferred: 1.71 Values: Gold 67%; zinc 15%, copper 10% and silver 8% Located in the Rouyn-Noranda Mining Camp previously 3.2 million ounces mined by Noranda. Falco controls 70% of the camp (13 previous mines) Very similar to Agnico Eagle s Company making La Ronde Mine but will mine at much shallower levels. Projected Cost of $47.50/T compared to $95/t at LaRonde Recent exploration results into the Quemont Zone look promising. 24

25 TerraX Minerals Inc. TSX: TXR USOTC: TRXXF Shares O/S; 101 million Management: 11% Institutions: 47% O/W OR: 11% Recent Price: C$0.73 Market Cap: C$74 million 10/31/16 -Wk Cap: C$8.6 million Located at Yellowknife in the main Yellowknife Gold District Shear Zone. Numerous high grade targets. Technical assistance of Osisko Gold Royalties most helpful. A m grading 0.52 g/t gold points toward possible surface bulk mineable target. 25

26 Riverside Resources Inc. Traded TSX: RRI USOTC: RVSDF Shares O/S: 37.4 million Institutions: ~50% Management: ~ 10% Recent Price: C$0.48 Market Cap: C$ 18 million Cash: ~ 3 million Mexico, Arizona, B.C. The purest of the pure disciplined prospect generators Drivers for this year: Centerra on the Glor project to earn 70%. Antofagasta on the Thor copper project to earn 65% Clemente Project Silver Viper Minerals Croesus Gold Corp. on Sugarloaf copper-gold prophyr AZ 26

27 The Greatest Gold Bull Market Ever? The biggest crack up boom in the history of the world has taken place thanks to fake or fiat money to replace market driven money. Mother nature requires a massive deflation of this crackup boom bubble. There will be no stopping it but Trumps policies may accelerate the process. Whether that results in a 1930s style deflation or an empire ending destruction of the dollar, its bad for people but very, very bullish for gold. Michael Oliver s work and fundamentals suggest a new gold bull market is underway. 27

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