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Things have readjusted a bit in silver's favor the past week. Note the decline the past few days (meaning the ratio went in silver's favor). If this continues, we could see a reset....note on the chart how that pattern played out last time.
Silver moves quickly. It appears to have retraced all of it's move up from mid-Dec already and is done going down. If that analysis makes any sense then gold has another $20 or so drop to finish that retrace. That puts it down around $1255, about where the 200 dma is now.
If the retrace goes past the dec. take off point, forget about a gold recovery for a long time, as far as I'm concerned.
In this type of environment, gold and gold equities are poised to be among the leading beneficiaries.
Guyana Goldstrike with their flagship Marudi gold project an advanced exploration stage and near-term production situation in Guyana, South America.
The company is currently trading at an Enterprise Value per ounce of around $30, an 80% discount to peer companies with assets in similar jurisdictions and projects in similar stages of development.
Highlights:
ü The Marudi Project: Potential for A Multi-Million Gold Deposit
ü Multiple New Gold Discoveries at Toucan Ridge
ü Guyana Goldstrike to Drill 1.75km Toucan Ridge target
ü Funds Invested - 24.4 % Major Shareholder Zijin Funds to Participate in Equity Financing for the 2019 Drill-Program
ü Major Gold Companies Actively Scouting the Guiana Shield for buy outs or JV partnerships
Geology
The host rock at Marudi is quartzite-metachert, and gold mineralization on the property is associated with the quartzite-metachert unit of the rock formation. Gold occurs within the magnetite-hematite rich quartzite and in the magnetite-silicate iron formation. The presence of quartzite-metachert rock is the strongest indicator of gold mineralization, and hence a primary focus for geologists conducting trenching exploration activities. Gold in banded iron formations are excellent exploration targets, renowned for their scalability. They are often found in clusters, a highly attractive quality amongst major gold companies vying for new deposits that can be developed into mines with longevity.
One of the best-known examples of a high-quality gold-bearing banded iron deposit is the Homestake mine in South Dakota, USA. This vast deposit developed into the largest, deepest gold mine in North America until its closure 2002.
Between 1878 and 2001, Homestake produced 43.9 M oz of gold.
Been slowly dollar-cost averaging Gold miners recently
....................................................................................................................................................... Added GORO, CMCL, HMY, AUY and WPM this morning. Signs of a slowing economy look to have investors running for safe havens (including precious metals). Meanwhile, still adding physical Silver American Eagles and multifamily REITs as well. Looking like it could be a rocky finish to 2019 so readjusting my holdings slightly for income and safety.
RE: Been slowly dollar-cost averaging Gold miners recently..............................................................................
Added more CMCL and HMY and will add DRD to the mix. Since I am more inclined to buy "dividend" securities for income these tend to offer better payouts than most in the sector. I added DRD even though they now "mine" tailings at a profit they have an ample supply without having to go through the expense of adding new mines or engaging in reopening older operations. The only downside being that both HMY and DRD are in South Africa where the government is somewhat suspect. However, even CMCL has an operating mine in Zim (formerly Rhodesia). Also CMCL has the highest yield in the sector but also strong insider ownership.
A majority expect the global economy to enter a recession by 2020, with the highest percentage of gloomy respondents in emerging markets. About 42% of family offices around the world are raising cash reserves.
