TCRs: I send this report? from
Zacatecas in Mexico, the biggest silver producer in the world.
The world Monday is looking at the paper reset -- equities -- and not at silver or gold.
The largest silver contributor for Mexico is the state of
Zacatecas. At last count, 17 percent of the world's silver comes from Mexico.
The gold and silver from Zacatecas is splayed across 15 mining districts. Mostly epithermal, veins. Base metals here, too.?
?Just two mines alone, the Zacatecas and
Fresnillo silver mines, supposedly have delivered 1.6 billion ounces of silver to the world -- much of it to Spain and the Spanish state of the 1600s through the 1800s.
FIRST, YEN-FRANC: ?Isn't that a gorgeous graphic up above?? I think gold (and silver) will continue to appreciate the rest of this month and into September.?
?So will the metals equities.?
?The graphic here an important bolt for our
yen-fran indicator. The yen Monday is rising smartly against all currencies. The USD is falling against a basket but still gaining against oil-based currencies, Mexico and Canada among them.?
Please
glance at this. It might give you the solace you need for a large or a larger gold position.
In meantime, HERE IN the city of
Zacatecas with
Canarc Resource looking at Brad Cooke and Catalin Chiloflischi's entry into historic gold-?silver mine here, Oro Silver's ?
El Compas. Brad founded and runs Endeavour Silver, which is building or rehabbing mines in Durango, Guanajuato and elsewhere.?
That's the historic aqueduct in old town, which sits at about 8,000 feet altitude.
[Photo here?]
We are in the same general jurisdiction as silver-rich
Fresnillo. I have yet to purchase Canarc shares.
?The Canarc gambit comes after a couple of failed mining ideas in the past two years. This one looks powered by 5-gram gold with silver at El Compas, which is fully permitted.?
?Canarc's letter of intent (expires mid-September) is to purhase Oro Silver's
El Compas for 19 million shares and small payments.
Marlin Gold, a public company traded in Canada, owns Oro Silver. and also owns a project in Sinaloa, Mexico, that is not part of this Canarc transaction.?
?Canarc also will need at first to raise probably another $750,000 in the next two weeks via 6-cent equity to seal the purchase with Oro/Marlin Gold.?
?Lots of moving parts here and the timing looks pretty good. But I have more looking to do, and a state government mill is involved, too.?
?TCR audience, ?I also am looking at increasing my positions in other gold prospectors and producers in the markets upheaval. On Friday I purchased high-risk
Asante Gold, Doug MacQuarrie's ?Ghana project at Obuasi.
I hope to see a USA project in two weeks or so:
Viscount Mining at Cherry Creek in Nevada. The shares rose wildly last week in Canada, and I believe Sumitomo is involved in cash support of the prospector.
Old town Zacatecas
?This from
Anthony Giallourakis in Florida on
yen-franc. All the background on our confirmation tool, and charts, is at
thomcalandra.com and in earlier
TCR reports.
?
?More from Zacatecas and
El Compas later this week. I'll be here until very earlyWednesday.
TCR family, as Tony says here, "casino mode" for stocks. I believe as much in gold, silver, platinum and their respective prospectors and producers as do the folks who run these crazy and cash-starved companies.?
Thom,
A sharp spike up in the Yen/Franc ratio this morning saw the index reach within 0?.0050 of my break-out point of 0?.8000. Gold has enjoyed a monster move of late, with more likely to come this week. It's all coming together at the same time.
Any move above .80 for
100Yen/Franc and a new long term bull market in g?old will be confirmed. It's not that the .80 level is magical within itself, it's because that is the level in which the 3 1/2-5 year downtrend is broken to the upside.
With common stocks in casino mode, investors and speculators alike will seek out Gold to diversify their holdings. Gold does not derive its value from earnings or a cash flow. It is not impacted in price by the discounting of those current and future cash flows, like common stocks are.
However, higher g?old prices do drive higher earnings and cash flows for most gold mining companies, making their shares more attractive.
It is a fair conclusion then that common stock investors will seek to shift further out away from growth stocks and in turn add to their holdings in gold and gold mining shares.
The next few days will be very telling. If g?old can breach the $1,200 level, the momentum players will be very tempted to come in and join the ranks of those who are already positioned for a new bull market in g?old.
T?hanks for that, Tony.?
-- Thom
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Thom Calandra & TCR are researchers and investors. They are not registered investment advisers. The research and material they offer to subscribers are meant as editorial opinion.
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