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Maple Gold for US$6 an Ounce and I Was Wrong About an October Crash

Streetwise Reports, Streetwise Reports
0 Comments| October 31, 2019

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I just hate it when I have to admit that I was dead wrong about something as important as calling for a major crash in October. Perhaps a little whining would make it go down easier.

Something very bad comes this way. Right out of the blue the Fed began to dump bundles of crisp $100 bills onto a financial fire in the middle of September when the overnight rate shot to 10% with no warning. What was termed a temporary injection of cash into the REPO market has turned into a flood that looks to last a lot longer than forty days and forty nights. With an attempt to show some levity Chairman Powell insists they are not initiating QE infinity but for those of us who can add and subtract, we know it's bull. It looks and sounds a lot more like the end of the financial system. If it relates to a bank with a symbol of DB, it will be the end of the financial system.

So there is no crash but what is hidden behind the curtain is probably far worse. So I was sorta right. Gold and silver had mild responses to the flow of funds but the Fed has pumped new hot air into the stock market which looks a lot more like a corpse than a healthy market.

One day soon the metals will reflect the Fed's balance sheet going ballistic. I'd still like to see a correction in both gold and silver as we slide into the Tax Loss Silly Season expecting shares of juniors to take a dump into mid-December. I suspect there will be a lot of low hanging fruit dangling for the next six weeks just waiting for a well cashed up investor to pluck some nice assets.

Maple Gold Mines Ltd. (MGM:TSX.V; MGMLF:OTCQB; M3G:FSE) comes to mind. I wrote about them a month ago and said you could buy gold for $3 an ounce and that seemed cheap to me. As they promised, they have issued a new 43-101 that counts fewer ounces but of much higher quality. So now at today's prices, you would have to pay $6 an ounce for quality ounces in one of the best jurisdictions in the world. I don't see how that can be anything other than a great deal. I took the opportunity to pluck some shares myself in the open market. When the gold juniors and the metals react to QE Forever and a Day, the leverage Maple offers is superb.

I suspect the shares are cheap because investors are bored with the stock after years of little action. I believe that will change soon and $6 an ounce for gold will be a distant memory. Certainly "Bitcon" and weed stocks have sucked off a lot of the speculative money from the resource sector. But as I have said a lot of times, if you buy cheap and sell dear you can make a lot of money. Maple Gold is cheap.

Maple is an advertiser. I own shares and naturally that makes me biased.

Maple Gold Mines
MGM-V $0.09 (Oct. 30, 2019)
MGMLF-OTCBB 237.4 million shares
Maple Gold website.

Bob Moriarty founded, with his late wife, Barbara Moriarty, more than 16 years ago. They later added to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Maple Gold Mines. Maple Gold Mines is a former advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

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