With the price of gold soaring $30 and mining stocks on the move, but we have never seen this in history…
December 7 (King World News) – Peter Boockvar: Last week I said the bull boat was standing room only and that was when the Citi Panic/Euphoria index was at 1.10, along with other measures reflecting ebullient sentiment.
This index ended the past week at 1.51, the highest since early 2000 so that boat doesn’t have much room for anyone standing either. Anything above .41 is considered euphoria so that we are now almost 4 times that, it’s hard to ignore.
I include another chart that was a wild one that I saw over the weekend. It measures the volume of quarterly option call buying. Assume that much of this buying is from those that don’t have a time horizon more than a few weeks and that historically the options market is more so used to hedge but certainly not now. A venue for speculation now is its main purpose it seems.
Wild Call Option Buying Never
Seen Before In History!
The US dollar weakness is taking a breather with the pound in particular lower as now there is doubt on whether a Brexit deal can happen. We’ll know more later today, and it would be a real shame if they can’t get this over the finish line at this point. Remember, the vote to leave was back in June 2016 so this has been quite the soap opera…
This company just made a gold acquisition that is worth 7-8 times what they paid for it and is now set up for monster upside in 2021! To learn more click here or on the image below.
China reported its November trade data over the weekend for November. Exports rose 21.1%, well above the estimate of up 12%. Imports were up by 4.5% y/o/y but that was below expectations of a 7% rise. This growing surplus to a record high (going back to at least 30 yrs of info) led to a rise in FX reserves to $3.178T in November, the highest since August 2016.
It is likely that some of this export strength was in anticipation of possible winter shutdowns, along with the holidays, that could have later disrupted deliveries. We also know that PPE has been a big product line seeing a surge in exports. The strong appetite for commodities was apparent in the import data with soybean imports up 17.5% y/o/y, iron ore by 11%, copper by 39% and crude oil by 9.5%. The Shanghai comp closed down .8% and the H share index was lower by 1.4%. The yuan is weaker as well.
Also of importance…
Mike Timmins: Eric, we already have a combined 3.5 million ounces of high-grade gold resources in Canada, but we are offering much more growth opportunities to investors because each of the three assets has massive discovery potential. In order to drive that growth in the share price we have kicked off an 80,000-100,000 meter continuous drill program over the next 18 months. This will generate a ton of important catalysts to support an increasing valuation for the company. It’s exciting and it’s not that often that you see this much opportunity in one investment. We are at the start of this strategy, Eric, and it’s a stellar opportunity for gold investors. Fury Gold, symbol FURY in Canada and the US.
KWN has just released two audio interviews!
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