Stock rout resumes as dollar tumbles and gold surges, but here is the big surprise.
Note on gold at the bottom, but first…
March 6 (King World News) – An important note from Peter Boockvar: “Assuming China will come up with another $100b of tariffs on US exports to match the threat of another $100b on Chinese goods, all US exports into China will face a tariff as we export about $150b worth of goods to them. I remain hopeful of a deal but with patience thin and even if nothing comes of this, the American brand in China is getting tarnished and they certainly still consume many of them. Apple in particular can’t be happy.
The estimate for March payrolls is 188k for the private sector and 185k overall. The unemployment rate is expected to print 4% which would be the lowest since December 2000. We of course watch for average hourly earnings which are expected to rise 2.7% but I prefer average weekly earnings as that takes into account hours worked. Either way on today’s news, the US labor market is very tight, it’s tough to find workers and today’s front page article in the WSJ highlights one particular town in Indiana and what they are experiencing. https://www.wsj.com/articles/the-future-of-americas-economy-looks-a-lot-like-elkhart-indiana-1522942393?mod=ITP_pageone_0&tesla=y
For a 2nd month, Japan reported a really good (for them at least) wage report. In February, regular pay rose .9% y/o/y after a 1.1% jump in January, the two best prints since 1997. Overall earnings in the month was up 1.3% y/o/y with a large 33% spike in bonus pay y/o/y. The problem though for the Japanese wage earner is that the BoJ wants higher inflation that will offset these wage gains. Higher inflation is a road block to faster real growth, not a facilitator of it. Headline CPI in February was up 1.5% y/o/y. This helps to explain why overall household spending in February was up .1% y/o/y instead of rising by .4% as expected. “The pick up in consumption seems to be stalling” said a government official today. The Japanese consumer has been the missing piece of their expansion since Abe took office. JGB yields were little changed as is the yen. The Nikkei was down by 1/3 of a percent.
Wage Increases In Japan As BOJ Pushes For Inflation!
After the disappointing factory order number from Germany seen yesterday for February, today’s industrial production figure missed as well. It fell 1.6% m/o/m vs the estimate of up .2%. The German Economy Ministry said “Growth momentum should be weaker than in the previous year. But good orders and positive sentiment suggest the trend in manufacturing will continue to point upward.” The production of consumer goods and intermediate ones both fell as did construction. This follows a string of data misses relative to expectations in Europe. The Eurozone Citi Surprise index yesterday was at a 5 year low. The only positive to this index is that it mean reverts. (See chart below).
Eurozone Citi Surprise Index!
Regarding The Gold Market…
Eric King: “Matthew, I have been buying more shares of your company’s stock today and have now purchased a total of 1,500,000 shares because I believe it is one of the great gold opportunities of 2018.”
The Next Great Canadian Gold Story
Matthew, CEO of Maple Gold: “Right now we are sitting on the next great Canadian gold story. We have one of the best teams on the planet leading the exploration program in arguably the best jurisdiction in the world, with a 3.2 million ounce head start. In the middle of a rising gold market we have now secured the strongest Quebec funds to back the company, and I’ve announced a closing with them at 24 cents a share, without any warrants, with a lengthy hold period. The point is, Eric, they are looking at this as a long-term investment. This is the same group that financed Osisko from $20 million to a $4 billion market cap. And I’ve been to Asia many times looking for strategic partners and negotiations have progressed to the advanced stage. Any such investment would take place at a significant premium to the current market price.
Stock Set To Skyrocket With 8 Drills Turning!
Investors also need to understand that unlike many juniors, who no longer have drills turning, we have 8 drill rigs simultaneously attacking a variety of different targets. We have also now submitted nearly 5,000 assay samples to the lab and that number will continue to grow as we push for 20,000 meters in the current winter drilling program. We expect drill results to hit the market for three consecutive months, in April, May and June of this year. So the fundamentals of this company continue to expand at an exponential rate, providing a spectacular opportunity for investors to take advantage of the current market capitalization, which we be believe is extraordinarily discounted. Meaning, in my opinion anyone not buying the stock today will deeply regret not doing so, and anyone selling this stock before it surges to $1.50 – $2.50, will have even deeper regrets.
Insiders Buying More Stock
Eric, I know you have been aggressively buying shares of our company’s stock because you understand that when you look at the junior complex, finding companies with our type of upside, jurisdiction, partners, world class team, management, and 3+ million ounces of gold, with more to come, are extremely difficult to find. Meaning, it’s almost impossible to find another company that is this attractive. If I could buy more stock at this time I would. Unfortunately I am blacked out. And, Eric, just to give you an idea, a majority of the board of directors are participating in the offering at .24 a share, which as you know is higher than the current share price. Regardless, the stock is dirt cheap and I don’t believe it will be for long.” For those of you who have not yet acquired a stake in this high-quality company, now is the time. Maple Gold stock symbol MGMLF in the US and MGM in Canada.
***Also Just Released After “Mini-Bull,” Gold Price Set For Massive Surge! Worried About The Action In Gold, Read This… CLICK HERE.
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