Gold & Precious Metals

Gold & Precious Metals

How a Wild Fox Helped Make One of the Greatest Silver Discoveries in History

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Posted by Sean Brodrick - Edelson Institute

on Tuesday, 19 June 2018 08:00

4 Lessons in Mining Never To Be Forgotten - R. Zurrer for Money Talks

The histories of North America’s rushes for gold and silver are filled with outrageous stories and larger-than-life characters. And here’s one you haven’t heard before: A massive silver rush, one that was started by a wild fox.

It’s an incredible tale ripped from the pages from history. But it holds lessons for today’s investors.

Let me tell you the tale, and you be the judge. It’s the story of how silver was discovered in Canada.

What Happened After the Gold Miners Struck It Rich and/or Went Home Busted

The story begins after the fabled gold rush in the Cariboo, when the gold miners struck it rich, went home busted, or both.

There’s some dispute about what happened next. But one fact everyone can agree on is that Canada’s big silver deposits weren’t discovered until 1903.

That’s when Fred LaRose, a blacksmith working at his forge in the far reaches of Northern Ontario, was being continually bothered by a fox.

Foxes aren’t rare in that part of Canada — they’re about as common as weasels, but with big fluffy tails and better publicists. Usually, though, foxes are smart enough to stay away from people. This darned fox kept coming close — too close.

Fred’s short temper flared hotter than the iron he was working … now he could see the fox’s beady eyes staring at him from a bush. He turned and hurled his hammer at the critter. He missed the fox and went to retrieve his hammer. Behind the bushes, he found his hammer alright. But he also found a glittering vein of ore thrusting right through the surface of the rock.

Fred didn’t know it was silver at first. He showed a sample to the owner of the Matabanick Hotel in Haileybury, telling him that the rock seemed to contain “some kind of damned metal.” The hotel owner then showed the rock to T.W. Gibson, the director of Canada’s Bureau of Mines. Gibson’s conclusion: The rock contained niccolite (nickel-rich ore).

As often happens in these stories, the experts were wrong.

Still, by 1903, nickel was worth something. So, Gibson forwarded the sample to Ontario’s official geologist, Willet Green Miller, who passed it along to Ontario’s assayer, A.G. Burrows. Burrows looked at the rock and pronounced it silver.

Miller trucked on out to Fred’s camp, saw that there were indeed big veins of ore and chunks of metal, just lying scattered around! It was promising enough that he came back with two assistants to do a full geological survey.

Miller wrote in his report of “pieces of native silver as big as stove lids or cannon balls lying on the ground, as well as cobalt bloom and niccolite.”

The cobalt captured his fancy. So, near the ore deposit, by the railroad line on the shore of Long Lake, he set up a sign reading: “Cobalt Station.”

And that’s how Canada’s silver town became known as Cobalt Station. Where the miner’s pick-ax struck, Cobalt Station sprang into existence out of the wilderness.

Screenshot 2018-06-19 07.49.22



Gold & Precious Metals

Silver Stocks: The Rally Gets Serious

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Posted by Morris Hubbartt - Super Force Signals

on Friday, 15 June 2018 07:05

Today's videos and charts (double click to enlarge):

SFS Key Charts & Video Update




Gold & Precious Metals

Key Gold & Silver Stocks Look Perky

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Posted by Morris Hubbartt - Super Force Signals

on Friday, 08 June 2018 08:27

Today's videos and charts (double click to enlarge):

SFS Key Charts & Video Update




Gold & Precious Metals

US Stock Market Meets Insidious Inflation

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Posted by Stewart Thomson - Graceland Updates

on Wednesday, 06 June 2018 06:57

1.    In the West, gold has rallied decently during five of the past seven recessions.  I’ve suggested that the current situation in America is something like 1965 – 1970, when inflation began a long and strong up cycle.

2.    That’s partly why I’m adamant that it’s the best time in American history to own a portfolio (a global portfolio) of companies involved in precious metals mining and jewellery.

3.    The other reason that I’m excited about these stocks is that in the East, when people get richer, they buy gold.  They are now getting a lot richer, and a lot faster.  

4.    Simply put, deflation is out, and inflation is in.  It’s really that simple, and investors around the world need to get positioned right now to ensure they get maximum financial benefit.

5.    Please click here now.  With their statements and analysis, Morgan Stanley moves “thunder cash” in the institutional investor community.

6.    Their top US equity man, Mike “Mr. Big” Wilson, predicts that while US markets are a clear short-term buy, valuations peaked in 2017, and prices will peak in 2018.  

7.    I’m in 100% agreement with Mike.  Tactically, I’ve urged investors who are not afraid of price chasing to buy some bank stocks, energy stocks, and growth stocks.  Gamblers can buy call options.  

8.    That’s how to play the final months of upside fun in the US stock market,but investors must be seriously prepared for years of inflationary bear market horror to follow this blow-off top.

9.    I’ve predicted that only the most astute stock pickers will survive being invested in the US stock market from 2019 forwards.  In the coming inflationary inferno, index and ETF investors will essentially be turned into tumbleweed, burning in a financial desert.  

10. When will the inferno begin? 



Gold & Precious Metals

This is When Gold Will Soar…

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Posted by Jordan Roy Byrne - The Daily Gold

on Thursday, 31 May 2018 07:52

Despite the insistence of some, precious metals have not been in a bull market. After a big pop at the start of 2016, the sector has trended lower. Sure, Gold has traded up towards a major breakout but Silver and the gold stocks have trended lower. When the US Dollar corrected significantly, the stock market outperformed precious metals. Does that sound like a Gold bull market to you? The moribund performance has left us wondering what could turn the tide. A quick study of Fed history with the context of current conditions is very instructive as to when Gold could begin a true bull market.

Fundamentally speaking, we know that Gold performs best when real rates are declining or will soon begin declining. That usually entails either accelerating inflation (surpassing the increase in nominal rates) or falling rates amid stable inflation. At this juncture we are leaning towards the latter as the eventual catalyst for Gold.  

We were curious how Fed policy and policy changes impacted precious metals so we decided to plot the Fed Funds rate (above) along with gold stocks (middle) and Gold (bottom). We used the gold stocks (Barron’s Gold Mining Index) because they have a longer history than Gold. The vertical lines in blue mark lows in the BGMI that coincided with peaks in the Fed Funds rate (FFR) while the vertical lines in red mark lows in the BGMI that coincided with a bottom in the FFR.


Fed Funds Rate, Gold Stocks & Gold


Outside of the highly inflationary 1970s, the best bull markets in gold stocks began around the time the Fed Funds rate peaked (or in other words when the Fed ended its rate hikes). Lows in 1993, 1999 and 2016 coincided with the start of a new hiking cycle. However, unlike the lows in 1972 and 1976, inflation did not accelerate enough to drive more than a rebound.  

Does that signal that gold stocks (and precious metals at large) need an end to the rate hikes?

The period from 1999 to 2001 is very instructive as there are several similarities between 1999-2000 and 2016-2017.

Like 1999, 2016 followed a nasty bear market in Gold and hard assets.

Also, the 1999 bottom in precious metals and commodities occurred around the time the Fed began a new cycle of rate hikes. Sound familiar to 2016?

As the Fed continued to hike into 2000, Gold and gold stocks trailed off but commodities were able to make higher highs until the very end of 2000. Commodities have not been quite as strong this time but they have outperformed precious metals which have trailed off since the initial rebound.

Gold and gold stocks ultimately bottomed and began spectacular rebounds around the time the Fed moved from a pause in rate hikes to rate cuts at the very start of 2001.


1999-2001: Fed Funds Rate, Gold Stocks, Gold, Commodities


Unless there is an acceleration in inflation, the turning point for precious metals figures to be around the time the Fed ends its rate hikes. That would likely coincide with Gold regaining outperformance against the stock market, which we have noted as Gold’s missing link (from an intermarket perspective). Weakness in the economy and stock market would lead to an end to the rate hikes and then rate cuts. That would be the time Gold and gold stocks begin a major move higher. In the meantime we continue to focus on and accumulate the juniors that have 300% to 500% return potential.

Jordan Roy-Byrne CMT, MFTA


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