{"id":38288,"date":"2018-09-25T17:44:19","date_gmt":"2018-09-25T22:44:19","guid":{"rendered":"http:\/\/olduvai.ca\/?p=38288"},"modified":"2018-09-25T17:44:19","modified_gmt":"2018-09-25T22:44:19","slug":"signs-of-the-gold-apocalypse-ma-and-fund-extinction","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=38288","title":{"rendered":"Signs of the Gold Apocalypse: M&A and Fund Extinction"},"content":{"rendered":"
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Signs of the Gold Apocalypse: M&A and Fund Extinction<\/a><\/h3>\n<\/header>\n
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For bear markets to truly end investor sentiment has to get to a point where they would rather walk on broken glass than buy that asset or asset class.\u00a0 We\u2019re reaching that point in the precious metals market.<\/p>\n

In conjunction with that we also have to see arrogance on the part of short-sellers convinced that all rallies will be sold, keeping a lid on prices.\u00a0 It doesn\u2019t matter if buyers come in at higher prices or above significant technical support levels, they will push because they become convinced this is a one-way trade.<\/p>\n

We see this in the government bond markets as well.\u00a0 In\u00a0traderspeak<\/em> it\u2019s called the [Insert Head of Central Bank Here] Put.\u00a0 The Greenspan Put<\/em> begat the Bernanke Put<\/em>which morphed into the Yellen Put.<\/em><\/p>\n

Over the past few months we\u2019ve seen sign after sign that the gold and silver markets are nearing the end of their bear markets.\u00a0 These are signs of extreme distress.\u00a0 The first I\u2019ve already mentioned, record speculative short positions among futures traders.<\/p>\n

Then there was the re-balancing of Vanguard\u2019s $2.3 billion Gold and Precious Metals fund into the\u00a0Global Capital Cycles Fund,\u00a0<\/em>trimming exposure to precious metals to 25% of AUM \u2014 Assets Under Management.<\/p>\n

And now we\u2019re seeing the M&A (Mergers and Acquisitions) phase of the bear market.\u00a0 Where companies begin merging to shave costs after having already cut back on production to preserve cash flow.<\/p>\n

It was just announced that American Barrick Corp (NYSE:ABX) and RandGold Corp (NASDAQ:GOLD) are merging into one company<\/a>.\u00a0 The largest mining company by market cap in the world at around $18 billion.<\/p>\n

Primary silver producers like Endeavor Silver (NYSE:EXK) are shuttering high-cost mines in this pricing environment.\u00a0 Well run companies with low debt and strong balance sheets don\u2019t do mergers like this, they tough it out or go on a hostile raid of assets under-valued by the market.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Signs of the Gold Apocalypse: M&A and Fund Extinction For bear markets to truly end investor sentiment has to get to a point where they would rather walk on broken glass than buy that asset or asset class.\u00a0 We\u2019re reaching that point in the precious metals market. In conjunction with that we also have to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1750,374,21891,21273,21892,647,16963],"class_list":["post-38288","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bear-market","tag-gold","tag-gold-apocalypse","tag-gold-goats-and-guns","tag-mergers-and-acquisitions","tag-precious-metals","tag-tom-luongo"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38288"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38288\/revisions"}],"predecessor-version":[{"id":38289,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38288\/revisions\/38289"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}