Bullish Setups In Gold & Silver, Osino Receives Superior Offer
China Returns From Its Lunar New Year Holiday & Osino Resources Receives A Far Superior Acquisition Offer From An Undisclosed Foreign-Based Mining Company
Today, the setup in gold & silver is as constructive as it's been in nearly a year; markets have pushed out the timing of the first Fed rate cut, Treasury yields have risen, yet gold & silver both successfully tested key support levels (gold at $2,000 and silver at $22).
Meanwhile, CFTC Commitments of Traders data shows gold futures open interest plunging and managed money in silver futures moving to a US$1 billion net notional short position:
Silver CoT 2/16/2024
By most measures, sentiment on gold and silver remains in neutral territory. However, the relentless ETF selling by North American investors paints a different picture. Everyone is chasing returns, and the temptation to FOMO into NVDA or even the QQQ is simply too tempting for many to pass up.
Judging by my interactions with actual human beings, and other real investors, sentiment on precious metals is nothing short of dreadful. Moreover, sentiment on precious metals mining stocks is below zero. Save for some very scary moments in October 2008, or March 2020, I have never seen investor sentiment on metals & mining as bad as it is today.
In this Week's Video I discuss it all, including expanding on why I am urging some caution on US equities after their incredible recent performance:
In other news, Osino resources (TSX-V:OSI, OTC:OSIIF) received a superior acquisition proposal from an undisclosed "foreign-based mining company". The all-cash offer is at a 32% premium to the previous proposal from Dundee Precious Metals, and values Osino at approximately C$368 million.
This is great news for the capital starved junior mining sector as this new proposal adds an extra C$90 million to the value of Osino shares. The early rumor is that the foreign-based mining company is Chinese (Zijin Mining or Shandong Gold).
China has significant influence in Namibia, including 100,000 Chinese nationals currently living in Namibia. China considers Namibia not only a diplomatic partner but also a vital component in its broader strategy in Africa, which includes accessing natural resources, expanding export markets, and enhancing political legitimacy and global influence.
Disclosure: Video Creator owns shares of Hercules Silver, Libero Copper, and IAMGOLD at the time of publishing this video and may choose to buy or sell at any time without notice.
DISCLAIMER: The work included in this video is based on current events, technical charts, company news releases, corporate presentations and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. This video is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.