News

Voxtur Analytics (CVE:VXTR, OTCMKTS:VXTRF) Exec Chair on Financials & Growth Opportunities

Midas Letter
Midas Letter
Voxtur Analytics (CVE:VXTR, OTCMKTS:VXTRF) Exec Chair on Financials & Growth Opportunities
/

Voxtur Analytics Corp (CVE:VXTR, OTCMKTS:VXTRF) is a transformational real estate technology company that is redefining industry standards in a dynamic lending environment.

The Company offers targeted data analytics to simplify tax solutions, property valuation and settlement services throughout the lending lifecycle for investors, lenders, government agencies and servicers.

Voxtur has four new real estate platforms rolling out this year (appraisal tool, tax analytics, attorney opinion letters, and an all encompassing asset management platform).

Are You Really Still Debating Gold vs Bitcoin? | ML Daily ft Barrick Gold & Voxtur Analytics

Midas Letter
Midas Letter
Are You Really Still Debating Gold vs Bitcoin? | ML Daily ft Barrick Gold & Voxtur Analytics
/

James West & Ed Milewski discuss the major news stories and deliver the stock market recap for the short holiday week ending July 1, 2022.

Happy Canada Day & Fourth of July Long Weekend!

Coinchange CEO Interview on Using Defi to Grow Wealth & Crypto Risks

Midas Letter
Midas Letter
Coinchange CEO Interview on Using Defi to Grow Wealth & Crypto Risks
/

Coinchange Financials Inc is a consumer Fintech company that generates yield for customers through blockchain-based financial instruments.

The company has created an automated crypto wealth management platform that automatically rebalances customer assets across five blockchains, fifteen protocols, and thirty pools to deliver optimal yields.

Dolly Varden Silver (CVE:DV, OTCMKTS:DOLLF) CEO on Drilling, M&A and Bullish Resource Market

Midas Letter
Midas Letter
Dolly Varden Silver (CVE:DV, OTCMKTS:DOLLF) CEO on Drilling, M&A and Bullish Resource Market
/

Dolly Varden Silver Corp (CVE:DV, OTCMKTS:DOLLF) CEO Shawn Khunkhun speaks with host James West in this episode of Midas Letter Daily. The pair discuss Dolly Varden’s latest 99-hole, thirty thousand metre drill program in the Golden Triangle. “The area is littered with the richest twenty kilometres of gold-silver mineralization in the world.” Shawn Khunkhun details how he will continue to grow the company through drill programs, expansion, strategic investments, and possible takeover opportunities. Shawn’s confidence in precious metals in Canada and the magnitude of an upcoming bull resource market are also discussed.

In this episode, you will learn:

🎙 Dolly Varden Silver CEO Shawn Khunkhun (00:00)

⛏ Dolly Varden business overview (00:50)

📈 What drove stock to double? (02:53)

💼 Growth opportunities (04:14)

🥇 Eric Sprott & Hecla Mining investment (05:57)

🕳 99-hole drill program (06:19)

🐂 Resource market (07:35)

🏔 Kitsault Valley history (10:51)

⏳ Timeline until production & takeover opportunity (12:58)

Company Bio:

Dolly Varden Silver Corporation is a mineral exploration company focused on advancing its 100% held Kitsault Valley Project located in the Golden Triangle of British Columbia, Canada, 25kms by road to deep tide water.

The 163 sq. km. project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge along with the past-producing Dolly Varden and Torbrit silver mines. It is considered to be prospective for hosting further precious metal deposits, being on the same structural and stratigraphic belts that host numerous other, on-trend, high-grade deposits, such as Eskay Creek and Brucejack. The project also contains the Big Bulk property which is prospective for porphyry and skarn style copper and gold mineralization, similar to other such deposits in the region (Red Mountain, KSM, Red Chris).

Resources and Links:

Crypto’s Inherent Debasement Proven as 20,000 Threshold Crossed

News today of there now being more than 20,000 crypto “currencies” is precisely the bad news the nascent crypto universe doesn’t need right now.

Far from demonstrating popular adoption of the concept, this single headline provides unequivocal proof that crypto, as a would-be currency, is many times more debaseable than even Zimbabwean dollars circa 2008.

The rate of monetary inflation hit an unprecedented rate of “89.7 sextillion percent year-on-year in mid-November 2008”, according to Wikipedia.

The 20,000 crypto projects are not all geared toward becoming currencies; in fact, most are replicas of either Bitcoin or Ethereum or Tether and promote utility over monetary value.

For example, “Bolide”, one of the newest crypto projects launched, purports to provide 17% interest through “automated defi strategies”. The project trades at $0.02 per unit and claims to have 

US$2.77 million total capitalization.

The idea that a 2 cent unit could yield 17% defies logic, unless loan sharking is involved. The project website says it also has medium risk and high risk categories of defi strategies coming soon that will yield 26% and 40% Annual Percentage Yield (APY).

The prospect of a $2.8 million asset yielding 17% APY classifying itself as a “low risk” proposition is just one glaring example of how this unregulated landscape threatens investors who fall for the rosy marketing language.

And by this example, or the thousands of other ones among the 20,000 that are targeting investors the way a carnival huckster zeroes in on any innocent who sweeps their gaze curiously in his direction, we see that the entire crypto universe is really just one massive rug pull just waiting to happen.

There are zero barriers to entry for anyone wishing to launch their own crypto thing.

There are no regulations, no government oversight, no insurance (investors are categorized as ‘unsecured creditors’ in all cases), and no possible way for interested parties to verify any of the information proffered by these firms, short of analyzing the source code. So without significant computer programming skills, even rudimentary due diligence is impossible.

The proliferation of crypto is symptomatic of the decrepit state of human mental health, at the end of the day, and is embodied in the blind willingness to prefer virtual realities to actual realities. It has resulted in a widespread conviction that virtual life will be better than real life.

One could argue that this is the result of the unbridled expansion of the billionaire class, the minuscule proportion of human beings who have found themselves in possession of a tremendously disproportionate share of global wealth, and have, as a result, deemed themselves entitled to such by virtue of their self-perceived genius.

I can see a future that very much emulates the fate of the Russian Czar Nicholas Romanov and his entire family, who were executed by the rising Bolshevik power under the impetus of revolution driven by persistent wealth disparity in 1918.

Billionaires could easily find themselves in the crosshairs of disgruntled victims of poverty if the situation continues. 

History, after all, does not necessarily repeat itself exactly but often rhymes.

What Investors Should Know TODAY | ML Daily ft Dolly Varden Silver & Coinchange

Midas Letter
Midas Letter
What Investors Should Know TODAY | ML Daily ft Dolly Varden Silver & Coinchange
/

James West & Ed Milewski discuss the major news stories and deliver the stock market recap for the week ending June 24, 2022.

Countdown to Fed Flip

Since 2009, when incoming president Barack Obama admitted targeting stock market prices with TARP (Troubled Asset Relief Plan) TALF (Term Asset-Backed Securities Loan Facility), the prevailing wisdom in the United States of America has been that stocks only go up if Quantitative Easing is pumping up the market.

It is utterly lost on American financial types that the performance of the S&P 500 (INDEXSP: .INX), NASDAQ (INDEXNASDAQ: NDX) and Dow (INDEXDJX: .DJI) is due almost entirely to these massive government corporate welfare programs.

S&P 500 & ASSETS OF MAJOR CENTRAL BANKS

So it is no surprise that the delusional American investor now believes that the Fed is obligated to print money in order to maintain a rising stock market.

The Wall Street Journal today published a headline that reads, “Stocks Historically Don’t Bottom Out Until the Fed Eases”.

Now while the Wall Street Journal routinely subordinates journalistic standards to the perception management requirements of its board members and advertisers, this headline stands out as a remarkable piece of propaganda designed to pressure the Fed into reversing course.

To imply that there is a “historical” correlation to stock markets only bottoming out after Fed welfare injection is laughable. The stock market bottoms out on corrective downturns when the correction has exhausted its momentum, just as the bull phase reverses when it loses its momentum.

There is no argument that the Fed announcing $120 billion a month in asset purchases, which itself creates the ability of banks to fractionally bank that out to $1.2 trillion a month in liquidity, is a fundamental catalyst to the upside.

But it also underscores just how false the valuations in the major indices in America really are.

I estimate that the Fed can tolerate nothing greater than a drop on NASDAQ to 8,000 (which is definitely where it is going if the Fed doesn’t pump in more welfare dollars). 

I’m assuming they (the Fed) understand that the entrenched rampant inflation that they insisted only months ago would be “transitory” is the principal driver of the inflation that causes excessive price competition for the available global real asset inventory. Although that is no certainty since they kept clinging to this ridiculous notion that inflation would be kept to 2% despite trillions of dollars flooding the system.

There is a whole new generation of investors who believe, by the Fed’s example, that:

  1. There are two tiers of law applied in the United States governing market manipulation and insider trading;
  2. Stocks only go up when the Fed is injecting monthly stimulus;
  3. Synthetic assets are as safe as real assets.

The crypto meltdown now engulfing newly minted digital fortunes of youngsters around the world who for whatever reason failed to read history is only one byproduct of a Fed whose mandate to “foster maximum employment and financial stability” has been revealed to be a total sham.

Don’t even bother going to read how the US manages to report rosy employment numbers despite massive unemployment. (They just change the definition of who is employable to achieve these stats.)

Given the Fed’s responsiveness to stock market reactions whenever it tries to reduce the pace of welfare injections into the market, the WSJ article is right about one thing: Markets will not bottom out until the Fed reverses course and starts dumping billions into the market every month.

The fact that this is the single most compounding factor to inflation will likely not deter the Fed from such a reversal; after all, the rich don’t feel the pinch of inflation nearly as acutely as the 90% of Americans who aren’t rich.

The only question is, to what extent will the Fed have to pump in order to reverse the stock market dump? I mean, when you’re running the world’s largest and most continuous pump and dump in history, how do you continue to impress when the size of your stimulus is already unfathomable?

“Kicking the can down the road” was the media buzzphrase to describe ongoing stimulus and Zero Interest Rate Policy (ZIRP). You’ll notice that term is no longer used by complicit mainstream financial news outlets. 

I guess it was a bit too close to the truth.

Prediction: Look for the Fed to announce major stimulus renewal as soon as NASDAQ hits 8,000….or sooner.

75bp Interest Rate Hike: Now What? | ML Daily ft RK Equity

Midas Letter
Midas Letter
75bp Interest Rate Hike: Now What? | ML Daily ft RK Equity
/

James West & Ed Milewski discuss the major news stories and deliver the stock market recap for the week ending June 17, 2022.

Interest Rate Surge will Throw Economy into Reverse

Well, it’s official: the Fed is gearing up for a 75 basis point rate hike today – the largest since 1992. What does that mean for Canadian stocks? 

Get ready for a return to the nuclear winter that began in 2012 – except this time, without the counter surging tech bull.

With central banks in the G7 all staring rampant entrenched inflation in the eye, the unfortunate reality is that quantitative easing is not considered an option for reversing the effects of – well – quantitative easing.

The central bank practice of injecting capital into the economy through the miracle of fractional banking has caused such an excess of liquidity in the top quartile of the financial system that assets, inflated in price by the competition such excess liquidity induces, are now spiralling out of control.

So now, with only interest rate increases available to contain the artificial demand created, central bankers think that will eventually bring inflation to heel.

It will – eventually – but if the recession of 1992 – 1994 is any indication, that will take at least two years, and come with a likely serious reduction in GDP. That means fewer jobs, lower wages, less consumer spending, and stock market prices drifting ever lower.

The positive aspect of all this is the imminent collapse in home prices as a result of suspended borrowing to facilitate it will bring home prices across most of Canada back down toward levels that could be construed as more affordable.

Of course, that doesn’t really help if mortgage rates are pumped to double digits, as was the case in the 80’s. The average house price in Canada in 1982 was $440k.

Mortgage rates topped out at 21.46% in 1980.

There are a lot of features of the current economic landscape that have never been seen before: i.e. skilled worker shortages causing supply chain bottlenecks; commodity price fluctuation creating price bubbles in short time frames causing slowdowns as purchase decisions are delayed; FOMO price premiums paid for housing that is thus going to correct way more severely than otherwise; cascading foreclosures as a result of all of these factors adding another degree of intensity and duration to the real estate crash just now unfolding.

Never mind the fact that wheels coming off of crypto, tech stocks and housing at the same time means the pain is going to be felt a lot more broadly. Unless your house is paid for and you have no personal debt, this recession will likely cause hardship across the board.

So…what can we do? Will crypto bottom out and soar higher? The short answer is no. Incoming central bank digital currencies will likely be accelerated now that there will be a growing chorus of demand for better regulation against the massive abuses that are undermining any chance of crypto becoming currency. 

Will tech stocks bottom out and rally? No again. The fact is valuations are the result of artificial stimulus aka quantitative easing; so the combination of higher interest rates means less stock buybacks, less stimulus means less buyside interest; economic recession or worse means risk taking is dialled wayyyy back.

Real estate? I think we’ve covered that.

Historically, during times of long lasting market corrections, it is mining that finally catches a bid, though not until the bottom has been firmly established.

That’s what makes this a good time to selectively position one’s self in early stage junior mineral explorers that have excellent capital structures and proven management teams. Those two factors, plus a politically stable jurisdiction, are just a few of the ingredients needed to improve one’s odds of success in mining investment.

The other requirement is patience. If you want to maximize the upside in a well placed mining investment, you’re going to need a long time frame. Exploration success through drilling provides liquidity events to take money off the table, but it’s usually a minimum of 10 years from first drilling until a mine goes into production.

If the price of gold were to breakout to a new level during this turbulent time, it could be that a real boom in junior mining causes a feeding frenzy such as that which occurred from 2002 to 2009. If that happens, buying selectively now could prove to be as lucrative as crypto was from 2015 to 2021.

Gold’s Relative Performance is a Wake-Up Call

Since the beginning of 2022, gold has exhibited price resilience relative to other asset classes that indicates its historical hedge against financial instability remains intact. Back in 2014, I stated that gold wouldn’t see a big move until cannabis and crypto had run their course. With the latter vying for Largest Slayer of Investor Value award of the year, it looks like gold now has the perfect storm to reach new heights.

Fundamentally, there has never been a worse time for markets, nor better weather for gold. The crypto community is now proving with increasing frequency why a decentralized, non sovereign-backed monetary aspirant can never achieve currency status. 

The ‘war’ in Ukraine is starting to look like modern day Vietnam by proxy, and sovereign debt levels are such that many nations are technically insolvent. Including the United States. 

With interest rates now above 6% for a 30 year fixed rate mortgage, real estate has already entered the largest correction of its existence since 2008.

In fact, 2008 was the onset of what would have been another Great Depression, but the quantitative easing shock and awe tactics deployed after Lehman Brothers went down had deferred that financial collapse into the future.

But that future is now, and the ability of QE to influence sentiment has waned, and the teeming liquidity that still exists in the system has run out of synthetic assets to chase, so now drives commodities higher.

We know that G7 governments are extremely sensitive to persistent stock market weakness, but we also know that the Fed et al are aligned in perceiving more stimulus to be the only thing worse than doing nothing. Will they attempt to pull rates down in the face of a tsunami of foreclosures? Will they throw caution to the wind and try to blow minds with monthly stimulus measured in trillions?

In this era, nothing is off the table for central bankers, who are bound to due what the governments ask them to.

Which brings us back to the question of gold.

Among monetary system critics who apprehend clearly that stimulus and ZIRP are the equivalents of slamming fentanyl into the veins of a heroin junkie, the consensus is that for years, the price of gold has not reflected the fair value of gold, thanks in large part to the opaque mal-regulation of the futures market.

Thus there is a decade long upside price compression in the gold price that only needs a huge abdication of faith in markets to uncork it. Many believe that uncompressed gold price is in the neighbourhood of $5,000 an ounce.

Regardless of what you believe, from a technical perspective, gold is looking like it could be the breakout winner of 2022, considering it is up relative to any other asset class.

Asset YTD Performance
Gold +1.15%
NASDAQ -31.6%
S&P 500 -21.8%
DJI -16.6%
Bitcoin -54%
Real Estate (SIXRE) -23.9%
Commodities (DJCI) +27.41%

With QE reduction plans still moving forward, and with interest rates now screaming higher, and with inflation entrenched above 8%, there is no option mathematically but for recession and perhaps depression.

This will be the moment where history teaches us that, while with human ingenuity and self-deception, the inevitable can be deferred, but never cancelled.