McEwen Mining scales back at Black Fox and Gold Bar

Diversified gold and silver producer McEwen Mining will scale down both the Black Fox mine in Canada, and the Gold Bar mine, in the US, from March 26 for a period of 14 days to try to prevent the spread of Covid-19.  Certain production and exploration activities will continue at Gold Bar in areas where social distancing can be observed, including ore crushing, irrigation of the heap leach pad and operation of the process plant.

If History Repeats, Gold Is Headed to $8,000

If History Repeats, Gold Is Headed to $8,000 
Contributed Opinion

Source: Jason Hamlin for Streetwise Reports  (11/18/19)

Jason HamlinSector expert Jason Hamlin explores the potential of the current gold bull market by charting the courses of past bull markets.

Gold bull and bear

The gold price bottomed in late 2015 around $1,050 per ounce. It has since advanced to a high of $1,555 in early September, followed by a pullback to the current price of $1,470. Gold is in a well-defined uptrend channel with higher lows and recently higher highs. The breakout above $1,360 this summer was significant and we have seen follow-through buying. The $420 move in the price of gold from the bottom in late 2015 represents a gain of 40% in just under four years.

While this is a respectable gain, it only scratches the surface of the potential move ahead. To understand why, let's take a look at the last two major bull markets in gold.

From 1971 to 1980, the gold price rocketed from a low of $35 to briefly peak at a high of around $850 ($678 high on the weekly chart) for a gain of just over 2,000%. It was closer to 850% in inflation-adjusted terms.


Gold Price, Source

Of course, this massive move was driven by the abandonment of the gold standard window by Nixon, a stampede into gold as a safe haven from double-digit inflation, oil price shocks, a weak dollar, and political instability that made investors fearful and nervous.

Fast-forward to 2001 and we can see that gold made another impressive move from $250 to a weekly high of $1,825 ($1,920 daily) over the course of roughly the same time period. This represents a gain of around 600% in that decade, or 450% in inflation-adjusted terms.


Gold Price, Source

The current bull market cycle in gold is nearly four years old but hasn't broken out of the gates yet. The 40% move higher since the start of 2016 is a modest advance relative to the last two bull markets. The gold price is moving higher today, so the chart below shows a 38% gain since the bottom.

The price would still need to go up roughly 15x (1,400%) to match the 1970s bull market, which would take the price to over $22,000! Or it would need to go up another 5.5x (450%) to $8,000 to match the magnitude of gains from the 2001–2011 bull market.

Put simply, the gold price has an explosive move ahead if the current bull cycle is to come anywhere close to the magnitude of the past two bull cycles.

While we don't have runaway inflation (yet) and we aren't facing a closing of the gold convertibility window as Nixon did in 1971, we do have quite a few factors that should be supportive of the gold price going forward.

These include record debt and deficits, a record-high debt-to-GDP ratio, interest rates dropping toward zero, the Federal Reserve expanding its balance sheet at twice the pace it was during QE3 (just don't call it quantitative easing!), the Fed intervening in various markets to provide emergency liquidity, a crisis in confidence in governments and political unrest worldwide, the potential for the impeachment of the United States president, elevated geopolitical tensions between world powers, a global de-dollarization movement that is accelerating, slowing economic growth, historically overvalued equity markets, a record low commodity-to-equities ratio and record-high total stock market cap to GDP ratio.


U.S. Debt-to-GDP, Source

If anything, the underlying conditions that caused the gold price to spike 20x in the 1970s could be viewed as even worse today. We have a massive derivatives issue and corporate debt problem that many view as ticking time bombs. This grand experiment with fractional reserve fiat paper money being used as a world reserve currency is likely coming to an end.

As it does, people will move toward forms of money with a limited supply that are not controlled by centralized authorities. Whether this is gold-backed money, digital currency from a tech giant or increased usage of Bitcoin for reserves and international exchange, the legacy financial system is on the way out.

Assuming another ten-year bull cycle for gold, there are just over six years left in the current move and upside of 5x to 15x the current price. In this environment, cash flows for quality mining stocks will absolutely explode and provide investors with leveraged returns. At a modest projection of just 2x leverage, there exists the potential for 10x to 30x returns in gold mining stocks over the next 5 to 6 years!

This is precisely the type of asymmetric trade that we look for at Nicoya Research. If you would like to receive our top gold stock picks, real-time portfolio, monthly newsletter, and trade alerts, you can sign up for the top-rated Gold Stock Bull subscription here.
Read the original article here.
Nicoya Research.

Jason Hamlin is the founder of Nicoya Research and goldstockbull.com and has published investment research for over a decade. He previously worked in data analytics for Nielsen, the world's largest market research firm, where he consulted to Fortune 500 companies including Nestlé, Johnson & Johnson and Del Monte. Hamlin's investment philosophy takes into account political, historical and socio-economic factors to determine macroeconomic trends and isolate the sectors that stand to benefit. He then applies fundamental and technical analysis, as well as proprietary models, to find companies that are undervalued within those sectors. Hamlin is a contrarian, cycles investor and student of Austrian economics.

Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREEStreetwise Reports' newsletter.

NEGATIVE RATES ARE KILLING THE WORLD

NEGATIVE RATES ARE KILLING THE WORLD

October 18, 2019

by Egon von Greyerz

“BREXIT, is in the last innings, UK will get out – This is how Egon von Greyerz starts the interview with Eric King of King World News. Egon goes on to say that in the long run the EU will dissolve, country after country, until it finally collapses under its own weight.

Egon further expresses his concerns about the FED’s emergency liquidity intervention, which has resulted in the relaunch of QE. Banking pressures are not only limited to the US, it’s a global phenomenon. Looking at Europe, German, French and Italian Banks have been extremely fragile for a very long time. 

Besides that:

  • The Paper shufflers: Gold ETF holdings have spiked with virtually no physical demand.
  • In the long run gold fundamentals know only one way: UP.
  • Gold has broken its 2011 highs in virtually every single currency. $ 2’000, $ 3’000 and $ 5’000 are just starting numbers.
  • Central banks support gold on a daily basis, by continuing to debase currencies.
  • People going to lose a major part of their wealth, caused by an implosion of bubble assets such as stocks, bonds and properties.
  • Shortages are starting: As indicated by Perth Mint’s Silver delays.
  • In this vicious debt cycle, central banks have only one option leftDebase currencies and create an inflationary nightmare.
  • Europe, Japan or America, they all must print unlimited money for the banking system to survive.
  • Negative rates are killing the world: No savings possible, only money printing and skyrocketing deficits are guaranteed.
  • It’s inevitable: A paradigm of overspending and living above your means will end.
  • Better get prepared: There is nothing governments can do, than to continue debasing currencies. Inevitably, gold will reflect that in a major way.

LISTEN IN BROWSER:

Egon von Greyerz
Founder and Managing Partner
Matterhorn Asset Management
Zurich, Switzerland
Phone: +41 44 213 62 45

Matterhorn Asset Management’s global client base strategically stores an important part of their wealth in Switzerland in physical gold and silver outside the banking system. Matterhorn Asset Management is pleased to deliver a unique and exceptional service to our highly esteemed wealth preservation clientele in over 60 countries.

Yamana adjusts FY guidance, reports strong second-quarter production

Canadian gold miner Yamana Gold on Wednesday reported strong preliminary second-quarter production results and updated its guidance for the year to reflect the completion of the sale of the Chapada mine, in Brazil, to Lundin Mining. The company produced 257 556 gold-equivalent ounces (GEOs) in the second quarter, comprising 232 863 oz of gold and 2.17-million ounces of silver. Both the gold and silver production were stronger than anticipated, Yamana said.

Ariana’s Kiziltepe reports solid start to 2019

Turkey-focused explorer and developer Ariana Resources on Monday reported that its Kiziltepe project produced 7 296 oz of gold during the quarter ended March 31, 2019, reflecting a solid start to 2019. Kiziltepe is part of the Red Rabbit joint venture with Proccea Construction and is 50%-owned by Ariana through its shareholding in Zenit.

SRR aims for record production in 2019

Precious metals miner SSR Mining has delivered a strong production and financial performance in the March quarter, and is targeting record production for 2019, president and CEO Paul Benson said on Thursday. Benson indicated in a statement announcing the first-quarter results that the company achieved near-record consolidated production of more than 112 000 gold-equivalent ounces at a lower cash cost of $712/oz of gold, driven by solid performance at all three of its operations in the Americas.

Trans-Siberian lifts first-quarter gold, silver output

Russian miner Trans-Siberian Gold achieved a 52% year-on-year increase in gold production to 12 345 oz at its Asacha gold mine for the three months ended March 31. The increase was driven by higher grades and better recoveries, the company said, adding that it remains on track to meet its full-year production guidance.

Independence Gold to focus on 3Ts project in 2019

TSX-V-listed Independence Gold will intensify its focus on its 3Ts project, located about 185 km southwest of Prince George, in British Columbia, during 2019, with a comprehensive data review planned ahead of executing a field programme later this year. The 3Ts project is an epithermal quartz-carbonate vein system with a calculated inferred resource estimate containing 441 000 oz of gold and 12.5-million ounces of silver.

Mining starts at Talang Santo

Mining and processing operations have started at the Talang Santo openpit gold/silver project, in Indonesia, following the receipt of environmental approval earlier this month. ASX-listed Kingsrose Mining MD Paul Jago said on Thursday that the Talang Santo pit was already performing beyond expectations, and with a more informed interpretation expected as the pit deepened, the mine life could be extended well beyond the current estimate.

Ariana encouraged by Kizilcukur developments

Updated developments at Turkey-focused Ariana Resources’ Kizilcukur project show that about 2 800 t of mineralised material is currently stockpiled on site, with the potential to double with limited additional trial mining in 2019. Kizilcukur is part of the Red Rabbit Joint Venture (JV) with Proccea Construction and is 50% owned by Ariana through its shareholding in Zenit.