Month: September 2020

Gold, silver gain as USDX hits 2.5-year low  Kitco NEWS

Gold lower, silver and platinum higher  Kitco NEWS

Gold Price Forecast – Gold Markets Continue to Show Strength  FX Empire

Bullion investors took a breather when Donald Trump was elected in 2016. Demand for coins, rounds, and bars fell significantly on the day after election day and stayed down for the next 3 years.

After 8 years of Barack Obama, ultra-loose fed policy and a historic run-up in the national debt, investors felt things would get better under Trump.

Today, as we near the end of Trump’s first term, demand for physical precious metals has spiked. The COVID scare and the associated monetary and fiscal stimulus coupled with widespread social unrest has gold and silver bugs stocking up once again. Along with them, an entirely new wave of investors and savers has entered the markets.

Politics are a big driver in the bullion markets. What can people expect when the voting is done in November?

Trump’s victory in 2016 caught many by surprise, and there could be another surprise this time around.

But we’ll leave the 2020 election forecasting to others and focus on the potential implications for the bullion markets.

Should Trump win, the question will be whether investors breathe a collective sigh of relief once again and turn their attention away from safety and toward risk assets.

In the short run, investor psychology is more important than the facts. Trump’s first election did little to change the fundamental drivers behind gold and silver prices and demand…

…the Fed still prints too much, Congress still borrows and spends too much, and mining production of gold and silver is flat to declining. The reckoning for all of this is closer today than it was in 2016.

However, it might not matter that Trump has little control over the metastasizing national debt or that he is anything but fiscally conservative.

If Trump wins, gold bugs may simply be relieved that Joe Biden and Kamala Harris aren’t taking the reins of power. Their confidence could be boosted even as the Federal Reserve Note continues down the path to oblivion, just as it has over the past several administrations.

The circumstances around this election are different, however. A Trump victory would not catch nearly as many people by surprise.

Investors will also be able to respond according to Trump’s actual track record rather than to his campaign rhetoric.

Prior to his 2016 election, Trump was critical of the Fed for running such loose monetary policy. Since his election, the president has been lambasting Jerome Powell for not being dovish enough.

Bullion investors gave Trump a pass on fiscal policy during the first 3 years of his term, and the stock market rallied bigly.

But today’s multi-trillion dollar annual deficits may be tougher to ignore. If the current activity in the bullion market is any indication, investors are already very nervous.

Should Joe Biden win, on the other hand, we expect demand for physical bullion to surge. Gold bugs may shift from nervous to terrified.

The trouble with any new drivers for demand is that mints and refiners are already having trouble coping. If buying activity doubles or triples again, dealer inventory – particularly at Money Metals’ weaker competitors – will go from sparse to completely barren and premiums will go completely out of sight.

Anyone who thinks Biden has a good shot at becoming president should definitely stock up now.

Lately, it’s been hard to ignore the feeling that the monetary system could potentially collapse. To me, it’s not just a feeling. It’s a certainty.

To explain, I’d like to borrow an analogy from the world of aviation. The “backside of the power curve” means that you have overextended the ability of the airplane to fly, and no amount of power can rectify the situation.

Well, similarly, it appears that the monetary system is now on the backside of the power curve. It has reached a point where no matter how much more money is printed, no amount can help the economy to recover sustainably. Any more printing will likely only work to exasperate the problem and accelerate the failure of the monetary system as we know it.

Governments can borrow, and Bankers can print from now until kingdom come, but it won’t do anything other than destroy the system right before our very eyes. It’s just not working anymore!

Think about it like this, for example: when borrowing money, typically, you would want to borrow one unit and yield 10% on that borrowed money. But when you have to borrow five units to stimulate just one unit of economic growth, there is an obvious imbalance, and more printing is doing less and less for the real economy.

As the global financial system continues to struggle under further stress, it is clear there is a growing lack of trust and faith not only in currencies but in the governments and banks behind them. People are seeking safety, and it is virtually fueling a run to gold.

Turkey is a prime example of this. A growing percentage of the Turkish population are moving away from the country’s currency, the Turkish Lira, as it plunges to its lowest levels in history, and opting for gold to preserve their wealth instead.

What this makes perfectly clear is that a run to gold is starting. To hear more on that, watch my recent interview with Miles Franklin here.

Now, silver is finally starting to catch up to gold. This is clear due to the extreme gold-silver ratio of 125:1 that we saw earlier this year, one that we hadn’t seen before in the history of time. Since then, it has fluctuated, now near the 70 mark – a number that gives us some insight into the direction of silver. And it looks like tough times are ahead.

But silver still has a long way to go relative to gold. I discussed these ideas further in my interview earlier this week with Mike Maloney of GoldSilver.com. You can watch the full interview here.

“The coming Great Depression will make the last look like a small technical correction.” Those were the words of the late Elliot Janeway over three decades ago, and they seem to make more sense with time. I hope it never gets that bad, but what is clear is that it is coming.

There is no doubt in my mind that things will never be the same.

To hear more of my thoughts on that, you will have to tune in to my recent interview on Palisade Radio here.

Source: Bob Moriarty for Streetwise Reports   08/30/2020

Bob Moriarty of 321gold explains why he has his eye on this company.

Benchmark Metals Inc. (BNCH:TSX.V; CYRTF:OTCQB) just completed a $48 million financing. It will fund an increase in their 2020 drill program from 50,000 meters to 100,000 meters. In addition the company plans a 200,000-meter drill program for 2021. Wow. I’d say they are getting serious. Investors noticed, running the shares up 400% in the past two months.

I was talking about Benchmark 18 months ago when the shares were puttering along at $0.185. The shares are up 700% since then. The company does an excellent job of communication and the 100,000 meters of new drilling on the +20 km Lawyers gold/silver trend will generate results on a constant basis.

Their latest news release reported a surface sample of 61.3 g/t gold and 3,890 g/t Ag. That is $7,300 rock. There is a lot more of it up there. Benchmark keeps reporting excellent results and will for the next 18 months.

Look for the market to actually value Benchmark for what they obviously have in hand.

I have bought shares in the open market and participated in private placements with Benchmark. They are an advertiser so naturally I am biased. I highly encourage potential investor go through their excellent presentation. Do your own due diligence.

Benchmark Metals Inc
BNCH-V $1.48 (Aug 28, 2020)
CYRTF-OTCQB 120.9 million shares
Benchmark Metals website

Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Benchmark Metals. Benchmark Metals is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: BNCH:TSX.V; CYRTF:OTCQB,
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