Month: October 2020

Gold price still has some upside potential but not a lot – Natixis  Kitco NEWS

Gold, silver gain as USDX pulls back ahead of US jobs data  Kitco NEWS

Gold prices reclaim $1,900 to post highest finish in nearly 2 weeks  MarketWatch

Gold Price Forecast – Gold Markets Tangled With 50 Day EMA Again  FX Empire

Bridgewater on gold: ‘It’s wise to hold some of what central banks can’t create more of’  Kitco NEWS

Tuesday night’s presidential debate between Donald Trump and Joe Biden won’t go down as a great moment in the annals of American democracy. That much both camps, as well as independent observers of the chaotic spectacle, can agree upon.

The post-debate debate over whose interruptions or insults were most egregious totally overlooked the glaring failure of moderator Chris Wallace to ask any substantive questions about the country’s unprecedented financial predicament.

Record budget deficits? Unsustainable debt growth? Open-ended Federal Reserve currency creation?

None of these topics that bear down starkly on America’s financial future were even brought up!

Whoever occupies the Oval Office for the next four years will have to make critical decisions that could determine whether the country suffers a currency crisis or other great reckoning.

Chris Wallace chose instead to badger the President of the United States about how much personal income tax he recently paid, raise a fuss about his rollback of “racial sensitivity training,” and scold like a schoolmarm whenever Trump initiated spontaneous exchanges with his opponent.

The establishmentarian journalist’s sympathies toward Biden were on full display.

Beyond that, his obliviousness to the elephant in the room – the growing fiscal and monetary crisis both candidates have had a hand in creating – did voters a major disservice.

Here’s the question the debate moderator should have asked:

What’s the end game for skyrocketing federal budget deficits and a national debt that now represents well over 100% of GDP – especially given that entitlement outlays and other “mandatory” spending programs are projected to surge in the years ahead?

Back in the 1990s, it was still common to ask presidential candidates what they would do to balance the budget and reduce the national debt. Debt became one of the major issues of the day after it was brought to prominence by the charts and graphs of independent candidate Ross Perot.

As of 2020, the federal government is set to run up a previously unthinkable deficit of over $3 trillion to push the national debt to $27 trillion. And nobody seems to care.

Obviously, no politician who hopes to win election will oppose emergency coronavirus stimulus measures in the name of fiscal responsibility. But the American people deserve to be told the truth by elected officials about how exactly they intend to pay for all the “free” money they are handing out.

Had the candidates been pressed on this issue, Biden might have spouted something about increasing federal revenues by making the rich pay even more in taxes. Trump might have talked about growing the economy and hitting China with tariffs.

But a sharp debate moderator who grasped the nature of what the Federal Reserve is now doing – and who understood the link between debt growth and the country’s stray from sound money principles – would cut to the chase.

We’re never going to grow our way out of the debt. And we’re never going to tax our way out of it, either. It’s all going to be papered over by the Federal Reserve. Isn’t that the end game?

Of course it is. In effect, there is now a bipartisan consensus is support of the debt monetization.

The once obscure central banking mandate euphemistically called Modern Monetary Theory (MMT) has now quietly become mainstream. It essentially tasks the Fed with printing whatever dollars the government needs, rendering debt burdens irrelevant while marking down the value of the currency.

Do you support MMT, Mr. President? What about you former Vice President Biden?

They would each be hard pressed to deny it at this point.

In the wake of the COVID lockdowns, the Treasury Department and the U.S. Congress essentially told the Fed to do whatever it takes to avert debt defaults, even if means buying literal junk bonds and adding them to its balance sheet. That’s exactly what the central bank did.

The Fed’s so-called “dual mandate” of stable prices and full employment is now an in infinite mandate. Central bankers have assumed the role of funding the government, bailing out financial markets, stimulating the economy, propping up asset prices, and lifting consumer prices.

Ever since President Richard Nixon de-linked the U.S. dollar from gold in 1971, government spending and debt has accelerated to the upside.

In the process, the value of the dollar has been steadily debased. What cost $1.00 in 1971 costs $6.37 in 2020, based on the government’s own Consumer Price Index.

It’s all reflected in gold prices, which recently surged to a record high of over $2,000/oz – 100 times higher compared to gold’s dollar price a century ago. Measured by gold, that’s a 99% decline in the currency’s purchasing power!

Whether Fed Chairman Jerome Powell wants to admit it or not, the ultimate arbiter of his actions won’t be the next President who decides whether to reappoint him, the members of Congress to whom he gives testimony, or the voters who elect them in November.

The ultimate arbiter of monetary policy will be the precious metals markets.

A loss of confidence in the currency will be reflected in a further rise in gold and silver prices. Neither Trump nor Biden will be able to override the veto of sound money.

Source: Bob Moriarty for Streetwise Reports   09/30/2020

Bob Moriarty of 321gold profiles this explorer that recently optioned a large gold-silver property in Mexico.

While the two candidates for the presidency of the US continue to impress the entire world with their keen judgment and sense of superior leadership, the metals cannot quite figure out which direction to proceed. For a couple of days it looked like they would rocket higher but it is a weak part of the season and I continue to hope for more of a correction to squeeze out the last of the Johnny-come-latelys.

A young, new company in the resource space recently optioned a gold/silver package in Sinaloa, Mexico. On the one hand, it’s not a cheap deal. On the other hand, it does happen to have over 160 mines and mine workings going back hundreds of years. It’s a 3,954 hectare property the company calls the Picachos gold-silver project.

Brigadier Gold Ltd. (BRG:TSX.V; BGADF:OTCBB) came into the gold and silver resource arena in June. The shares shot up to $0.60 before correcting back to about $0.25. Management has raised $4.2 million for exploration. In addition 14 million warrants are solidly in the money and would bring it an additional $1.4 million.

Terms on the option include an initial payment of US$275,000 and four million shares of BRG along with an exploration requirement of $3.85 million US over a five-year period. When Brigadier outlines a resource of over 350,000 ounces in the inferred category they will need to fork over an additional 1 million shares. When a feasibility study is complete the company must come up with yet another 1 million shares in addition to $750,000 in cash in USD. Upon commercial production an additional $2 million USD is required. And there is a 2% NSR.

I think I may have mentioned the 100% option deal was not cheap. But they are in elephant country and with 160 former mines to poke through, they ought to be able to find something worthwhile.

The company has hit the ground running. Just two days ago the company announced the start of a Phase 1 5,000-diamond drill program, the first modern exploration on the property. It will consist of some 40 holes targeting four different high-grade gold, silver veins.

Past channel sample grades verge on the obscene including 26.2 g/t Au and 114 g/t Ag over a meter at Tejones, 32.3 g/t Au with 110 g/t Ag over 1.5 meters at San Agustin and 184.9 g/t Au and 61 g/t Ag in 1.2 meters also at San Agustin. At Fermin they reported 194 g/t Ag and 1.6% Cu with 1.1% Pb. At Mochomos they showed 18.5 g/t Au and 570 g/t Ag over half a meter.

Brigadier Gold is an advertiser on 321gold. I have not bought shares. Do your own due diligence.

Brigadier Gold
BRG-V $0.25 (Sep 30, 2020)
BGADF OTCBB 99 million shares
Brigadier Gold website

Bob Moriarty
President: 321gold
Archives
321gold

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: None. Brigadier Gold 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.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
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 decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: BRG:TSX.V; BGADF:OTCBB,
)

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