Month: November 2020

We now have a clearer vision of what lies ahead on the global landscape; the trend that is now coming to fruition is that the standard of living for almost everyone in the world is going to sink lower. For some, for .0001% of the world, it could improve.

For the remaining 99.999% of us, however, there will certainly be some turbulence ahead.

If the ongoing pandemic disappeared overnight, little would change. There has been irreversible damage done to multiple sectors of the global economy, with the entertainment and service industries that rely on foot traffic and social gatherings feeling the effects the deepest.

Movie theatres, sports arenas, sit-down restaurants: they may still be around in a post-COVID world, but it is certain that there will be a lot less of them.

This path to economic devastation has not commenced solely because of the global health crisis we are currently living through. If anything, the pandemic has only speeded the journey along. This path began when quantitative easing became a normalized and over-used tactic.

The Pursuit of the Unattainable Carrot

For a moment, indulge in this analogy: the U.S. government’s efforts to save the economy mirror a carrot-and-stick approach. The act of continuously borrowing and printing money represents faster running on a metaphorical treadmill, in pursuit of the carrot on a stick that remains unattainable. The result: running in place; stagnant, with no possibility of success, leading to ultimate exhaustion. That is where years of currency destruction has left us.

These conditions have set the stage for a global shift away from conventional currencies and towards alternative options. Gold has not failed yet as an asset for wealth preservation in tumultuous times, and more people are putting their faith in the precious metal to hedge against uncertainty.

Cryptocurrency adoption is on the rise, as people seek a replacement for the current monetary paradigm that harms much more than it benefits.

Economic problems are so vast, it doesn’t matter who is in the White House this upcoming January. Regardless of the outcome of the election, the overall economic trend cannot be reversed. What is needed is for people to snap out of this left-right paradigm that demonizes opposing values and become more introspectively aware of the ways in which change begins with you.

“Ask not what your country can do for you, ask what you can do for your country.” The late JFK said it at his inaugural address almost 60 years ago, but it holds true to this day.

The lone wolf philosophy of being ruggedly independent to a fault is detrimental and borders on self-sabotage. However, the idea that you could do more, give more, and be more is becoming more pervasive, especially in the younger generation, the future’s leaders, policy-makers and professionals.

I may be an idealist, but I believe in the human condition: that we can adapt and become better than what we were. It is what we have always done, and it’s what I hope we will continue to do.

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.

Precious metals markets got off to a rocky start this week as Wall Street celebrated promising developments on the vaccine front.

On Monday, stocks surged while gold and silver sold off hard. That selling didn’t bring downside follow through, however. The metals held trading range support levels and pared some of their earlier losses heading into this Friday the 13th.

Gold is now down 2.9% for the week to bring spot prices to $1,901 an ounce. Silver shows a weekly loss of about a $1 or 3.6% to trade at $24.82 per ounce.

Turning to the platinum group metals, platinum prices come in lower this week by 0.6% to trade at $904. Its sister metal palladium took a hit of over $100 on Wednesday. Palladium is the biggest loser among the precious metals this week and is now posting a weekly decline of 6.7% to check in at $2,346 per ounce.

And finally, a metal we don’t often talk about traded up to an amazing record high earlier this week. The noble metal rhodium made palladium look dirt cheap by comparison – commanding nearly $15,000 per ounce.

Like platinum and palladium, the primary application for rhodium is catalytic converters for cars and trucks. It is often alloyed with platinum and palladium to enhance resistance to corrosion. Rhodium is also used in some types of jewelry.

The high-flying metal is available to investors through Money Metals Exchange in very limited quantities in the form of one-ounce and 5-ounce bullion bars. They come sealed and authenticated by either of the reputable mints Baird & Company or PAMP Suisse.

That said, we don’t necessarily recommend buying rhodium at these levels. It’s certainly not suitable for all investors. Those that own rhodium and want to take profits will find Money Metals is one of the major market makers in the industry for this metal – and we offer some of the very best buy prices on rhodium that you will find anywhere. Just give us a call if you have any you either want to sell or if you want to buy.

We would suggest that those looking to diversify their metals portfolio beyond core gold and silver holdings consider platinum bullion coins or bars instead. The market for platinum is more liquid and the price per ounce is much more affordable.

Platinum is more than twenty times rarer than gold. It is so rare that all of the platinum ever mined could fit into a room measuring 25 feet by 25 feet.

The case against platinum is that its demand profile is very narrow, dominated by the automotive industry, and is generally not held in monetary reserves like gold.

In large part due to a big diesel-emissions scandal a few years ago, platinum has been out of favor for use in auto catalysts as manufacturers have turned more to its sister metal palladium. But with palladium now costing more than double what platinum does, incentives for substitution are strong.

There are also incentives for investors to substitute or supplement with platinum as part of their hard asset mix. Inflows into the top platinum exchange-traded fund have surged this year along with the broader wave of gold and silver buying.

It won’t take much of an increase in demand for platinum to overwhelm mining supply. The platinum producing industry, such as it is, will struggle to arrest declining output levels.

As a hard asset, platinum should benefit from the inflationary environment the world now faces. Meanwhile, if there’s an economic recovery, platinum prices would receive a new tailwind from rising industrial activity.

On a historic basis, platinum is extremely undervalued versus gold, palladium, and most definitely rhodium.

A few years ago, though, an investor could have purchased rhodium at a fraction of today’s price. As recently as 2017, rhodium sold for less than $1,000 per ounce.

Rhodium’s explosive move since could potentially play out on a similar scale in other metals in the years ahead. Perhaps platinum, perhaps silver, could enjoy a massive multi-fold run up on supply scarcity and surging demand.

The CEO of First Majestic, one of the world’s leading silver producers and a past guest here on our podcast, expects to see much much higher silver prices. First Majestic founder Keith Neumeyer said in a recent interview that silver will become increasingly essential to alternative energy components of the “green economy” that politicians around the world are racing to transition us into.

Keith Neumeyer: I still believe today that silver is going to go to triple digits, and I get laughed at all the time, but I’m not going to get knocked off my game just because some people think I’m talking my own book. I actually believe for real fundamental reasons.

If we’re going to go green and we’re going to do everything we need to do as a human race to evolve this species to where we want to go, we need a lot more silver, and copper as well, but obviously, I run a silver company. So, I’m going to keep pushing as hard as I can growing this business, stay very much focused on silver. In one of these days, I will be vindicated when I see triple digits.

Triple digit silver may not be that far off. Considering how rapidly five-digit rhodium came to fruition, silver could see a $100 handle on a relatively modest bull market advance.

Well, as the presidential election continues to be contested and all eyes focus on Georgia to determine the balance of power in the U.S. Senate, the Republican-controlled Senate quietly moved this week to change the makeup of the Federal Reserve Board.

Senate Majority Leader Mitch McConnell finally cleared the way for a vote on President Donald Trump’s nominee Judy Shelton.

Her nomination is bitterly opposed by Democrats who have derided her past support of a gold standard. Some Republicans have wavered on supporting her because of her unconventional views on monetary policy. But it appears that she now has the votes to be confirmed sometime next week.

We doubt Shelton will move the central bank toward sound money principles. But she could serve as a powerful voice of dissent on monetary policy decisions.

The Fed operates based on the myth that its monetary activism is supported by all the leading experts.

It’s true that the economists who work for banks, for Wall Street, and for the government tend to endorse the Fed’s inflationist philosophy. But there are entire schools of economics dedicated to opposing it.

There is also thousands of years of history demonstrating that inflationary fiat monetary systems ultimately fail.

Currency based on hard money – gold and silver – may be inconvenient for the agendas of powerful financial and political interests. But precious metals will always represent real value which can never be replicated by paper notes or computer digits.

Well that will do it for this week. Be sure to check back next Friday for our next Weekly Market Wrap Podcast. Until then this has been Mike Gleason with Money Metals Exchange, thanks for listening and have a great weekend everybody.

Source: Rudi Fronk and Jim Anthony for Streetwise Reports   11/12/2020

Rudi Fronk and Jim Anthony, cofounders of Seabridge Gold, look at the macroeconomic factors they believe will move gold higher.

The gold market entered a period of increased volatility during the third quarter, usually a positive indicator for the metal. A growing number of investors and analysts recommended the accumulation of gold as it began to move out of the shadows and into the spotlight. Global ETFs have now been net purchasers for 11 months in a row and central banks have also been net purchasers every month of this year except October when two nations liquidated some of their holdings to meet dollar requirements resulting from the COVID-induced economic crisis.

We see a further move higher in gold in the near term as the election log jam begins to clear. The election process curtailed new fiscal stimulus since July when direct transfers to individuals exhausted their Congressional approvals. This pause in fiscal stimulus, which took government transfer payments to an astonishing 25% of household income, coincided with a pause in gold’s upward momentum. However, it is very clear that further stimulus is favored on both sides of the House and even a Republican Senate, if there proves to be one, will not prevent trillions more of fiscal stimulus.

The two main drivers of the gold price are the dollar and real yields. We expect both drivers to be positive in the coming year.

First, the dollar: The Fed will be forced to fund whatever expenditures the Congress approves. Foreign holdings are at 10-year lows as the largest sovereign purchasers became net sellers this year. We therefore expect Fed debt monetization to accelerate in the next few months with a negative impact on the dollar. It was a $3 Trillion expansion of the Fed balance sheet in March and April which, not coincidentally, equaled a sudden increase in the US deficit to $3 Trillion, that unleashed gold from its March low. Debt monetization is a formula for dollar weakness.

As for yields, the market narrative now favors a reflation trade due to the apparent success of the US Operation Warp Speed vaccine initiative. This has provoked the sale of Treasuries as hot money has moved back into stocks, driving up yields. We expect the Fed response to be aggressive: higher yields cannot be allowed to dampen the economic recovery. In our view, the Fed is very likely to cap yields, a policy that can only be implemented by more QE. Capping yields in unison with a reflation narrative means increased inflation expectations and lower real yields…the magic formula for higher gold prices. If yields cannot rise to attract and hold private capital, the Fed must buy more debt and the dollar must fall.

Remember that today’s QE is not the QE post Great Recession which corralled the new money in the financial system, resulting in a muted response in terms of money supply growth and inflation. Today’s QE is being mainlined into the real economy by way of direct transfer payments to individuals and business, forgivable loans and bailouts. Money supply is expanding at a blistering pace. The die has been cast and there is no turning back. Going forward, gold is the best protection for private wealth and there is not nearly enough of it to serve this purpose at current prices.

In a reflation scenario, inflation expectations rise significantly from low levels. With the rise in nominal yields capped by central bank QE, real yields fall. The relationship between real yields and gold is virtually perfect in recent years.

The growth in MZM money supply…the money available for immediate expenditure…has slowed(!) to 27.5% year over year, down from 30% two months ago, an unprecedented pace of money creation which is temporarily keeping the economy afloat.

This article is the collaboration of Rudi Fronk and Jim Anthony, cofounders of Seabridge Gold, and reflects the thinking that has helped make them successful gold investors. Rudi is the current Chairman and CEO of Seabridge and Jim is one of its largest shareholders.

Disclaimer: The authors are not registered or accredited as investment advisors. Information contained herein has been obtained from sources believed reliable but is not necessarily complete and accuracy is not guaranteed. Any securities mentioned on this site are not to be construed as investment or trading recommendations specifically for you. You must consult your own advisor for investment or trading advice. This article is for informational purposes only.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosures:
1) Statements and opinions expressed are the opinions of Rudi Fronk and Jim Anthony and not of Streetwise Reports or its officers. The authors are wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the content preparation. The authors were not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the authors 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.
2) Rudi Fronk and Jim Anthony: we, or members of our immediate household or family, own shares of the following companies mentioned in this article: Seabridge Gold. We personally are, or members of our immediate household or family are, paid by the following companies mentioned in this article: Seabridge Gold.
3) Seabridge Gold is a billboard sponsor of Streetwise Reports. Click here for important disclosures about sponsor fees.
4) This 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. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Source: Streetwise Reports   11/12/2020

Shares of SSR Mining traded 10% higher after the company reported Q3/20 earnings and stated that it was on track with its full-year guidance to produce 680-760 Koz gold equivalent in FY/20.

SSR Mining Inc. (SSRM:NASDAQ) today announced third quarter operating and consolidated financial results for the period ended September 30, 2020.

The company’s President and CEO Rod Antal commented, “With the transformational merger with Alacer Gold finalized, integration efforts near completion, and our operations running at steady state following COVID-19 interruptions, the focus has turned towards delivering a number of value enhancing catalysts before year-end.”

“We anticipate a robust fourth quarter with strong free cash flow generation, further strengthening our balance sheet. This continued peer-leading free cash flow generation has allowed us to put in place a dividend policy beginning in the first quarter of 2021…A recurring quarterly dividend is expected to be the primary method of capital return, and we will periodically evaluate supplementing this dividend from trailing excess attributable free cash flow through incremental dividends and/or share buyback programs, Antal added.”

The firm reported that in Q3/20 it produced a total of 106.84 Koz gold equivalent (Au eq)and sold 115.31 Koz Au eq in the same period. These amounts compared favorably to the 104.78 Koz Au eq produced and 95.11 Koz Au eq sold in Q3/19.

SSR Mining reported that on a consolidated basis it posted total revenues of $225.4 million in Q3/20, compared to $147.9 million in Q3/19. During the period the firm indicated that net income attributable to equity holders of SSR Mining was $26.75 million, or $0.19 per share, versus $20.74 million, or $0.17 per share in the prior year’s corresponding quarter. The firm advised that on a non-GAAP basis it posted adjusted attributable net income of $67.8 million or $0.49 per share in Q3/20, compared to $35.78 million, or $0.29 per share in Q3/19.

The company touched on several of the operating highlights in the latest quarter and noted that it closed the zero-premium merger with Alacer and that in doing so created a leading intermediate precious metals producer with an experienced leadership team, robust margins and strong free cash flow.

The firm additionally announced that its Board of Directors approved the issuance of a quarterly cash dividend in the amount of $0.05 per share beginning in Q1/21.

The company advised that it remains on track to meet its FY/20 updated production guidance and stated that production year-to-date has been 491.821 Koz Au eq across the company’s four operations.

Factoring in the completion of the merger with Alacer, the company stated that its FY/20 outlook estimates production of 680-760 Koz Au eq with all-in sustaining costs (AISC) of $965-1,040 per oz Au eq.

SSR Mining Inc. is an intermediate gold company with four producing assets located in Argentina, Canada, Turkey and the U.S., which in 2019 produced in aggregate greater that 720 Koz gold and 7.7 Moz silver. The firm also is actively involved in many other high-quality development and exploration assets in Canada, Mexico, Peru, Turkey and the U.S.

SSR Mining has a market capitalization of around $4.0 billion with approximately 219.2 million shares outstanding and a short interest of about 2.25%. SSRM shares opened 5.5% higher today at $19.12 (+$1.00, +5.52%) over yesterday’s $18.12 closing price. The stock has traded today between $18.46 and $20.09 per share and is currently trading at $19.84 (+$1.72, +9.49%).

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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: SSRM:NASDAQ,
)

So… It’s Friday the 13th — 2020. Should we really be tempting fate like this? While we’re at it, why don’t we just break a mirror? Or maybe spill some salt? How about walking through a gaggle of black cats. As if 2020 needed any help. Luckily (see what I did there?) I’m not superstitious. […]

Gold and silver sold off big and the Dow surged Monday on the announcement the Pfizer had successful coronavirus vaccine trials. But Friday Gold Wrap host Mike Maharrey says investors should maybe tap the brakes on thinking that a coronavirus vaccine is a cure-all. In this episode, the looks a little deeper at the long-term […]

Now if this was a legitimate election, one would figure both sides would demand and allow the full legal process, aka the game… by  J. Johnson via JS Mineset Great […]

The MSM is not going to give up the con job that the “Pretender in Chief,” Joe Biden, actually won this election. Biden and… Greg Hunter gives The Weekly News […]

Why be concerned about a Biden lockdown? Trump just said we’re NOT going on lockdown, which means THE LOCKDOWN IS RIGHT HERE, RIGHT NOW… A lot of people are concerned […]

A ballot question in California asked voters if these and other delivery drivers should be allowed to work as contractors, free to set their… by Simon Black of Sovereign Man […]