Silver demand to exceed supply again this year – MINING.COM MINING.com
Month: July 2022
2022-07-29 | TSXV:GRSL | Press Release | Gr Silver Mining Ltd Stockhouse
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COT Silver Report – July 29, 2022
COT Silver Report – July 29, 2022
Positions as of 26 July, 2022.
Silver COT Report
Fri, 07/29/2022 – 15:34
Bloomberg/Denitsa Tsekova and Erik Schatzker/7-27-2022
“An increasingly popular sales pitch on Wall Street goes like this: If you’ve insured your home against some disaster, or even a total loss, shouldn’t you do the same for your investment portfolio? In the case of a house or apartment, the danger would be fire, flooding, or perhaps a devastating storm. In the financial markets, it might be a sudden spike in volatility and a rapid decline in prices that wipes out months if not years of gains.”
USAGOLD note: Though we agree with the sentiment expressed in that snippet, we also believe that the approach needs to be simple, direct, i.e. easily understood. The investors plunking down their money need to know and understand exactly what they are getting into. “This kind of insurance,” says Bloomberg, “requires a constant and expensive series of complex options bets.” There are no mysteries with gold. You buy it, stick it away, and it is likely to do what it has always done: Provide portfolio insurance at a minimal cost without a great deal of complexity.
The post Today’s top gold news & opinion first appeared on Today’s top gold news and opinion.
Lombardi Letter/Moe Zulfiqar/7-27-2022
Chart courtesy of TradingEconomics.com
“Year-to-date, the price of gold is down by close to six percent, and it wouldn’t be shocking if the yellow precious metal goes a bit lower in the near term. This could be a blessing in disguise for those who are looking to invest in gold for the long term. The future of the yellow precious metal looks shiny. Gold prices could be a lot higher a few years from now.”
USAGOLD note: The Lombardi Letter sees the inverted yield as an important buying opportunity. “Historically speaking,” it says, “if you buy gold when the yield curve inverts and hold that gold for 36 months (three years), you’ll make a solid return. Not only do we have an inversion, it is very pronounced as you can see in the chart above.
The post Today’s top gold news & opinion first appeared on Today’s top gold news and opinion.
Nez Perce Tribe disputes Idaho gold mine air quality permit SFGATE
Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.
As the economy heads into what looks an awful lot like a recession, gold and silver markets are making a comeback.
Gold is rallying 2.1% this week to bring spot prices to $1,772 an ounce.
Silver, meanwhile, regained the $20 level with a strong advance on Thursday. As of this Friday recording, the white metal trades at $20.45 an ounce and is up over $1.50 or 8.5% for the week.
Turning to the platinum group metals, platinum shows a weekly gain of 1.9% to come in at $910. And finally, palladium is up 3.8% on the week to trade at $2,186 per ounce.
Metals markets responded positively to the latest rate hike by the Federal Reserve. On Wednesday, the central bank raised its benchmark interest rate by another 75 basis points as expected.
Chairman Jerome Powell said the Fed could hike again at its next meeting depending on the economic data. Powell admitted that the economy is slowing but continued to insist it isn’t in recession.
In recent days, Treasury Secretary Janet Yellen and President Joe Biden himself have issued similar official denials.
But the latest GDP report suggests we have, in fact, entered a recession. On Thursday, the first estimate of Q2 GDP came in at -0.9%. That was worse than the consensus forecast and represents the second consecutive quarter of declining GDP.
Two straight quarters of negative GDP is the textbook definition of a recession. But Biden administration officials are now trying to redefine the term.
Jerome Powell: I do not think the US is currently in a recession.
President Biden: Both Chairman Powell and many of the significant banking personnel and economists say we’re not in a recession.
Janet Yellen: A common definition of recession is two negative quarters of GDP growth or at least that’s something that’s been true in past recessions when we’ve seen that. What a recession really means is a broad-based contraction in the economy. And even if that number is negative, we are not in a recession now.
President Biden: That doesn’t sound like a recession to me.
Joe Biden and his economic handlers claim that because jobs numbers remain relatively strong, they can wave away the fact that the overall economy is shrinking.
But the employment data is likely to deteriorate as businesses across the country announce hiring freezes due to rising costs, weakening sales, and recession fears.
Consumers are rapidly retrenching. After being artificially boosted by stimulus payments and low-interest financing, consumer discretionary spending is being crimped by higher costs for food and other necessities plus higher interest rates.
The sharpest pace of interest rate increases in 40 years risks inducing a negative wealth effect for millions of households. Amid higher mortgage rates and record housing unaffordability, another real estate crash could be around the corner.
The Fed seems oblivious to what it has gotten itself into. It blundered by waiting too long to hike short-term rates under the false belief that inflation pressures would be transitory. Now it feels compelled to hike in much bigger increments than normal under the false belief that the economy remains strong enough to handle sharply higher rates.
Longer term rates have already stopped rising, with short-rates now the same or even higher than some longer-term rates, another sign of coming trouble for the economy.
The mainstream financial media has finally picked up on the growing risks of recession. But we’ve been warning of recession indicators flashing on this podcast and in articles posted to MoneyMetals.com since the begging of the year.
Politicians, bureaucrats, and central bankers can try to change the definition of a recession to fit their agenda. But they can’t change the realities.
Lying about the economy will ultimately prove to be another failed strategy. Public trust in the Washington establishment is already at a low point. The American people will see through the officials lies as their own real-world experiences confirm what’s really happening in the economy.
As investors brace for recession, they should consider investing in what’s real. During an economic downturn, counterparty risks rise, and assets backed only by promises can implode.
Hard assets such as precious metals carry no counterparty risk when held in physical form outside the financial system.
Over time, gold and silver markets reflect the underlying realities of currency depreciation. As the U.S. dollar loses value, gold and silver prices tend to rise.
When Fed officials are forced to admit the economy isn’t strong enough to take any more rate hikes, the dollar can be expected to start sinking against other fiat currencies, and sink even more rapidly against tangible goods.
The perception of a hawkish Fed had helped push the dollar up on foreign exchange markets through most of the year. But currency traders know central bankers can’t keep tightening through a recession. It’s only a matter of time before, Jerome Powell and company begin pursuing monetary easing again.
The U.S. Dollar Index peaked two weeks ago. It may have a long way to fall as the economic downturn deepens. And precious metals markets may have a long way to rise.
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.
Sen. John Barrasso, R-Wyo., on power outage worries in the U.S., record-high rising cost of living as Democrats attempt to push Build Back Better and his message to Sen. Joe Manchin.
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Junior Hits High-Grade Silver in Colombia
Source: Streetwise Reports 07/28/2022
Outcrop Silver & Gold Corp., on its way to a maiden resource estimate at its Colombian flagship project, says it has returned its thickest and highest-grade intercepts yet.
Three drill holes in the Naranjos vein of Outcrop Silver & Gold Corp.s (OCG:TSX.V; OCGSF:OTCQX; MRG1:DB) 100%-owned Santa Ana silver-gold project in Colombia have returned the thickest and highest-grade intercepts for the project yet, the company announced Wednesday.
Hole DH270 returned 6.93 meters of 2,184 grams per tonne silver equivalent (g/t Ag eq), including 1.06 meters of 8,787 g/t Ag eq. Los Naranjos shows a weighted average grade of 1,651 g/t Ag eq over an average intercept width of 1.72 meters.
Analyst Stuart McDougall of Research Capital Corp. on Wednesday issued a note and kept his “speculative buy” rating on the stock with a CA$0.75 target price.
The result is “the thickest intercept from the project so far and the best, when measured in terms of gram-meters,” McDougall wrote.
Santa Ana covers 36,000 hectares of the Mariquita District of Colombia, mined back to at least 1585. Spanish Royal Archives reports said the area had 14 mines producing an average of 4000 g/t Ag over an average of 1.4 meters, with some mines finding as much as 17,000 g/t Ag.
Exploring a core area of colonial-era mines has resulted “in the discovery of what is now 13 high-grade shoots measuring 2.8 kilometers in cumulative strike length and up to 480 meters down plunge,” McDougall wrote. “All remain open for expansion with further drilling.”
Outcrop is expanding into untouched areas, leading to improved intercepts, Chief Executive Officer Joseph Hebert said this week.
“Part of that is getting into areas that are devoid of any history of Spanish mining, but the other part is that we’re digging deeper,” Hebert said.
Los Naranjos is 200 meters wide, extends 250 meters down, and is open in all directions, the company said. Eighteen holes have been drilled; eight have returned high-grade assays and the results from three holes are still pending.
“The more drilling we complete on Santa Ana, the more resource potential we identify,” Hebert said.
Maiden Resource Estimate Expected Soon
Research Capital’s rating is based on an estimated resource of 50 million ounces silver equivalent (50 Moz Ag eq). So far, Outcrop has mapped and sampled some 32,000 meters of drilling at Santa Ana and outlined about 12 kilometers of continuous silver veins.
It’s all part of an 18,000-meter drill campaign to establish a maiden resource estimate late this year or early next year.
Outcrop raised $6.9 million in a March public offering. Mining financier Eric Sprott bought 7.4 million units for just less than CA$2 million and controls almost 17% of the junior explorer.
Colombia last month elected its first leftist president, Gustavo Petro, who has promised to halt new gas and oil development and halt new permits for strip mining. But Hebert said Outcrop had little to worry about.
“We don’t expect his governing to be like his campaigning,” Hebert said. “He’s already put in some center-right advisers. … Underground-type projects that have a lot of local support and social engagement, I really don’t think those are going to be a target.”
Santa Ana is in the northern Tolima Department, about 190 kilometers from Bogota. It’s comprised of five or more regional scale parallel vein systems across a trend 12 kilometers wide and 30 kilometers long.
Outcrop has a market cap of CA$19.16 million with 132.15 shares outstanding. It trades in a 52-week range of CA$0.36 and CA$0.10.
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Disclosures
1) Steve Sobek wrote this article for Streetwise Reports LLC. 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: Outcrop Silver & Gold Corp. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) 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.
4) 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. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Outcrop Silver & Gold Corp., a company mentioned in this article.
( Companies Mentioned: OCG:TSX.V; OCGSF:OTCQX; MRG1:DB,
)
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Comex Deliveries: August Gold Starts Strong
Gold: Recent Delivery Month Delivery volume in the July gold contract got off to the weakest start in years, but then had a major mid-month rally that turned it into one of the strongest minor months in recent history. Over the last 15 months, it only trailed the blow-out month of March. Momentum has continued in the August […]
The post Comex Deliveries: August Gold Starts Strong first appeared on SchiffGold.