- Gold slips 1% as solid jobs data spurs rate hike bets CNBC
- Gold prices strengthens in range-bound trade as dollar value dips Business Standard
- Gold Price Forecast: XAUUSD extends the rebound above $1,850, US ADP eyed FXStreet
- Gold Price Forecast: XAU/USD Shadows Rise in Real Yields Ahead of NFP DailyFX
- View Full Coverage on Google News
Category: Gold
Gold Price Forecast: XAUUSD to suffer renewed downside pressure on a dip below $1,787 – Credit Suisse FXStreet
Dispute between artisan gold miners in Peru leaves 14 people dead Reuters
Gold opens weak, down by Rs 10 in early trade; silver at Rs 62,100/kg Business Standard
We get lots of questions from the public about precious metals.
Some people are curious about the basics. Others are skeptical about the case for owning gold and silver. Still others are longtime customers who have highly specialized inquiries.
Here we will answer a few of the most common, most broadly relevant questions we get…
QUESTION: For a big purchase, are bullion bars a better option than coins?
ANSWER: They can be if your goal is to pay the lowest overall cost per ounce. However, large bars (such as 1,000-ounce silver or 1-kilo gold) are less practical than smaller denomination gold and silver bars for the vast majority of investors.
The largest bullion bars can be cumbersome to handle, transport, sell, or use in trade. Potential buyers may insist on an assay to ensure purity. By contrast, one-ounce coins or rounds can be authenticated through a simple hand-held inspection.
The most efficient way to purchase bullion bars and be able to sell at any time with no shipping or other hassles is by holding them through our secure storage facility, Money Metals Depository.
QUESTION: Could a central bank digital currency be used to undermine cryptocurrency and precious metals markets?
ANSWER: Federal Reserve chairman Jerome Powell has acknowledged the Fed is looking into issuing a digital currency. He has been vague about how far along in development the Fedcoin project is and how exactly it would work.
But Federal Reserve Vice Chair Lael Brainard is talking up the potential benefits of a central bank digital currency. She seized on the recent carnage in cryptos to call for new regulations and tout the Fed’s ability to provide “safe central bank liability in the digital financial ecosystem.”
Fedcoin would theoretically supplant stablecoins and possibly diminish the appeal of Bitcoin as an alternative currency.
But it’s difficult to imagine how a central bank digital currency would deal any sort of blow to physical precious metals.
The only real tool central bankers have to intervene in markets and the economy is to create and new currency units and try to direct where they go. That tool could become even more prone to abuse with digital dollars that could be sent out as direct stimulus to the digital wallets of politically preferred populations and organizations.
A central bank digital currency would obliterate financial privacy and empower government authorities to control the spending behaviors of the citizenry… and even “turn off” citizens’ access to money and their ability to function in society if they run afoul.
If anything, Fedcoin would strengthen the case for owning physical precious metals. They preserve real purchasing power over time and exist outside the purview of digital financial tracking systems.
QUESTION: If inflation has peaked, will gold and silver prices head lower?
ANSWER: Some economists believe inflation pressures peaked overall this spring. Higher costs for businesses and consumers are certainly beginning to bring about some demand destruction in the economy – increasing the odds of a recession.
However, as of this writing, food and energy costs continue to surge. Those all-important markets aren’t fully reflected in the official “core” inflation rate relied on by the Federal Reserve.
Even if some inflation-sensitive parts of the economy have peaked, that does not necessarily imply that gold and silver markets will follow.
Precious metals markets don’t show a direct correlation to year-over-year inflation. Sometimes they lead general price rises, sometimes they lag. (Over longer periods of decades, of course, gold and silver do rise as the purchasing power of fiat currency falls.)
Importantly, gold, unlike industrial commodities, shows virtually no correlation to the economic cycle. So if the next recession is starting now, gold could just be getting warmed up.
QUESTION: Where is the sound money movement headed?
ANSWER: The sound money movement is building momentum at the state level. Last year, Arkansas and Ohio repealed sales taxes on gold and silver bullion. This year, Tennessee, Virginia, and Alabama passed sales tax exemptions on sound money.
According to Money Metals’ public policy project known as the Sound Money Defense League, 11 states have considered bills in 2022 to remove sales and income taxation from precious metals. Some are also considering bullion depositories and allocating physical gold to state pensions and reserves.
At the national level, the current occupants of Congress and the White House are overtly hostile to most sound money issues. But there is good reason to believe the political tides may soon be shifting.
Voters are fed up with inflation. They are also growing sick and tired of the misinformation and excuses proffered by politicians and central bankers.
The Federal Reserve took another huge hit to its credibility after proclaiming last year that inflation would be “transitory.” It certainly has a lot to answer for after pumping trillions of dollars into the financial system during the COVID-19 outbreak.
At the very least, the public deserves a full audit of the Fed’s books – including an accounting of its gold holdings and its role in “managing” precious metals markets.
Sound money advocates in Congress including Rep. Alex Mooney (R-WV) are hoping to build support for auditing the Fed, auditing the Treasury’s gold, and eliminating the unfair capital gains tax treatment of precious metals.
Source: Clive Maund 06/07/2022
Augusta Gold Corp. has been on an upward swing, even after facing hurdles in mid-April/May this year. While buying in mid-May would have been ideal, analyst Clive Maund says it still looks like it’s ‘a good time to buy ahead of a more vigorous advance.’
It always helps if a stock’s general trend is up, and Augusta Gold Corp. (G:TSX.V: AUGG:OTCQB) remained comfortably within its uptrend even as the sector suffered a brutal decline from mid-April through mid-May, as we can see on its latest six-month chart below.
While the sector dropped hard, Augusta consolidated in a symmetrical triangle pattern that was followed by a renewed advance as soon as the pressure came off the sector.
There are a number of bullish factors to observe on this chart.
One is the strong volume pattern with most of the volume being upside volume, occurring on rallies. Another is the related strong uptrend in the accumulation line which continues.
Next is the bullish alignment of moving averages and last but not least the price being in a quite strong uptrend, and since it is nearer to the bottom of it after a heavy sector correction, it implies that it is likely to rally back up across the channel toward the top of it, which it has already started to do; and there is still room on its MACD indicator for it to do this.
So with a time correction from April looking complete, this looks like a good time to buy ahead of a more vigorous advance, although it would obviously have been better still to buy it in mid-May.
The 15-month chart is included below to show the full history, although technically it doesn’t show us much of use that we haven’t already seen on the six-month chart.
One thing we can see though is the origin of the resistance that recently capped the advance… above that there isn’t much resistance.
Augusta Gold has therefore rated a Buy here for a continuation of the uptrend, which is likely to accelerate, especially if the sector continues to recover as expected.
Augusta Gold Corp website.
Augusta Gold Corp., G.CSX, AUGG on OTC, trading at CA$2.16, $1.73 at 12.10 pm EDT on June 3, 2022.
Originally posted on CliveMaund.com on June 3rd, 2022.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers, and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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CliveMaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports.
As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
Disclosures
1) Clive Maund: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family 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) 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. 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) 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.
( Companies Mentioned: G:TSX.V: AUGG:OTCQB,
)
Source: Streetwise Reports 06/07/2022
A Canadian junior explorer has attracted the attention of strategic metals and mining investor Michael Gentile, as he is expected to take part in the financing.
Astra Exploration Inc. (ASTR.TSX.V) announced a non-brokered private placement of up to CA$2.4 million Tuesday, and strategic investor Michael Gentile said he planned to “make a significant investment” in the company.
The Vancouver, British Columbia-based firm will use the net proceeds on exploration efforts and general working capital. In fact, this financing should fully fund the Phase 2 drill program at Astra’s flagship project Pampa Paciencia in northern Chile, slated to start in Q3/22. During this upcoming campaign, the company will follow up on the high-quality gold-silver targets identified during initial drilling.
“I really liked the potential for scale and grade in an area of Chile that has excellent infrastructure, including nearby mills and producing assets,” Gentile said.
Astra Exploration directors and officers are also expected to take part in the offering. Gentile is a strategic investor in the mining and metals sector and has worked roughly 20 years in investment management and is the founding partner and senior portfolio manager of Bastion Asset Management in Quebec. He said he is currently invested in “about 20 early stage junior exploration companies.”
“I really liked the potential for scale and grade in an area of Chile that has excellent infrastructure, including nearby mills and producing assets.”
—Strategic investor Michael Gentile
“I try to identify as early on as possible assets that have the attributes to potentially become producing mines one day and then invest as early and cheaply (low maket cap) as possible,” Gentile said. “When I invest in a company like Astra, if my thesis is correct I’m looking to make 10-40x my money and hope to realize that value in my portfolio over the long term through eventual acquisitions or mergers of the companies in my portfolio.”
Brian Miller, CEO of Astra Exploration, said in a news release that Gentile’s interest is an endorsement for the company.
“His participation would be a testament to the company’s potential as an attractive investment opportunity,” Miller said.
Much of Site Remains Unexplored
Astra released results this spring from its 30-hole reverse-circulation drill campaign at Pampa Paciencia, including one hole that returned 3 meters grading 14.48 grams per tonne gold (14.48 g/t Au) and 39.7 g/t silver (Ag) as part of a broader intercept of 2.71 g/t Au and 10.8 g/t Ag over 21 meters. The drilling showed the company that the mineralized zone in the Paciencia vein is at least 300 meters long and remains open at depth and along strike and that another vein, the Paciencia Oeste (Paciencia West), has a mineralized zone that is at least 200 meters long and is open at depth and along strike.
So far, Astra has drilled in a relatively small area that represents only about 10% of the project area. Phase 2 is expected to expand the open intersections and explore for more veins.
The company’s private placement will comprise up to 12 million units priced at $0.20 apiece. Each unit consists of one common share and one common share purchase warrant. Each warrant allows the holder to buy one additional common share for $0.26 during a period of two years from the closing date of the offering.
In other news, Astra Exploration will be at Booth #3316 in the Investors Exchange at the imminent Prospectors & Developers Association of Canada (PDAC) 2022 Convention, June 13 to 15.
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Disclosures
1) Doresa Banning and Steve Sobek compiled this article for Streetwise Reports LLC and provide services to Streetwise Reports as an independent contractor/employee, respectively. They or members of their household own securities of the following companies mentioned in the article: None. They or members of their 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: Astra Exploration Inc. 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.
( Companies Mentioned: ASTR.TSX.V,
)
The Spanish administrative and criminal cases concerning the 2015 granting of a mining project tender now will be heard consecutively rather than simultaneously, noted a Research Capital Corp. report.
Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJ:FSE) won a small victory that could strengthen its position with respect to the outcome of the legal dispute over the Aznalcóllar project in Spain, reported Research Capital Corp. analyst Adam Schatzker in a May 4 research note.
The issue entered the courts in 2015 after the Aznalcóllar project tender was awarded to Minorbis-Grupo Mexico rather than Emerita, and the latter appealed the decision.
Recently, at Emerita’s request, the Andalusia administrative court agreed to postpone its hearing of the Aznalcóllar tender administrative case until the criminal case concerning the same issue was heard and resolved, Schatzker noted. A start date for the criminal proceeding has not been scheduled yet due to the court working through a COVID-caused case backlog.
Now that the two cases will be tried consecutively, the evidence used in the first one—the criminal case—may be used in the second—the administrative case—which should benefit Emerita.
“Emerita believed the administrative court should wait for the facts to be resolved by the criminal court where the evidence was compiled and that the evidence for both cases are essentially identical,” Schatzker wrote.
The administrative court acknowledged the two cases are similar.
Schatzker commented that the administrative court’s decision to wait seems logical. However, without knowing when the criminal case will be heard or its outcome, “it is difficult for us to make any concrete conclusions regarding both the criminal case or administrative case proceedings.”
Research Capital has a Speculative Buy rating and a CA$4 per share target price on Emerita, which is trading now at around CA$1.70 per share.
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Disclosures
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her 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: Emerita Resources Corp. 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 the 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 the 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.
Disclosures for Research Capital Corp., Emerita Resources Corp., May 4, 2022
Analyst Certification: I, Adam Schatzker, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report.
Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.
Adam Schatzker has visited Emerita Resources Corp. in the past 18 months.
General Disclosures: The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation (“RCC”) are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions.
To the extent reasonably practicable, Research Reports will be disseminated contemporaneously to all of Research Capital Corporation (“RCC”) customers who are entitled to receive the firm’s research. Until such time, Research Analysts will not discuss the contents of their reports with Sales and Trading or Investment Banking employees. RCC equity research is posted to our proprietary website to ensure eligible clients receive coverage initiations and changes in rating, targets and opinions in a timely manner. Additional distribution may be done by the sales personnel via email, fax or regular mail. Please contact your investment advisor for more information regarding RCC research.
All Research Capital Corporation (“RCC”) Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.
( Companies Mentioned: EMO:TSX.V; EMOTF:OTCMKTS; LLJ:FSE,
)
The Czech National Bank is about to go on a gold-buying spree. Incoming CNB Governor Ales Michl said he plans to increase the bank’s gold holdings nearly 10-fold during a recent magazine interview. The Czech National Bank currently holds 11 tons of Gold. Michl said he wants to up the central bank’s gold holdings to […]
The post Czech Central Bank Plans to Buy A Lot of Gold first appeared on SchiffGold.
Consumer debt climbed to a new all-time record in April as Americans continue to cope with rapidly rising prices. Total outstanding consumer debt rose by $38 billion in April, reaching a new record of $4.57 trillion, according to the latest data from the Federal Reserve. Total consumer debt was up 10.1% in April. It was […]
The post Consumer Debt Breaks Record as Americans Up Borrowing to Cope With Inflation first appeared on SchiffGold.