Category: Gold

IDS wins Gold Crown from Columbia Scholastic Press Association  Indiana Daily Student

Alabaster dePlume: Gold – Go Forward in the Courage of Your Love  Pitchfork

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

Precious metals markets enter trading for the second quarter with favorable fundamental drivers in place.

Inflation pressures and war-related fears helped the gold market post gains during the first quarter. However, prices for the precious metal have come off their spike highs from early March.

As of this Friday, April 1st recording, gold trades at $1,938 per ounce and is down 1.5% for the week. Silver shows a weekly loss of 2.7% to bring spot prices to $25.09 an ounce.

Turning to the platinum group metals, they fared poorly overall last month despite entering March with strong upside momentum and seeing huge gains in copper, nickel, and other industrial metals. For the week, platinum is down 1.5% to trade at $1,017. And palladium is off 2.8% since last Friday’s close to check in at $2,326 per ounce.

The raw material that has been in the news the most of late is crude oil. Oil prices fell sharply on Thursday after President Joe Biden announced an emergency tapping of the nation’s strategic oil reserves. The government plans to release 1 million barrels of oil per day for the next six months, which will add up to a record drawdown of 180 million barrels.

The move will surely bring some temporary relief for motorists struggling with high fuel costs. In theory, it will also buy time for oil companies to ramp up production to offset the loss of Russian supplies.

But as with all political interventions into markets, there will be unintended consequences. Artificially flooding the market with a temporary supply source will encourage more consumption and discourage new drilling.

There’s an adage in commodity markets that the cure for high prices is higher prices. When prices rise, they send the signal to producers that they should increase output. Then when more supply hits the market, prices tend naturally to fall toward a new equilibrium.

That’s how commodity cycles normally work. But we are not living in normal times.

War and economic sanctions are creating disorder not only in commodities but in currencies as well.

In the past, the U.S. has imposed sanctions on small rogue regimes in the Middle East and Latin America to punish and isolate them. But trying to completely blacklist a country as large and resource-rich as Russia and getting the rest of the world to comply is proving to be difficult.

The world’s two most populous countries, India and China, want to continue trading with Russia. They are adopting alternative means of settling trades in their own national currencies and in Russian rubles.

In response, some politicians want to pressure India and impose new sanctions on China. But their combined economies are simply too large to be pushed around. America would be isolating itself geopolitically and diminishing the U.S. dollar’s status in international finance if it moved to economically punish most of the rest of the world.

Ironically, heavy-handed sanctions policies may end up inflicting more damage to the dollar than to the ruble.

Vladimir Putin’s government has told what Russia considers “unfriendly” countries to pay in rubles or gold if they wish to obtain oil, gas, and other Russian exports. As a result, Russia is now seeing a big influx of demand for rubles. Far from entering a death spiral, the currency is actually strengthening in value – and has already risen all the way back to the levels seen before Russia’s invasion.

Moscow will now convert surplus rubles into gold. With the ruble now linked to physical gold bullion, both gold and the ruble could rise together. And an ounce of Russian gold has just as much intrinsic value as an ounce of gold from anywhere else in the world. No amount of sanctions will change that fact.

As currency wars are being waged among world powers, gold remains the ultimate standard of value.

The world monetary order appears to be bifurcating. The U.S., Europe, Japan, and their allies are pitted against Russia and its trading partners including China.

The era of globalization and free trade based on the U.S. dollar standard is over. A new era is emerging. It is being borne out of geopolitical polarization and resource scarcity.

It will translate into rising price inflation in the United States as major exporting countries are no longer able or willing to accept Federal Reserve Notes without question like before.

Gold will likely figure more prominently in the bipolar global monetary system. In an environment of conflict and mistrust, hard money is the safest and surest form of payment or reserve holding.

A large increase in central bank buying of gold around the world could have a huge impact on precious metals prices.

And whereas gold is the money of kings, silver is the money of the masses.

Working class and middle-class folks who want to save money and protect it from the corrosive forces of inflation have few options. Bank accounts will never pay enough interest to keep pace with price level increases. Meanwhile, real estate, Wall Street instruments, and cryptocurrencies carry many other risks – especially for unsophisticated investors.

But an ounce of silver is easy to understand, easy to obtain, and easy to afford – at least for now.

We certainly live in interesting times. Hopefully more Americans will be taking action in the coming weeks and months to hedge against risks we face – both individually and nationally – as a result of the high-stakes monetary brinksmanship that’s playing out right now on the world stage.

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: Streetwise Reports   03/31/2022

These positive drill results suggest the area’s greenstone belt is immensely prospective, noted a Laurentian Bank Securities report.

Troilus Gold Corp. (TLG:TSX; CHXMF:OTC; CM5R:FRA) returned “encouraging” initial assays from a target it recently began drilling at its namesake project, reported Laurentian Bank Securities analyst Jacques Wortman in a March 31 research note.

These initial results are from three holes Troilus Gold drilled in the Testard target to test for possible controls on the mineralization and to test the depth potential. Testard, about 10 kilometers south of the historical Troilus mine, is one of many regional targets the Canadian company has identified via the structural model the exploration team developed.

The new drill intercepts show high grades of gold and particularly silver, Wortman noted and provided examples. Standouts include 3.2 meters (3.2m) of 6.72 grams per ton gold (6.72 g/t Au) and 26.71 g/t silver (Ag), starting 25m downhole, returned from hole TES-21-005.

Hole TES-21-002 demonstrated 7.6 m of 4.63 g/t Au and 25.4 g/t Ag, beginning 259m downhole. Hole TES-21-001 hit 1.96 g/t Au and 19.12 g/t Ag over 3.8m, starting 146m downhole.

“These strong initial results also highlight the district-scale potential of the underexplored Frotet-Evans Greenstone Belt,” Wortman wrote.

Before drilling at Testard, Troilus Gold conducted surface then outcrop and channel sampling there, all of which returned positive results, Wortman reiterated. All Testard exploration work to date showed the geological characteristics at the target to be similar to those of the project’s main established zones.

Laurentian has a Buy rating and a CA$3.30 per share price target on Troilus Gold. Its stock is currently trading at around CA$0.89.

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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: Troilus Gold 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 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. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Troilus Gold Corp., a company mentioned in this article.

Disclosures for Laurentian Bank Securities, Troilus Gold Corp., March 31, 2022

`”Laurentian Bank Securities Equity Research” is a trade name used by the Equity Research sector of Laurentian Bank Securities Inc. To access Laurentian Bank Securities’ regulatory disclosures, please click or press on the hyperlink – http://www.vmbl.ca/portal/disclosure.

The information contained in this document is based on what we deem to be reliable sources, but no guarantee or promise, explicit or implicit, is given as to the accuracy and exhaustiveness of these sources. This report shall under no circumstances be considered an offer  to buy or sell, or a request to buy and/or sell the stocks mentioned. Laurentian Bank Securities Inc. and its employees may not be held liable for any monetary losses stemming from the implementation of the recommendations contained in this document. Laurentian Bank  Securities Inc. and/or its officers, directors, representatives, traders, analysts and members of their families may hold positions in the stocks mentioned in this document and may buy and/or sell these stocks on the market or otherwise. Stocks in foreign currency may be  adversely affected by exchange rate fluctuations.

Laurentian Bank Securities Inc. is a wholly-owned subsidiary of Laurentian Bank of Canada. The opinions, projections and estimates are those of the Economic and Financial Research department of Laurentian Bank Securities Inc. as at the date appearing on the cover page, and are subject to change without prior notice. Laurentian Bank Securities Inc. may, in exchange for remuneration, act as a financial advisor or tax consultant for, or participate in the financing of companies mentioned in this document. This study may not be reproduced, in whole or in part, without the consent of Laurentian Bank Securities Inc. Member of the Investment Industry Regulatory Organization of Canada and of the Canadian Investor Protection Fund. The regulation of the securities market establishes requirements that analysts must follow when issuing research reports or making recommendations. These guidelines are included in the research dissemination policy of Laurentian Bank Securities, available at Institutionnel actions (vmbl.ca).

( Companies Mentioned: TLG:TSX; CHXMF:OTC; CM5R:FRA,
)

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