Gold News Today

You Can’t Just Print More Gold  Forbes

Gold pulls back as trader/investor confidence increasing  Kitco NEWS

Citi sees gold price grinding to $2000 by 2021  Kitco NEWS

Gold Prices Slip, ‘Flood of Scrap Selling’ Forecast as Mining Sees ‘Exploration Boom’ | Gold News  BullionVault

Gold under pressure; silver and platinum moving higher  Kitco NEWS

The China virus, the economic lockdowns, and the multi-trillion-dollar rescue efforts of central bankers have dominated markets over the past three months.

However, as lockdowns gradually lift and the 2020 election draws nearer, investors will begin to focus more on political developments.

The once-strong economy that President Donald Trump had hoped would propel him to re-election has collapsed. The President has also taken a tremendous amount of heat from the media over his handling of the COVID-19 crisis, and that has hurt his poll numbers.

Despite these headwinds, polls show Trump still has a good chance of defeating a stumbling and bumbling Joe Biden.

The opinions of pundits and pollsters carry far less predictive weight than the opinions of people who are actually putting their money on the line. The RealClearPolitics betting odds currently show Trump stands at +8.4 (50.3 – 41.9) vs. Biden in terms of his chances of winning the White House.

Just as important for investors could be the fight for control of the U.S. Senate.

Wall Street could probably stomach a Biden win and a Republican hold of the Senate. Divided government forces compromise and makes radical tax or regulatory changes unlikely.

But if Democrats win control of the White House and both chambers of Congress, the prospect of the political left wielding unchecked power in Washington could send the stock market reeling and investors running to safe havens including gold and silver.

The last time a Republican was up for re-election was 2004. Incumbent President George W. Bush faced off against Democrat challenger John Kerry.

Gold and silver markets performed well in the second half of 2003 and made modest gains in 2004. The metals were in the early stages of a major bull market.

In 2008 (when Barack Obama and John McCain were vying for the White House), the financial crisis hit.

Silver got slammed along with virtually all other assets during that infamous autumn. Gold, however, weathered the storm quite well and ended up putting in a gain for the year.

The stunning election victory of Donald Trump in 2016 lit a fire under the stock market and put something of a damper on demand for physical precious metals.

Demand for coins, rounds, and bars remained soft over the last several years compared to the heady years under President Obama – until the coronavirus outbreak triggered a large new wave of buying.

Gold prices are now up since Trump’s election win and inauguration, while silver has recently climbed back toward break even for the Trump era.

Unlike stocks, precious metals tend to benefit from the “fear” trade. If a Democrat (presumably Biden although he’s not yet officially the nominee) wins the White House in 2020, a lot of investors may decide to hunker down and get defensive – especially if a “blue” wave shifts the balance of power in the Senate.

By late summer or early fall, gold and silver markets may begin to display an inverse correlation to trends in President Trump’s and the GOP’s election prospects. However, larger macro forces now in motion – namely, exploding government debt and infinite Quantitative Easing from the Fed – will stay in motion regardless of who wins.

It’s only a matter of whether the election results accelerate the threats to the value of the U.S. dollar and dollar-denominated IOUs.

There is no viable political solution to the current crisis. There will be no return to normalcy in the next four years. The fundamental reasons for investors to own precious metals will remain compelling.

Therefore, if the GOP keeps the White House in 2020, it’s not necessarily good news for Wall Street and bad news for gold bugs.

Recall that when George W. Bush won re-election in November 2004, gold was trading at a mere $450/oz. The money metal went on to hit a record $1,000/oz in early 2008.

Over that same period, silver advanced from under $8/oz to over $20/oz. Importantly, precious metals vastly outperformed the stock market through the four years of Bush II’s second term.

Do elections matter? Of course. But they don’t necessarily make or break bull markets for any asset class, including precious metals.

Source: Bob Moriarty for Streetwise Reports   05/23/2020

Bob Moriarty of 321gold discusses a company with 33 projects in the Yukon.

Recently billionaire Eric Sprott added a multi-million dollar vote of confidence to that of Agnico Eagle and Kinross in the Yukon based amalgamation of all the projects of Shawn Ryan named White Gold Corp. (WGO:TSX.V; WHGOF:OTCMKTS). That now makes an even three entities that actually understand the magnitude of what White Gold has in their stable. That would be Eric, Kinross and Agnico Eagle. Few others get it.

The mining industry used to be populated by legends. A few exist today. One of the most interesting would have to be Shawn Ryan highlighted in various articles and magazines.

I was on a trip to the Yukon fifteen or so years ago when I met him. He was living with his partner in a trailer in Dawson. He was intent on staking half the Yukon and eventually pretty much succeeded. Later he did joint ventures with a number of juniors before he realized that dealing with dozens of juniors was at a minimum, painful.

So he put together a package of 33 projects covering over 420,000 ha with an existing 1.8 million ounce resource. You would think the market would jump at the opportunity to get a piece of such valuable real estate in probably the best country in the world to explore and produce gold. You would be thinking wrong.

I’ve been to hundreds of projects including half a dozen of his projects. I can’t keep track of the names much less the potential. Investors pretty much share my ignorance. How do you cope with trying to understand 33 different projects and still make an intelligent investing decision? The answer is simple. You don’t.

But you can try looking at the company in different ways that will tell you some idea of the potential and wisdom of investing.

In US pesos, White Gold has a market cap of about $75 million. With about 1.8 million ounces of gold that means an investor today is paying about $42 an ounce in the ground. All those ounces are found in only two of the 33 individual properties. So pay $42 an ounce for the shares and you get 31 more projects for free.

Eric Sprott gets it.

Kinross gets it.

Agnico Eagle gets it.

You don’t have to be as knowledgeable as they are. You can ride on their expertise and experience in the Yukon. Kinross and Agnico Eagle each own just over 17% of the company. They have the right to maintain their level of ownership and when Eric Sprott expressed an interest in investing, they bellied up to the bar to keep their same participation.

Management and I both agree investors don’t get it. I figure that with what they already have in a resource and the level of exploration being done (and fully funded by Kinross and Agnico Eagle) the shares should be a couple of hundred percent higher. So management of White Gold is doing something brilliant. They are telling their story via a webinar taking place on Thursday May 28^th at 1 PM ET (10 AM PT).

If you are an existing shareholder, sign up here.

If you think you might want to be a shareholder, sign up here.

If you just want to listen to one of the most interesting guys in mining, sign up here.

Based on the torrent of money the Fed had dumped into the US financial system I’m pretty much convinced we are going to have major deflation in all the markets that bubbled and eventually hyperinflation in the dollar. If I’m right that will drive prices of the metals far higher than we can imagine today.

Inflation is what you get when a country such as Japan prints a lot of money. Hyperinflation is what happens when people lose confidence in their currency. With tens of millions of Americans having joined the ranks of the perhaps permanently unemployed I doubt many are going to trust anything coming from the government except free money. And since there is no free lunch and the government cannot possible print enough to pay off the $250 trillion in debt in the world, one day gold and silver will hit prices we cannot even imagine today. Because when you talk about the price of anything you are talking about two different things. One is the commodity and the other is the currency.

If you want to imagine what might happen, think of quoting gold in Zimbabwe dollars. It’s coming our way.

White Gold is an advertiser and I bought shares in the open market. Do your own due diligence.

White Gold Corp
WGO-V $0.84 (May 22, 2020)
WHGOF-OTCBB 124.7 million shares
White 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: White Gold. White 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 interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: WGO:TSX.V; WHGOF:OTCMKTS,
)

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