Posted by AGORACOM-JC
at 8:39 AM on Thursday, May 21st, 2020
May 21st, 2020 – Vancouver, Canada – New Age Metals Inc. (TSXV:NAM); (OTC:NMTLF); (FSE:P7J). The Company is pleased to appoint Mr. Cody Hunt as Vice President of Business Development.
Chairman and CEO Harry Barr stated; “Over the past two years, Mr. Hunt has done an excellent job working in all aspects of business development for New Age Metals. The board and management of New Age Metals are pleased to promote Mr. Hunt to an officer of the Company with his title of Vice President of Business Development. Going forward, Mr. Hunt will work with the board and management to find new strategic partners for the Company’s projects, participate in and monitor the technical development of our existing projects, evaluate potential new opportunities and continue to source additional funding for the Company.”
Mr. Hunt has worked for New Age since 2018 in Business Development and has been actively involved in identifying, establishing and developing strategic relationships and has participated in the development and execution of the company’s business planning and strategy. Mr. Hunt is a graduate of Queen’s University from the Robert M. Buchan Department of Mining. He received his Bachelors degree in Mining Engineering while specializing in Mineral Processing in 2018. Mr. Hunt is also actively pursuing his Chartered Financial Analyst designation.
About NAM
New Age Metals is a junior mineral exploration and development company focused on the discovery, exploration and development of green metal projects in North America. The Company has two divisions; a Platinum Group Metals division and a Lithium/Rare Element division. The PGM division includes the 100% owned River Valley Project, one of North America’s largest undeveloped Platinum Group Metals Projects, situated 100 kilometers from Sudbury, Ontario as well as the Genesis PGM Project in Alaska. The Lithium division is the largest mineral claim holder in the Winnipeg River Pegmatite Field where the Company is exploring for hard rock lithium and various rare elements such as tantalum and rubidium. Our philosophy is to be a project generator with the objective of optioning our projects with major and junior mining companies through to production. New Age Metals is a junior resource company on the TSX Venture Exchange, trading symbol NAM, OTCQB:NMTLF; FSE:P7J with 137,347,966 shares issued to date.
Investors are invited to visit the New Age Metals website at www.newagemetals.com where they can review the company and its corporate activities. Any questions or comments can be directed to [email protected] or Harry Barr at [email protected]or Cody Hunt at [email protected]or call 613 659 2773.
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If you have not done so already, we encourage you to sign up on our website (www.newagemetals.com) to receive our updated news.
On behalf of the Board of Directors
“Harry Barr”
Harry G. Barr
Chairman and CEO
Tags: CSE, palladium, PGM, PGM Demand, tsx Posted in New Age Metals | Comments Off on New Age Metals $NAM.ca Appoints Mr. Cody Hunt as VP Business Development $WG.ca $XTM.ca $WM.ca $PDL.ca $GLEN #PGM
Posted by AGORACOM-JC
at 9:00 PM on Sunday, May 10th, 2020
SPONSOR: New Age Metals Inc. The company owns one of North America’s largest primary platinum group metals deposits in Sudbury, Canada. The company has an updated NI 43-101 Mineral Resource Estimate of 2,867,000 PdEq Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces Inferred. Learn More.
BAML sees platinum, palladium deficit this year as South Africa production losses bite
There is likely to be a deficit of platinum and palladium this year after a COVID-19 lockdown in South Africa, the world’s biggest platinum producer, forced mines to shut, analysts at Bank of America Merrill Lynch predicted on Friday
While demand for platinum group metals, which are mainly used in cars and jewellery, has also plummeted due to the global pandemic, the analysts said they expect demand to rebound, while mine production will take months to build back up.
By Helen Reid; Editing by Mark Potter
In South Africa, which produces 78% of the world’s platinum and 36% of palladium according to BAML, a strict lockdown to stop the spread of COVID-19 forced most mines to shut from March 27.
Though the government allowed mines to restart at up to 50% capacity from April 16, BAML analysts predict it will take six months for production to ramp back up to pre-pandemic levels.
“Our base line assumption is that output runs at 50% in May and June, before rising to capacity by December,” they wrote in a note dated May 7 but distributed to media on May 8.
“Putting it all together, we anticipate that both platinum and palladium will be in deficit this year. As such, we remain bullish the white metals into year-end.”
South Africa’s biggest platinum miners have cut production guidance for 2020 and announced production losses due to the lockdown.
Anglo American Platinum said quarterly production decreased by 7%, while Impala Platinum reported a 6% drop.
Analysts are split on how the demand-supply dynamics will play out: Citi on Wednesday predicted platinum group metals prices could fall 15-20% due to a “rising surplus”.
Platinum prices are down 20% since the start of the year, while palladium prices have fallen 3.6%.
Tags: CSE, palladium, PGM, PGM Demand, tsx Posted in New Age Metals | Comments Off on BAML sees #platinum, #palladium deficit this year as South Africa production losses bite – SPONSOR: New Age Metals $NAM.ca $WG.ca $XTM.ca $WM.ca $PDL.ca $GLEN #PGM
Posted by AGORACOM-JC
at 5:27 PM on Tuesday, April 28th, 2020
SPONSOR: New Age Metals Inc. The company owns one of North America’s largest primary platinum group metals deposits in Sudbury, Canada. The company has an updated NI 43-101 Mineral Resource Estimate of 2,867,000 PdEq Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces Inferred. Learn More.
Palladium Weekly: Uptrend Set To Prevail This Year
We continue to believe that palladium benefits from the tightest fundamental backdrop, with the market likely to post a meaningful deficit in 2020 despite a contraction in automotive demand.
The negative seasonality in May-June could lead to some palladium price weakness, which we would view as a buying opportunity.
Thesis
Welcome to Orchid’s Palladium Weekly report, in which we discuss palladium prices through the lenses of the Aberdeen Standard Physical Palladium Shares ETF (PALL).
PALL has come under downward pressure since the start of April, despite a strong performance across the rest of the precious metals space.
The recent underperformance of palladium is driven by three main factors:
Less exposure to South African PGM production disruptions
More sensitivity to the recession in the automotive sector
Less safe-haven demand
However, we continue to believe that palladium benefits from the tightest fundamental backdrop, with the market likely to post a meaningful deficit in 2020 despite a contraction in automotive demand for PGMs.
As a result, we expect the uptrend in PALL to prevail this year and next.
For Q2, we see PALL trading between $170 and $285 per share, implying a risk/reward skewed to the upside.
Source: Trading View, Orchid Research
About PALL
For investors seeking exposure to the fluctuations of palladium prices, PALL is an interesting investment vehicle because it seeks to track spot palladium prices by physically holding palladium bars, which are located in JPM vaults in London and Zurich. The vaults are inspected twice a year, including once randomly.
PALL seeks to reflect the performance of the price of physical palladium, less the Trust’s expenses.
Its expense ratio is 0.60%. In other words, a long position in PALL of $10,000 held over 12 months would cost the investor $60.
Liquidity conditions are poorer than that for platinum. PALL shows an average daily volume of $3 million and an average spread (over the past two months) of 0.33%.
Speculative positioning
Source: CFTC, Orchid Research
The speculative community slashed by the equivalent of ~2 koz its net long position in NYMEX palladium in the week to April 21, according to the CFTC. The NYMEX palladium price sold off by 6.3% over the corresponding period, suggesting the presence of additional selling pressure stemming from the OTC market and the physical market.
Since the start of the year, the speculative community has sold the equivalent of 1.053 moz of net long positions in NYMEX palladium, representing around 15% of annual supply. Despite this, the NYMEX palladium price is still up nearly 6% YTD. This highlights the fundamental strength in the physical market.
Because palladium’s spec positioning is very light (the net spec length is at just 10% of open interest), there is plenty of room for speculative buying pressure in case of a positive swing in sentiment among the speculative community.
Implications for PALL: The current spec positioning in NYMEX palladium is a potential bullish force for palladium prices due to the ample dry powder available to deploy among the speculative community. A renewed wave of spec buying in NYMEX palladium would push the NYMEX palladium price much higher, thereby boosting PALL in the process.
Investment positioning
Source: Orchid Research
ETF investors bought around 3 koz of palladium in the week to April 24, marking the 2nd week of net buying.
Given the weakness in automotive demand for palladium due to the COVID-19 crisis, the re-emergence of palladium ETF buying could help underpin the uptrend in the NYMEX palladium price. That said, we contend that it is too early to assert that a sustained positive change in investor sentiment toward palladium has occurred this month.
ETF investors have sold roughly 193 koz since the start of the year, marking a 28% decline in palladium ETF holdings.
Once again, despite the contraction in ETF demand for palladium, the NYMEX palladium price is up on the year. This shows the extent to which the physical palladium market is tight.
Implications for PALL: A resumption of ETF inflows in palladium would be bullish for the NYMEX palladium price and thus PALL.
Palladium demand from the automotive industry represents around 85% of gross palladium demand, according to Johnson Matthey.
JP Morgan predicts a contraction of 13% in global light vehicle production this year, including a contraction of 25% YoY in the first quarter. In Q1, JP Morgan estimates that Chinese production contracted by 50% YoY while production dropped by 17% YoY both in North America and Europe.
This would translate into a decline of roughly 7% in automotive demand for palladium this year.
Source: JPM
Implications for PALL: The contraction in automotive demand for palladium should be largely offset by the contraction in palladium mine supply in 2020. As such, the palladium market is likely to remain in a meaningful deficit this year and post an even deeper deficit next year. As the fundamental tightness in the physical palladium market is set to prevail, we believe that the uptrend in PALL is intact for this year and next.
Closing thoughts
We expect the uptrend in PALL to prevail in 2020 and next year, principally because the palladium market is expected to post a meaningful deficit in spite of the recession in the automotive industry.
The extremely low level of visible inventories is likely to intensify the positive impact on palladium prices.
Given the negative seasonality in May-June, we stand ready to buy the dips in case of a retest of the recent lows.
For Q2, we see PALL trading between $170 and $285 per share, implying a risk/reward skewed to the upside.
Tags: CSE, palladium, PGM, PGM Demand, tsx, tsx-v Posted in New Age Metals | Comments Off on #Palladium Weekly: Uptrend Set To Prevail This Year – SPONSOR: New Age Metals $NAM.ca $WG.ca $XTM.ca $WM.ca $PDL.ca $GLEN #PGM
Posted by AGORACOM-JC
at 5:57 PM on Friday, April 24th, 2020
SPONSOR: New Age Metals Inc. The company owns one of North America’s largest primary platinum group metals deposits in Sudbury, Canada. The company has an updated NI 43-101 Mineral Resource Estimate of 2,867,000 PdEq Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces Inferred. Learn More.
Even a coronavirus crisis can’t puncture palladium prices
“The palladium market is still in a deficit,” said INTL FCStone analyst Rhona O’Connell, and demand should revive as the global economy recovers.
By Peter Hobson and Harshith Aranya
Analysts and traders have raised their forecasts for palladium prices, predicting the metal will remain undersupplied even as the coronavirus outbreak hammers auto makers, reducing demand, a Reuters poll showed on Monday.
The sister metals are used mainly in engine exhausts to reduce harmful emissions, though platinum is also used by jewellers.
Prices have whipsawed as virus containment measures shuttered car plants, spooked markets and disrupted supply routes, particularly from top producer South Africa.
Palladium surged to a record high of $2,875.50 an ounce in February, plunged to below $1,500 in March, then rebounded to around $2,200.
Prices will average $2,100 an ounce this year and $2,150 in 2021, according to the median result from a poll of 24 analysts and traders conducted this month.
A similar poll in January forecast averages of $2,000 this year and $1,700 in 2021.
“The palladium market is still in a deficit,” said INTL FCStone analyst Rhona O’Connell, and demand should revive as the global economy recovers.
“But the effervescence of the past few years” – prices surged more than six-fold between 2016 and 2020 – “is in all probability behind us,” she said.
The roughly 10.5-million ounce a year palladium market will see a deficit of 500,000 ounces this year, said Robin Bhar, an independent analyst.
Refinitiv GFMS predicted a 883,000-ounce shortfall, while Capital Economics said it expected a surplus of 300,000 ounces.
Palladium has benefited in recent years from a tightening of emissions standards that require auto makers to use more metal per vehicle. Auto makers account for around 80% of palladium use.
By contrast, platinum is used mainly in diesel vehicles that have fallen in popularity since 2015, when Volkswagen was found to have cheated in emissions tests, and its use in jewellery has decreased.
Platinum prices plummeted in March to $558, the lowest since 2002, before pulling back to around $770.
The poll predicted platinum would average $836 an ounce in 2020 and $945 in 2021 ? a sharp downward revision from forecasts of $948 and $1,013 in the poll three months ago.
Weaker economic growth because of measures to contain the novel coronavirus is likely to lead to lower consumption by auto makers, jewellers and other industrial users, such as glass makers.
“The scale of the demand-side destruction, along with the negative long-term chart set-up, suggests that downside price risks remain,” James Moore at Fastmarkets said.
Demand should gradually recover, driven in part by auto makers replacing some palladium with cheaper platinum, Saida Litosh at Refinitiv GFMS said.
Yet she still predicted surpluses in the roughly 8-million ounce a year market of 557,000 ounces this year and 670,000 ounces in 2021.
Tags: CSE, palladium, PGM, PGM Demand Posted in New Age Metals | Comments Off on Even a #coronavirus crisis can’t puncture #palladium prices – SPONSOR: New Age Metals $NAM.ca $WG.ca $XTM.ca $WM.ca $PDL.ca $GLEN #PGM
Palladium is the main payable metal accounting for 65% of revenue stream based on 2019 PEA.
1:0.4 (Pd:Pt).
Excellent infrastructure and within 100 kilometers of the Sudbury Metallurgical Complex.
NI 43-101 Mineral Resource Estimation (Q1 2019)
PEA done Q3 2019.
2020 plan to follow up on PEA recommendations.
Preliminary Economic Assessment demonstrates positive economics for a large-scale open pit mining operation.
PEA Highlights (CDN$):
Life of mine (LOM) of 14 years, with 6 million tonnes annually of potential process plant feed at an average grade of 0.88 g/t Palladium Equivalent (PdEq) and process recovery rate of 80%, resulting in an annual average payable PdEq production of 119,000 ounces.
Pre-Production capital requirements: $495 M.
Undiscounted cash flow before income and mining taxes of $586M.
Undiscounted cash flow after income and mining taxes of $384M.
Average unit operating cost of $19.50/tonne over the life-of-mine.
Potential for up to 325 jobs at the peak of production.
Using March 11, 2020 spot Palladium price (US$2,275/oz) River Valley Project After-tax IRR is 30% and After-tax NPV (5%) is $C858M.
New Age Metals Inc. is an advertising client of AGORA Internet Relations Corp.
Posted by AGORACOM-JC
at 2:55 PM on Monday, April 13th, 2020
SPONSOR: New Age Metals Inc. The company owns one of North America’s largest primary platinum group metals deposit in Sudbury, Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces Inferred. Learn More.
PALL has rebounded by nearly 50% since it crashed to its lowest since last August at $137.51 on March 16, taking bears by surprise.
The rebound in palladium prices has been driven by a broad-based recovery in the precious metals space following the COVID-19 panic last month.
Palladium’s outperformance since late March confirms our view that palladium enjoys the relatively tightest fundamental backdrop.
Financial flows are absent, with speculators and ETF investors reducing further exposure to palladium. This confirms that there is no bubble in the palladium market for now.
For Q2, we see PALL trading between $135 and $285 per share.
Welcome to Orchid’s Palladium Weekly report, in which we discuss palladium prices through the lenses of the Aberdeen Standard Physical Palladium Shares ETF (PALL).
PALL has rebounded by nearly 50% since it crashed to its lowest since last August at $137.51 on March 16, taking bears by surprise.
The rebound in palladium prices has been driven by a broad-based recovery in the precious metals space following the wave of ugly deleveraging caused by the COVID-19 panic last month.
That said, palladium is the clear winner, which we attribute to its relatively stronger fundamental backdrop. Before COVID-19, the palladium market was expected to register a deficit exceeding 1 million ounces this year. Although the deficit is likely to be much smaller than initially envisaged due to the likely contraction in automotive demand for palladium, the market is forward-looking and therefore, rises on expectations for a large deficit in 2021.
Source: Bloomberg, Orchid Research
Against this, we express the view that the long-term uptrend in PALL remains intact.
For Q2, we see PALL trading between $135 and $285 per share.
Source: Trading View, Orchid Research
About PALL
For investors seeking exposure to the fluctuations of palladium prices, PALL is an interesting investment vehicle because it seeks to track spot palladium prices by physically holding palladium bars, which are located in JPM vaults in London and Zurich. The vaults are inspected twice a year, including once randomly.
PALL seeks to reflect the performance of the price of physical palladium, less the Trust’s expenses.
Its expense ratio is 0.60%. In other words, a long position in PALL of $10,000 held over 12 months would cost the investor $60.
Liquidity conditions are poorer than that for platinum. PALL shows an average daily volume of $3 million and an average spread (over the past two months) of 0.33%.
Speculative positioning
Source: CFTC, Orchid Research
Non-commercials cut marginally by the equivalent of ~19 koz and their net long position in NYMEX palladium in the week to April 7, according to the CFTC. This was the 12th week of decline in palladium’s net spec length over the past 13.
Over March 31-April 7, the NYMEX palladium price tumbled 6.1%. This suggests the presence of additional OTC selling activity.
Non-commercials have slashed by the equivalent of around 1 million oz their net long positions in NYMEX palladium since the start of the year, which represents 15% of annual supply. Yet, the NYMEX palladium price remains up 14% on the year, even outperforming gold (which is up 11% YTD), a clear confirmation of fundamental strength.
Implications for PALL: The absence of speculative participation in the palladium market in spite of 1)the strong uptrend in prices since 2016 and 2)the tight fundamentals of the market makes us even more bullish on PALL. We would turn cautious on PALL once palladium’s spec positioning becomes too bullish.
Investment positioning
Source: Orchid Research
ETF investors sold 4 koz of palladium in the week to April 10, marking a 6th straight week of selling.
In March, ETF investors liquidated 106 koz, representing the largest monthly net outflow since October 2018.
ETF holdings are now below 500 koz, which represents an extremely low level of visible inventories when remembering that the palladium market was supposed to post a 1+ moz deficit this year.
Implications for PALL: The palladium ETF activity has had a muted impact on the NYMEX palladium price because volumes exchanged are impactless on the global palladium market. Low visible inventories are bullish for PALL over the long term.
Seasonal patterns
Source: Bloomberg, Orchid Research
As the chart above shows, the volatility in palladium prices tends to be extreme in March. 2020 did not disappoint in this regard. Lower volatility in the months ahead should be expected based on palladium’s seasonal patterns.
For April, the seasonality is slightly friendly, with palladium prices recording a median performance of +2.7% (over 2002-2019).
Implications for PALL: The high volatility regime is behind us, in our view. The seasonality is positive for the NYMEX palladium price and thus PALL in April.
Closing thoughts
The recent outperformance of palladium over the rest of its complex confirms our view that palladium enjoys the relatively strongest fundamental backdrop.
The absence of financial flows in palladium despite its price uptrend since 2016 leads us to believe that 1)there is no bubble in the palladium market yet and 2)prices are essentially driven by their fundamental dynamics.
The sudden sell-off in PALL in March was exacerbated by the COVID-19 panic. Although palladium’s fundamentals will prove weaker than expected in 2020 due to a likely contraction in automotive demand, the market seems increasingly focused on 2021 when a large deficit is likely to re-emerge as global economic growth bounces back and automotive demand rebounds.
We maintain that PALL is in a clear long-term uptrend and even though volatility cannot be ruled out, we would only turn cautious when investor sentiment reaches an extreme high. We are far from it.
For Q2, we see PALL trading between $135 and $285 per share.
Posted by AGORACOM-JC
at 8:00 PM on Sunday, April 12th, 2020
Dear AGORACOM Members, we hope this message finds your families well. We also want to wish Happy Easter and Happy Passover to those that are celebrating.
During this turbulent time, our job now more than ever is to bring you the small cap companies that are actually thriving in order to help you discover your next great company. Thanks to our focus on quality over quantity, AGORACOM clients have been operating exceedingly well and we are very happy to provide you with the following highlights over the last 10 days (in reverse chronological order):
* Empower Clinics (CBDT:CSE) Up 55% On 4.5M Shares Traded – Clinic Patient Visits Up 478% In Q1 (NEWS + VIDEO)
* BetterU Education (BTRU:TSXV) UP 37% On 1M Shares Traded – Closes Deal With USA Paramount For Enterprise Skills Development (NEWS + VIDEO)
* Hollister Biosciences (HOLL:CSE) Up 60% on 4M Shares – Acquisition Adds $16.4M Rev / $2.5M EBITDA (NEWS + VIDEO)
* New Age Metals (NAM:TSXV) 2.9M Ounces Of Palladium Equivalent Is Why Eric Sprott Owns 18.5% (VIDEO)
* Mota Ventures (MOTA:CSE) Acquires Over 20,000 Customers in March, Launches New Immune Support Product Line (NEWSÂ + VIDEO)
* Primo Nutraceuticals (PRMO:CSE) Up 100% On 2.6M Shares – Signs Acquisition LOI with Celebrity brand Beauty Kitchen (NEWS)
* Datametrex A.I. (DM:TSXV) Hired By US Government Agencies On COVID-19 / Coronavirus Fake News and Disinformation (NEWSÂ + VIDEO)
* PyroGenesis (PYR:TSXV) Receives $550K Under an Exclusive Agreement with a US Tunneling Company (NEWS)
We know that most of you have seen most of these headlines on our front page – but make sure to never miss a timely piece of news by also adding us into your social media streams on Twitter and Facebook.
Finally, look for some big news and changes coming to AGORACOM in the next 60 days. We are going to be bigger and better than ever!
Posted by AGORACOM-JC
at 5:09 PM on Monday, April 6th, 2020
Three years ago, Harry Barr couldn’t get anyone to even look at New Age Metals (NAM:TSXV) flagship property, the 100% owned River Valley Project, one of North America’s largest undeveloped Platinum Group Metals Projects, situated 100 kilometres from Sudbury. Â
But with Palladium at $US 2,100/oz and River Valley sitting on 2.9Moz Palladium Equivalent (Measured & Indicated), things have changed significantly, including the fact that Eric Sprott has become a strategic shareholder with 18.56% ownership. Â
WAIT … THERE’S MORE Â
NAM’s 2019 Preliminary Economic Assessment highlights include a 14 year mine life, resulting in an annual average payable Palladium Equivalent production of 119,000 ounces. Â
WAIT ….. THERE’S ONE MORE THING Â
The PEA assumed a Palladium price of $US 1,200, which is now 75% higher at $US 2,100. Â
With NAM now using their war chest to further drill River Valley and follow-up on recommendations from the PEA, there is reason to believe this story is only going to get better. Â
Grab your favourite beverage and watch this interview with NAM CEO, Harry Barr.
Posted by AGORACOM-JC
at 1:57 PM on Thursday, April 2nd, 2020
SPONSOR: New Age Metals Inc. The company owns one of North America’s largest primary platinum group metals deposit in Sudbury, Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces Inferred. Learn More.
Bulls need to overcome 2,350: Palladium price analysis
Palladium has staged a major recovery after the popular metal received a strong boost from the Federal Reserve’s unlimited bond-buying program
Palladium price analysis highlights that a strong recovery from the 1,500 level has occurred
Palladium has staged a major recovery after the popular metal received a strong boost from the Federal Reserve’s unlimited bond-buying programme.
Palladium price analysis shows that the metal needs to overcome the 2,350 resistance level to keep the recent bullish momentum intact.
Palladium medium-term price trend
Palladium recently staged a strong recovery from just below the 1,500 level, after the FED’s QE programme boosted palladium prices.
Palladium price analysis shows that bearish MACD price divergence on the daily time frame has been completely reversed after the latest decline.
The daily time frame also shows that a bearish head-and-shoulders pattern played out to the downside, and reached its overall downside objective.
Drawing a Fibonacci retracement from the all-time price high to the March low, palladium is currently testing the 61.8 retracement of the mentioned sequence.
The 2,575 resistance level is the next major resistance area to watch if a breakout above the 2,350 level occurs, while failure to surpass the 2,350 level could result in a pullback towards the 50 per cent Fibonacci level, around the 2,180 level.
Saudi vs Russia oil price war
Palladium short-term price trend
Palladium price analysis over the short term shows that the price is consolidating around the metal’s 200-period moving average, around the 2,300 level.
The one-hour time frame is currently showing that a large amount of bearish MACD price divergence has formed during the latest rally.
Looking more closely at the bearish price divergence, the MACD price divergence extends down towards the 1,700 level.
Failure to gain traction above the 2,300 level could result in a drop towards the 1,700 level, which would reverse the bearish MACD divergence.
Palladium technical summary
Palladium price analysis highlights that a strong recovery from the 1,500 level has occurred. The lower time frames are warning that bearish MACD price divergence extends down towards the 1,700 level.
Posted by AGORACOM-JC
at 6:11 PM on Tuesday, March 31st, 2020
SPONSOR: New Age Metals Inc. The company owns one of North America’s largest primary platinum group metals deposit in Sudbury, Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces Inferred. Learn More.
Precious metals investors had an excellent 2019, with gold, silver, platinum and palladium seeing sustained growth over a 12-month period. Gold eclipsed the critical resistance barrier of $1,500 per ounce in September. Other metals saw even more impressive growth, but none more than palladium, the most valuable of the four major precious metals. Palladium, a lustrous platinum-group metal, saw a price increase of 59% on the year. Silver experienced a more modest gain of 15.3% over the same period, and platinum boasted a 21.6% year-end gain.
Overall, the 2019 precious metals market was a dream come true for investors.
As CEO of an international alternative assets firm, I’ve helped countless investors diversify their investment portfolios and 401(k)/IRA retirement accounts with precious metals. With the knowledge gathered from over a decade of experience, I’ve put together a list of metals with the best upside potential in the year ahead.
Silver: Modest Upside, Moderate Risk
Silver is perhaps the most unique precious metal. China is by far the world’s largest silver consumer due to its massive industrial economy and manufacturing sector, which utilizes silver in the production of solar panels, electric vehicle parts and more.
However, production slowdowns due to the spread of the novel coronavirus could limit industrial output and cause a decline in global silver demand. Ultimately, I predict that silver will remain a strategic metal with industrial applications that will likely see moderate price increases in 2020. The extent to which it increases will be dependent on the current pandemic and whether Chinese and U.S. leaders successfully negotiate a phase-two trade deal.
Gold: A Blue-Chip Holding
There’s little doubt that gold will perform reasonably well in 2020. I observed gold entering a bull market in 2019 due to increased geopolitical risk, U.S. economic uncertainty, low U.S. bond yields and a repo market scare. Today, many of those growth conditions remain in place.
The yellow metal thrives during times of global economic crises. Since the United Kingdom formally left the European Union (EU) on January 31, and U.S. President Trump’s trade agenda with China remains unclear, there is a high degree of uncertainty in the global economy. If the EU continues to unravel or if another constituent member signals its intention to leave, I expect gold prices to surge. Likewise, if the implementation of the phase-one U.S.-China trade deal is rolled back, we will likely see an uptick in the price of gold.
Other circumstances, such as a rapidly expanding repo market and the potential for further cuts to the federal funds rate, point to strong growth for gold in the year ahead. Debt loads are increasing among both corporations and governments, which also indicate growth potential for gold.
Platinum: A Riskier Investment
Platinum is coming out of an over seven-year bear market that saw its price stagnate amid consistent growth across all other precious metals. Despite being rarer than gold, platinum is used in a range of industrial applications, including in the production of satellite technologies and fuel cells in electric vehicles, as well as in healthcare instruments such as pacemakers.
Three-quarters of the world’s platinum supply is mined in South Africa. However, many of the leading mines in the country have been mired in controversy following human rights scandals and disruption by labor union action. How these controversies and disruptions will play out in 2020 will have an effect on the price of the precious metal.
At best, I expect platinum to see low to moderate growth in 2020. It’s more likely, however, that platinum prices will stagnate given low investment in South African mines.
Investing In Precious Metals In 2020
Overall, I conclude that the precious metals market in 2020 is looking up. The same forces responsible for last year’s jaw-dropping growth remain in place today, and analysts have no reason to suspect these conditions to change in the months ahead. Trade tensions, geopolitical escalation and equity market volatility point toward another year of growth.
This means it’s a good time for entrepreneurs to invest in gold and other high-growth precious metals. During times of great volatility and economic crisis, precious metals can add much-needed diversification to your portfolio so you can safeguard more of your wealth and weather the storm when traditional asset markets suffer and sales decline.
Gold will likely be the safest pick, followed by palladium, with silver a sleeper pick at third. I predict that gold will remain a safe haven store of value during economic and political uncertainty, which makes it a blue-chip investment in 2020 for those looking to achieve diversification and insulate their portfolio against stock and bond market volatility. However, more risk-tolerant investors may consider allocating a minority share of their precious metal allocation to palladium and silver as well.
Tags: CSE, palladium, PGM, PGM Demand, Platinum Posted in New Age Metals | Comments Off on Precious Metal Growth Potential In 2020 – SPONSOR: New Age Metals $NAM.ca $WG.ca $XTM.ca $WM.ca $PDL.ca $GLEN #Palladium #Platinum #PGM
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