Treaty Creek Project is Fully Funded for the 2020 Exploration Season
Last year Eric Sprott became the largest external investor in Treaty Creek in B.C.’s Golden Triangle. He stated “Treaty Creek has a great shot at having 20 million ounces of gold.†A very successful program was run hitting wide intervals of gold in every drill hole. This year we’ll see if Eric is right as the objective of this year’s program is to develop a resource calculation.
The Goldstorm Zone will host a significantly larger drilling program in 2020
18,000 to 20,000 Meter Drill Program
7-10 Drill Platforms
Four Diamond Drill Rigs
The drill program is designed to extend and to explore the limits of Goldstorm System
The current conceptual model for Goldstorm is 1 billion tonnes at close to 1 gram of gold
The system remains open in all directions and to depth
The best mineralization encountered to date is from the two consecutive 150m step-out holes to the Northeast:
GS-19-42 yield 0.849 g/t Au Eq over 780 m with 1.275 g/t Au Eq over 370.5m
GS-19-47 yield 0.697 g/t Au Eq over 1,081.5m with 0.867 g/t Au Eq over 301.5m
The best Southeast extension:
GS-19-52 yields 0.783 g/t Au Eq over 601.5m
Includes 1.062 g/t Au Eq over 336.0m (NR dated March 3rd, 2020)
The Treaty Creek Project is a Joint Venture with Tudor Gold owning 3/5th and acting as operator. American Creek and Teuton Resources each have a 1/5th interest in the project. American Creek and Teuton are both fully carried until such time as a Production Notice is issued, at which time they are required to contribute their respective 20% share of development costs. Until such time, Tudor is required to fund all exploration and development costs while both American Creek and Teuton have “free ridesâ€.
Treaty Creek Background
The Treaty Creek Project lies in the same hydrothermal system as Pretium’s Brucejack mine and Seabridge’s KSM deposits with far better logistics.
We believe that the Goldstorm deposit at Treaty Creek is quickly becoming one of most significant assets in the gold industry and will be highly sought after.
About American Creek
American Creek is a Canadian junior mineral exploration company with a strong portfolio of gold and silver properties in British Columbia. Three of those properties are located in the prolific “Golden Triangleâ€; the Treaty Creek and Electrum joint venture projects with Tudor Gold/Walter Storm as well as the 100% owned past producing Dunwell Mine.
For further information please contact Kelvin Burton at: Phone: 403 752-4040 or Email: [email protected]. Information relating to the Corporation is available on its website at: www.americancreek.com
Posted by AGORACOM
at 9:05 AM on Wednesday, May 27th, 2020
SPONSOR: Labrador Gold – Two successful gold explorers lead the way in the Labrador gold rush targeting the under-explored gold potential of the province. Exploration has already outlined district scale gold on two projects, including a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Recently acquired 14km of the potential extension of the new discovery by New Found Gold’s Queensway project to the south.Click Here for More Info
Time of economic uncertainty requires you have a 10 percent weighting in gold and gold mining stocks.
“The 10 Percent Golden Rule”.
“I think there is a strong likelihood we will need another bill.â€
That’s according to Treasury Secretary Steven Mnuchin, who supports additional fiscal stimulus to combat the economic impact of the novel coronavirus—within reason.
The secretary’s statement comes after the House passed a record-shattering $3 trillion relief package, though leaders in the Senate have said they will not put it up for a vote. Senate Majority Leader Mitch McConnell has made it clear that the next coronavirus bill “cannot exceed $1 trillion,†according to reporting by Axios.
Even so, the U.S. government’s response is already massive, dwarfing anything that’s come before it.
Across the pond, Britain’s government is likewise spending like crazy. The U.K. budget deficit widened to a record 62.1 billion pounds ($76 billion) in the month of April, equal to the government’s total borrowing in 2019, according to Bloomberg.
Against this backdrop of anything-goes spending, the idea of having a national currency backed by a real asset like gold seems less and less crazy to some. Doing so, it’s believed, would force lawmakers to practice fiscal discipline, reign in inflation and normalize international trade.
Judy Shelton, President Donald Trump’s nominee to the Federal Reserve Board of Governors, has long favored a return to a gold standard, which officially ended in 1971. In an interview with Investment News Network (INN) last week, Shelton said she liked “the idea of a gold-backed currency,†adding that “it could even be done in a cryptocurrency sort of way.â€
Although the chances of the U.S. returning to a gold standard are slim to none, I think it’s incredibly important in this time of economic uncertainty to ensure you have a 10 percent weighting in gold and gold mining stocks. I call this the 10 Percent Golden Rule.
The 10 Percent Golden Rule is rational and prudent. The U.S. government and Federal Reserve can’t pump this much money into the financial system and not trigger rapid inflation—and potentially even hyperinflation.
There’s one thing that can’t be printed, and that’s gold. In fact, we may be looking at peak gold supply right now, which should only help the precious metal retain its value as cash deteriorates.
Unprecedented Money-Printing
Group of Seven central banks made net asset purchases of $2.5 trillion in March and April together. In April alone, these purchases were an unbelievable $1.3 trillion, nearly five times more than the previous peak of $270 billion in April 2009, according to Bloomberg data.
As of last week, the Federal Reserve’s total assets stood at a record $7.04 trillion. That’s a third of the entire U.S. economy.
U.S. Global Investors
You may have heard that the Fed has been buying ETFs that invest in corporate debt, as part of its emergency lending program intended to support corporate debt markets. In the first six days of the program, as much as $1.8 billion worth of such ETFs were purchased.
These are all incredibly large numbers. Fed Chairman Jerome Powell himself acknowledged this during a 60 Minutes interview last week, stating that the bank’s recent actions are “substantially larger†than they were during the last crisis.
And just check out this remarkable exchange:
SCOTT PELLEY: Fair to say you simply flooded the system with money?
POWELL: Yes. We did. That’s another way to think about it. We did.
PELLEY: Where does it come from? Do you just print it?
POWELL: We print it digitally. So as a central bank, we have the ability to create money digitally. And we do that by buying Treasury bills or bonds for other government guaranteed securities. And that actually increases the money supply. We also print actual currency and we distribute that through the Federal Reserve banks.
Again, we can’t just print more gold, digitally or otherwise.
Growth in M2 money supply—which includes not just cash but also savings deposits, money market funds and other “near†money—has historically been like Miracle-Gro for gold prices. As of May 11, the percent change in money supply from a year earlier was greater than 23 percent. That’s the highest rate since at least 1981, the furthest I could go back on the Federal Reserve Bank of St. Louis’ website.
U.S. Global Investors
U.K. Bonds Now Have a Negative Yield. Is the U.S. Next?
Gold has also benefited from low to negative rates, which are likely here to stay for some time.
Last week the U.K. sold bonds with an average yield below 0 percent for the first time ever. The yield on the two-year gilt dropped as low as negative 0.080 percent. The five-year yield traded at negative 0.043 percent.
U.S. Global Investors
Meanwhile, Bank of England (BoE) governor Andrew Bailey admitted last Wednesday that a negative interest rate policy (NIRP) was in “active review,†despite saying in March that negative rates were “not an area I would want to go to.â€
That’s why I don’t have a whole lot of faith when New York Fed president John Williams says that “negative rates are not the right tool to be used right now.â€
It may only be a matter of time before subzero rates make landfall in the U.S., something President Trump is in favor of. “As long as other countries are receiving the benefits of Negative Rates, the USA should also accept the ‘GIFT,’†he tweeted on May 12.
Big-Name Money Managers Back Gold
Other financial experts and money managers are similarly making the case for gold and other hard assets as helicopter money floods the economy.
“This is a perfect environment for gold to take center stage,†wrote Paul Singer, billionaire hedge fund manager, in a memo to Elliott Management clients. “Gold today, despite its modest run up in recent months, is the answer to the question: Is there an asset or asset class which is undervalued, underowned, would preserve its value in severe inflation, and is not adversely affected by COVID-19 or the destruction of business value that is being caused by the virus?â€
Macro investor Paul Tudor Jones sees gold rallying to $2,400 an ounce and possibly to $6,700 on extreme inflation reminiscent of 1980. (And he also likes bitcoin, for the same reason.)
London-based hedge fund manager Crispin Odey says he increased the gold position in his flagship Odey European Inc. fund in April. What’s more, Barrick Gold is now his largest single long equity position.
Finally, in a viral tweet, Robert Kiyosaki of Rich Dad Poor Dad fame sounded off on the “incompetent†Fed before predicting $3,000 gold within a year and $75,000 bitcoin within three years.
“ECONOMY dying. FED incompetent,†Kiyosaki said. “Next BAILOUT trillions in pensions. HOPE fading. Bought more gold silver Bitcoin. GOLD @$1,700. Predict $3000 in 1 year. Silver @ $17. Predict $40 in 5 years. Bitcoin @$9800. Predict $75000 in 3 years. PRAY for the BEST-PREPARE for the WORST.â€
Posted by AGORACOM
at 9:18 AM on Tuesday, May 26th, 2020
The project is adjacent to Melkior’s Carscallen project
Melkior recently made a significant gold discovery at Carscallen.
Plan to begin drilling the first target in the very near future
Vancouver, British Columbia–(Newsfile Corp. – May 26, 2020) – Affinity Metals Corp. (TSXV: AFF) (“the Corporation”) (“Affinity”) is pleased to report that it has entered into an option agreement with an arm’s length third party to acquire up to a 90% interest in the West Timmins Gold property located approximately 29 km southwest of Timmins, Ontario, Canada.
The property package consists of 20 mineral tenures spanning 429 hectares. The property directly adjoins to the west and along geological strike to the Melkior Carscallen project with both properties optimally located directly along the northern flank of the prolific Destor Porcupine Fault Zone. Melkior very recently made a significant gold discovery that has attracted not only the market’s attention but also the interest of Kirkland Lake Gold to participate in furthering exploration of the Melkior project model through joint participation.
The ground making up the West Timmins Gold property was included/highlighted as a specific project example which meets exploration model recommendations as outlined within the 2012 published, Timmins Resident Geologist Report: “Recommendations for Exploration – Gold in Felsic Intrusions”. The geological model and potential of the West Timmins Gold property correlate positively with the recent Melkior Carscallen exploration advancements and the West Timmins Gold property potentials are based on the same geological model to that of the neighboring Melkior project.
The West Timmins Gold property is road accessible with a major highway (101) and regional scale power utility transmission lines passing directly through the property. Both Induced Polarization and Acoustic EM geophysics surveys have been conducted on the property and will assist in guiding future exploration.
The West Timmins Gold property is located along the same structural and geological trend which hosts the Pan American Silver “Timmins West Mine” located approximately 13 km to the east along highway 101 and is also in close proximity to the Timmins mining camp, which is a major structural control corridor that has produced over 75 million ounces of gold.
A Timmins West “staking rush” this past week has resulted in the recent acquisition of over 300 square kilometers of additional claims being positioned by area play participants which now surround both the Melkior – Carscallen and Affinity – West Timmins Gold projects.
Robert Edwards, CEO of Affinity stated: “We are very excited to have added the West Timmins Gold project to Affinity’s portfolio. It diversifies the Company’s Canadian exploration exposure to another very mining friendly jurisdiction in Canada. The seasonal window for exploration is much longer than at our flagship Regal Project, which allows for exploration on the West Timmons Gold property without taking away the focus on the Regal. The project is optimally located in the very prolific Timmons township area, immediately adjacent to Melkior’s Carscallen, which has attracted significant market attention the past few weeks with their recent gold discovery. We believe that the West Timmins Gold property has significant and similar discovery potential and we plan to begin drilling the first target in the very near future.”
The West Timmins Gold property is being acquired through a staged option agreement with terms/payments as follows:
Affinity will drill 500 meters within a specific drill target as directed by the property optionor. Upon the completion of the initial 500 meters of drilling, Affinity will elect to either abandon the option or continue and earn a 70% interest by paying the optionor $15,000 cash, issuing 300,000 Affinity shares, and drilling an additional 700 meters in a specified target(s) as directed by the optionor.
Within 120 days of completing/fulfilling the 70% option terms, Affinity may elect to earn an additional 10% (for a total of 80%) by issuing the optionor 500,000 Affinity share purchase warrants, granting a 1% NSR and paying a corresponding $25,000 cash advance royalty payment, and by drilling an additional 4,800 meters (6,000 meters total) on drill targets specified by the optionor.
Within 120 days of completing/fulfilling the 80% option terms, Affinity may elect to earn an additional 10% (for a total of 90%) by drilling an additional 4,800 meters (10,800 meters total) on drill targets specified by the optionor.
All shares or warrants issued under this agreement will be subject to a statutory 4 month hold period. This agreement is subject to approval by the TSX Venture Exchange.
About Affinity Metals
Affinity is focused on the acquisition, exploration and development of strategic metal deposits within North America.
In addition to this West Timmins Gold acquisition, Affinity is advancing the Regal Project located near Revelstoke, British Columbia, Canada. The Regal property is located in the northern end of the prolific Kootenay Arch and hosts two major geophysical anomalies as well as three past producing mines. Recent drill results included a new silver discovery with an 11.10 meter interval of 143.29 g/t silver which included a 0.55 meter interval of 2,612.0 g/t silver.
On behalf of the Board of Directors
Robert Edwards, CEO and Director of Affinity Metals Corp.
Posted by AGORACOM
at 12:25 PM on Friday, May 22nd, 2020
Sponsor: Affinity Metals Corp. (TSX-V: AFF) is a Canadian mineral exploration company building a strong portfolio of mineral projects in North America. The Corporation’s flagship property is the drill ready Regal Property near Revelstoke, BC where Affinity Metals is making preparations for a spring drill program to test two large Z-TEM anomalies. Click Here for More Info
This has been a tumultuous year for investors, with Brexit, negative bond yields, a global trade war, an oil price crash and, of course, a worldwide pandemic that’s ushered in what’s expected to be the worst recession since the Great Depression. The question, then, is whether our money can be safely invested anywhere.
Fortunately, many experts are bullish about precious metals. Although the price of gold has risen roughly $400 per ounce in the past year, some analysts suggest that silver may be the better buy in the medium- and long-term.
As the CEO and founder of an online alternative investment brokerage, I’m constantly keeping my finger on the pulse of what precious metals experts forecast for the years ahead. In this article, I’ll take a closer look at the silver forecast for 2020 and 2021 to give investors an idea of what they can expect.
How Has Silver Fared So Far In 2020?
Let’s first assess the recent performance of silver bullion during this time of uncertainty. Although the price of silver has fallen since the outbreak of the novel coronavirus, its value has held considerably well compared to the U.S. stock market. During the worst of the stock sell-off in mid-March, May silver futures dropped $0.48 to roughly $12.34 per ounce, according to kitco.com, while the S&P 500 had fallen 27% year to date on March 18.
Virtually every asset price fell in March due to the “sell what you can†mentality many investors held during this frantic period of uncertainty driven by the coronavirus and an oil price war. However, allocating a portion of your portfolio to silver bullion would have softened the blow caused by the coronavirus sell-off.
Is Silver Susceptible To Price Suppression?
It’s worth noting neither the U.S. federal government nor the Federal Reserve system can assert significant control over the price of silver. In 2019, the U.S. accounted for an estimated 3.6% of global silver production (980 metric tons), compared to Mexico and Peru, which produced 6,300 and 3,800 metric tons, respectively. Therefore, the price of silver is ultimately beholden to global market forces rather than domestic price manipulation.
Silver And Industry
Silver is a metal with many industrial applications. In 2018, silver was heavily utilized for industrial manufacturing — in particular, for use in photovoltaic solar panels, brazing alloys and solders, electronics and ethylene oxide. This figure doesn’t include silver used in the production of jewelry, which required another 200 million-plus ounces that year.
What’s particularly noteworthy about silver’s industrial usage is that it’s prominent in the production of solar panels and batteries, which bodes well for the metal’s long-term price. The worldwide market for solar energy was expected to rise in value from $52 billion in 2018 to $223 billion by 2026.
Key Factors That Could Influence The Price Of Silver In The Near Term
In an article forecasting the price of silver in 2020, Capital.com’s Valerie Medleva mentioned that silver tends to perform poorly when the U.S. dollar is strong. The article went on to note that in Q4 2018, the price of silver fell 14% when the U.S. dollar performed well.
Although the U.S. dollar is currently strong, the Fed has recently cut interest rates to effectively zero, which could weaken the dollar, so it remains to be seen how this will impact the price of silver through the year. A strong dollar generally signals a weak silver price, and though there are exceptions, such as we saw in 2018, high interest rates tend to mean higher silver prices. In other words, if the dollar weakens, we could have two competing forces pushing the price of silver up and down simultaneously.
Regarding supply, a January 2020 report by Scotiabank determined the global supply of silver is “fundamentally oversupplied†but remains attractive to investors as a gold proxy. The authors note that silver can play an important role as a currency hedge, and upside growth is expected due to modest increased industrial demand. Overall, the report is mixed about silver prices for 2020, estimating possible outcomes of $15-$23 per ounce, depending on gold performance and demand drivers. The authors estimated that $17.50-$21 per ounce is the fair, market-aligned range for silver in the year ahead.
And according to technical analysts at FX Empire, silver is trending to the upside as price pullbacks throughout April have been met with quick buys from investors looking to fill their pockets with the white metal. They note a critical resistance point at $15.50 per ounce. If silver settles above that mark, that will open the path for it stabilizing around the $16.50 level seen before the crisis.
The Takeaway: A Worthwhile Hold But Not Without Risk
The general consensus among market watchers, researchers and precious metals experts is that the long-term forecast for silver is positive. Although no asset is without downside risk, the case for silver is supported by heavy industrial use as well as its strategic importance as a currency hedge during times of uncertainty. However, the strength of the dollar will play an important role in silver’s performance.
In short, silver is an alternative investment that’s a relatively safe option in a highly volatile market. Many analysts are optimistic about silver prices in the short and medium term. Regardless of how silver performs in the months ahead, the metal remains a strategic hold for many investors looking to minimize risk, diversify their portfolio and safeguard their wealth during times of heightened volatility.
Posted by AGORACOM
at 10:58 AM on Friday, May 22nd, 2020
SPONSOR: American Creek owns a 20% Carried Interest to Production at the Treaty Creek Project in the Golden Triangle. 2019’s first hole averaged 0.683 g/t Au over 780m in a vertical intercept. 2020 drilling plans 18,000 to 20,000 metres from 7-10 drill platforms with four diamond drill rigs. The Treaty Creek property is located in the same hydrothermal system as the Pretivm and Seabridge’s KSM deposits and is fully funded for exploration in 2020. Click Here For More Info
The global economy was flashing danger signs long before the pandemic. For one thing, many countries were clamouring to get hold of as much gold as possible. For the past decade, they have been buying new reserves and bringing it home from overseas storage to an extent never seen in modern times. Then just before the pandemic, there was a pause. What does all this mean?
Central banks added 650 tons to their reserves in 2019, the second highest shift in 50 years, after the 656 tons added in 2018. Before the 2007-09 financial crisis, central banks were net sellers of gold worldwide for decades. Leading the recent spree has been China, Russia, Turkey, Kazakhstan and Uzbekistan.
Central bank gold buying 1971-2019
We have also seen a large effort by central banks to repatriate their gold from other countries, mostly from storage in New York and London.
Gold has enthralled humanity since ancient times. Still it glitters from central bank vaults to jewellery bazaars the world over. The Conversation brings you five essential briefings by academic experts on the world’s favourite precious metal. For more articles written by experts, join the hundreds of thousands who subscribe to our newsletter
Venezuela started repatriating its gold in 2011, shipping 160 tonnes from New York. A third of its holdings remain in London, but only because the Bank of England won’t repatriate them – declaring it doesn’t recognise the government in Caracas. Venezuela has now made this the subject of a legal claim.
Then came Eastern Europe. In 2018, Hungary announced it would repatriate nearly 3 tons of gold from London, while greatly boosting its reserves. Poland repatriated 100 tons from London a year later, about half of its national reserve. Next was Romania, while Slovakia and Serbia have been considering moving gold home from England too.
Why it is happening?
This dash to gold is about geopolitics and economics. Gold serves as a patch mark of nationalist identity. To quote Adam Glapinski, governor of the National Bank of Poland, “gold symbolises the strength of [a] countryâ€.
Stocking up has made sense to many countries in the populist climate. It is also a sign of countries diversifying from dollars. The likes of Russia, China and even countries in Western Europe want to break the US dominance of the financial system, having seen it used as leverage in everything from economic sanctions to trade threats.
Following the last financial crisis, many also feared there was more to come. When former Slovak prime minister Robert Fico last year urged his parliament to compel the central bank to repatriate gold from London, he argued that overseas reserves could be at risk in a new global economic crisis.
Citing the 1938 Munich pact between France, Britain, Italy and Germany that allowed the German invasion of Czechoslovakia, he said that “sometimes your international partners can betray youâ€.
Countries also seem unnerved by the row over Venezuela’s gold, plus the fact that Germany’s repatriated bars from the US appeared different to what it thought was in store. This suggested the Federal Reserve was trading them.
Fiat vs gold
In an era where everything is digital, fast and smart, it might sound strange that a static piece of metal could still have a major monetary role. Central banks abandoned the gold standard in the 1970s, led by US President Richard Nixon, which meant that paper currencies were no longer exchangeable for gold. This was necessary because there were too many dollars in the international system and too many countries exercising their right to exchange them for US gold reserves.
After Nixon’s decision, currencies became fiat, meaning that countries could freely decide how much to have in circulation. Currencies now had value not because they were backed by gold, but because the state standing behind them said they had value. Central banks effectively declared gold to be a relic. Fiat money was seen as superior, thanks to central bankers’ supposedly scientific oversight of monetary policy.
The new dash for gold makes economists pause and wonder what is happening. It seems to show many countries looking for a safe haven in these years in which interest rates have been very low and central banks have been printing large amounts of money to stimulate the global economy. Gold continues to have intrinsic value, so it reassures countries – especially if they fear inflation and downturns.
And yet, just as economic uncertainty was about to move to a whole new level with the pandemic, this trend lost momentum. Additions to the gold holdings of central banks and other international institutions in the three months to January 2020 – the most recent figure available – were just 67 metric tons, the least since August 2018.
In truth, this was not entirely surprising. Purchasing bullion at close to a seven-year high, and after a month of prices fluctuating plus or minus about 13%, is no particularly prudent way to consolidate economic and geopolitical power.
It will be a few months before we see how the pandemic has affected central banks’ attitude to gold. It could yet convince them that gold will still move higher. So don’t be surprised if this dash to gold has resumed in recent weeks – in a leading indicator of troubling times ahead.
Posted by AGORACOM
at 10:00 AM on Thursday, May 21st, 2020
Vancouver, British Columbia–(Newsfile Corp. – May 21, 2020) – Affinity Metals Corp. (TSXV: AFF) (“the Corporation”) (“Affinity”) congratulates Advisor Ronni Stoerferle regarding the upcoming much anticipated May 27th publication of the 2020 edition of the “In Gold We Trust” report.
The “In Gold We Trust” report is the preeminent research report for the gold industry as it relates to the state of the global economy in general. The 2020 edition will be in excess of 350 pages of all things gold (and silver). The Wall Street Journal has referred to the report as the “Gold Standard of Gold Research”. The report is free and is available for download on May 27th at the following web address:
Ronni Stoeferle, Founding Affinity Advisory Board Member, and Rob Edwards, Affinity CEO were recently interviewed on the Agoracom network. The interview covers key information regarding the present state of the gold and silver market as well as Affinity’s Regal Project. The interview may be viewed here:
The Corporation has granted a total of 1,000,000 incentive stock options under the Corporation’s stock option plan to certain Directors, Officers, Contractors and Advisors of the Corporation. The options were granted at a deemed price of $0.17 and are exercisable until May 20, 2030. The incentive options are subject to a hold period of four months and a day from issuance.
The granting of options is subject to approval by the TSX Venture Exchange.
About Affinity
Affinity Metals is a Canadian mineral exploration company focused on advancing the Regal polymetallic project located near Revelstoke, British Columbia.
Drill results from preliminary drilling on the Regal project were recently announced and included a significant new silver discovery in the Allco area of the property with drill hole #10 intersecting 11.10 meters of 143.29 g/t silver including 0.55 meters of 2612.0 g/t silver. This intersection also carried high grade zinc and lead with some copper.
Planning for the upcoming Regal exploration program is underway with details to be announced once finalized.
On behalf of the Board of Directors
Robert Edwards, CEO and Director of Affinity Metals Corp.
Posted by AGORACOM-JC
at 9:13 AM on Thursday, May 21st, 2020
Recent interview with Ronni Stoerferle, Founding Affinity Advisory Board member and Rob Edwards, Affinity CEO regarding the strengthening gold market and the developments at Affinity’s Regal Project. Some good perspective on future potential of Affinity in this strengthening bull market.
Posted by AGORACOM
at 9:15 AM on Wednesday, May 20th, 2020
Sponsor: Affinity Metals Corp. (TSX-V: AFF) is a Canadian mineral exploration company building a strong portfolio of mineral projects in North America. The Corporation’s flagship property is the drill ready Regal Property near Revelstoke, BC where Affinity Metals is making preparations for a spring drill program to test two large Z-TEM anomalies. Click Here for More Info
The current Gold to Silver ratio high is nearly 120
Precious metals have been on our radar for many months and, if you’ve been paying attention, you probably already know our research suggests Gold and Silver are one of the best investments you can make right now. Recently, we shared this article suggesting Gold would need to rally above our proprietary Fibonacci Price Amplitude Arc (GREEN Arc) level near $1745 before it would attempt a bigger upside price move. Additionally, just a few days ago we published this article suggesting Silver would begin to rally even faster than gold.
Today, both Gold and Silver are making bigger upside price moves with Silver up over 3% while Gold is up 1.3%. We believe this nearly 250% faster Silver advance may be the start of what we have been predicting for many months – an incredible parabolic upside price advance in BOTH Gold and Silver.
Earlier research by our team suggested that a set up would happen in Precious Metals where Silver began advancing much faster than Gold and that this move would likely prompt a downside move in the Gold to Silver Ratio targeting the 50 to 65 level. Our earlier research suggests when this move/setup begins, we could begin to experience a nearly 250% to 350% rally in gold, targeting $3750 or higher, and a 550% to 650% rally in Silver, targeting over $70, over a 12+ month span of time. This article, today, is alerting our readers that we believe this SETUP is happening right now and the upside rally in precious metals should begin to really accelerate over the next 5+ months.
Weekly Gold to Silver Ratio Chart
This Gold to Silver ratio chart (including GOLD and SILVER price levels) clearly illustrates what happens when the Gold to Silver ratio starts to collapse. In 2009, the BLUE Gold to Silver ratio level began to collapse from 85 to 32 – well over 50 points (58%). The current Gold to Silver ratio high is nearly 120. Another 58% collapse from that level would suggest the Gold to Silver ratio could fall to 50 (or further) which would indicate that both Gold and Silver could rally extensively throughout the next 12+ months.
Daily Gold Futures Chart
This Daily Gold chart highlights our proprietary Fibonacci Price Amplitude Arc system as well as our Fibonacci price modeling system. Our researchers believe once Gold rallies above the GREEN Arc, it should begin to skyrocket higher in a series of upside price advances over the next few months or longer. This 1.618 Fibonacci Price Amplitude Arc is acting as a strong resistance level currently. Once Gold breaks above this level, a big rally may take place in Gold – which will drive further a bigger rally in Silver.
Weekly Gold Futures Chart
This Weekly Gold chart shows you what we expect to see happen over the next 30 to 60 days. First, once Gold breaks the GREEN Arc level, a rally will take place driving Gold up to near $1999. Then, Gold prices should stall and rotated downward a bit – targeting the $1900 to $1920 level. After that, Gold will begin another upside price rally targeting $2100 or higher.
Ultimately, our upside price target for Gold is $3750 (many months into the future). Yet we continue to believe this move in precious metals could be one of the biggest and fastest upside price moves in over 100 years. We believe once this move really gets started, it will be almost impossible to accurately predict where the top will setup in Gold and Silver.
Weekly Silver Futures Chart
This Weekly Silver chart highlights the Pennant/FLAG formation that recently APEX’ed. We suggested this setup would prompt a fairly strong upside price move in Silver targeting the $21 to $22 – establishing a new price high. Just after the Apex completed, Silver stalled a bit before beginning a bigger upside move. We believe this is the start of a Parabolic upside price move in metals that should not be overlooked by skilled technical traders.
Concluding Thoughts:
If there is one thing you should understand about this setup and the potential for the future is that between 2008 and 2011, Gold rallied over 300% while Silver rallied over 600% just after the Credit Crisis event. The current COVID-19 global economic crisis is likely much bigger than the 2008-09 Credit Crisis event and that is why we believe this is an incredible opportunity for skilled technical investors.
Posted by AGORACOM
at 11:57 AM on Tuesday, May 19th, 2020
SPONSOR: Labrador Gold – Two successful gold explorers lead the way in the Labrador gold rush targeting the under-explored gold potential of the province. Exploration has already outlined district scale gold on two projects, including a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Recently acquired 14km of the potential extension of the new discovery by New Found Gold’s Queensway project to the south.Click Here for More Info
As I write this note on a dreary Friday afternoon from Boulder, CO I am reminded of my town’s origin. Its first non-native settlers established the town 1858 as a base camp for gold and silver miners. Nestled literally at the foot of the Rockies, its location was ideal for supplying the Colorado mining boom at that time and by 1871 a railroad had been built to connect Denver, Golden, Boulder and the mining operations directly to the West of Boulder. One such mining operation was in what is still known as Gold Hill, which I highly recommend visiting for a live music and BBQ event the next time you are in Colorado (COVID permitting).
Today we may be in the early days of a different kind of gold boom. This time the boom isn’t because there are new gold reserves to be dug out of the ground. Rather, the steady supply of gold compared to the extraordinary growth of new money requires that the dollar value of the former must rise to keep parity with the latter. Indeed, the US money supply has grown by approximately 23% over the last 65 days, or about a 90% annualized rate. No wonder the price of gold is sitting near a cycle high of $1743/oz as of this writing. But even as the price of gold has risen in recent months, the gold miners themselves may be even larger beneficiaries of the US dollar supply shock. Below, we’ll list 5 simple reasons the gold miners could be in for a period of massive outperformance.
The price of gold miners relative to the price of gold is basically at a 25 year low. This implies quite a catch up trade if the price of the commodity produced by the miners remains at elevated levels or even rises from here. The price performance of the miners would have to outperform the price of gold by 500% to reach the old 2011 highs in relative performance.
The relative performance of gold miners relative to the S&P 500 remains at near a 25 year low. Gold miners would have to outperform the S&P 500 by 400% to get back to the 2011 highs in relative performance.
Valuation. Based on the price to EBITDA ratio (and about all the other valuation ratios), gold miners are cheaper than the overall market. From 2005-2016 gold miners pretty much always traded at a premium to the S&P 500, but now the miners are trading at a 15% discount.
Liquidity. In the age of COVID, stocks with the ability to service their debt obligations should arguably trade at a premium to the market. The gold miners have a current ratio (current assets/current liabilities) nearly twice that of the S&P 500 as a whioe (2.06 vs 1.28).
Solvency. In the age of COVID, stocks with balance sheets in line with their income statements should arguably trade at a premium to the market. The gold miners have debt to EBITDA about 75% lower than the overall market (1.16 vs 4.69).
Bonus chart. The global aggregate market value of gold miners is $260bn. This compares to the aggregate market value of the FAAMG (Facebook, Amazon, Apple, Microsoft, Google) stocks of $5.4tn and the market value of US Treasury debt outstanding of $25tn. So the gold miners, in aggregate, are worth about 5% of the value of just those 5 FAAMG stocks and 1% of the value of all the Treasury debt outstanding. What do you think would happen to the price of the gold miners if some of that capital left the FAAMGs or Treasury bonds and flowed into the gold miners?
Posted by AGORACOM
at 12:13 PM on Friday, May 15th, 2020
Sponsor: Loncor, a Canadian gold explorer controlling over 3.6 million high grade ounces outside of a Barrick JV. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 814,000 ounces of gold in 2019. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting their Tier One investment criteria. Newmont $NGT$NEM owns 7.8%, Resolute $RSG owns 27% Management owns 29% Click Here for More Info
New major gold discoveries have been on a decline this past decade, according to a report by S&P Global Market Intelligence.
During the past three years there were no major new gold discoveries, the report said. And during the past decade, there were only 25 new major discoveries.
Dwindling numbers are due to miners focusing on exploration around older mines, S&P Global said.
“The lack of new discoveries is the result of exploration focusing on older discoveries and later-stage assets,†wrote S&P Global principal research analyst Kevin Murphy. “While there are still plenty of gold assets to be developed, the lack of new major deposits being discovered means that the project pipeline is increasingly short of large, high-quality assets needed to replace ageing major gold mines.â€
The 25 major deposits discovered in the last decade represent 154.3 million ounces or only 7% of all gold discovered since 1990. According to the S&P Global data, there were 278 major new gold deposits found between 1990-2019, totaling 2.19 billion ounces of gold reserves.
A major factor responsible for the drastic decline in the last ten years is the budget dedicated to new discoveries, Murphy pointed out. Instead of looking for new discoveries, explorers were zeroing in on known deposits around operating mines.
“The total for the past decade might only rise to about 266 million ounces once subsequent exploration efforts are completed,†Murphy noted.
On top of lower budgets for new explorations, the COVID-19 outbreak is likely to negatively contribute to the lower discoveries rate going forward.
“We do not expect the trend to reverse in the near term,†Murphy stated. “We expect quite the opposite in 2020 as COVID-19 impacts exploration plans by companies of all sizes.â€
The junior miners’ exploration programs are likely to be affected the most by the coronavirus. “The largest impact will be reductions due to lockdowns or companies exercising caution with their personnel. We expect gold budgets to decline about 20% in 2020,†Murphy said.
And this is not just in the gold sector with Murphy estimating total mining exploration spending to fall in 2020.
“Producers will not be spared, as they face lower metals prices and country-wide closures in areas in which they operate, sending their budgets an estimated 23% lower. As a result, we now expect global exploration budgets to fall 29% in 2020 to a total of US$6.9 billion,†Murphy said in another report published in April.
