Posted by AGORACOM
at 10:07 AM on Thursday, June 11th, 2020
The Imbo inferred mineral resource increased by 49% to 2.5 million ounces (30.65 million tonnes grading 2.54 g/t Au). 76.29% of this gold resource is attributable to Loncor via its 76.29% interest in the Imbo Project.
76.29% of this gold resource is attributable to Loncor via its 76.29% interest in the Imbo Project.
A planned drill program will look to add to the Adumbi resource over the next twelve months.
TORONTO, June 10, 2020 (GLOBE NEWSWIRE) — Loncor Resources Inc. (“Loncor” or the “Company“) (TSX: “LN”; OTCQB: “LONCF”) announces that it has filed on SEDAR an independent National Instrument 43-101 technical report (the “Technical Reportâ€) relating to the Company’s Imbo Project, in particular, the updated gold mineral resource estimates for the Imbo Project reported in the Company’s April 17, 2020 press release. The Technical Report, which was prepared by Minecon Resources and Services Limited, has an effective date of April 17, 2020 and is entitled “Independent National Instrument 43-101 Technical Report on the Imbo Project, Ituri Province, Democratic Republic of the Congo”.
Highlights from April 17, 2020 press release confirmed in Technical Report:
The Imbo Project inferred mineral resource increased by 49% to 2.5 million ounces of gold (30.65 million tonnes grading 2.54 g/t Au). 76.29% of this gold resource is attributable to Loncor via its 76.29% interest in the Imbo Project.
Within the Imbo Project, the Adumbi deposit inferred mineral resource increased by 61% to 2.19 million ounces of gold (28.97 million tonnes grading 2.35 g/t Au) (the Adumbi deposit is one of the three deposits at Imbo currently with a resource).
A planned drill program will look to add to the Adumbi resource over the next twelve months.
The Imbo mineral resources are in addition to Loncor’s resources at its Makapela Project (which is 100%-owned by Loncor) where there is an indicated mineral resource of 614,200 ounces of gold (2.20 million tonnes grading 8.66 g/t Au) and an inferred mineral resource of 549,600 ounces of gold (3.22 million tonnes grading 5.30 g/t Au).
Arnold Kondrat, CEO of Loncor, stated: “This filing of the 43-101 represents the culmination of many years of persistence by the Loncor team in the Ngayu greenstone belt. We believe this region is one of the few remaining areas around the world where Tier 1 gold deposits can still be discovered, built and mined profitably as shown by Barrick Gold at the Kibali mine. Over the next 12 months, Loncor will look to drive forward with a drill program at the Adumbi deposit, with the aim of significantly increasing the current resource, while simultaneously awaiting with interest news on the imminent drilling program at the drill targets defined by our Joint Venture partner Barrick Gold.â€
About Loncor Resources Inc. Loncor is a Canadian gold exploration company focussed on the Ngayu Greenstone Belt in the North East of the Democratic Republic of the Congo (the “DRCâ€). The Loncor team has over two decades of experience of operating in the DRC. Ngayu has numerous positive indicators based on the geology, artisanal activity, encouraging drill results and an existing gold resource base. The area is 220 kilometres southwest of the Kibali gold mine, which is operated by Barrick Gold (Congo) SARL (“Barrickâ€). In 2019, Kibali produced record gold production of 814,000 ounces at “all-in sustaining costs†of US$693/oz. Barrick has highlighted the Ngayu Greenstone Belt as an area of particular exploration interest and is moving towards earning 65% of any discovery in 1,894 km2 of Loncor ground that they are exploring. As per the joint venture agreement signed in January 2016, Barrick manages and funds exploration on the said ground at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Barrick. In a recent announcement Barrick highlighted six prospective drill targets and are moving towards confirmation drilling in 2020. Subject to the DRC’s free carried interest requirements, Barrick would earn 65% of any discovery with Loncor holding the balance of 35%. Loncor will be required, from that point forward, to fund its pro-rata share in respect of the discovery in order to maintain its 35% interest or be diluted.
In addition to the Barrick JV, certain parcels of land within the Ngayu project surrounding and including the Makapela and Adumbi deposits have been retained by Loncor and do not form part of the joint venture with Barrick. Barrick has certain pre-emptive rights over the Makapela deposit. Loncor’s Makapela deposit (which is 100%-owned by Loncor) has an indicated mineral resource of 614,200 ounces of gold (2.20 million tonnes grading 8.66 g/t Au) and an inferred mineral resource of 549,600 ounces of gold (3.22 million tonnes grading 5.30 g/t Au). Adumbi and two neighbouring deposits hold an inferred mineral resource of 2.5 million ounces of gold (30.65 million tonnes grading 2.54 g/t Au), with 76.29% of this resource being attributable to Loncor via its 76.29% interest in the project.
Resolute Mining Limited (ASX/LSE: “RSG”) owns 26% of the outstanding shares of Loncor and holds a pre-emptive right to maintain its pro rata equity ownership interest in Loncor following the completion by Loncor of any proposed equity offering.
Additional information with respect to Loncor and its projects can be found on Loncor’s website at www.loncor.com.
Qualified Person Peter N. Cowley, who is President of Loncor and a “qualified person” as such term is defined in National Instrument 43-101, has reviewed and approved the technical information in this press release.
Technical Reports Additional information with respect to the Company’s Imbo Project is contained in the technical report of Minecon Resources and Services Limited dated April 17, 2020 and entitled “Independent National Instrument 43-101 Technical Report on the Imbo Project, Ituri Province, Democratic Republic of the Congo”. A copy of the said report can be obtained from SEDAR at www.sedar.com.
Posted by AGORACOM
at 10:52 AM on Tuesday, June 9th, 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 has started, with 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
Located next to the world’s largest undeveloped gold deposit by reserves in B.C.’s Golden Triangle (KSM)
Drilling has started 1 month early
There are already holes shipped off to the lab for assays.
American Creek has a Fully Carried 20% Interest in the Treaty Creek Project
The currently known length of the northeast axis of the Goldstorm system is 850 meters and the southeast axis is 600 meters by 700m depth.
Mineralization depth in the north continues to 1,200m when the drills gave out
The system remains open in both directions and in depth
The total size of this mighty gold system has expanded significantly with each step-out borehole
AMK Partner Tudor is planning a step-out of 150 meters to the east and the north in 2020.
The richest mineralization at ‘Treaty Creek’ starts near the surface extending to a 300m depth, which clearly speaks for a future open pit mine.
The gold system is open on all sides and the geology and geophysics indicate a much larger system than has been defined.
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 creating a 3:1 ownership relationship between Tudor Gold and American Creek. 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 rides”.
Demand for world-class projects in politically stable regions such as Canada and Australia will increase significantly. Projects such as’ Treaty Creek ‘by Tudor Gold should be at the top of the big producers’ shopping list
JS Research from Germany just came out with a report on Treaty Creek and American Creek’s JV partner Tudor Gold, which includes projections for the size and value of the project. Below is the English translation:
TRANSLATED ARTICLE:
Tudor Gold Starts Powerful Drill Program With 22.5 To 32.1 Million Ounces Of Gold Eq Target ++ Billionaire Eric Sprott Invests Another CAD 2.9 Million!
The exploration pearl Tudor Gold Corp. (Ticker Canada: TUD, WKN: A2AJ7Y) we presented you in detail several times last year. Many of our readers can already look forward to exceptional price gains in their securities accounts, since the share has exploded from CAD 0.24 in 2019 to CAD 1.07 in the meantime! A gain of 345%. But that’s not all – we are convinced that Tudor Gold still has very high price potential.
Smart investors are now positioning themselves again at the perfect time – why? We have examined the latest company reports in more detail for you and summarized our assessment:
TOP NEWS 1:
Tudor Gold announced on May 11th (see link here) that the powerful drilling program has started on the flagship Project ‘Treaty Creek’ in BC’s Golden Triangle! The world-class explorer plans to drill a total of 20,000 meters there in the next few months. This means that this year’s drilling program is more than twice as large as last year when 9,781 meters were drilled in 14 holes.
TOP NEWS 2:
100% hit rate for the 2019 drilling program – all 14 holes have hit gold-bearing mineralization! Chapeau to the management team around the experienced CEO Walter Storm, who, as a co-founder of Osisko Mining (market capitalization then rose from under 10 million to over 4.5 billion CAD), had a real golden hand in exploration in Canada!
TOP NEWS 3:
The legendary star investor Eric Sprott has massively expanded his strategic stake in Tudor Gold! The billionaire announced on May 15, 20 that he had exercised two purchase warrants ahead of time and has thus transferred CAD 2.9 million to Tudor. (Read the German press release here: LINK) The smart Eric Sprott knows exactly how to make a lot of money in the raw materials sector! This further investment is a special seal of approval and strong proof of trust in the world-class Explorer Tudor Gold!!! Follow the ‘smart money’ and be there when Tudor Gold writes exploration history!
TOP NEWS 4:
Tudor Gold is one of the few exploration companies that are sufficiently funded to run such a mega exploration program! So there will be a lot of news flow in the next few months, which should cause extreme (positive) share price fantasy!
TOP NEWS 5:
The exploration team around Tudor Gold’s award-winning star geologist and VP Project Development, Ken Konkin , has even managed to start drilling four weeks earlier! This is top news, because the publication of the first drilling results can now be expected much earlier! Ken Konkin was instrumental in the discovery of Pretium Resources’ The Valley of Kings deposit. The very experienced Ken Konkin knows exactly what he is doing – we are expecting another successful exploration program this year!
TOP NEWS 6:
The company has big plans: On April 22, 20, Tudor announced that the metallurgical test work and preliminary basic studies on ‘Treaty Creek’ have started. For us, this is a strong sign that Tudor will continue to develop the project until it is ready for production after the release of a first resource (towards the end of this year?)! You can read the German press release here:
LINK TOP NEWS 7:
The gold price marked a new multi-year high of $ 1,765 in May and is still in a long-term cyclical uptrend. Many experts expect the nominal all-time high of around USD 1,920 to be exceeded in the next few months.
In April, the renowned American Bank of America made a forecast that gold could rise to up to USD 3,000 per troy ounce within 18 months! One of the reasons for the gold price rise is the launch of global economic stimulus programs and the massive expansion of money supply by the major central banks. It is estimated that the staggering $ 10 trillion in new money will be printed or launched on government programs.
These measures are designed to avert a severe recession / depression triggered by COVID-19. It is expected that we will see rapidly increasing inflation rates or even stagflation in the next few years! Gold is and remains one of the safest investments (a so-called ‘safe haven’) for investors in such an environment and offers the ultimate protection against inflation-related devaluation.
Gold stocks traditionally have significant leverage against gold. This means that if the gold price trend is positive, they will increase significantly more in percentage terms. Experience has shown that the typical leverage effect of a gold share is 1.5 to 4x. (A 1% price increase in gold usually means an increase of 1.5 to 4% for shares in the gold sector). Not so with Tudor Gold: the exploration company even had a much stronger lever on the gold price in 2019! It was a strong 12.6x in 2019! The stock increased from $ 0.24 to $ 0.79 from January 2, 2019 to December 31, 2018. This corresponds to a percentage increase of 229.2%. The gold price rose by only 18.1% over the same period. Tudor Gold’s leverage was 12.6x (calculation formula: 229.2: 18.1 = 20.5). [Gold lever Tudor gold]
TOP NEWS 8: Tudor Gold’s drilling results in 2019 are world class! We have listed a few of the most spectacular drill results to date:
Drill hole GS19-42: 0.849 g / t Gold Eq over 780 meters including 1.275 g / t Gold Eq over 370.5 meters in the 300 Horizon section;
Hole GS19-47: 0.697 g / t Gold Eq over 1,081.5 meters including 0.867 g / t Gold Eq over 301.5 meters in the 300 Horizon section;
Drill hole GS19-52: 0.783 g / t gold Eq over 601.5 meters incl. 1.062 g / t gold over 336.0 meters in the 300 Horizon section;
Hole GS19-48: 0.793 g / t Gold Eq over 927.0 meters;
Hole GS19-49: 0.800 g / t gold Eq over 826.5 meters including 1.080 g / t gold over 249 meters;
Hole GS19-50: 0.681 g / t Gold Eq over 577.5 meters; Hole CB-18-39: 1,086 g / t Gold Eq over 563.8 meters
Tudor Gold has already managed to define a significant mineralization corridor on Treaty Creek. The currently known length of the northeast axis of the Goldstorm system is over 850 meters and the southeast axis is at least 600 meters. The system remains open in both directions and in depth!
The total size of this mighty gold system has expanded significantly with each step-out borehole! As can be seen in the recently released press release, Tudor is planning another step-out well 150 meters away in 2020. Not to be painted if a long gold mineralization section is found again! And the best thing is that mineralization at ‘Treaty Creek’ starts near the surface, which clearly speaks for a future open pit mine!
Tudor Gold has therefore defined the so-called ‘Horizon 300 Zone’. This means the area of the first 300 meters from the ground. As you can see in the above results, the ore grades are often even over 1.00 grams of gold per ton! This increases the economy of this world-class project enormously. The gold system is open on all sides and the overall size has not yet been fully defined. Thus, Tudor Gold’s flagship project still has enormous exploration potential!
The company plans to begin producing an initial resource estimate for Treaty Creek immediately after the 2020 drilling season is completed. We took the trouble to simulate a potential resource based on the conceptual exploration target for Treaty Creek of 1 billion tons of rock and various assumptions of ore grades (grams of gold per ton). We would like to emphasize that this simulation is based on an interview by Ken Konkin with Swiss Resource Capital AG in November 2019 and various variable assumptions!
Tudor Gold’s star geologist Ken Konkin, Vice President Project Development, gave an impressive interview in November 2019.
Tudor Gold’s ‘Treaty Creek’ – the next significant world-class project in stable and mining-friendly Canada (BC) [Conceptual exploration target Treaty Creek]
As more and more gold producers have to replace their mined gold resources in order to maintain constant gold production, we believe that demand for world-class projects in politically stable regions such as Canada and Australia will increase significantly. Projects such as’ Treaty Creek ‘by Tudor Gold should be at the top of the big producers’ shopping list. Because the flagship project ‘Treaty Creek’ is close to the infrastructure of roads and electricity in mining-friendly western Canada.
Should Tudor Gold actually manage to prove an initial gold resource of 22-32 million ounces by the end of the year, there would be a highly explosive revaluation of the share! Currently, the market capitalization is only around CAD 137 million. As I said, Tudor Gold has not released a proven resource yet, but the spectacular drill results from 2019 show that the company may be controlling a world-class ore body on Treaty Creek!
We have created a hypothetical valuation matrix for Tudor Gold. If a producer were willing to pay, for example, USD 65 for each ounce of gold after the publication of a gold resource, the value of the gold treasure (eg 20 million ounces) at Treaty Creek would be CAD 1.98 billion. Tudor Gold’s 60% stake in Treaty Creek would have a value of $ 1.19 billion or $ 7.80 per share. This corresponds to a price potential of an incredible 748%!
[Hypothetical assessment of Treaty Creek]
Since Tudor Gold’s Treaty Creek project is located in politically safe Canada, a substantial takeover premium should be extremely realistic if a major is taken over by M&A.
$ 90 per ounce of gold is also easy in the realm of possibility. The takeover value for Tudor Gold would of course be correspondingly higher – in theory it would be approx. 10.80 CAD per share! That is why in previous articles we allowed Tudor Gold a clear potential for excavators. We expect huge news flow from Tudor Gold in 2020, especially for the upcoming drilling season, which will be a combination of ‘infill’ drilling and ‘step-out’ drilling.
In addition, the mineralization zones begin near the surface, which strongly suggests that a large open open- cast mine may develop here. And it is known that Tudor Gold’s flagship project can be connected to a few kilometers away infrastructure (electricity and road).
‘Wild Card’:
Seabridge Gold is the adjacent neighbor to Tudor Gold’s Treaty Creek project and plans to bring the “KSM project” into production. Should this extremely costly mine project, with an initial cost of capital of $ 5.4 billion estimated, ever be financed and go into production, Seabridge plans to build a tunnel directly through Treaty Creek. As can be seen from various company presentations and on the Seabridge website, this so-called ‘ Mitchell Treaty’ tunnel (‘MTT’) is to be used to design an underground train system via which not only ore but also personnel and consumables are to be transported. As we can assess the situation from a distance, the possible tunnel is quite close to the potential Goldstorm gold system on ‘Treaty Creek’ – Tudor Gold will definitely not allow sterilization of your future resource!
In our opinion, this tunnel will only be possible, if at all, under very mutually acceptable conditions and at eye level with Tudor Gold! Otherwise, it would be hard for us to imagine how Seabridge would survive a multi-billion-dollar lawsuit if the planned tunnel ran straight through Tudor Gold’s future (potential) open pit mine.
Tudor’s Treaty Creek project is significantly closer to key infrastructure such as highway and electricity than its neighbor Seabridge Gold. Therefore, gold producers’ interest in Tudor Gold should also be greater. We also expect significantly lower capital costs to build a mine at Treaty Creek.
[Proposed sea bridge tunnel] Source: Seabridge Gold company presentation, July 2019
Summary of Highlights:
Prime location: Huge land package in the world-famous Canadian ‘Golden Triangle’ – more than 72 million ounces of gold have already been discovered within a few kilometers.
The Treaty Creek flagship project is adjacent to the largest world-class deposits and mines. (Seabridge Gold and Pretium Resources)
Top Management – Very experienced and successful team under the leadership of the renowned Walter Storm , co-founder of the Canadian mining company Osisko Mining . Ken Konkin , a multi-award winning geologist, has led the drilling program since 2019. He was instrumental in the discovery of Pretium Resources’ The Valley of Kings deposit. (8 million ounces of gold)
World-Class Drill Results at Treaty Creek Project:
The 2019 drilling program resulted in first-class continuous mineralization sections, for example Drill hole GS19-42: 0.849 g / t Gold Eq over 780 meters including 1.275 g / t Gold Eq over 370.5 meters in the 300 Horizon section;
Hole GS19-47: 0.697 g / t Gold Eq over 1,081.5 meters including 0.867 g / t Gold Eq over 301.5 meters in the 300 Horizon section;
Drill hole GS19-52: 0.783 g / t gold Eq over 601.5 meters incl. 1.062 g / t gold over 336.0 meters in the 300 Horizon section;
Hole GS19-48: 0.793 g / t Gold Eq over 927.0 meters; Hole GS19-49: 0.800 g / t gold Eq over 826.5 meters including 1.080 g / t gold over 249 meters;
Hole GS19-50: 0.681 g / t Gold Eq over 577.5 meters; Hole CB-18-39: 1,086 g / t Gold Eq over 563.8 meters
Enormous exploration potential – large parts of the exploration projects are still largely unexplored.
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The custody account shares of individual shares should only be so much, especially with commodity and exploration shares and with low capitalized values, that even in the event of a total loss, the total portfolio can only lose marginally in value. Especially stocks with small market capitalization (so-called “small caps”) and especially exploration stocks as well as all listed securities in general are subject to considerable fluctuations. The liquidity in the securities can be correspondingly low. When investing in the raw materials sector (exploration companies, raw material producers, companies that develop raw material projects), additional risks must be taken into account. The following are some examples of separate risks in the raw materials sector: country risks, currency fluctuations, natural disasters and storms (e.g. floods, storms), changes in the legal situation (e.g. bans on exports and imports, punitive tariffs, prohibition of raw material extraction or exploration, nationalization of projects), environmental regulations (eg higher costs for environmental protection, designation of new environmental protection areas, prohibition of various mining methods), fluctuations in raw material prices and considerable exploration risks. Disclaimer: All information published in the report is based on careful research. Companies that develop raw material projects) must be aware of additional risks. The following are some examples of separate risks in the raw materials sector: country risks, currency fluctuations, natural disasters and storms (e.g. floods, storms), changes in the legal situation (e.g. bans on exports and imports, punitive tariffs, prohibition of raw material extraction or exploration, nationalization of projects), environmental regulations (eg higher costs for environmental protection, designation of new environmental protection areas, prohibition of various mining methods), fluctuations in raw material prices and considerable exploration risks. Disclaimer: All information published in the report is based on careful research. Companies that develop raw material projects) must be aware of additional risks. The following are some examples of separate risks in the raw materials sector: country risks, currency fluctuations, natural disasters and storms (e.g. floods, storms), changes in the legal situation (e.g. bans on exports and imports, punitive tariffs, prohibition of raw material extraction or exploration, nationalization of projects), environmental regulations (eg higher costs for environmental protection, designation of new environmental protection areas, prohibition of various mining methods), fluctuations in raw material prices and considerable exploration risks. Disclaimer: All information published in the report is based on careful research. The following are some examples of separate risks in the raw materials sector: country risks, currency fluctuations, natural disasters and storms (e.g. floods, storms), changes in the legal situation (e.g. bans on exports and imports, punitive tariffs, prohibition of raw material extraction or exploration, nationalization of projects), environmental regulations (eg higher costs for environmental protection, designation of new environmental protection areas, prohibition of various mining methods), fluctuations in raw material prices and considerable exploration risks. Disclaimer: All information published in the report is based on careful research. The following are some examples of separate risks in the raw materials sector: country risks, currency fluctuations, natural disasters and storms (e.g. floods, storms), changes in the legal situation (e.g. bans on exports and imports, punitive tariffs, prohibition of raw material extraction or exploration, nationalization of projects), environmental regulations (eg higher costs for environmental protection, designation of new environmental protection areas, prohibition of various mining methods), fluctuations in raw material prices and considerable exploration risks. Disclaimer: All information published in the report is based on careful research. Ex and import bans, punitive tariffs, prohibition of raw material extraction or exploration, nationalization of projects), environmental regulations (e.g. higher costs for environmental protection, designation of new environmental protection areas, prohibition of various mining methods), fluctuations in raw material prices and considerable exploration risks. Disclaimer: All information published in the report is based on careful research. Ex and import bans, punitive tariffs, prohibition of raw material extraction or exploration, nationalization of projects), environmental regulations (e.g. higher costs for environmental protection, designation of new environmental protection areas, prohibition of various mining methods), fluctuations in raw material prices and considerable exploration risks. Disclaimer: All information published in the report is based on careful research.
The information does not constitute an offer to sell the shares discussed or a solicitation to buy or sell securities. This report only reflects the personal opinion of Jörg Schulte and is in no way to be compared with a financial analysis. Before you make any investments, professional advice from your bank is essential. The statements are based on sources that the publisher and his employees consider to be trustworthy. However, no liability can be accepted for the correctness of the content. No liability is assumed for the accuracy of the charts and data on the commodity, foreign exchange and stock markets. The source language (usually English) in which the original text is published is the official, authorized and legally valid version. This translation is included for better understanding. The German version can be shortened or summarized. No responsibility or liability is assumed: for the content, correctness, adequacy or accuracy of this translation. From the translator’s point of view, the message does not constitute a buy or sell recommendation! Read here – https://www.js-research.de/disclaimer-agb/ -. Please also note the original English message, if available. From the translator’s point of view, the message does not constitute a buy or sell recommendation! Read here – https://www.js-research.de/disclaimer-agb/ -. Please also note the original English message, if available. From the translator’s point of view, the message does not constitute a buy or sell recommendation! Read here – https://www.js-research.de/disclaimer-agb/ -. Please also note the original English message, if available.
Posted by AGORACOM
at 3:44 PM on Thursday, June 4th, 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
A trend reversal is looking likely for silver, according to TD Securities, which issued a long call on silver, projecting a $19-an-ounce price level by March 2021.
TD Securities uses its C.H.I.L trend analytics to make trade predictions that uses “10,000 simulations of future price paths to determine critical thresholds for a change in trend.â€
The bank’s latest call focuses on silver, with strategists citing an uptrend forming — “top trade betting on uptrend formation in silver: long Mar21 $19.00/oz silver call,†they said.
At the time of writing, July Comex silver futures were trading at $17.935, down 0.13% on the day. Silver has been playing catch-up to gold these past three weeks after missing out on the safe haven’s rally in April and the beginning of May.
TD Securities strategists project more gains for silver in the long term, highlighting industrial demand as one of the key drivers.
“A low hurdle rate for a sustained trend reversal, combined with a backdrop of firming industrial demand, rising investment flows and limited speculative activity argue for a potential positive skew in the distribution of silver’s returns,†the bank’s commodity strategists said this week.
This new trend could reverse the divergence in precious-metals space that saw gold posting gains while silver and platinum struggled, TD Securities said.
“Risk appetite and deflationary worries cap gold. Industrial precious benefits from improving commodity demand,†the strategists said. “Conditions are favorable for a trend reversal in silver which could keep prices supported as a sustainable uptrend forms.â€
After reaching $19 in March 2021, TD Securities projects further gains that would see prices rise to $20.25 in the third quarter of 2021 and then to $21.75 in the fourth quarter of 2021.
‘Silver is an explosive metal’
Silver is benefiting from increased industrial demand as well as rising safe-haven flow demand, the bank pointed out.
“A simple analysis extracting the (rolling) regression coefficient of silver’s returns as a function of gold’s and our commodity demand indicator suggested that silver has increasingly been driven by commodity demand. At the same time, however, we note that silver ETF [exchange-traded-fund] holdings have been highly correlated to gold’s of late — suggesting investment demand for the precious metals theme is also flowing to silver. Speculative interest in CME products has been extremely low, but a CTA [Commodity Trading Adviser] buying program could revive speculative interest,†the strategists explained back in May.
The combination of the two drivers working side by side “creates the set-up for explosive performance,†the strategists added, pointing to fairly constrained supply side.
Posted by AGORACOM
at 10:31 AM on Thursday, June 4th, 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
Gold prices are solidly higher in early U.S. trading Thursday, as Wednesday’s sharp sell off has been met with bargain-hunting buying interest by the bulls. Weaker stock markets today are also slightly supportive for the safe-haven metals. August gold futures were last up $14.50 an ounce at $1,719.00. July Comex silver prices were last up $0.052 at $18.00 an ounce.
The just-released weekly jobless claims data showed 1.88 million in new claims, which was in line with market expectations. The marketplace got a pleasant surprise on Wednesday when the May ADP national employment report showed way less job-loss numbers than the marketplace expected. The U.S. Labor Department’s employment situation report for May is out Friday morning, expected to show non-farm payrolls down 8.3 million. In the April jobs report, there was a 20.5 million drop in non-farm payrolls.
Also in focus Thursday is the European Central Bank that held its regular monetary policy meeting. The ECB expanded its Euro bond-buying program by 600 billion Euros and said the program will last into June of 2021. The move by the ECB was expected. Meantime, Euro zone retail sales for April were reported down 11.7% from March and down 19.5%, year-on-year, it was reported today.
It’s a very lucrative & private industry, there are few chances to invest outside the Silicon Valley elite. This company recently went public & its sales are up 10X year over year with even bigger plans staged for 2021 Global stock markets were mixed to weaker in overnight trading. U.S. stock indexes are pointed toward lower openings when the New York day session begins, after hitting three-month highs on Wednesday.
The important outside markets see the U.S. dollar index higher early today on a corrective bounce after hitting an 11-week low Wednesday. Nymex crude oil prices are weaker and trading around $36.50 a barrel. The yield on the benchmark U.S. Treasury 10-year note is currently around 0.75%.
Other U.S. economic data due for release Thursday includes the Challenger job-cuts report, revised productivity and costs, the international trade report and monthly chain store sales data.
Technically, the gold bulls have the overall near-term technical advantage but a price uptrend on the daily bar chart is in serious jeopardy. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at this week’s high of $1,761.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,668.40. First resistance is seen at $1,725.00 and then at Wednesday’s high of $1,738.90. First support is seen at $1,700.00 and then at this week’s low of $1,690.30. Wyckoff’s Market Rating: 7.0
July silver futures bulls have the firm overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the February high of $19.075 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at Wednesday’s high of $18.405 and then at $18.50. Next support is seen at this week’s low of $17.675 and then at $17.50. Wyckoff’s Market Rating: 7.0.
Posted by AGORACOM
at 9:54 AM on Thursday, June 4th, 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 has started, with 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
Gold and Silver moved lower early on June 2nd and 3rd. Our research team believes this is a “Washout Low†price rotation following a technical pattern that will prompt a much higher rally in precious metals. This type of washout price rotation is fairly common before very big moves after Pennant/Flag formations or just after reaching major price trigger levels.
With Gold, a sideways Pennant/Flag formation has been setting up near our GREEN Fibonacci Price Amplitude Resistance Arc. We believe the downward price rotation recently is a perfect setup for skilled technical traders to take advantage of lower entry price levels. The GREEN Fibonacci Price Amplitude Arc will very likely be breached over the next 5 to 10 trading days and the price of Gold should rally well above $1850 in the process. We believe this Washout Rotation is a process of running through the Long Stops just below recent price activity that will end with a defined upside price rally over the next 2 to 5+ weeks.
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Silver has set up a completely different type of price pattern – a true Double-Top pattern. The downward price rotation recently in Silver is indicative of a weaker reaction to this massive resistance pattern and Double-Top. The likelihood that Silver will find support above $17 and mount a further upside price rally over the next 2 to 5+ weeks is still very strong. After the deep downward price collapse in Silver took place, just like what happened in 2009 and 2010, the upside potential for Silver is still massive – likely targeting $65 per ounce of higher.
This current Gold to Silver Ratio Monthly chart highlights the recent collapse in the ratio level as Silver rallied from near $12 towards current levels near $18. A similar spike in the Gold to Silver Ratio took place in 2008-09 – just before the broader market collapse in the US and Global markets took place. This happens as the initial reaction to risk in the global markets pushes Gold prices a bit higher while Silver, the often overlooked store of value, typically declines in value.
Once the price of Silver starts to rally, pushing the Gold to Silver ratio below 60 typically, both Gold and Silver start to align in price and begin to rally together. The current level of the Gold to Silver ratio is 94.9. This suggests that both Gold and Silver have quite a way to go in terms of reaching the “alignment phaseâ€. Our researchers believe Gold will rally above $2100 to $2400 and Silver will rally above $40 to $50 before the two metals align and begin to rally together in almost equal strength.
Concluding Thoughts:
Pay attention to what happens to precious metals over the next 10 to 15+ days. If our research is correct, both Gold and Silver will rally higher by about 7.5% to 14% – setting up new price highs for both metals. When the washout pattern completes, usually a fairly aggressive price trend begins where new price highs are established fairly quickly. Get ready, this should be a really nice upside price swing in precious metals over the next 6+ months or longer.
American Creek Resources Ltd. (TSXV: AMK) (the “Company” or “American Creek”) – Following its press release of April 29, 2020, the Company is providing a further update on the status of filing of its annual financial statements, management’s discussion and analysis and related CEO and CFO certificates for the year ended December 31, 2019 (collectively, the “Annual Filings“).
On March 18, 2020, the Canadian Securities Administrators announced that they would provide issuers with a 45-day filing extension for filings required on or before June 1, 2020, as a result of COVID-19 pandemic. As such, the British Columbia Securities Commission has enacted BC Instrument 51-515 Temporary Exemption from Certain Corporate Finance Requirements (“BCI 51-515“).
In its April 29, 2020, press release, the Company announced its reliance on the exemption with respect to extending the deadline of the required filings pursuant to BCI 51-515. The Company currently still expects to file the Annual Filings on or prior to June 15, 2020.
The Company will also rely on BCI 51-515 to extend the deadline of filing its first-quarter consolidated interim financial statements, accompanying management’s discussion and analysis, and related CEO and CFO certificates for the three months ended March 31, 2020 (collectively, the “First-Quarter Filings“), which are required to be filed by June 1, 2020 under sections 4.3 and 4.4 of National Instrument 51-102 – Continuous Disclosure Obligations. The Company is continuing to work diligently and currently expects to have the First-Quarter Filings filed on or prior to the extended filing deadline of July 16, 2020.
As required by BC Instrument 51-515, and similar Instruments and Orders enacted in Alberta, Saskatchewan and Ontario, the Company discloses the following:
Until such time as the Company has filed the Annual Filings and the First-Quarter Filings, members of management and other insiders are subject to a trading black-out policy that reflects the principles in section 9 of National Policy 11-207 – Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions.
The Company confirms that there have been no material business developments, other than those announced through news releases, since November 2019 when the Company filed its third quarter interim financial results for the period ended September 30, 2019.
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 Triangle”; the Treaty Creek and Electrum joint venture projects with Tudor Gold/Walter Storm as well as the 100% owned past producing Dunwell Mine.
A major drill program was conducted in 2019 at Treaty Creek by JV partner and operator Tudor Gold. The focus of the program was on the Goldstorm zone where drilling has produced very wide intercepts of gold including a 780 meter intercept of 0.683 g/t gold including a higher grade upper portion of 1.095 g/t over 370.5 meters.
The Treaty Creek Project is a Joint Venture with Tudor Gold owning 60% and acting as operator. American Creek and Teuton Resources each have 20% interests 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 rides”.
A drill program was also recently concluded on the 100% owned Dunwell Mine property located near Stewart. Assay results are pending.
The Corporation also holds the Gold Hill, Austruck-Bonanza, Ample Goldmax, Silver Side, and Glitter King properties located in other prospective areas of the province.
For further information please contact Kelvin Burton at: Phone: 403 752-4040 or Email: [email protected]. Information relating to the Company is available on its website at www.americancreek.com
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.
 
