Posted by AGORACOM
at 10:48 AM on Wednesday, November 20th, 2019
Labrador Gold is aggressively pursuing the under explored gold potential of Labrador.
2 large, separate, under-explored land packages that demonstrate potential for district scale gold discoveries.
Two successful gold explorers lead the way in the Labrador gold rush: Shawn Ryan and Roger Moss.
2 Key Exploration Properties: Hopedale and Ashuanipi
Hopedale:
The Hopedale property covers much of the Hunt River and Florence Lake
greenstone belts that stretch over 80 km. The belts are typical of
greenstone belts around the world but have been underexplored by
comparison. Initial work by Labrador Gold during 2017 show gold
anomalies in soils and lake sediments over a 3 kilometre section of the
northern portion of the Florence Lake greenstone belt in the vicinity of
the known Thurber Dog gold showing where grab samples assayed up to
7.8g/t gold. In addition, anomalous gold in soil and lake sediment
samples occur over approximately 40 kilometres along the southern
section of the greenstone belt (see news release dated January 25th 2018
for more details). Labrador Gold now controls approximately 57km strike
length of the Florence Lake Greenstone Belt.
Ashuanipi:
Two district scale gold anomalies outlined by soil and lake sediment survey: 15x3km north south anomaly and a 14 x 3km east west anomaly
2018 Soil Sampling identified: 164 samples with over 50 ppb gold, 67 samples over 100 ppb (0.1g/t) gold and a high of 8,973 ppb (8.97 g/t) Au
The Ashuanipi gold project is located just
35 km from the historical iron ore mining community of Schefferville,
which is linked by rail to the port of Sept Iles, Quebec in the south.
The claim blocks cover large lake sediment gold anomalies that, with the
exception of local prospecting, have not seen a systematic modern day
exploration program. Results of the 2017 reconnaissance exploration
program following up the lake sediment anomalies show gold anomalies in
soils and lake sediments over a 15 kilometre long by 2 to 6 kilometre
wide north-south trend and over a 14 kilometre long by 2 to 4 kilometre
wide east-west trend. The anomalies appear to be broadly associated with
magnetic highs and do not show any correlation with specific rock types
on a regional scale (see news release dated January 18th 2018). This
suggests a possible structural control on the localization of the gold
anomalies.
Posted by AGORACOM
at 7:42 PM on Monday, October 28th, 2019
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 over a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Click Here for More Info
Gold miners are facing a key test of
resistance as we enter a week that has at least two potentially major
market moving events (FOMC on Wednesday afternoon, and non-farm payrolls
Friday morning). The gold miners, as represented by the GDX
exchange-traded fund, are attempting to break free from a range defined
by roughly $26.20 on the downside and $28.30 on the upside:
GDX (Daily)
The gold miners experienced a bounce last
week (+2.3%) after support near $26.20 held for the 2nd time in as many
weeks. Historic seasonal trends indicate that the gold miners should
have the wind at their back beginning next week and the tailwinds should
persist through the end of the year (over the last 20 years the HUI
Gold Bugs Index has averaged a 4.7% gain from the end of October through
the end of December).
In the above chart the GDX is on
the verge of experiencing a bullish resolution (MACD bull cross and
bullish RSI crossover above median line) if price can close above the
red line on a weekly closing basis. A failure at the red resistance line
next week could send the GDX tumbling back into the orange wedge for
another test of support at the blue line. Bulls should not want to see
support tested again so soon, and this is why next week is set up to be a
critical test for the goldies.
The Fed is expected to
cut rates a quarter point on Wednesday afternoon, however, it will be
the Chairman’s press conference at 2:30pm EST and any comments on QE or
hints of further rate cuts that will hold the market’s focus. Friday
morning’s US non-farm payrolls report also looms large with expectations
lowered to a paltry 73,000 jobs created in October.
Turning
to the weekly chart of the GDX we can see the lowest weekly close since
the correction began in early September has been $26.64:
GDX (Weekly)
Friday’s high tested the downtrend drawn off
the tops since the early September high, which sets the stage for a
potential breakout above this downtrend next week. Sentiment is in
neutral territory on the gold miners and seasonality will begin to offer
tailwinds beginning next week. The stage is set for an upside breakout,
however, in the event of another failure at resistance the stage is
also set for a breakdown through support that has been tested multiple
times in recent weeks.
In the words, a big move is coming in the gold mining sector and it could happen as early as next week.Â
Posted by AGORACOM
at 10:01 PM on Tuesday, October 8th, 2019
Labrador Gold is aggressively pursuing the under explored gold potential of Labrador.
2 large, separate, under-explored land packages that demonstrate potential for district scale gold discoveries.
Two successful gold explorers lead the way in the Labrador gold rush: Shawn Ryan and Roger Moss.
2 Key Exploration Properties: Hopedale and Ashuanipi
Hopedale:
The Hopedale property covers much of the Hunt River and Florence Lake greenstone belts that stretch over 80 km. The belts are typical of greenstone belts around the world but have been underexplored by comparison. Initial work by Labrador Gold during 2017 show gold anomalies in soils and lake sediments over a 3 kilometre section of the northern portion of the Florence Lake greenstone belt in the vicinity of the known Thurber Dog gold showing where grab samples assayed up to 7.8g/t gold. In addition, anomalous gold in soil and lake sediment samples occur over approximately 40 kilometres along the southern section of the greenstone belt (see news release dated January 25th 2018 for more details). Labrador Gold now controls approximately 57km strike length of the Florence Lake Greenstone Belt.
Ashuanipi:
Two district scale gold anomalies outlined by soil and lake sediment survey: 15x3km north south anomaly and a 14 x 3km east west anomaly
2018 Soil Sampling identified: 164 samples with over 50 ppb gold, 67 samples over 100 ppb (0.1g/t) gold and a high of 8,973 ppb (8.97 g/t) Au
The Ashuanipi gold project is located just 35 km from the historical iron ore mining community of Schefferville, which is linked by rail to the port of Sept Iles, Quebec in the south. The claim blocks cover large lake sediment gold anomalies that, with the exception of local prospecting, have not seen a systematic modern day exploration program. Results of the 2017 reconnaissance exploration program following up the lake sediment anomalies show gold anomalies in soils and lake sediments over a 15 kilometre long by 2 to 6 kilometre wide north-south trend and over a 14 kilometre long by 2 to 4 kilometre wide east-west trend. The anomalies appear to be broadly associated with magnetic highs and do not show any correlation with specific rock types on a regional scale (see news release dated January 18th 2018). This suggests a possible structural control on the localization of the gold anomalies
Posted by AGORACOM
at 1:43 PM on Tuesday, September 24th, 2019
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 over a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Click Here for More Info
Investors are starting to pay more attention to junior miners but the
sector isn’t out of the woods when it comes to attracting much needed
capital, according to one mining executive.
Gold’s $200 rally this year has breathed new life in the precious
metals market, but the junior sector has seen only a small portion of
renewed investor interest. The TSX Venture Index ($JX),
which is heavily weighted with junior explorers is up less than 3% this
year, a disappointing performance compared to gold’s 18% rally so far
this year.
Following a busy and positive Beaver Creek Precious Metals Summit, Ioannis Tsitos, president of Goldsource Mines (TSX.V: GXS)
said that the junior exploration sector needs more than just higher
gold prices to attract investors; it needs new discoveries: greenfield
discoveries
“In the last decade we have seen a significant decline in budgets for
greenfield exploration and that has led to less discoveries and that
has led to less stories in the marketplace,†he said.
Greenfield exploration refers to projects in unchartered territory
where information on the region’s mineralization is unknown. Because of
that lack of initial mineral information greenfield projects are seen as
a higher risk compared to brownfield projects, where exploration is
done around an existing mime.
Tsitos added that not only are few deposits being discovered but
grades are also dropping, which leads to a general lack of excitement in
the industry.
“Investor sentiment is improving for the sector but junior explorers
still need to do a lot more work and show that they are finding new
deposits,†he said.
Tsitos’ comments come as the company
develops its Salbora project, in Guyana, South America, which isn’t
exactly a greenfield project as there has been some preliminary airborne
surveys of the area. The project is also 1.5 kilometers from the
company’s Eagle Mountain Gold Project. However, the company has been
doing a lot of work to define the project’s mineralization.
Earlier this spring the company was able to raise nearly $7.5 million
in an oversubscribed private placement deal. Tsitos added that the
company has spent about $2 million on an aggressive exploration,
targeting 4,000 to 5,000 meters drilled by the end of the third quarter.
“The private placement was oversubscribed in one day,†he said. “It just shows how starved investors are for a new discovery.â€
Tsitos added that his company didn’t set out to be a greenfield
explorer but have embraced this role as the company ran into production
issues when it started producing gold at Eagle Mountain. He added that
the company needed to expand its resource to make the original mine more
efficient.
“For us exploring in a greenfield was a necessity. We were driven by
internal forces and our organic growth objectives,†he said. “But being
on this side we see the need for new discoveries in the industry.â€
Posted by AGORACOM
at 3:14 PM on Tuesday, September 10th, 2019
Retained Ms. Patricia Stirbys, J.D., LL.M, to help develop a comprehensive indigenous engagement and community relations program
Ms. Stirbys is a member of Cowessess First Nation and specializes in engaging Indigenous groups
VANCOUVER, British Columbia, Sept. 10, 2019 (GLOBE NEWSWIRE) — Labrador Gold Corp. (TSX-V: LAB) (“Labrador Gold†or the “Companyâ€) is pleased to announce that it has retained Ms. Patricia Stirbys, J.D., LL.M, a member of Cowessess First Nation, to help it develop a comprehensive indigenous engagement and community relations program.
Ms. Stirbys has over 20 years of experience in law, negotiations and
policy, specializing in engagement with Indigenous groups. She has an
excellent understanding of Indigenous peoples, issues and challenges
along with an understanding of the mining sector. Ms. Stirbys has
engaged with Indigenous communities in most provinces, including First
Nations in B.C., Saskatchewan, Ontario, Quebec and
Newfoundland-Labrador. She has successfully negotiated agreements with
Indigenous groups across Northern Ontario, particularly First Nation
communities within the Ring of Fire.
“We are very pleased to have Ms. Stirbys join the Labrador Gold
team,†said Roger Moss, President and Chief Executive Officer of
Labrador Gold. “Her significant experience in indigenous relations will
be a valuable asset as we move forward with engagement and consultation
with the community of Matimekush-Lac John.â€
The Company is committed to maintaining respectful relations with the
community and to understanding their concerns as we find a way to work
in the region to the benefit of all stakeholders.
The Company also announces the grant of 100,000 options to purchase
common shares of the Company to Ms. Stirbys. The options vest 50% on
grant and 50% after six months and are exercisable for a price of $0.25
for a period of five years.
Roger Moss, PhD., P.Geo., is the qualified person responsible for all technical information in this release.
About Labrador Gold:
Labrador Gold is a Canadian based mineral exploration company focused
on the acquisition and exploration of prospective gold projects in the
Americas. In 2017 Labrador Gold signed a Letter of Intent under which
the Company has the option to acquire 100% of the 896 square kilometre
(km2) Ashuanipi property in northwest Labrador and the Hopedale (458
km2) property in eastern Labrador.
The Hopedale property covers much of the Hunt River and Florence Lake
greenstone belts that stretch over 80 km. The belts are typical of
greenstone belts around the world, but have been underexplored by
comparison. Initial work by Labrador Gold during 2017 shows gold
anomalies in soils and lake sediments over a 3-kilometre section of the
northern portion of the Florence Lake greenstone belt in the vicinity of
the known Thurber Dog gold showing where grab samples assayed up to
7.8g/t gold. In addition, anomalous gold in soil and lake sediment
samples occur over approximately 40 kilometres along the southern
section of the greenstone belt (see news release dated January 25th 2018
for more details). Labrador Gold now controls approximately 57km strike
length of the Florence Lake Greenstone Belt.
The Ashuanipi gold project is located just 35 km from the historical
iron ore mining community of Schefferville, which is linked by rail to
the port of Sept-Iles, Quebec in the south. The claim blocks cover large
lake sediment gold anomalies that, with the exception of local
prospecting, have not seen a systematic modern day exploration program.
Results of the 2017 reconnaissance exploration program following up the
lake sediment anomalies show gold anomalies in soils and lake sediments
over a 15 kilometre long by 2 to 6 kilometre wide north-south trend and
over a 14 kilometre long by 2 to 4 kilometre wide east-west trend. The
anomalies appear to be broadly associated with magnetic highs and do not
show any correlation with specific rock types on a regional scale (see
news release dated January 18th 2018). This suggests a possible
structural control on the localization of the gold anomalies. Historical
work 30 km north on the Quebec side led to gold intersections of up to
2.23 grams per tonne (g/t) Au over 19.55 metres (not true width)
(Source: IOS Services Geoscientifiques, 2012, Exploration and geological
reconnaissance work in the Goodwood River Area, Sheffor Project, Summer
Field Season 2011). Gold in both areas appears to be associated with
similar rock types.
The Company has 57,039,022 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.
Posted by AGORACOM
at 1:30 PM on Tuesday, September 10th, 2019
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 over a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Click Here for More Info
Mark Mobius,
the founding partner of Mobius Capital Partners, recommends that
investors hold 10% of their portfolios in physical gold, and invest the
rest in dividend yielding equities.
In the first half of this
year, central banks bought 374 metric tons of gold, according to the
World Gold Council. That was the largest net increase for the first half
of the year since at least 2000.
China’s central has been
adding to its gold reserves for eight straight months since December,
scooping up another 10 metric tons of the yellow metal in July,
according to data from the People’s Bank of China.
Veteran investor Mark Mobius is bullish on gold as central banks around the world cut interest rates.
“Physical
gold is the way to go, in my view, because of the incredible increase
in money supply,†said Mobius, the founding partner of Mobius Capital
Partners.“All
the central banks are trying to get interest rates down, they are
pumping money into the system. Then, you have all of the
cryptocurrencies coming in, so nobody really knows how much currency is
out there,†he told CNBC’s “Street Signs†on Friday.Amid expectations of slowing global growth, central banks around the world have been lowering interest rates, as they seek to boost money supply in the economy, stoke demand and provide an impetus to growth.
Mobius recommends that investors hold 10% of their
portfolios in physical gold, with the rest invested in dividend
yielding equities. That’s especially if the dollar gets weaker.
In his view, “the U.S. government, the Trump White House, does not want a strong dollar.â€
“They
are certainly going to try to weaken the dollar against other
currencies and of course, it’s a race to the bottom. Because, as soon as
they do that, other currencies will also weaken,†said Mobius.
“People are going to finally realize that you got to have gold, because all the currencies will be losing value,†he added.
Gold can retain its value much better than other forms of currency, and is traditionally a safe haven during market volatility.
A weaker dollar tends to boost the price of gold as global trade in the yellow metal is denominated in U.S. dollars.
“At the end of the day, gold is a means of exchange. It’s a stable currency in some way,†said Mobius.
Central banks are buying gold
Data from the World Gold Council this year point to risingcentral bank demand for the yellow metal amid global macroeconomic uncertainty.
In the first half of this year, central banks bought 374 metric tons of gold, reported the World Gold Council. That was the largest net increase for the first half of the year since at least 2000.
“Deep
down inside, the central bankers do believe in gold, but they don’t
want to say it because … they won’t be able to create new currency,â€
said Mobius.
The 2019 Central Bank Gold Reserve survey,
conducted by the World Gold Council and released in July, also found
there was central bank demand for gold in the short to medium term.
Of
those polled, 11% of emerging market and developing economy central
banks said they intended to increase their gold reserves over the next
12 months.
That was similar to data from 2018 when 12% of such
central banks bought gold, giving rise to 652 metric tons of central
bank gold demand — the highest level on record under the current
international monetary system, noted the World Gold Council.
“The
planned purchases are being driven by higher economic risks in reserve
currencies. In the medium term, central banks see changes in the
international monetary system, with a greater role for the Chinese
renminbi and gold,†said the World Gold Council in their report. The
renminbi is another name for the Chinese yuan.
About 40% of
emerging market and developing economy central banks cited “anticipated
changes in the international monetary system being relevant to their
decision to hold gold,†the World Gold Council said.
China also investing in gold
Spot gold
was trading around $1,509.51 an ounce on Monday morning in Asia after
hitting a six-year high of $1,554.56 in late August amid heightened U.S.–Chinatrade tensions.
China’s
central bank has been adding to its gold reserve for eight straight
months since December, scooping up another 10 metric tons of the yellow
metal in July, according to data from the People’s Bank of China.
“China
is the biggest producer of gold to begin with. And then of course,
they’ve been buying gold, so nobody really knows how much they have in
the vaults,†said Mobius. “I’m sure it’s been increasing at a pretty
good pace.â€
Posted by AGORACOM
at 1:00 PM on Monday, September 9th, 2019
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 over a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Click Here for More Info
Fundamental and technical factors came together last week to suggest that a significant correction to the recent strong runup has now started.
Indicators pointing to a correction include its overbought status, overly bullish sentiment readings and COTs showing extreme readings.
Although a major Precious Metals sector bullmarket has certainly started, various fundamental and technical factors came together last week to suggest that a significant correction to the recent strong runup has now started.
The
main fundamental development was the announcement that there will be a
Trade War summit between China and the US early next month, with hopes
being expressed that this may lead to compromise or some kind of truce.
Whilst the chances of improvement may be slim, the market has got what
it wants for now which is hope, and this hope should continue at least
until this meeting, which provides the excuse for the markets to go
“risk on†until then, which is why the stockmarket broke higher last
week, delaying but not eliminating our crash scenario.
A
return to “risk on†is clearly not good for the Precious Metals which,
until last week, had been benefitting from a flight to safety as had the
dollar, creating the unusual situation where the dollar and gold were
rising at the same time. Now, in a risk on environment they are suddenly
out of favor again.
In
addition to this fundamental argument we have a range of technical
indicators pointing to a correction in the Precious Metals sector that
we will now look at. They include its overbought status, overly bullish
sentiment readings and COTs showing extreme readings.
Starting
with gold’s 6-month chart, we can see that it doesn’t look too bad –
yet, but if we look more closely we can see that it is on the point of
breaking down from the rather steep uptrend in force from late May, with
it having dropped back on quite high volume the past 2 trading days,
and it is noteworthy that Thursday’s drop was the biggest 1-day drop for
a long time, making it more likely that it signals a reversal. In
addition, the MACD indicator shows that momentum is starting to flag.
So,
how far could gold react back? It happens more often than not that
after a price breaks clear out of a giant base pattern, as gold did from
its giant complex Head-and-Shoulders bottom or Saucer base shown on our
10-year chart, that it then returns to test support at the upper
boundary of the base pattern before turning higher again. That could
happen again and it would throw a lot of investors in the sector who are
now of the view that we are “off to the racesâ€. So, if it does react
back that far don’t be dismayed – on the contrary it would throw up one
last great buying opportunity.
We
have had a rather unusual situation in the recent past where the dollar
and the Precious Metals have been strengthening together. This is
because, in a risk off environment both have been considered safe
havens. In a risk on environment this logic works in the other direction
so that the dollar and the Precious Metals may both react back
together. On the 3-year chart for the dollar index we can see that it is
at a good point to turn lower, despite its still bullishly aligned
moving averages, as its persistent gentle uptrend has brought it up to
the significant resistance level shown.
While
PM stocks continued to push higher in recent weeks, the decline was
losing momentum, as revealed by the downtrending MACD indicator on the
6-month GDX chart below, which led to its starting to break down on high
volume on Thursday and Friday. Although it hasn’t yet broken down from
the uptrend and below its 50-day moving average, this looks set to
happen soon.
So
how about COTs and sentiment? – we will now proceed to look at them. We
had been wary of calling a top too soon based on the increasingly
lopsided COTs, having called a top too soon during the runup early in
2016, but now, given the other factors that we have considered, in
particular the negative developments last week, the latest gold COT,
which shows high Large Spec long positions and heavy Commercial short
positions, certainly makes a reaction back by gold now or soon a lot
more likely…
Click on chart to popup a larger, clearer version.
The
COT is backed up by the latest Hedgers chart, which goes back to 2010,
which shows that positions match the extreme reached in the Summer of
2016, which as we know was followed by a brutal correction for the rest
of the year. While a correction certainly looks likely it shouldn’t be
so deep, because there is a big difference this time round, which is
that gold has broken out into a major new bullmarket – it was still in a
basing phase in 2016.
Click on chart to popup a larger, clearer version.
Chart courtesy of sentimentrader.com
Lastly,
the Gold Miners Bullish % Index is still at 87%, and while we waiting
to see if it would hit 100% as it did in 2016, it doesn’t have to of
course before a reversal occurs, and 87% certainly shows that enough
people are bullish to warrant a trip to the fleecing shed.
Investors
in the Precious Metals sector should therefore take measures to protect
themselves, which include stepping aside for a while, or if staying
long, hedging with inverse ETFs such as DUST, or options (options are
much more cost effective), GLD being very suitable are they are highly
liquid with narrow spreads, and then we watch for the expected
correction to unfold, aware that when it has run its course, we will be
presented with a MAJOR BUYING OPPORTUNITY.
Posted by AGORACOM
at 2:33 PM on Friday, September 6th, 2019
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 over a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Click Here for More Info
Gold is priced internationally in US dollars. So generally, when the
USD rises, gold drops, and vice versa. But over the last year, gold and
the USD seem to be rising together. That’s a strong indication of
safe-haven demand driving money around the world into both gold and the
USD. You can see both the overall inverse relationship and the recent
exception clearly in a long-term USD vs. gold chart.
That much is obvious. What’s less obvious is just how rare this is.
There seem to be a few times when gold and the USD spiked together since
the early 1970s, when the price of gold was freed when Nixon closed the
gold window. But if you look carefully, the most notable spikes are not
at the same exact time. The inverse relationship holds.
Hold on—haven’t we all seen times when safe-haven demand clearly
drives both the USD and gold higher? Yes, but most of those tend to be
very short lived. We’re talking daily price movements. Sometimes weekly.
The fact that such short-term moves aren’t even visible on the chart
shows that they don’t really matter that much.
And even more striking is that gold is rising much faster than the
USD. The gold line is accelerating upward while the USD line is
decelerating. If those curves continue, the USD will be falling hard and
gold will be hitting new nominal highs within two years.
That’s a big “IF,†of course. I’m not making that call. All the more
so since the USD may follow gold’s lead upward—whether it deserves to or
not—if the global economy tanks and central bankers around the world
panic in that timeframe.
Regardless, it’s important to think about what these curves are telling us.
Increasing numbers of people around the world are worried, and they’re shifting their money into safe-haven assets.
The fact that the USD is not rising as fast as gold could be
dismissed as an artifact of gold being the smaller asset class, but the
opposite inflection of the curves suggests that more people are starting
to worry about the soundness of the USD.
That’s bullish for gold.
But what if the trends change?
Almost 50 years of data say that gold and the dollar rising together
won’t last long. This anomaly could be corrected by either the USD
rebounding and gold falling, or the opposite. But which is more likely?
Well, is the volatility and fear driving people into safe-haven assets likely to end soon?
I don’t think so.
Has the US central bank pivoted to a weaker dollar stance?
No question.
With rate hikes fading in the rearview mirror in the US, we may well
see a period of substantial USD weakening, as we did in the years after
the crash of 2008.
That’s very bullish for gold.
So why has the USD been strengthening despite the Fed throwing it
under the bus in favor of prolonging the US’s economic party? Because
things have been getting even worse in much of the rest of the world.
The USD isn’t stronger. It’s just that other major currencies are
weakening faster.
That’s extremely bullish for gold—whichever currency is winning the race to the bottom at the time.
All of this begs the big question: “When will people around the world
lose faith in the US dollar and see it as just another piece of paper
of no special value?â€
Well, folks should have realized this long ago. Unfortunately, the
petrodollar system has propped up the USD ever since Nixon killed what
was left of the gold standard in the US. That system is starting to
fray, with China and Russia pulling on the threads to unravel it as fast
as they can, but it still stands.
While the petrodollar system endures, I think that even great
weakness in the US economy and policies obviously destructive of the
USD’s value will hurt, but not dethrone, the dollar.
Remember that in the global economy, a major downturn in the US
economy would have serious consequences for just about every other
economy in the world. If other countries are hurting and trashing their
own currencies at the same time, the USD could still look like the least
leaky among a fleet of sinking ships.
But someday—and it may not be very far off—the USD will lose its last special characteristic.
That’s when I think people worldwide will see that the emperor has no clothes…
… and gold and silver will reemerge as money.
When?
Go ask someone with a working crystal ball.
I’m just happy to own gold now and to see it doing its job as a safe haven.
The tides of history are shifting. I’m confident I’m on the right side.
Posted by AGORACOM
at 2:44 PM on Wednesday, September 4th, 2019
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 over a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Click Here for More Info
Gold hit new all-time highs in multiple currencies
U.S. gold price has yet to follow, but has hit six-year highs
After five years of price consolidation, there is an “unprecedented†foundation for higher gold and silver prices
After hitting new record highs in euros and British pounds, U.S. dollar-based record highs are next, according to Bloomberg Intelligence (BI).
Gold prices had a stellar August, with the metal hitting new all-time highs in multiple currencies as well as reaching fresh six-year highs in U.S. dollars.
“Dollar-denominated gold is likely to follow all-time highs in euro
terms reached Aug. 26 … Despite the trade-weighted broad dollar rallying
about 10% since the start of 2018, dollar-valued gold has increased
15%. Trade tension and diminishing macroeconomic conditions have been
drivers, but increasing stock-market volatility is a primary gold-price
support,†BI senior commodity strategist Mike McGlone wrote in a
September update.
Precious metals are on a very solid footing and are likely just beginning their upward ascension, McGlone wrote this week.
“We expect precious metals to remain the stalwart sector, as moribund
silver and platinum gain buoyancy with the rising gold- and bond-price
tide. A catalyst to reverse the entrenched trends, namely a definitive
U.S.-China trade accord, is unlikely,†he said.
After five years of price consolidation, there is an “unprecedentedâ€
foundation for higher gold and silver prices, McGlone pointed out.
“Markets are in the early days of acknowledging the potential upside
in primary store-of-value, quasi-currency, diversifier assets gold and
silver, in our view. Plunging and increasingly negative bond yields,
central-bank easing, trade and currency wars, elevated debt-to-GDP
levels and a contentious U.S. presidential relationship with the Federal
Reserve are price tailwinds,†he explained.
The biggest threat to the precious metals’ new bull market is a drop
in stock-market volatility, which is looking unlikely at this point,
BI’s report noted.
“The dollar price of gold is on far more stable ground than it was about a decade ago. Some combination of sustained greenback strength and rapid stock-market appreciation should be necessary to suppress the metal’s price … Bottoming with the Federal Reserve’s interest-rate hike in 2015, the gold price appears to be situated for brighter days,†McGlone said.
Posted by AGORACOM
at 8:13 AM on Tuesday, September 3rd, 2019
VANCOUVER, British Columbia, Sept. 03, 2019 – Labrador Gold Corp.
(TSX-V: LAB) (“Labrador Gold†or the “Companyâ€) announces that it has
received a request to stop further exploration at its Ashuanipi project
in western Labrador. The request was received following the start of the
Company’s exploration program and subsequent discussions with members
of the Matimekush-Lac John First Nation in Schefferville, Quebec.
Labrador Gold holds, under option, a number of mineral licenses in
western Labrador, south east of Schefferville that cover a portion of a
trapline owned by some members of the Matimekush-Lac John First Nation
and conducted exploration without incident during 2017 and 2018.
“It is unfortunate that discussions to date have resulted in us
having to stop work,†said Roger Moss, President and Chief Executive
Officer of Labrador Gold. “However, we will respect their decision as we
continue discussions with the aim of maximizing benefits for all
stakeholders. The company is committed to maintaining good relationships
with the community as we look to restart our exploration program at
Ashuanipi.â€
Labrador Gold will continue discussions to properly understand the
concerns of the Matimekush-Lac John First Nation and to seek ways in
which we can work with the community in order that our low-impact
exploration does not interfere with their traditional activities.
The Company is also reviewing the Hopedale, Labrador and Borden Lake
Extension, Ontario projects with the aim of conducting further
exploration on one or both of the projects during the remainder of the
field season.
Roger Moss, PhD., P.Geo., is the qualified person responsible for all technical information in this release.
The Company gratefully acknowledges the Newfoundland and Labrador
Ministry of Natural Resources’ Junior Exploration Assistance (JEA)
Program for its financial support for exploration of the Ashuanipi
property.
About Labrador Gold:
Labrador Gold is a Canadian based mineral exploration company focused
on the acquisition and exploration of prospective gold projects in the
Americas. In 2017 Labrador Gold signed a Letter of Intent under which
the Company has the option to acquire 100% of the 896 square kilometre
(km2) Ashuanipi property in northwest Labrador and the Hopedale (458
km2) property in eastern Labrador.
The Hopedale property covers much of the Hunt River and Florence Lake
greenstone belts that stretch over 80 km. The belts are typical of
greenstone belts around the world but have been underexplored by
comparison. Initial work by Labrador Gold during 2017 show gold
anomalies in soils and lake sediments over a 3 kilometre section of the
northern portion of the Florence Lake greenstone belt in the vicinity of
the known Thurber Dog gold showing where grab samples assayed up to
7.8g/t gold. In addition, anomalous gold in soil and lake sediment
samples occur over approximately 40 kilometres along the southern
section of the greenstone belt (see news release dated January 25th 2018
for more details). Labrador Gold now controls approximately 57km strike
length of the Florence Lake Greenstone Belt.
The Ashuanipi gold project is located just 35 km from the historical
iron ore mining community of Schefferville, which is linked by rail to
the port of Sept Iles, Quebec in the south. The claim blocks cover large
lake sediment gold anomalies that, with the exception of local
prospecting, have not seen a systematic modern day exploration program.
Results of the 2017 reconnaissance exploration program following up the
lake sediment anomalies show gold anomalies in soils and lake sediments
over a 15 kilometre long by 2 to 6 kilometre wide north-south trend and
over a 14 kilometre long by 2 to 4 kilometre wide east-west trend. The
anomalies appear to be broadly associated with magnetic highs and do not
show any correlation with specific rock types on a regional scale (see
news release dated January 18th 2018). This suggests a possible
structural control on the localization of the gold anomalies. Historical
work 30 km north on the Quebec side led to gold intersections of up to
2.23 grams per tonne (g/t) Au over 19.55 metres (not true width)
(Source: IOS Services Geoscientifiques, 2012, Exploration and geological
reconnaissance work in the Goodwood River Area, Sheffor Project, Summer
Field Season 2011). Gold in both areas appears to be associated with
similar rock types.
The Company has 56,264,022 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.
