Agoracom Blog Home

Posts Tagged ‘#RonnieStoeferle’

Affinity Metals $AAF.ca Reports Over-Limit Assays for Regal Project Exploration $SII.ca $TUD.ca $GTT.ca $AMK.ca $OSK.ca RKR.ca

Posted by AGORACOM at 9:38 AM on Wednesday, January 15th, 2020

Affinity Metals Corp. (TSXV: AFF) (“Affinity”) (“the Corporation”) is pleased to release over-limit assays for samples from the fall 2019 exploration on the Regal property located in the northern end of the prolific Kootenay Arc approximately 35 km northeast of Revelstoke, British Columbia, Canada.

As previously reported, the Corporation received assay results for all 22 rock samples collected from surface outcrops in September 2019 from the Black Jacket and ALLCO areas of the property. Of the 22 grab samples collected, the majority contained bonanza grade silver, zinc, and lead with many samples reaching assay over-limits. The over-limit results for zinc and lead are reported in the table below (italicized) beside the original assay values. Assay values for tin, including high grade samples 11, 14 and 20 which were over-limit in the original assay report, are also presented in the last column of the table.

Sample Number Sample Type Silver
g/t
Copper
%
Zinc
%
Lead
%
Gold
g/t
Tin
ppm
ALC19CR01 grab 0 .035 0 0 0 0.4
ALC19CR02 grab 1300 .415 18.20 >20.0 (35.69) 0.70 46.1
ALC19CR03 grab 120 .232 .034 .984 0.02 2.4
ALC19CR04 grab 131 .089 .026 .102 2.66 1.1
ALC10CR05 grab 16.7 .295 .060 .013 0.09 0.4
ALC19CR06 grab 74.9 .144 >30.00 (34.97) .059 0.28 2.6
ALC19CR07 grab 10.05 .310 .086 .029 0.04 0.5
ALC19CR08 grab 1870 .495 24.5 >20.0 (31.90) 1.85 189.5
ALC19CR09 grab 88.1 .077 >30.00 (39.98) 1.88 0.08 32
ALC19CR10 grab 1545 .178 26.7 >20.0 (28.67) 0.68 373
ALC19CR11 grab 2360 .366 16.80 >20.0 (43.67) 0.11 900
ALC19CR12 grab 3700 .624 1.645 >20.0 (71.14) 3.14 273
ALC19CR13 grab 964 .716 17.30 17.5 0.11 386
ALC19CR14 grab 3530 .350 1.945 >20.0 (59.54) 1.57 1600
ALC19CR15 grab 3670 .026 1.895 >20.0 (77.01) 0.33 205
ALC19CR16 grab 1790 .107 5.28 >20.0 (52.77) 0.37 146.5
ALC19CR17 grab 751 .069 6.45 18.05 0.45 107
ALC19CR18 grab 1065 .718 .178 .514 0.10 7.6
ALC19CR19 grab 2510 .299 5.58 >20.0 (70.63) 0.06 167
ALC19CR20 grab 4410 2.27 26.40 >20.0 (21.56) 5.68 4500
ALC19CR21 grab 47.5 .177 .048 .092 1.78 8.8
ALC19CR22 grab 87.7 .095 .011 .047 4.79 2.9

As part of the fall 2019 program, a total of 1,846.35 meters of diamond drilling was completed with 21 holes being drilled. The drilling was divided over two target areas with 10 holes allocated to testing one of the phyllite/limestone contacts in the ALLCO area and 11 preliminary confirmation holes designed to begin testing the historic 1971 resource (pre NI43-101 and therefore not compliant) reported for the Regal/Snowflake mines.

The core samples have been submitted to MSA Laboratories in Langley, BC and assay results are pending and will be reported once received.

Property History & Background

The Regal Project hosts several past producing small-scale historic mines including the Regal Silver. The property also hosts numerous promising mineral occurrences. From the historic records it appears that most, and perhaps all, of the known mineralized showings/zones have not been previously drilled using modern diamond drilling methods.

Snowflake and Regal Silver (Stannex/Woolsey) Mines

The Snowflake and Regal Silver mines were two former producing mines that operated intermittently during the period 1936-1953. The last significant work on the property took place from 1967-1970, when Stannex Minerals completed 2,450 meters of underground development work and a feasibility study but did not restart mining operations. In 1982, reported reserves were 590,703 tonnes grading 71.6 grams per tonne silver, 2.66 per cent lead, 1.26 per cent zinc, 1.1 per cent copper, 0.13 per cent tin and 0.015 per cent tungsten (Minfile No. 082N 004 – Prospectus, Gunsteel Resources Inc., April 29, 1986). It should be noted that the above resource and grades, although believed to be reliable, were prepared prior to the adoption of NI43-101 and are not compliant with current standards set out therein for calculating mineral resources or reserves.

ALLCO Silver Mine

The ALLCO Silver Mine is situated 6.35 Kilometers northwest of the above described Snowflake/Regal Mine(s). The ALLCO Silver Mine operated from 1936-1937 and produced 213 tonnes of concentrates containing 11 troy ounces of gold (1.55 g/t), 11,211 troy ounces of silver (1,637 g/t) and 173,159 lbs of lead (36.9%).

Airborne Geophysics to Guide Future Exploration

An extensive airborne geophysics survey conducted by Geotech Ltd of Aurora, Ontario, for Northaven Resources Corp. in 2011, identified four well defined high potential linear targets correlating with the same structural orientation as the Allco, Snowflake and Regal Silver mines. Northaven also reported that the mineralogy and structural orientation of the Allco, Snowflake and Regal Silver appeared to be similar to that of Huakan’s J&L gold project located to the north, and on a similar geophysical trend line. The J&L is reportedly now one of western Canada’s largest undeveloped gold deposits.

After completing the airborne survey, Northaven failed in financing their company and conducting further exploration on the property and subsequently forfeited the claims without any of the follow up work ever being completed. Affinity Metals is in the fortunate position of benefitting from this significant and promising geophysics data and associated targets.

The aforementioned Northaven airborne geophysical survey conducted at a cost of $319,458.95 in August of 2011 is described in The BC Ministry of Energy, Mines and Petroleum Resources Assessment Report #33054. The results of the survey are competently explained and illustrated by professionals on You Tube at: https://www.youtube.com/watch?v=GX431eBY_t0

Condor Consulting, Inc. who compiled the survey data and produced the original geophysics report was recently retained by Affinity in order to provide more detailed interpretations and potential drill target locations with the aim of testing two of the four target areas in the future.

Earth Sciences Services Corp. (ESSCO) has also provided acoustical geophysics data for portions of the Regal property.

The Corporation is in the process of correlating and interpreting all of the historic and new geophysical data with the objective of further advancing exploration plans and associated drill targets.

Affinity Metals has been granted a 5 Year Multi-Year-Area-Based (MYAB) exploration permit which includes approval for 51 drill sites.

Qualified Person

The qualified person for the Regal Project for the purposes of National Instrument 43-101 is Frank O’Grady, P.Eng. He has read and approved the scientific and technical information that forms the basis for the disclosure contained in this news release.

About Affinity Metals

Affinity Metals is focused on the acquisition, exploration and development of strategic metal deposits within North America.

The Corporation’s flagship project and present focus is the Regal.

On behalf of the Board of Directors

Robert Edwards, CEO and Director of Affinity Metals Corp.

The Corporation can be contacted at: [email protected]

Information relating to the Corporation is available at: www.affinity-metals.com

Dollar Weakness Could Be the Catalyst Commodities Are Looking For SPONSOR: Affinity Metals $AAF.ca $SII.ca $TUD.ca $GTT.ca $AMK.ca $OSK.ca

Posted by AGORACOM at 3:57 PM on Tuesday, January 14th, 2020

Sponsor: Affinity Metals (TSX-V: AFF) 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. Recent sampling encountered bonanza grade silver, zinc, and lead with many samples reaching assay over-limits. Further assaying of over-limits has been initiated, results will be reported once received. Click Here for More Info

By: Frank E. Holmes, Chairman/CEO/CIO of U.S. Global Investors, Inc.,

 — Published: Tuesday, 14 January 2020 | 

Near the start of every year, I share our ever-popular Periodic Table of Commodity Returns, now updated to reflect the final results of 2019. To view the interactive table and download a copy of your own, click here.  

  • Having broken above $2,000 an ounce last week, palladium in now forecast by Citi analysts to hit $2,500 by the middle of this year.

Commodities as a whole had a mostly positive 2019, returning 16.53 percent as measured by the S&P GSCI. This far surpasses commodities’ five-year average return of about negative 11.52 percent, between 2014 and 2018.

Precious metals were responsible for much of the growth. For the third straight year, and for the fourth time in six years, palladium was the top-performing commodity. The metal, used widely in the production of catalytic converters, increased an incredible 54.21 percent to end 2019 at $1,912 an ounce, a slightly higher price than gold’s all-time high set in September 2011.

As was the case in past years, palladium benefited from mounting global demand to curb emissions from gasoline-burning engines. It’s also among the world’s scarcest precious metals, mined primarily in Russia and South Africa, which means supply will potentially remain in deficit for years to come.

Having broken above $2,000 an ounce last week, palladium in now forecast by Citi analysts to hit $2,500 by the middle of this year.

Gold Price Up in Four out of Every Five Years

Gold, meanwhile, had its best year since 2010, climbing as much as 18.31 percent. The yellow metal’s role as an exceptional store of value shined brightly in the second half of the year when the pool of negative-yielding debt around the world began to skyrocket, eventually topping out at around $17 trillion in August. On the news last week that Iran launched a counterstrike against U.S.-occupied military bases in Iraq, the safe haven briefly broke above $1,600 an ounce for the first time since April 2013.    

In the past two decades, gold has helped investors limit market volatility and portfolio losses. Between 2000 and 2019, the precious metal’s average annual price was down in only four years. Put another way, gold was up on average in four out of every five years—a remarkable track record.

Safe haven-seeking investors around the world piled into gold-backed ETFs in 2019, making it the best year on record for gold holdings. Assets under management (AUM) in gold bullion ETFs expanded 37 percent from the previous year, adding $19.2 billion, or 400 tonnes, according to the World Gold Council (WGC). During the fourth quarter, total holdings hit a jaw-dropping 2,900 tonnes, the equivalent of 102 million ounces, which is the most on record.

As of the end of last week, gold looked slightly overbought on a relative strength basis, meaning a correction wouldn’t be such a bad thing and in fact expected.

Has the Greenback Peaked?

Short of escalating tensions in the Middle East or a pullback in stocks, the catalyst for higher gold prices—and, indeed, commodity prices in general—may very well be a substantial weakening of the U.S. dollar. On Tuesday, the U.S. Dollar Index experienced a “death cross,” a bearish signal that takes places when an asset’s 50-day moving average crosses below its 200-day moving average. We haven’t seen this from the greenback since May 2017.

Other firms and analysts have recently made the case that the dollar is ready to decline in 2020, which would give gold and other hard assets the room to gain momentum. Below are just three such forecasts from the past couple of weeks:

“Our view is that the dollar is ready to decline in 2020 and will be encouraged to do so as negative interest rates abroad turn less negative while the Fed holds pat (or cuts)… In the event of an unlikely recession in 2020, U.S. fiscal and monetary policy will turn sharply expansionary, the dollar will decline further, and gold will do well.”

                ~Murenbeeld & Co., January 3

“We expect that U.S. dollar weakness will likely characterize global financial markets throughout 2020… A weaker dollar is always good news for commodity prices. We are particularly bullish gold at this point. Gold is a direct play on a weaker dollar and could also benefit from any major flare-up in geopolitical tensions.”

                ~Alpine Macro, January 6

“Starting 2020, the key setup from a macro perspective is the confirmed top in the U.S. Dollar Index as well as the U.S. Trade-Weighted Broad Dollar Index… The U.S. Dollar Index (DXY) has broken below the 97 support to trigger the bearish implication of the June-December topping pattern (head-and-shoulders top) and the U.S. Trade-Weighted Broad Dollar Index has broken below the early-November 2019 low as well as the 200-day moving average to confirm a similar topping pattern to the DXY.”

                ~CLSA, January 7

Bitcoin as a Safe Haven Asset

Gold isn’t the only asset that responded positively to geopolitical uncertainty involving Iran. The price of bitcoin, the world’s largest cryptocurrency by market cap, surged on the news that President Donald Trump had ordered a strike on Iranian general Qasem Soleimani, before commenting that the U.S. was targeting as many as 52 sites in Iran.

From January 2, the day before the strike, to January 8, when Trump announced that Iran appeared to be “standing down,” bitcoin traded up as much as 21 percent to its highest level in six weeks. In addition, there were reports that local bitcoin sellers in Iran were charging three times the market rate in response to the threat of war with the U.S.

Google searches for “bitcoin” were also up. Cointelegraph reports that the search term “bitcoin Iran” exploded more than 4,450 percent in the seven days through January 8.

All of this tells me that bitcoin continues to mature as an asset, and that investors and savers increasingly trust it as a store of value in times of uncertainty.

Looking for the inside scoop on mining companies? Click here to read U.S. Global Investors portfolio manager Ralph Aldis’ interview with MoneyShow and get his favorite mining picks for 2020!

Source: http://news.goldseek.com/USFunds/1579015085.php

SPONSOR: Affinity Metals $AAF.ca – 12-Year Breakout in Mining Stocks Relative to Gold $SII.ca $TUD.ca $GTT.ca $AMK.ca $OSK.ca

Posted by AGORACOM at 2:39 PM on Wednesday, January 8th, 2020

Sponsor: Affinity Metals (TSX-V: AFF) 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. Recent sampling encountered bonanza grade silver, zinc, and lead with many samples reaching assay over-limits. Further assaying of over-limits has been initiated, results will be reported once received. Click Here for More Info

Excerpts from Crescat Capitals November Newsletter:

Precious Metals

Precious metals are poised to benefit from what we consider to be the best macro set up we’ve seen in our careers. The stars are all aligning. We believe strongly that this time monetary policy will come at a cost. Look in the chart below at how the new wave of global money printing just initiated by the Fed in response to the Treasury market funding crisis is highly likely to pull depressed gold prices up with it.

The gold and silver mining industry endured a severe bear market from 2011 to 2015 and have formed a strong base over the last four years.

The imbalance between historically depressed commodity prices relative to record overvalued US stocks remains at the core of our macro views. On the long side, we believe strongly commodities offer tremendous upside potential on many fronts. Precious metals remain our favorite. We view gold as the ultimate haven asset to likely outperform in an environment of either a downturn in the business cycle, rising global currency wars, implosion of fiat currencies backed by record indebted government, or even a full-blown inflationary set up. These scenarios are all possible. Our base case is that governments and central banks will keep their pedals to the metal to attempt to fend off credit implosion or to mop up after one has already occurred until inflation becomes a persistent problem.

The gold and silver mining industry is precisely where we see one of the greatest ways to express this investment thesis. These stocks have been in a severe bear market from 2011 to 2015 and have been formed a strong base over the last four years. They are offer and incredibly attractive deep-value opportunity and appear to be just starting to break out this year. We have done a deep dive in this sector and met with over 40 different management teams this year. Combining that work with our proprietary equity models, we are finding some of the greatest free-cash-flow growth and value opportunities in the market today unrivaled by any other industry. We have also found undervalued high-quality exploration assets that will make excellent buyout candidates.

We recently point out this 12-year breakout in mining stocks relative to gold now looks as solid as a rock. In our view, this is just the beginning of a major bull market for this entire industry. We encourage investors to consider our new Crescat Precious Metals SMA strategy which is performing extremely well this year.

“This is just the beginning of a major bull market for this entire industry”

Zero Discounting for Inflation Risk Today

With historic Federal debt relative to GDP and large deficits into the future as far as the eye can see, if the global financial markets cannot absorb the increase in Treasury debt, the Fed will be forced to monetize it even more. The problem is that the Fed’s panic money printing at this point in the economic cycle may hasten the unwinding of the imbalances it is so desperate to maintain because it has perversely fed the last-gasp melt up of speculation in already record over-valued and extended equity and corporate credit markets. It is reminiscent of when the Fed injected emergency cash into the repo market at the peak of the tech bubble at the end of 1999 to fend off a potential Y2K computer glitch that led to that market and business cycle top.
After 40 years of declining inflation expectations in the US, there is a major disconnect today between portfolio positioning, valuation, and economic reality. Too much of the investment world is long the “risk parity” trade to one degree or another, long stocks paired with leveraged long bonds, a strategy that has back-tested great over the last 40 years, but one that would be a disaster in a secular rising inflation environment.

With historic Federal debt relative to GDP and large deficits into the future as far as the eye can see, rising long-term inflation, and the hidden tax thereon, is the default, bi-partisan plan for the US government’s future funding regardless of who is in the White House and Congress after the 2020 elections. The market could start discounting this sooner rather than later.
The Fed’s excessive money printing may only reinforce the unraveling of financial asset imbalances today as it leads to rising inflation expectations and thereby a sell-off in today’s highly over-valued long duration assets including Treasury bonds and US equities, particularly insanely overvalued growth stocks. We believe we are in the vicinity of a major US stock market and business cycle peak.

Source:”Running Hot”

Courtesy of Crescat Capital: https://www.crescat.net/running-hot/

Thanks to

Kevin C. Smith, CFA
Chief Investment Officer

Tavi Costa
Portfolio Manager

SPONSOR: Affinity Metals $AFF.ca – An Explosive Rally In Gold and the Key Levels to Watch $SII.ca $TUD.ca $GTT.ca $AMK.ca $OSK.ca $AOT.ca

Posted by AGORACOM at 1:21 PM on Friday, January 3rd, 2020

Sponsor: Affinity Metals (TSX-V: AFF) 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. Recent sampling encountered bonanza grade silver, zinc, and lead with many samples reaching assay over-limits. Further assaying of over-limits has been initiated, results will be reported once received. Click Here for More Info

With an impressive start to the year this new heightened geopolitical development could be the catalyst to break out gold to multi year highs. The U.S. strike that killed a key Iranian general could have a ripple effect on the signing of the trade agreement on the 15th as China and Iran have recently worked together on joint military operations along with Russia. Any set back in the trade agreement would severely impact the direction of U.S. equities and the expectations for interest rate decisions globally. Price Analysis and Outlook The daily gold chart shows that momentum indicator slow stochastics are rising steadily and reaching overbought territory giving longer term indication that we have pushed into a Bull Market. While ADX, which measures strength of the trend, has turned up over 40 showing that the driving force behind the recent upward move is very strong. The 2 key levels of support to watch are the November 1st high of $1525.2 and the December 30th high of $1519.1. This should act as a consolidation level while a likely upside target completing this trend would be an objective of $1572

Source: https://www.kitco.com/commentaries/2020-01-03/An-Explosive-Rally-in-Gold-and-the-Key-Levels-to-Watch.html

SPONSOR: Affinity Metals $AAF.ca – Central Banks’ Appetite For Gold Expected To Continue $SII.ca $TUD.ca $GTT.ca $AMK.ca $OSK.ca

Posted by AGORACOM at 11:45 AM on Wednesday, December 18th, 2019

Sponsor: Affinity Metals (TSX-V: AFF) 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. Recent sampling encountered bonanza grade silver, zinc, and lead with many samples reaching assay over-limits. Further assaying of over-limits has been initiated, results will be reported once received. Click Here for More Info

Central bankers have been voracious buyers of gold during the last two years, and analysts look for that trend to continue in 2020.

Through the end of October, net official-sector purchases this year totaled 562 metric tons, reported Alistair Hewitt, director of market intelligence with the World Gold Council. That 56.2-tons-a-month average puts sales on pace to roughly match the 656 tons bought in 2018, which were the most central-bank purchases since 1967, according to WGC data.

“This year has been exceptionally strong. We think that next year, net buying will continue at a high level, even if it’s not as high as this year,” said Philip Newman, director of the London-based consultancy Metals Focus.

Goldman Sachs looks for global central banks to collectively acquire around 650 tons in 2020, while Standard Chartered is projecting central-bank purchases will total 525 tons.

“It’s still elevated,” said Suki Cooper, precious-metals analyst with Standard Chartered. “That is still firmly on the buy side.”

‘Safe, liquid and generates returns’

Hewitt commented that central banks are looking at three main criteria when deciding to expand the amount of gold they hold within their foreign-exchange reserves.

“For a central bank, gold is a fantastic asset because it’s safe, liquid and generates returns over the long term,” Hewitt said.

He also listed two more factors why the central-bank buying has suddenly jumped in recent years.

“One issue is we are seeing heightened geopolitical tensions,” Hewitt said, with these involving major gold-buying countries and economies. “Central banks are looking toward gold to balance some of that risk.

“We’ve also got negative rates and yields for a large number of sovereign bonds.”

Newman added that many central banks are “trying to get away” from the U.S. dollar. This is especially the case with Russia due to U.S. sanctions, he added.

As recently as 2017, most of the official-sector buying came from a handful of central banks, including Russia, Turkey and Kazakhstan. But in 2018 and 2019, there have been a slew, including some that had not been in the market for years.

“You’ve got a whole range of buyers,” Newman said.

The largest buyers during the first 10 months of the year were Turkey with 144.8 tons; Russia, 139; Poland, 100; and China, 95.8.

Others include Kazakhstan, 26.9 tons; India, 17.7; Qatar, 11; Ecuador, 10.6; Serbia and the U.K., 9.9; Argentina, 7; Colombia, 6.1; Kyrgyz Republic, 3.2; Mongolia, 2.3; Belarus, 1.9; Guinea, 0.9; Egypt and Mauritania, 0.7; Albania and Malta, 0.6; and Ukraine and Greece, 0.3.

Goldman Sachs projected that central-bank purchases could amount to as much as 22% of global supplies during 2019.

Central banks ‘buy for an extended period’

Hewitt looks for official-sector buying momentum to continue.

Central banks tend to put a lot of thought into decisions to buy – with a long, rigorous policy-making process — and purchase the metal for strategic reasons, rather than simply reacting to day-to-day moves in the price, Hewitt said.

“Once these people start buying, they continue to buy for an extended period of time,” Hewitt said. For instance, he pointed out that Kazakhstan has been a regular gold buyer since 2010.

“Both trade tensions and negative yields are still here,” Hewitt said. “They may rear their ugly heads again and become more pronounced, or they may fade away and become less pronounced. But those underlying forces will remain ever present in the market. Certainly in the next year or so, those two factors should continue to support and underpin central-bank demand for gold.”

Observers pointed out that not only have central-bank gold purchases been strong, but sales have been light. Back in 1999, when European central banks were selling the metal, they began following central-bank sales agreements to try to limit how much was sold in any one year and thereby keep this from being a destabilizing force in the gold market.

These agreements have been discontinued, Hewitt noted. Commerzbank analysts pointed out they were no longer necessary since hardly any European central banks are selling anyway. Germany’s central bank sells a modest amount each year only for its coin-minting program, Hewitt said.

“The market was not bothered by the central-bank gold agreement coming to an end, partly because the gold market is very different from what it was in 1999,” Hewitt said, adding that there “dramatic selling” back then.

“The gold market today is just more diverse, more resilient and more liquid. That’s why the market just shrugged its shoulder when the central-bank gold agreement came to an end.”

Further, analysts at Commerzbank, in their 2020 outlook, commented that one or more Western European central banks might even enter the market as a gold buyer.

“One possible candidate is the Dutch central bank (DNB), which in October published a remarkable statement about the role of gold on its website,” Commerzbank said. “In it, it described gold as an anchor of trust for the financial system. According to the DNB, gold reserves could serve as the basis for a new beginning in the event of a system collapse.

“If one or more Western central banks indeed started to actively buy gold, this would attract considerable attention and spark market reactions.”

SOURCE: https://www.kitco.com/news/2019-12-18/Central-banks-appetite-for-gold-expected-to-continue.html

Affinity Metals $AAF.ca: Goldman Says Case for Diversifying into Gold ‘as Strong as Ever’ $SII.ca $TUD.ca $GTT.ca $AMK.ca $OSK.ca

Posted by AGORACOM at 6:41 PM on Monday, December 9th, 2019

Sponsor: Affinity Metals (TSX-V: AFF) 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. Recent sampling encountered bonanza grade silver, zinc, and lead with many samples reaching assay over-limits. Further assaying of over-limits has been initiated, results will be reported once received. Click Here for More Info

https://news.goldcore.com/ie/wp-content/uploads/sites/19/2017/09/goldman-gold.jpg

Affinity Metals $AAF.ca – Gold Is New Obsession for East Europe’s Nationalist Leaders $SII.ca $TUD.ca $GTT.ca $AMK.ca $OSK.ca

Posted by AGORACOM at 3:30 PM on Monday, December 2nd, 2019

Sponsor: Affinity Metals (TSX-V: AFF) 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. Recent sampling encountered bonanza grade silver, zinc, and lead with many samples reaching assay over-limits.  Further assaying of over-limits has been initiated, results will be reported once received. Click Here for More Info

  • Slovakia joins a host of countries seeking to repatriate
  • Serbia, Poland and Hungary have boosted their bullion reserves

Gold is all that nationalist leaders in Europe’s east can talk about these days.

Just this week, Poland’s government touted its economic might after completing the repatriation of 100 tons of the metal. Over in Hungary, anti-immigrant Prime Minister Viktor Orban has been ramping up holdings of the safe-haven asset to boost the security of his reserves.

Hungary's Prime Minister Victor Orban Attends The Opening Session Of Parliament
Viktor Orban Photographer: Akos Stiller/Bloomberg

The gold rush mirrors steps by Russia and China to diversify reserves exceeding $3 trillion away from the dollar amid flaring geopolitical tensions with the U.S. Motivations in Europe’s ex-communist wing, however, can vary.

Take the latest example. Former Slovak Premier Robert Fico, who has a shot at returning to power, urges parliament to compel the central bank into bringing home gold stocks stored in the U.K.

The reason? Sometimes your international partners can betray you, Fico said, citing a 1938 pact by France, Britain, Italy and Germany allowing Adolf Hitler to annex a chunk what was then Czechoslovakia, and — more recently — the Bank of England’s refusal to return Venezuela’s gold stock over political differences.

“You can hardly trust even the closest allies after the Munich Agreement,” Fico told reporters. “I guarantee that if something happens, we won’t see a single gram of this gold. Let’s do it as quickly as possible.”

His comments came despite the U.K. being one of Slovakia’s closest allies after the Soviet empire crumbled, helping ease the path to European Union and NATO. Fico said Brexit and the risk of a global economic crisis put Slovak gold stored in Britain in a dangerous situation.

The gold Poland brought back also came from the U.K., though there was no questioning of Britain’s reliability by central bank Governor Adam Glapinski.

Poland's Central Bank Governor Adam Glapinski News Conference As Rates Held And Hawks Sidelined
Adam GlapinskiPhotographer: Piotr Malecki/Bloomberg

Instead, he said he wanted to demonstrate the strength of his nation’s $586 billion economy — the largest in the EU’s east. Poland has doubled its gold holdings in the past two years and now has the region’s biggest stockpile.

Hungary, though, has been an active buyer too. Gold reserves surged 10-fold last year, setting the clamor for the metal in the countries around it in motion.

Serbia’s strongman leader Aleksandar Vucic took note, ordering the central bank to boost reserves and prompting the purchase of nine tons in October. Vucic said last week that more should be bought because “we see in which direction the crisis in the world is moving.”

The biggest nation to emerge from the breakup of Yugoslavia still keeps some of its gold abroad, the central bank said by email. The region is buying more of the metal because of global uncertainty over trade and politics, Brexit and low interest rates, it said.

Romania had also sought to relocate some of its gold reserves from the U.K., but those plans were put on hold when the government behind them was ousted in October.

For the no-nonsense leaders that have come to dominate eastern Europe, the main benefit may be the message to voters that hefty holdings of the precious metal conveys.

“Gold is a symbol,” said Vuk Vukovic, a political economist in Zagreb. “When states purchase it, people everywhere see it as a sign of economic sovereignty.”

By Andrea Dudik and Radoslav Tomek

https://www.bloomberg.com/news/articles/2019-11-29/gold-is-the-new-obsession-for-east-europe-s-nationalist-leaders

Affinity Metals $AAF.ca – Five Reasons Why Gold Stocks Make Sense $SII.ca $TUD.ca $GTT.ca $AMK.ca $OSK.ca

Posted by AGORACOM at 10:56 AM on Monday, November 25th, 2019

Sponsor: Affinity Metals 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. Recent sampling encountered bonanza grade silver, zinc, and lead with many samples reaching assay over-limits.  Further assaying of over-limits has been initiated, results will be reported once received. (TSX-V: AFF) Click Here for More Info

data:image/jpeg;base64,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

Gold mining stocks have soared approximately 30% so far in 2019, based on the performance of the NYSE Arca Gold Miners Index (GDM) as of November 15.1 Over the last 12 months, the sector is up nearly 50%. Some investors may assume that gold stocks have run their course. On the contrary, we think that the gold mining equities still have a great deal of upside to offer.

In brief, we think we’re in the early stages of a prolonged bull market for gold. While the relationship between the prices for gold bullion and gold stocks isn’t a linear one, rising demand for the yellow metal commodity has historically driven stock performance. Moreover, despite the recent rally, gold mining stocks have yet to recover from the beating they suffered starting in 2011. Still, recent outperformance — coupled with improving fundamentals — creates momentum, a key factor in many quantitative strategies.

Gold has been a store of value since the beginning of civilization, and yet the nuances of investing in gold â€” be it the metal or miners â€”  is still a source of confusion. As we see it, that also means opportunity.

Here are five reasons to consider investing in gold equities now.

REASON #1. Rising Gold Prices Drive Demand

Figure 1. Gold Bull Market is Just Getting Started

Source: Bloomberg as of 11/15/19. Gold was $1,514 on 11/1/19, and $1,468 as of 11/15/19. 

Gold recently broke past $1,500 an ounce for the first time since 2013 (Figure 1), as global political and macroeconomic trends are driving demand for the yellow metal. Along with other strategists, we think gold bullion could surpass its all-time high of $1,900 within the next couple of years. Key factors driving long-term demand for gold as a store of value and defensive asset, especially among central banks and institutions, include low-to-negative interest rates, rising debt levels, trade tensions and intensifying geopolitical risk.

Price movements for physical gold and gold-mining stocks aren’t perfectly in sync, but the relationship between them is strong and persistent, across economic cycles.

Historically, rising (and falling) gold prices have a three-times multiplier effect on gold stocks: If the value of gold bullion increases by 10%, mining stocks tend to increase by 30%, and vice versa. The reason: Miners have significant fixed operating costs and high operating leverage, meaning big swings in physical gold prices have a larger impact on miners’ profitability.

This relationship cuts both ways, as we saw after physical gold prices peaked in late 2011. As the value of gold subsequently declined (Figure 2), the value of gold stocks plummeted even more. Between 2011 and 2018, the sector posted negative returns in six out of eight calendar years. Even with recent gains, gold mining stocks have yet to recover relative to historical valuations. Since the sector peak in April 2011, gold mining equities are still off by more than 60%.

Figure 2. Gold Mining Equities are Very Undervalued

Sprott: Gold Stocks are Undervalued

Source: Bloomberg as of 11/12/19.

Figure 3. Gold Demand Has Rebounded: Purchases by Central Banks

Central banks have been net buyers of gold over the past 10 years. Gold plays an important part in central banks’ reserves management, and they are significant holders of gold. According to the World Gold Council: “Today, central banks own almost 34,000 tonnes (t) of gold, making it the third-largest reserve asset in the world. The increase in central bank demand for gold reflects current geopolitical, political and economic conditions, as well as structural changes in the global economy. Gold is both a liquid, counter-cyclical asset and a long-term store of value. As such, it can help central banks meet their core objectives of safety, liquidity and return.” 

Source: Metals Focus, Refinitiv GFMS, World Gold Council. As of June 30, 2019.

REASON #2. Gold Stocks are Severely Undervalued

Given the amplified volatility of gold stocks relative to gold, investors need to go in with their eyes wide open. Nevertheless, multi-year declines may now set the stage for significant upside.

While miners as a group still trade below their net asset values, the discounts of smaller, “junior” miners are especially extreme, as much of the recent rally has been driven by the largest, “senior” gold miners. In fact, the valuation gap between North American junior and senior gold miners is the widest it’s ever been.

Figure 4. The Valuation Gap Between Senior and Juniors is at Historic Extremes

Sprott: Senior Miners vs. Junior Miners

Source: BMO Capital Markets, FactSet. North American senior vs. junior gold miners. As of 7/19/19.

Reason #3. Supplies are Limited

Most investors grasp the importance of investing in companies whose business models are protected by “competitive moats.” Gold miners have this in spades, as it can take 15 years from discovery of a new gold mine to successful ore production. The barriers to entry are enormous for newcomers in this sector, given the need for expensive and specialized equipment, environmental regulations and political considerations.

Meanwhile, the supply of gold is finite and there have been increasingly fewer gold discoveries in recent years. This dynamic — combined with depressed valuations of junior gold miners â€” is driving consolidation in the industry. It is far cheaper for senior miners to buy new gold production than to “build” capacity themselves. In fact, based on an analysis of recent transactions, there is a 35% discount for buying ounces in the market via acquisitions versus discovering new ounces (according to Scotiabank).

Figure 5. Major Gold Discoveries have Declined Significantly

Figure 5

Source: © Copyright by SNL Metals & Mining 2016. All rights reserved.

REASON #4. Momentum May Turn Positive

Investors love momentum â€” following positive trends in prices, earnings and other factors â€” and the rise of quantitative strategies has made this market phenomenon even more pervasive. For the last eight years, momentum has largely worked against the gold mining sector, but now there are signs the wind is shifting, and that momentum could soon work in its favor.

Analysts covering the sector have understandably been conservative in their estimates and may soon be playing catch up, given higher gold prices and a leveling off of mining costs. Any improvements in earnings outlooks could potentially accelerate positive momentum for the sector. As my colleague Paul Wong wrote earlier this month in The Sweet Spot for Gold Equities: ”At this stage in the gold cycle, we are in the sweet spot for gold mining company earnings. A starting low gold price base will result in earnings changes with a high percentage increase when measured quarter-over-quarter or year-over-year.” 

In Figure 6, we highlight the progression of 2020E EPS (estimates of earnings-per-share) revisions for the top-10 gold mining companies in SGDM2 versus the average 2020E EPS for the top-20 companies in the S&P 500 Index.3 Since January 2019, the average 2020E EPS for the top-10 gold mining companies had increased from $0.65 to $0.98 by the end of October, representing a 50% jump, compared to a decline of 9% for the S&P 500. After the Q3 reporting season, we would expect that 2020E EPS for gold miners will be revised even higher.

Figure 6. Sweet Spot for Gold Mining Company Earnings

Sprott: Gold Miners EPS on the Rise

Source: Bloomberg as of 10/31/19.

REASON #5. Gold Stocks Play a Different Role than Bullion

As with any investment, it’s important to think about the role of gold stocks in the context of a broader portfolio. One common misconception is that gold stocks and physical gold are two sides of the same coin. While their fates are certainly correlated, as asset classes they could not be more different.

Physical gold, whether it’s in the form of coin, bar or a trust (for example, Sprott Physical Gold Trust, NYSE Arca: PHYS), should be viewed as a stable store of value. It’s counter-cyclical and has proven over millennia to be an effective hedge against market turbulence and volatility.

As such, we recommend that investors allocate between 5% to 10% of their assets to physical gold and precious metals.

Gold stocks, conversely, should be viewed in the context of an investor’s overall equity portfolio; the size of the allocation will depend on many factors, including risk tolerance. Strategists advocate owning gold stocks continuously, in part because they have low correlations to the broader market. However, most investors view gold stocks as tactical investments. When valuations are severely depressed, as they are now, gold stocks may have the potential to outperform. 

At Sprott, we believe that it may be time to consider investing in gold stocks, in addition to physical gold.

BY Ed Coyne

SOURCE: https://sprott.com/insights/five-reasons-why-gold-stocks-make-sense/