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Moving into uncharted territory ......
G-O-L-D: ARE YOU PAYING ATTENTION YET? #Preciousmetals #Gold #Silver pic.twitter.com/XbMqKjU7Wf
— Northstar (@NorthstarCharts) September 19, 2024
When Markets Slump The Choice Is Clear
Its ~*~Mining & Metals Du Jour~*~
These words of Dietrich Bonhoeffer have never held a stronger meaning for us.
“Against such foolishness we are defenseless. Reason falls on deaf ears; facts that contradict one’s prejudgment simply need not be believed – in such moments the foolish person even becomes critical – and when facts are irrefutable they are just pushed aside as inconsequential, as incidental.
In all this the foolish person, in contrast to the malicious one, is utterly self satisfied and, being easily irritated, becomes dangerous by going on the attack. Never again will we try to persuade the foolish person with reasons, for it is senseless and dangerous.”
Dietrich Bonhoeffer, Letters and Papers from Prison
And so we see a strong rally in stocks, based on no new information that triggered the sharp sell off from the day before.
Gold and silver, which had sold off sharply the day before, rallied strongly.
Gold has held its short term breakout fairly well so far. It needs to regain some momentum to take out the resistance it now faces, and move on to its next objective. It may well do that.
Silver has not yet broken out of its trading formation on the weekly chart. It made it back up to the top of the range today, but rangebound it remains.
The mundane mind of the spokesmodels finds comfort is silly rationalizations and arcane auspices of the chief equity strategists from the Banks.
On the political front, our official narrative is simple madness, driven by the reckless lust for power and money by the dominant extremes of the halls of power, public and private.
Most are only looking out for their own short term advantage, whether it is truly good for them or not.
And the more frightened and uncertain people get, the louder and crazier they become.
This is a wicked and adulterous generation. It demands a sign.
Well, why don't you tell us what is happening, and what we ought to do?
This is what several voices have been doing, for some time now. Mostly to hardened hearts, in bare, ruined choirs.
This is how it has always been. They don't believe in war, and plagues.
Until something that will be missed has been consumed.
Have a pleasant evening.
*https://jessescrossroadscafe.blogspot.com/
*the rolling stones 19th nervous breakdown stereo edit
*Psychotic Reaction - Tom Petty & The Heartbreakers
The Stock Market Had a Psychotic Episode After the Fed Rate Cut Yesterday, Plunging 479 Points from the Day’s High
By Pam Martens and Russ Martens: September 19, 2024 ~
Fed Chair Jerome Powell Speaking at the FOMC Press Conference on Wednesday, September 18, 2024
The Federal Reserve yesterday cut its benchmark interest rate, the Fed Funds rate, for the first time in four years. The cut was by half a point rather than the customary quarter point increments typical of Fed rate moves. Only one member of the Federal Open Market Committee (FOMC), Michelle Bowman, voted against the action. Bowman wanted a quarter point cut according to the FOMC announcement.
A Fed rate cut of a quarter point to a half point was widely anticipated by the market, so the stock market’s wild swings were puzzling to veteran Wall Street watchers.
The FOMC released its written announcement at 2 p.m. As the chart above indicates, the written announcement produced a surge in the Dow Jones Industrial Average to an intraday high of 41,981.97, which was also an all-time high on an intraday basis. But within a few minutes, the Dow had plunged by more than 300 points, then spiked by over 200 points as Fed Chairman Jerome Powell’s press conference got underway at 2:30 p.m.
Wild market gyrations like this, as the Chair of the Fed is about to take the podium, are not in keeping with what Michelle Smith, the long-tenured and detail-oriented Communications Director at the Fed, wants as background noise as the Fed Chair interacts with the press. (See Reporters Who Ask Tough Questions at Fed Press Conferences Have a Habit of Being Disappeared from the Room.)
The Dow gained some ground back as Powell read his prepared statement at his press conference but plunged further as reporters began questioning the Fed Chair. Craig Rugaber, the Federal Reserve and Economics reporter for the Associated Press, asked this question about 11 minutes into the press conference:
“The projections show that the Fed officials expect that the Fed Funds rate to still be above their estimate of long-run neutral by the end of next year. So does that suggest to you that you see rates as restrictive for that entire period? Does that threaten the weakening of the job market you said you’d like to avoid? Or does it suggest that maybe people see the short-run neutral as a little bit higher.”
Powell’s press conference ended 50 minutes after it began, at about 3:20 p.m. EDT. Some of the worst damage of the day occurred after the press conference ended, with the Dow moving into negative territory and closing with a loss on the day of 103 points. From its high of the day to its closing price, the Dow had plunged 478.87 points. As Michelle Smith must have noticed, this was not a comforting vote of confidence that Jerome Powell – a lawyer, not an economist – knows what he’s doing. (See, for example, For the First Time in History, the Fed Is Reporting Billions in Losses Weekly; It’s Still Paying High Interest Income to the Mega Banks on Wall Street.)
Two of the components of the Dow Jones Industrial Average, JPMorgan Chase and Goldman Sachs, are megabanks that have an incestuous relationship with the Fed. The Fed is their regulator; their serial source of bailout loans in the trillions of dollars; their trading partner at the New York Fed’s open market operations; and the banks’ executives sit on the New York Fed’s advisory committees, recommending “best practices” for Wall Street megabanks which have a serial history of getting slapped with felony counts by the U.S. Department of Justice, rigging markets and engaging in predatory behavior against their customers. (See watchdog Better Markets’ Rap Sheet Report here.)
And, most dangerous of all, the Fed is the federal agency that just cut in half the amount of capital it said in July of 2023 these megabanks need to hold to operate in a safe and sound manner.
The share prices of Goldman Sachs and JPMorgan Chase also experienced wild swings between the 2 p.m. FOMC statement and the close of trading at 4 p.m. Both megabanks, however, own their own Dark Pools where, bizarrely, they are allowed by the Securities and Exchange Commission to trade their own bank shares in darkness, which might offer a possible explanation as to why they fared better by the closing bell than the Dow index. (See Wall Street Banks Are Trading in Their Own Company’s Stock: How Is This Legal? and Goldman Sachs Is Quietly Trading Stocks In Its Own Dark Pools on 4 Continents.)
The Goldman Sachs’ chart below, showing how its shares swung wildly yesterday afternoon, bears an uncanny resemblance to the Dow chart.
While the megabanks on Wall Street own their own Dark Pools, the New York Fed (the largest of the 12 regional Fed banks) has its own trading desks – one at its lower Manhattan headquarters at 33 Liberty Street and one near the futures market in Chicago. (See Mission Creep or Creepy Mission: The New York Fed’s Trading Desk Has Ballooned to $6.59 Trillion Today from $576 Billion in 2008 and The New York Fed Has Quietly Staffed Up a Second Trading Floor Near the S&P 500 Futures Market in Chicago.)
If all of this has the feel of an institutionalized wealth transfer system instead of an efficient market system worthy of a democracy, please contact your U.S. Senators today. Tell your Senators to hold immediate hearings on the Fed’s non-stop bailouts of the megabanks and demand the restoration of the Glass-Steagall Act, which would separate federally-insured commercial banks from the trading casinos on Wall Street.
https://wallstreetonparade.com/2024/09/the-stock-market-had-a-psychotic-episode-after-the-fed-rate-cut-yesterday-plunging-479-points-from-the-days-high/
*MUSE - Psycho [Live from MUSE: Drones World Tour]
If you want to find silver AND gold you have to run to the hills!
Out In the Country?
Don't feel bad. Nobody listens to me either
Funny tractor crashes: farm fails tractor fails & farm failures | farming accidents
I told them to use a John Deere 400 but Noooooooo
Hehe
Happy harvest
Harvesting the Gold Moon
Shout outs to everybody toiling away with their harvest this year
Gold price sets new record on Fed’s first rate cut since 2020
Staff Writer | September 18, 2024 | 12:06 pm Markets USA Gold
Gold advanced to another record high on Wednesday after the Federal Reserve announced an aggressive interest cut of half a percentage point to stimulate the US economy.
Spot gold rose as much as 1.1% to $2,600.11 per ounce, continuing its record-setting trend over recent weeks. US gold futures also had nearly the same percentage gain.
By late afternoon, however, gold had erased those gains, with spot gold down 0.4% at $2,559.15 per ounce and futures down 0.6% at $2,582.90 per ounce.
The US central bank was widely anticipated to lower interest rates at this week’s meeting after holding them at a two-decade high for more than a year, but traders were split over how much the first cut would be.
Meanwhile, gold has hit repeated records over the past weeks as investors weighed prospects that the Fed would deploy a rate reduction bigger than a quarter percentage point, which would present a significant boost to the non-yielding bullion.
Gold, Treasuries and the S&P 500 Index have all typically risen as the Fed starts lowering rates, according to a Bloomberg News analysis of the past six easing cycles going back to 1989.
Fed’s announcement on Wednesday caps a period of flux in the gold market, as some analysts have pointed to a return to more traditional trading patterns, and in particular to gold’s longstanding tendency to rise and fall in the opposite direction to real yields.
That relationship had broken down in recent years, as gold remained historically elevated even as rates soared — with prices supported instead by huge central bank purchases, as well as surging demand from investors and consumers in Asia. Gold prices have broken out dramatically this year in particular, soaring more than 25% to successive records.
In recent months, there have been signs of Western investors jumping back into the gold market too, as bets mounted that the Fed was about to pivot. Holdings in gold-backed exchange traded funds have risen for 10 of the past 12 weeks, while long-only gold positions in Comex gold futures are hovering near the highest in four years.
(With files from Bloomberg)
https://www.mining.com/gold-price-sets-new-record-on-feds-first-rate-cut-since-2020/
*Neil Young Harvest Moon Live At The Ryman Auditorium
~*~M+M I Think I Love You ~*~ hehe I got a hunch too.
It's December for our miners.
gonna be a Santa thang
By then most of the shoes will have dropped.
Wow Silver-bars look at that !! Here in Az. the tailing dust blows for miles on windy days. I'm impressed the way their managing that.
Keep us posted on that one
Thanks and always good to see you man 😀
RE: The largest tailings project on the planet ....
This pict shows only aprox. 1/2 of the tailings resource ... the estimated Silver resource still in the entire tailings complex is estimated to around 400 million Silver equivalent ounces ... which would make it one of the top 5 largest known Silver eq. deposits on the planet ... and the largest above ground Silver eq. deposit on the planet ...
The largest tailings project on the planet .... the Cerro de Pasco project in Peru ... permit to start moving this massive project forward just approved after waiting for years to start drilling/testing the massive tailings piles ... the project should start moving along fairly quickly now, as testing/sampling the tailings is a much, much quicker process than drilling hardrock ...
Find the CDPR board here ...
https://investorshub.advfn.com/Cerro-de-Pasco-Resources-Inc-CDPR-43190
Black and Yellow Gold Nearing Breaks as Participants Regroup
The two quintessential commodities crude oil and gold both appear to be near inflection points.
Carley GarnerSep 16, 2024 6:45 PM EDT
For this article, we have turned our attention to the two quintessential commodities: crude oil and gold. As we generally do, we are paying attention to what the Commitments of Traders (CoT) report issued weekly by the Commodity Futures Trading Commission tells us.
We suspect both products could be nearing a break in the trend as market participants regroup. Let’s start with oil.
Black Gold (Crude Oil)
Crude oil speculators haven’t gone short the market, but their long positions have dwindled to about 200,000 net long futures; levels that are generally supportive of prices.
In the mid-2010s, each time speculators held this small of a bullish position, the oil market found a reason to tag $20.00 to $30.00 to the price of oil. In 2016, a similar setup on the CoT chart pushed prices from about $30.00 per barrel to nearly $80.000, and in 2023, we saw a rally from the low $60.00s into the $90.00s. It is still unknown if speculators will continue their unwind to push oil prices much lower or if we will see another price bump as speculators put long positions back on, but we are leaning toward the latter.
The weekly crude oil chart depicts technical support roughly between $65.00 and $60.00 per barrel. In fact, last week’s sudden flush-out might have been the low for the move. In any case, there is a good argument for being bullish on dips as we advance.
The 200-week moving average near $78.00 is still in an uptrend, and it would be par for the course to see oil prices make another run at it. If the market can chew through it, trendline resistance at about $80.00 will present another challenge to the bulls, but above this level, we could see a nice boost as traders unwind their deflation trades (long stocks, short commodities). Who knows? Maybe $90.00 is still in play.
Gold of the Yellow Variety
Just as everyone is finally starting to get on the bullish gold bandwagon, it feels like the rug could be pulled from beneath the market.
According to the CoT report, large speculators hold one of the most significant net long positions ever recorded in gold futures. In the past, this group getting aggressively bullish hasn’t always resulted in immediate selling pressure, but it might be a sign that the “easy” money (if such a thing exists) has been made on the upside. Things could get pretty rocky as we advance.
Seasonality doesn’t offer the bulls any comfort. According to our friends at MRCI, the last 15 years of price data suggest a seasonal high in early September, followed by about three months of weakness.
Lastly, we revisit the monthly chart of gold. We have been following and sharing this chart for two or more years to support the idea of a run to about $2,600 (the target started around $2,450/$2,500, but due to the passing of time and the slope of the trendline, the new target is $2,600/$2,650). In any case, we are roughly there.
If you made money on the way up, be sure to lock-in, or at least protect gains. If you are a bear, this is probably a time to be net-short gold in a small way while we see what happens with the Fed meeting and the U.S. election.
All along, we have assumed that the 2023/2024 gold market is a replay of the 2010/2011 rally. Thus far, that has been a relatively accurate take.
If we continue to follow the 2010/2011 game plan, the highs in gold are probably near. The RSI indicator on this chart displayed three rally waves to conclude the 2011 rally in which the middle wave produced the highest RSI reading. With this in mind, we suspect the third wave of the current RSI pattern will fall short sooner rather than later. Perhaps this week’s Fed meeting will be the catalyst for lower prices. It should also be noted that the 2011 high occurred in September. Never underestimate the market’s tendency to repeat history.
Conclusion
We’ve seen market participants become comfortable with the idea of lower crude oil and higher gold prices. Still, perhaps everyone in a position to act on this opinion has already done so.
In short, the oil speculators have liquidated long holdings, and gold bulls have likely deployed the majority of their capital. Unless we get a continuous stream of overwhelming fundamental news confirming these stances, the most likely scenario is a trend reversal (firmer oil and softer gold).
https://pro.thestreet.com/market-commentary/black-and-yellow-gold-nearing-breaks-as-participants-regroup
*John Fogerty - Centerfield
Iron Man 2 | Welcome home sir (Workshop scene)
Russia Begins Paying China Traders In Hong Kong Using Couriered Gold
September 12, 2024 China, Economy, Finance, Trade By Russia's Pivot to Asia
Some Russian businesses have begun using gold to pay Chinese suppliers to get around US sanctions and threats of sanctions against Chinese banks affecting Russia-China bank transfers. The alternative solution means that gold is purchased in Russia, transported by private courier to Hong Kong, where it is sold, and the cash is deposited into the Chinese suppliers account at a local bank.
Hong Kong is a Free Port and does not levy any import duty on gold, although it is mandatory to declare the gold to Hong Kong customs upon arrival. The declaration process is straightforward, and the associated fees are minimal. Proper declaration however is crucial to ensure compliance with Hong Kong’s regulations and to avoid any legal complications. The process avoids all use of the banking system except for the deposits into secured Chinese bank accounts.
Russian couriers transport the gold and its ownership documents across the border and obtain an authentication seal and receipt signature from Chinese brokers, who then provide cash which can be used to settle transactions with Chinese suppliers.
Hong Kong is a major Asian centre for gold trading as it is a regional hub in the jewellery business. In 2023, it imported about US$16 billion worth of gold, mainly for this industry, and mainly to serve the mainland Chinese market – being a major consumer of gold with a massive middle class consumer population of about 550 million people.
Apparently co-ordinating with this need, the Chinese Central Bank raised the gold import quotas for several of its major banks, anticipating revived demand despite record high prices. The new quotas, aimed at helping the People’s Bank of China (PBOC) control how much bullion enters the world’s leading consumer of the precious metal, were granted in August. Last year, China imported US$3.1 billion worth of gold from Hong Kong. That figure can be expected to increase for 2024.
Russia is the world’s second largest producer of gold, and has some of the world’s largest gold reserves. Russia’s mined reserves at the Central Bank jumped from 1,035 tonnes in 2013 to 2,333 tonnes in 2023. It mined 310 tonnes of gold in 2023 worth about US$26 billion at current prices.
continues further
https://russiaspivottoasia.com/russia-begins-paying-china-traders-in-hong-kong-using-couriered-gold/
*Watch Eric Clapton perform "Crossroads" Live!
Brien Lundin: $2,600 gold changes everything
Submitted by admin on Mon, 2024-09-16 19:12 Section: Daily Dispatches
By Brien Lundin
Gold Newsletter / Golden Opportunities, Metairie, Louisiana
Monday, September 16, 2024
The turn has come.
For the last six months, I have explained why this was an historic new gold bull market, but also why it was different from any other before it.
That's because it was being driven by central bank and Chinese buying, which had never happened before in combination, much less as the price was rising.
Another key difference: Western investors were absent. That's because they couldn't project how long central banks and investors in China would continue buying.
I have also explained in recent months why this was going to change as the Fed's long-awaited pivot approached. A shift from monetary tightening to easing was something Western investors could understand and project ahead for years.
This would be the catalyst for the next big leg in the metals.
And so it happened. As predicted, gold started taking off in early July as big money in hedge funds, family offices, and institutions began adding gold. ...
... For the remainder of the analysis:
https://goldnewsletter.com/go091624/
*Pink Floyd - On the Turning Away Remastered 2019
Mondays indeed...
The Rocktober Stock Market Blues. And we hate mondays!
Big Sunday Night $how_$$$Run For You're Lives!!!
The show that make us money
Surly will frighten you to an early grave hehe
Meowwww OK Take it away Steven...
All Hell Is About to Break Loose on Monday - Sell Now Before the Panic Hits
Have a good evening everyone 🤣
Weekend Show - Dave Erfle - Recapping This Week’s Precious Metals Conference
In this KE Report Weekend Show Dave Erfle and I report live from the Precious Metals Summit in Beaver Creek, Colorado. We discuss the bifurcated market for metals stocks, with clear winners vs struggling companies, and explore investment strategies for investors building out portfolios of gold equities.
Topics include the mood of the conference, the importance of picking the right stocks, challenges in raising capital, and potential opportunities in both producing and development stage companies. We also touch on the state of copper plays and the broader outlook for the precious metals sector.
We hope you all have a great weekend and thank you for tuning in!
Click here to visit the Junior Miner Junky website to learn more about Dave’s investment letter - https://www.juniorminerjunky.com/
Glitter & Gold
Barns Courtney - Glitter & Gold (Official Video)
Precious Metals Summit *Something we’ve never seen before’ - VanEck’s Joe Foster on central banks buying gold
Sep 13, 2024 Kitco Mining Interviews
Forget worries that the economy is facing a hard landing, debt levels are the bigger risk, said Joe Foster, gold strategist at VanEck.
Foster spoke to Kitco Mining on Wednesday at the 2024 Precious Metals Summit Beaver Creek in Colorado.
Gold hit several all-time highs in 2024. Foster attributes the historically high gold price of $2,500 per ounce to increased global risk, strong central bank demand, and geopolitical uncertainties. He believes that the Federal Reserve's expected interest rate cuts will further boost the gold price. Foster also anticipates economic turmoil due to high debt levels and potential geopolitical escalations, which could drive gold prices even higher.
While central bank buying has been the primary driver of the gold rally, Western investment in gold ETFs has also picked up recently, signaling growing interest from institutional investors.Despite gold hitting several all-time highs, interest in the metal by the broader investing community remains tepid.
Foster said investors need to be shaken up for interest in gold to pick up.
“I hate to say it, but I think we need a crisis,” said Foster. “I think the market really needs to get worried about the outlook for the economy, for the debt situation or… some escalation on the geopolitical scene. I think that's the type of thing that would really shake people up, and get them to go to gold.”
Regarding the gold mining sector, Foster observed that M&A activity has been lower than expected, but he anticipates an increase as companies adjust their base price for gold and become more attracted to acquisitions. He also highlighted the challenges faced by junior gold developers, who are now required to do more in terms of permitting and feasibility studies before attracting the interest of larger companies.
Coverage of the 2024 Precious Metals Summit Beaver Creek in Colorado is sponsored by Newcore Gold.
Gold miners have yet to partipate in gold's rise. But they will. AIA Weekly 9.14.24
Jaws (1975) - You're Gonna Need a Bigger Boat
Rick Rule is writing checks - high metal prices, tepid equities is a good time to deploy capital
9,013 views Sep 13, 2024 Kitco Mining Interviews
Margins are still a struggle for the miners despite energy costs coming down, said Rick Rule, president and CEO of Rule Investment Media.
Rule Spoke to Kitco Mining on Wednesday at the 2024 Precious Metals Summit Beaver Creek in Colorado. Rule is also the former CEO and president of Sprott.
Rule said it is a good market to invest in. He sees opportunities due to the disparity between rising commodity prices and stagnant equity prices. He focuses on companies with proven management teams and large-scale projects. Rule is open to investing in jurisdictions with perceived political risk.
But a lot of juniors are too small to make it, said Rule.
“Most of the juniors are subscale. They are so small that general administrative expenses consume most of the capital they raise,” said Rule.
“Those companies are doomed to fail. I suspect that three quarters of the juniors that are public worldwide — Australia, Canada, the United States, Great Britain — are valueless, absolutely valueless.”
Rule said the cost of oil has dropped, which helps, but other costs keep climbing.
“Energy costs have moderated, which is a good thing,” said Rule. “But the social take, which is to say taxes, royalties… things like that are increasing — at about 15 percent compounded. Labor costs are going up, spare parts are going up, finished steel is going up.
“I think there will be continued disappointment among investors about the fact that the margins, the producing margins, aren't increasing as fast as one would hope, given the increase in gold price.”
Rule said investors have to keep scale in mind. Bigger is better.
“Everything that can go wrong with a big mine can go wrong with a small mine,” said Rule. “But a small mine can never make you big money.”
Standing out is key, Rule said. It is a crowded field.
“I ask companies today about their social media strategy,” said Rule “If they don't have one, that's the end of the discussion.”
Coverage of the 2024 Precious Metals Summit Beaver Creek in Colorado is sponsored by Newcore Gold.
Precious Metals Summit: Top industry minds reflect on surging gold price, humdrum equities
Henry Lazenby - The Northern Miner | September 13, 2024 | 12:42 pm News Asia Canada China Russia and Central Asia Gold
Giustra Deluce Beaver Creek 2024 Gold Panel
Entrepreneur Frank Giustra makes a point with newsletter author Alex Deluce at the Precious Metals Summit in Beaver Creek, Col. Credit: Henry Lazenby
Industry leaders debated the roles of economic uncertainty, inflation and monetary policy in driving gold to a record high this week at the Precious Metals Summit in Beaver Creek, Colorado, even as many gold equities have underperformed.
The experts predict gold, which hit an all-time high of $2,554.78 per oz. on Thursday, to be on a long-term bull run. Some of the sector’s most respected voices, including Sprott’s John Hathaway, mining entrepreneur Frank Giustra, gold fund manager Ronald-Peter Stöferle and investor guru Rick Rule, said central bank gold buying, geopolitical tension and a divergence from traditional asset classes are boosting gold’s price.
Hathaway, managing partner of Sprott Asset Management, says less than 1% of most investment portfolios are allocated to gold, showing how the asset is misunderstood. Reallocating just 2-3% to gold could push up prices by $1,000 per oz., he said.
“Positioning in gold is still incredibly low among mainstream investors,” he said during a keynote discussion with Stöferle, managing partner at Liechtenstein-based Incrementum. “Yet, with today’s new record, we are already seeing signs of the market shifting.”
Central banks
Stöferle, who publishes the annual In Gold We Trust report, said central banks have been soaking up as much as 30% of annual global gold production. In the first half of 2023 alone, central banks purchased 483 tonnes of gold — a record, according to Stöferle’s data — since sanctions against Russia began in 2022.
“It’s clear that we’re seeing a de-dollarization trend, with emerging markets increasingly looking to gold as a reserve asset,” Stöferle said.
The fund manager says that while inflation may not be a short-term concern, the longer-term outlook is inflationary.
“We’ve spent the last 30 years globalizing, and now we’re moving in the opposite direction. De-globalization is inherently inflationary,” he said.
Giustra, who helped start Wheaton Precious Metals (TSX: WPM, NYSE: WPM; LSE: WPM) and Endeavour Mining (TSX: EDV; LSE: EDV) among other businesses, agreed that fiscal stimulus, such as those in the United States, continue to drive inflation.
Even so, U.S. inflation cooled to 2.5% in August and the Federal Reserve is widely expected to lower interest rates this month.
US fiscal crisis
Giustra was particularly vocal about the US fiscal outlook, warning that the country’s ballooning debt and deficits will only worsen in a recession.
“The US is running a $1.9 trillion deficit at full employment. What happens when we enter a recession? The deficit could easily balloon to $4 trillion,” he said during a keynote fireside chat with Alex Deluce, editor of Gold Telegraph.
Giustra suggests mainstream media avoids discussing the genuine issues affecting the US economic outlook and the country’s dire fiscal state because no one wants to address the difficult choices ahead. His point is that the only options left—such as inflating away the debt—are highly favourable for gold.
“When the only escape from a fiscal crisis is devaluation, gold becomes the ultimate hedge.”
While the long-term outlook for gold remains bullish, both Giustra and Stöferle urged caution in the short term. Stöferle suggested that the gold prices could fall by $200 per oz. in the coming months as the market digests recent gains.
“I’m not overly bullish in the short term. A breather to $2,300 or $2,350 per oz. wouldn’t be a crash—it would be a healthy consolidation,” Stöferle explained.
Longer term, he said it could reach as high as $4,800 per oz., though not all panelists agreed.
Price vs equities
Despite gold’s price surge, mining equities have dramatically underwhelmed.
Rule pointed out that the GDX, an index of gold mining stocks, is down 40% over the past decade. He attributed this underperformance to poor capital allocation, inflationary pressures, and ill-timed mergers and acquisitions.
“There have been some downright stupid capital decisions, especially around M&A and cost inflation,” Rule said. They have tarnished the industry’s image as “a place where money dies.”
Despite these setbacks, he says gold mining equities are poised for a rebound because energy prices have stabilized and input costs have fallen, boosting the earnings potential for gold miners. Rule forecasts the GDX index to double as investors return to the space in the medium term.
Giustra said institutional investors are, frustratingly, still sitting on the equity sidelines, waiting for a more sustained rally before moving back into the space. Like Hathaway, he underlined that once generalist investors re-enter the market, gold mining equities could see a significant upward move.
“The market is waiting for a catalyst. When that comes, we’ll see a flood of capital into mining stocks,” Giustra said.
Macro shifts
Stöferle said the gold price action has shifted to BRICS (Brazil, Russia, India and China) nations, driven by global de-dollarization efforts.
“The marginal gold buyer is no longer in the West,” Stöferle said. “China, India, and other emerging markets now account for 50% of physical gold demand and 66% of global jewellery demand.”
Hathaway echoed these points, adding that gold is no longer viewed as just a hedge but as an integral part of emerging market strategies to rebalance global trade.
“De-dollarization is happening, albeit slowly,” he said. “We’re seeing more trade settled in local currencies, backed by gold reserves, as a means to avoid reliance on US dollar treasuries.”
https://www.mining.com/precious-metals-summit-top-industry-minds-reflect-on-surging-gold-price-humdrum-equities/
****Precious Metals Summit Conference****
Where the smart money goes prospecting®
Focused on Emerging Growth Companies
Precious Metals Summits provide a one-stop destination for institutional investors, sell-side representatives and corporate development executives from senior precious metals companies who want to be ahead of the pack in identifying the most prospective explorers and developers from around the globe. Our unique, by-invitation Summits offer delegates the opportunity to attend corporate presentations, meet one-on-one with senior management and to network in an exclusive yet warm and relaxed atmosphere.
Speakers list
Our world-class Summit Speakers have included: >>>>> https://www.precioussummit.com/speakers/
Market analyst Kranzler, London trader Maguire discuss market rigging et al.
Submitted by admin on Fri, 2024-09-13 18:00 Section: Daily Dispatches
5:59p ET Saturday, September 13, 2024
Dear Friend of GATA and Gold:
Financial letter writer Dave Kranzler is London metals trader Andrew Maguire's guest this week on Kinesis Money's "Live from the Vault" program, discussing market manipulation, the likely consequences of the Federal Reserve's impending reduction of U.S. interest rates, the explosive rise in U.S. government debt, and whether anyone outside the United States will want to own U.S. government bonds.
The program is an hour long and can be viewed at YouTube here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
Drilling Results – How Can You Determine if a Mining Company’s Drill Results are of Low, Medium or High Grade
Drilling results for base metals are typically reported in percentage per tonne (%), while precious metals are reported in grams per tonne (g/t). As an investor, it’s crucial to understand if a drill result indicates low-, medium-, or high-grade mineralization, as this can provide insight into the potential financial outcomes of the deposit.
After analyzing and interpreting various drill reports to differentiate between low-, medium-, and high-grade mineralization, I have summarized my findings in the following table:
Low Grade, Medium Grade and High Grade Mineralization
here's the table >>>>>>Click
https://undervaluedequity.com/drilling-results-how-can-you-determine-if-a-mining-companys-drill-results-are-of-low-medium-or-high-grade/
Hope this helps WATM The Fox hit the home run
$MUX
Apache sacred land threatened by mining in Arizona
2024 marks twenty years Rio and BHP have been trying to open this copper mine.
Indigenous group takes fight against Rio Tinto Arizona copper mine to US Supreme Court
Reuters | September 11, 2024 | 11:47 am News Top Companies USA Copper
A Native American group on Wednesday asked the US Supreme Court to block Rio Tinto and BHP from gaining access to Arizona land needed to build one of the world’s largest copper mines, a last-ditch legal move in a long-running case pitting religious rights against the energy transition.
Apache Stronghold, a nonprofit group comprised of Arizona’s San Carlos Apache tribe and conservationists, asked the court to overturn a March ruling from a sharply divided San Francisco-based 9th US Circuit Court of Appeals allowing the federal government to swap acreage with the mining companies for their Resolution Copper project.
The appeal to the nine justices was delivered in person by a courier after the Apache held a ceremony of prayer and dancing on the court’s steps in Washington, the culmination of a months-long caravan from their Arizona reservation to the capital.
At least four justices would need to agree to hear the appeal, in which Apache Stronghold and their attorneys at the Becket Fund for Religious Liberty contend the government would be violating the First Amendment’s guarantee of freedom of religion if the mine is developed.
If the court agrees to hear the case, it could hold oral arguments in its term which begins next month and potentially issue a decision by next June.
The dispute centers on the federally owned Oak Flat Campground, known as Chi’chil Bildagoteel in the Apache language and where many Apache worship their deities. The site sits atop a reserve of more than 40 billion pounds (18.1 million metric tons) of copper, a crucial component of electric vehicles and nearly every electronic device.
If a mine is built, it would create a crater 2 miles (3 km) wide and 1,000 feet (304 m) deep that would destroy that worship site.
In 2014, Congress and then-President Barack Obama approved a complex deal to give Rio Tinto the land. President Joe Biden froze the land swap after assuming office in 2021.
The US Department of Justice, controlled by Biden, has argued in court that the government has the right to give away its land to whomever it chooses, regardless of the religious implications.
“That legal argument is astonishingly broad and harmful to Native Americans and people of all faiths,” said Luke Goodrich, a Becket attorney who is leading the appeal.
Rio Tinto said the case “does not present any question worthy of Supreme Court review” given the 9th Circuit’s ruling, which it supported.
“This case is about the government’s right to pursue national interests with its own land, an unremarkable and longstanding proposition that the Supreme Court and other courts have consistently reaffirmed,” said a Rio Tinto spokesperson.
BHP, which owns 45% of the project to Rio Tinto’s 55%, declined to comment.
Both companies have spent more than $2 billion on the project without producing any copper.
The date of the appeal was due to a fluke of the court’s calendar and not meant to coincide with the anniversary of the Sept. 11 attacks, attorneys said.
Still, the date does coincide with the four-year anniversary of when Rio Tinto fired its former CEO for inadequate consultation with Indigenous groups in Australia.
(By Ernest Scheyder and Piroschka van de Wouw; Editing by Chris Reese and David Gregorio)
https://www.mining.com/web/indigenous-group-asks-us-supreme-court-to-block-rio-tintos-arizona-copper-project/
Oak Flat - Spiritual Justice
Snake Oil Salesman
Joshua D. Glawson: How America's money devolved from gold and silver to fiat
Submitted by admin on Mon, 2024-09-09 21:45 Section: Daily Dispatches
By Joshua D. Glawson
Money Metals Exchange, Eagle, Idaho
Monday, September 9, 2024
Imagine a street performer standing behind a small table, moving three shells around at lightning speed, concealing a pea beneath one of them. As the audience watches closely, they try to follow the pea's location, only to realize that no matter how well they track it, they've been fooled.
Now replace that street performer with the Federal Reserve and the U.S. government, the shells with gold, silver, and paper money, and the pea with real value.
This, dear reader, is how the public got tricked into believing in fiat currency -- a shell game of epic proportions. ...
... For the remainder of the commentary:
https://www.moneymetals.com/guides/shell-game-how-americas-money-devolved-from-gold-to-fiat
https://www.gata.org/node/23364
Mongo Comes to Town
Weekend edition of Steer's Gold and Silver Digest posted in the clear at SilverSeek
Submitted by admin on Mon, 2024-09-09 18:33 Section: Daily Dispatches
6:30p ET Monday, September 9, 2024
Dear Friend of GATA and Gold:
The weekend edition of GATA board member Ed Steer's Gold and Silver Digest letter is headlined "A Very Encouraging CoT Report, But. ..." and it's posted in the clear at GoldSeek's companion site, SilverSeek, here:
https://silverseek.com/article/very-encouraging-cot-report
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
I Speak Jive
A Fistful of Dollars • Main Theme • Ennio Morricone
Go long the dollar?
Big Sunday Show That Makes Us Money
Good evening Ladies & Gentleman
The U.S. Dollar as We Know It Ends in 10 Days
Take it away Steven
R.E.M. - It's The End Of The World As We Know It (And I Feel Fine)
Random comments:
It's the end of the US Dollar as we know it.
I feel fine.
2 hours ago
Hopefully the Chinese sell off their real estate assets in the U.S. as well.
2
Reply
1 hour ago
Steve's time to shine has arrived
1
Reply
2 hours ago
They can add zeros to the money supply forever
2
Reply
2 hours ago
Warning ! You may cause alot of people to dump cash needlessly
1
Reply
2 hours ago
Steve is having wrong amount of meds, either too much or too little.
2
Reply
44 minutes ago
That's fine, I don't have any anyway ️
1
Reply
37 minutes ago
Yes, l can see The Machines building on momentum in tomorrows session digging in and driving the market even lower.
Reply
1 hour ago
Nikkei futures is plummeting, down 3%
1
Reply
2 hours ago
OMG!!! Whatever shall we do????
Have a good evening everyone 🙄
Pat Benatar - Hit Me With Your Best Shot (1980)
Iconic US steel assets face chopping block without Japan deal
Bloomberg News | September 6, 2024 | 10:00 am USA Iron Ore
United States Steel Corp. faces the prospect of being broken apart and sold in parts if Nippon Steel Corp.’s $14.1 billion takeover fails.
That’s the view of analysts following the latest twists of the proposed takeover of one of the most iconic American companies. Nippon Steel’s deal is subject to a review by the Committee on Foreign Investment in the United States, and President Joe Biden plans to kill it as soon as the CFIUS referral lands on his desk, Bloomberg reported this week
The fate of the deal isn’t entirely clear. As of earlier this week, CFIUS hasn’t transmitted the case to the president. And while Biden has said US Steel should remain American owned and is said to be planning to kill the deal, the White House hasn’t pledged to do so publicly or given any timeline. Top Japanese officials say they’re hopeful issues can be resolved.
If the transaction does get blocked, US Steel will likely be forced to restart a sale process — a year after its earlier attempt to find a buyer — and this time it’s unclear who, if anyone, would be willing to acquire the whole company, according to analysts.
“It’s hard to see any steel entity as they are today buying all of US Steel,” said Josh Spoores, principal steel analyst at CRU Group. “It may end up getting split up between bidders.”
Bidders for US Steel’s assets could range from private equity firms, investment firms and other domestic steel producers, Spoores said.
US Steel’s new electric steelmaking mill in Arkansas, known as Big River Steel, is arguably its most valuable asset. American producers including Nucor Corp. and Steel Dynamics Inc. — which are actively investing in less-polluting manufacturing processes — could be among potential buyers of the plant, according to Philip Gibbs, analyst at KeyBanc Capital Markets Inc.
Nucor and Steel Dynamics didn’t immediately respond to messages seeking comment.
Meanwhile, its traditional union-operated blast furnace facilities may prove less appealing, with recent comments from US Steel hurting their sale prospects. Chief Executive Officer David Burritt said Wednesday that without the Nippon Steel transaction, the company will largely pivot away from its blast furnace facilities.
“They effectively acknowledge that the blast furnace assets need investments to be competitive over the next five to 10 years,” Gibbs said. “Anyone buying those is probably going to get some sort of deal.”
US Steel didn’t provide further comment on the prospects of alternatives if the Nippon Steel deal falters. Nippon Steel didn’t immediately comment.
US Steel’s blast furnace plants, which rely on heating coal to make steel and are typically operated by union workers, could be acquired by rival Cleveland-Cliffs Inc., including the historical Mon Valley plant in the suburbs of Pittsburgh, where both US Steel and the United Steelworkers union are headquartered. Cliffs lost out to Nippon Steel last December in the bidding process for US Steel.
Cliffs CEO Lourenco Goncalves has repeatedly said he’s still interested in US Steel, reiterating his position as late as Thursday in a CNBC interview. The CEO’s comments come despite Cliffs being in the midst of acquiring Canadian steelmaker Stelco Holdings Inc. in a $2.8 billion deal.
An US Steel acquisition by Cliffs could raise antitrust concerns, given the increased concentration of domestic steel production in the hands of a single company, according to Wolfe Research analyst Timna Tanners.
“There’s conceivably a solution that does see them carved up,” Tanners said, though it’s “pretty tough to transact” because US Steel has a lot of niche assets that may not have any obvious buyers. Those include steelmaking assets in Slovakia or its tubular products business.
To continue as a standalone company, US Steel would most likely shut down Mon Valley and move its headquarters out of Pittsburgh, she said, echoing Burritt’s strategy that he said involves job losses.
United Steelworkers President Dave McCall said in an interview Thursday that US Steel can proceed as-is and brushed aside company threats that plants could close if a deal collapses.
“I don’t think there’s any real need to do a split up deal,” he said, adding that he believed there’d be suitors for anything potentially facing closure. “Splitting it up is to nobody’s advantage.”
The acquisition of US Steel by a Japanese steelmaker has been a political lightning rod ever since its December announcement. The offer sparked outcry among the United Steelworkers and politicians, including Republican presidential nominee Donald Trump. Biden and Vice President Kamala Harris, the Democratic Party’s presidential candidate for the November election, say the company should remain American owned and operated.
The future of US Steel, a major employer in the swing state of Pennsylvania, also has crucial political implications in an election year. Pennsylvania Governor Josh Shapiro signaled that some form of talks with the Biden administration, union workers and the private sector are ongoing, with a spokesman saying the governor and his team are working to find a solution that protects jobs.
Meanwhile, Japan’s top government spokesman said he still hopes that Nippon Steel’s takeover bid will get resolved in a mutually beneficial way. His remark indicate that the upper echelons of Prime Minister Fumio Kishida’s administration are still not resigned to the deal failing.
“I don’t think the deal is a 100% dead, but it’s definitely on life support,” Wolfe’s Tanners said.
https://www.mining.com/web/iconic-us-steel-assets-face-chopping-block-without-japan-deal/
Whipping Post" by The Allman Brothers Band
China lodges WTO complaint over Canada’s EV and metal tariffs
Reuters | September 6, 2024 | 7:05 am Battery Metals Canada China Aluminum
China, world's top graphite producer, to curb exports of key battery material
China will take Canada to the World Trade Organization to challenge Ottawa’s decision to impose new tariffs of up to 100% on Chinese-made electric vehicles, steel and aluminum.
The Ministry of Commerce labeled the tariffs as “trade protectionism” that distort global supply chains and urged Canada to withdraw the measures, according to a statement Friday.
This is the third time China has brought EV tariffs to the WTO this year, following cases against the US in March and the European Union in August. As China’s exports rise to counter its slowing domestic economy, more countries are raising or contemplating tariffs on Chinese goods.
Canada announced last week it would impose 100% tariffs on Chinese-made EVs effective October 1. The new tariff will also apply to certain hybrid passenger cars, trucks, buses, and delivery vans, in addition to the existing 6.1% tariff on Chinese EVs. A 25% levy on Chinese steel and aluminum will go into effect on October 15.
Beijing has also started an anti-dumping probe into rapeseed imports from Canada, the Commerce Ministry said this week, adding that China will take all necessary actions to safeguard the legitimate rights and interests of Chinese companies.
https://www.mining.com/web/china-lodges-wto-complaint-over-canadas-ev-and-metal-tariffs/
Lil Nas X - Old Town Road (Lyrics) ft. Billy Ray Cyrus
Why gold stocks could be a contrarian investor’s dream right now
Frank Holmes - U.S. Global Investors | September 2, 2024 | 10:43 am Markets Gold
As I write this, gold continues to trade above $2,500 an ounce after surging past the psychologically important level for the first time ever in mid-August. For seasoned gold mining investors, this should be a moment of validation. After all, the yellow metal has long been seen as the ultimate hedge against economic uncertainty.
And yet, despite the bull run, gold stocks—those companies that mine, process and sell the metal—are trading at historically low valuations relative to the market.
Gold Stock Valuations Remain Cheap Even as the Metal Has Surged to Record High Prices
This apparent disconnect offers contrarian investors an extraordinary opportunity.
Rising yields and the gold selloff explained
But first, why is this happening? The primary culprit for this disparity, I believe, lies in the impact of interest rates and central banks’ gold-buying spree. The real, inflation-adjusted 10-year Treasury yield rose from a low of around -1.2% in August 2021 to nearly 2.5% in October 2023, and for many investors, particularly those in Western countries, rising yields are a signal to sell non-interest-bearing gold.
That’s exactly what happened. From the end of 2020 to May 2024, exchange-traded funds (ETFs) backed by physical gold shed approximately 30 million ounces, over a quarter of their total holdings, as yield-seeking investors pared back their positions.
Investors Unloaded 30 Million Ounces of Gold as Yields Climbed
What some investors may have overlooked, I’m afraid, is the long-term potential of the very assets they were letting go of. Gold stocks, unlike the physical metal, offer not just a hedge but also a means of participating in the upside of gold prices. Put another way, when gold prices have gone up, gold stocks have historically tended to rise even more.
Right now, I believe these stocks are offering an unprecedented combination of low valuations and high potential returns.
A contrarian take on gold stocks
As contrarians, we understand that the best time to invest is often when sentiment is at its lowest. And sentiment around gold equities is pretty low right now.
But history tells us that this could be the perfect time to buy. As you may be able to tell in the chart above, we’re seeing a reversal of the gold ETF selloff. Since mid-May, investors have added about 2.3 million ounces of gold, according to Bloomberg data; holdings now stand at their highest level since February of this year.
This could be just the beginning. If real interest fall substantially, the tide could turn in favor of gold and gold equities.
$3,000 gold by mid-2025?
Historically, gold’s biggest gains have occurred when the Federal Reserve cuts interest rates amid economic uncertainty. Although there’s no obvious crisis on the horizon, markets are pricing in a 25-basis point cut at each of the next two Fed meetings in September and November, with a larger cut expected in December.
If the Fed follows through, we could see gold prices not only maintain their current levels but soar to new heights. UBS is calling for $2,700 gold by mid-2025; Citigroup, Goldman Sachs and Bank of America all see the metal hitting $3,000.
(By Frank Holmes, CEO of U.S. Global Investors)
https://www.mining.com/web/why-gold-stocks-could-be-a-contrarian-investors-dream-right-now/
Stuck in The Middle With You - Stealers Wheel
Goldman cuts copper price forecast by $5,000 as bullish bet closed
Bloomberg News | September 3, 2024 | 7:24 am
They expect prices to average $10,100 next year, compared with a previous target of $15,000 a ton championed by former analysts Jeffrey Currie and Nicholas Snowdon.
Full Read here
https://www.mining.com/web/goldman-cuts-copper-price-forecast-by-5000-as-bullish-bet-closed/
250 Million Ounces Silver Shortage - Monthly Wrap Up with Eric Sprott
Or Maybe Amarillo By Morning
MMGYS Labor Day Weekend Special
George Strait - Amarillo By Morning
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MMGYS Labor Day Weekend Special
Eagles - Tequila Sunrise (Live From Melbourne)
Late-Night Labor Day Storytime
MMGYS Labor Day Weekend Special
EnJoy
Working Late-Night for the Weekend
You're watching the MMGYS Labor Day Weekend Special
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