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Silver Could Drop to $7 and Oil To $20 in Coming Recession! Here’s Why (14K Views)

If, and indeed when, the U.S economy goes into recession commodity prices will fall to levels we would have previously found unimaginable. This could be…

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This article was originally published by Munknee
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…Investing in this metal is pure speculation with very little fundamental support… If the economy collapses silver prices will crash along with every other commodity…

…There is no reason for investors to believe precious metals like silver are any different, or somehow immune from the factors currently crushing the prices of oil and the other commodities. Right now we have crested the boom cycle and commodity prices are entering a long term bear market. On top of this, the economy of China is slowing and U.S GDP growth figures are constantly being revised downward. This does not bode well for silver, because demand for commodities depends on economic growth and if growth falters silver will fail. There is no glamour here, only cold hard facts.

Most of the talk about silver centers on its usage as an investment vehicle, but investment is only a small portion of what drives the price of the metal. Silver is primarily an industrial and consumer discretionary ingredient, in fact over 70% of the metals usage is for economic output. This means only a tiny fraction of silver production goes toward investment, and most of this is metal is held by the silver ETFs and brazenly manipulated…@A Financial Site For Sore Eyes & Inquisitive Minds

Silver is primarily used in industrial applications, especially electronics… because it has the highest electric conductivity, thermal conductivity and contact resistance of any metal. To date no other substance can replicate the properties of silver cost efficiently and there is little risk of obsolescence at current prices. However, while silver’s role in industry is unassailable it does not have this same strength in its other usages…

Silver’s usage: A tiny fraction used for investment

Solar energy is a bullish factor

There are bullish factors for silver. The growing importance of solar energy (photovoltaic technology) provides an opportunity for growth in the metals industrial use. Silver demand in the energy industry has made up for much of the economic value it lost during decline of the traditional photograph technology it was once used in.

Photovoltaic technology has been growing steadily in the U.S, especially after the government committed to over-investing in the late 2000’s in the sector after the 2007 financial crisis…[which,] coincidentally, mark the height of the silver price bubble we saw around that same time. While this seems like a clear case of supply and demand determining prices, looking deeper into the situation reveals problems with this conclusion.

A tale of two bubbles

Silver has had two major rallies in modern history both of…[which] were speculative bubbles with little (usually coincidental) correlation to the metals actual economic demand.

Anatomy of irrational exuberance: Investors expected $100 silver

  1. The first modern silver bubble occurred in the early 80’s as the Hunt brothers, two Texas billionaires, attempted to corner the silver market. They did this by buying massive amounts of the metal on the commodity markets with leverage. At the height of this attempt, these two men were able to control the 1/3rd of the entries worlds supply of silver, driving the price up the metal up 712% in a week.
  2. The second silver bubble occurred in 2011 and was commonly assumed to be caused by supply shortages and increasing photovoltaic demand. This wasn’t the case. Photovoltaic requires an ultra pure silver (.9999) which is not used as bullion and doesn’t factor into the supply/demand situation for the common .999 and sterling physical. Backwardation and an unprepared bullion industry compounded the myth of a supply shortage…

Just as stocks tend to move with each other in the equity markets. (think NASDAQ vs S&P 500) commodity prices do the same. However, while stocks can trade for a long periods of time based on speculation and future earnings the price of commodities is determined by one thing above all else; economic demand.

When economic demand does not justify price a commodity will slowly sink back down to its cost of production. This is what recently happened to oil, and this is what will continue happening to silver. For this reason, any premium significantly above silver’s cost of production (that cannot be justified economic demand) should be seen as a bubble because it will not last.

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Economic outlook and investor expectations

The current and future economic outlook for commodities is not good…despite the supposedly strong U.S economy. If, and [indeed] when the U.S economy goes into recession commodity prices will fall to levels we would have previously found unimaginable. This could be $20/bbl oil and $7/ozt silver…

Editor’s Note:  The original article, by Kelsey Williams has been edited ([ ]) and abridged (…) above for the sake of clarity and brevity to ensure a fast and easy read.  The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.  Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

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The post Silver Could Drop to $7 and Oil To $20 in Coming Recession! Here’s Why (14K Views) appeared first on munKNEE.com.


Author: Lorimer Wilson

Energy & Critical Metals

EV Nickel starts trading on TSX Venture Exchange

  TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the…

 

TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the TSX Venture Exchange and has begun trading on the Exchange.

The closing of the IPO, scheduled for December 2, 2021, was expected to have gross proceeds of $5,440,292 for a total of 1,442,200 flow-through (FT) common shares at 86 cents per FT common share and of 5.6 million units at 75 cents per unit. The company has 30,355,667 common shares issued and outstanding

EV Nickel, classified as a Tier 2 issuer, is a Canadian nickel exploration company, focused on the Shaw Dome area, south of Timmins, Ontario. The Shaw Dome area is home to its Langmuir project, which includes W4, the basis of a 2010 historical estimate of 677,000 tonnes at 1% nickel for approximately 15 million pounds of Class 1 nickel.

EV Nickel’s objective is to grow and advance a nickel business, targeting the growing demand for Class 1 nickel from the electric vehicle battery sector. EV Nickel has almost 9,100 hectares to explore across the Shaw Dome area and has identified 30 km of additional strike length.

“We are excited to get out into the public markets and begin telling the world about our wonderful assets, on the Shaw Dome, just south of Timmins,” said Sean Samson, president and CEO. “The world needs more nickel and especially the type of high-grade, clean nickel that we plan to build our business around. Decarbonization is the challenge of a lifetime and we plan to source the material that will help the EV [electric vehicle] companies grow and help address that challenge.”





Author: Editor

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Base Metals

Vision Lithium to Buy The Cadillac Canadian Lithium Property

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada.  Combined with an…

Vision Lithium Property Portfolio
Cadillac lithium property located approximately 40 km west of Val-d’Or. Source: Vision Lithium

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada. 

Combined with an additional 105 stakes claimed by the company, the group of claims will be collectively referred to as The Cadillac lithium property.  

Details of the agreement include the vendor groups receiving an aggregate cash consideration of $102,427.92 from Vision Lithium, as well as ​​issue a total of 4,300,000 common shares of the company. The shares are not divided evenly, with 1.5 million each going to the CMH Group and Fancamp, the Leblanc-Lavoie Group will receive 1 million and 300,000 Shares will go to the Tremblay Group. The company will also pay each vendor group a 2% net smelter return royalty on the claims. 

President & CEO of Vision Lithium Yves Rougerie commented in a press release, “The Cadillac lithium project is an exciting addition to our growing portfolio of lithium properties. The Property is located 10 km south of the Trans-Canada highway and only metres from the secondary road, ensuring easy access for logistics, materials and qualified manpower.”

The claims acquired by Vision Lithium combined with the additional 105 claims staked, means the property holds a total of 320 claims covering 18,378 hectares. The property is easily accessible year-round in an area with well-maintained roads. This is especially helpful since Quebec can become covered in snow for multiple months of the year, and established infrastructure gives the company a head start.

There are also at least 4 pegmatite dikes which are spaced approximately 100 metres apart and traced for at least 300 metres along on the property. 

Rougerie continued “The property hosts a cluster of close-spaced parallel lithium-bearing dikes. Spodumene has been observed in the outcropping dikes and we believe there are likely more dikes in the cluster. The dikes have seen surprisingly little historical exploration with only a handful of samples and no drilling to date.” 

High Potential for Additional Lithium Discoveries

Lithium crystals have been observed on all four dikes of the property, with even a few large crystals visible. 

The property is located approximately 10 km south of Cadillac, a historic mining town, and about halfway between the major mining centres of Rouyn-Noranda and Val-d’Or in Quebec. 

“We believe the potential for additional lithium discoveries within the main cluster area is excellent and the larger property also has tremendous upside potential for discovery. The entire area acquired and staked is very large at almost 200 square kilometres. We plan to aggressively explore the Property over the winter by drilling the main cluster of dikes and to plan and complete field work next summer over the large tract of land,” Rougerie said. 

There are a number of closing conditions and post-closing obligations for the company until the transaction is officially completed. This includes the execution of certain deeds and instruments of conveyance, and the approval of joining the TSX Venture Exchange. Completion of the transaction is expected to be finished in the coming days. 

Vision Lithium focuses on exploring and developing mineral assets such as lithium and copper in different parts of Canada. Other than the claims they have just received in the recent transaction, the company has operations in Manitoba, and multiple properties in New Brunswick and Quebec. The first drill program at the company’s Dome Lemieux copper property in Quebec has commenced. Vision has also recently completed the Red-Brook copper and zinc drill program in New Brunswick. 

Vision Lithium is focused on developing their Sirmac lithium project in Quebec which is a hard rock source of lithium. Lithium can either come from hard rock sources or brines, and about 50% of each make up the world’s lithium compound production. Both sources can produce battery-grade lithium, but the extraction process is very different. The company plans on using existing methods to extract lithium for the battery market. This is a key area for the company as demand for battery materials is soaring in the middle of a global energy transition. 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

The post Vision Lithium to Buy The Cadillac Canadian Lithium Property appeared first on MiningFeeds.





Author: Matthew Evanoff

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Precious Metals

Gold Springs Discovers New Gold System – Shares Jump 20%

Gold Springs [GRC-TSX; GRCAF-OTCQB] reported assay results from hole J-21-015 with an average…

Gold Springs Resource Corp. [GRC-TSX; GRCAF-OTCQB] reported assay results from hole J-21-015 with an average of 1.0 g/t gold equivalent over more than 163 metres located 180 metres south of the discovery hole J-21-006 at the 100%-owned Gold Springs property located on the border of Nevada and Utah.

The results confirm the existence of a new gold-mineralizing system called intrusive-related gold system (IRGS) on a new target that the company has named Tremor. This new gold system is situated along the northern extension of the Jumbo trend of the large Gold Springs project of 8,000 hectares.

J-21-015 highlights include 1.0 g/t gold equivalent over 163.1 metres: 1.42 g/t gold equivalent over 33.5 metres within the vein, which includes 3.26 g/t gold equivalent over 10.7 metres within the vein; and 0.94 g/t gold equivalent over 123.5 metres within the intrusive and contact zone.

Randall Moore, executive vice-president of exploration, stated: “We have been anxiously awaiting these results, which now confirm what we believe to be a major new discovery. The existence of an IRGS at Gold Springs opens a potentially large area to develop a new gold resource. Hole J-21-015 extended both the high-grade vein system and the gold mineralization associated with the intrusive first seen in hole J-21-006. We would also like to highlight that both holes ended in gold mineralization. We are now awaiting assays from another 15 holes at Tremor that are currently in the laboratory for testing. Drilling has extended this northern vein for over 200 metres and the Tremor intrusive zone for 600 metres along strike as seen in the drill cuttings. The thickest intercept within the intrusive thus far has been 280 metres.”

The company is waiting to receive assays from 24 holes on two targets; 15 from Tremor and nine from White Point, in the coming weeks.

Gold Springs Resource is confident of the presence of an intrusive-related gold system within the Tremor target situated along the north extension of the Jumbo trend in Utah where a strong CSAMT (controlled source audio magnetotelluric) high resistivity anomaly extends for 1,200 metres.

The company completed 18 holes at Tremor designed to test the extent of the intrusive-hosted gold system. These holes demonstrate the intrusive extends for 600 metres and is open to the north, south and at depth. In addition, the vein system in hole J-21-006 has been traced for 200 metres. For details on hole J-21-006, which returned 6.87 g/t gold equivalent over 24.4 metres, included grades of 30.9 g/t gold equivalent over 4.6 metres.

The drill has moved to Charlie Ross where eight additional holes are planned to follow up that new discovery.

Author: Staff Writer

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