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Cashed-up Provenance Gold drilling for high-grade gold and silver in Nevada

2021.07.21
Ever since Newmont’s discovery of the large Carlin deposit in the 1960s, gold mining has become a focal point of Nevada’s economy. The state…

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This article was originally published by A Head of the Herd

2021.07.21

Ever since Newmont’s discovery of the large Carlin deposit in the 1960s, gold mining has become a focal point of Nevada’s economy. The state is consistently ranked among the top five mining jurisdictions in the world; in the latest Fraser Institute Investment Attractiveness Index, Nevada was number one.

Each year, more than 5 million ounces of yellow metal are produced, which based on today’s gold prices, amounts to about US$9.5 billion in value. Nevada is home to nearly 30 gold mines, with more to come.

The state offers an attractive tax regime with a low net profits tax and zero income tax. Regulations and permitting processes are transparent and easy for explorers to navigate.

According to the US Geological Survey, if Nevada were a country, it would be among the world’s top four gold producers. The Nevada Bureau of Mines and Geology tallies gold reserves at about 70 million ounces, enough to sustain gold production near current levels for up to 15 years.

The creation of Nevada Gold Mines in 2019 — a joint venture of Barrick and Newmont — has piqued the interest of other companies looking to discover and develop new ounces in the golden state.

One of these is Provenance Gold Corp. (CSE:PAU, OTCQB:PVGDF, Frankfurt:3PG). The Vancouver-based precious metals explorer has three projects in Nevada: White Rock, Mineral Hill and Silver Bow. 2021 exploration involves drilling at White Rock while sample collection/ drilling at Mineral Hill, followed by drilling for silver at Mineral Hill after the White Rock drill program is completed.

White Rock

The White Rock property, located near Newmont’s Long Canyon mine, hosts a large gold system estimated to be 3.2 km long by 1.6 km wide.

Gold is found in the host rocks almost everywhere and elevated along and adjacent to large fault zones. Past drilling only tested the structures, which returned excellent results but no infill drilling was conducted. Much of the central area of mineralization remains undrilled.

Historical exploration consists of 65 holes, with most drilled during the mid-1980s; 191 intercepts were recorded, with grades between 0.34 grams per tonne gold and 5.7 g/t.

Previous operators include Amax Exploration, which drilled 51 holes between 1985 and 1899, and discovered a large near-surface, low-grade resource; Kennecott which drilled nine holes in the 1990s and achieved the highest historical grade; Terraco Gold, Golden Odyssey and Timberline Resources which each held the property during the ‘000s; and Provenance Gold which optioned the project in 2020.

Under the option agreement, Provenance must spend US$250,000 over four years to attain 100% of White Rock’s 258 claims covering 2,088 hectares. Ownership is subject to a 2% NSR with a $25,000 advance royalty payment due yearly after the property has been paid for.

Provenance theorizes that the project contains a large, near-surface oxide gold system suitable for heap leaching. Currently there are four target zones on the property: WR3, 038, Fork and East.

The company also believes the geological setting is similar to the nearby Long Canyon mine owned by US-based gold major Newmont Mining (NYSE:NEM). The open-pit operation started producing in 2016.

Mineral Hill

Location map of Provenance’s Mineral Hill property

Provenance also has a high-grade past-producing silver mine in Mineral Hill. According to county geological reports, silver was first mined there in 1868 at a jaw-dropping 140 ounces Ag per ton (3.9 kilograms per ton). Mining continued until 1939, at an average grade of 25 oz/t silver, or 0.7 kg/t.

Surface samples from bedrock exposures returned values ranging from 50 to 1,215 grams per tonne silver, and 0.1 to 5.2 g/t gold.

Provenance acquired the property in April for 3 million shares of the company plus cumulative payments and escalating work commitments totaling $195,000 over eight years.

In a recent writeup on Provenance Gold, 321gold’s Bob Moriarty states that Large volumes of broken rock in various mine dumps around the property show grades between four to eight ounces of silver to the ton.

Limited exploration by Union Carbide in the 1960s and Santa Fe Minerals in the early 1980s focused largely on the unmineralized Vinini formation footwall. No modern exploration has since taken place, providing the company and its shareholders with tantalizing upside.

According to Provenance, The property has strong potential to host significant new ore bodies along the thrust fault zone, and potentially may host shallow bulk-tonnage resources amenable to modern open pit mining. Many large dumps from historic mining occur across the property. In 1968 Siskon Corporation conducted a detailed trenching and sampling program of the extensive dumps on the property. Their study reported that bulk values averaged more than 125 grams of silver per ton for the majority of the dump material. A program to validate these historic results and accurately measure the volume of the dumps will be undertaken. The Company believes just the dump material alone adds significant value to the property, and the new exploration potential is excellent.

Team

Provenance Gold is co-founded and led by Rauno Perttu and Rob Clark.

Holding the chairman and CEO positions, Perttu is a registered professional geologist whose experience spans more than 40 years covering all aspects of mineral development throughout North, Central and South America, and Australia. He has worked with large and small companies involved with gold, uranium and coal projects, participating in all phases of project development from initial concept through exploration, feasibility, development and operations at senior management levels. 

President Rob Clark is an entrepreneur and venture capitalist who has been the President of RBM Financial Inc. for the past 20 years. Clark has extensive experience in private domestic and international equity markets, having been a part of numerous transactions including mergers, acquisitions, company buyouts and corporate restructuring. Because of his past successes in selecting and selling critical mining properties and his experience with joint ventures, Clark brings valuable expertise and insight to Provenance Gold.

Rounding out the management team at Provenance Gold, Thomas Martin and Wesley Thompson serve as directors, and Fiona Fitzmaurice, a chartered professional accountant, is CFO. 

The company has two experienced professional geologists serving as technical advisors.

Steven Craig is a senior consulting geologist with 47 years of mining experience. His career has taken him to many projects around the world, but his true passion is Nevada where he has focused most of his professional efforts. Craig previously led an exploration team for Kennecott/Rio Tinto as Regional Manager, where he discovered several gold deposits and/or developed resource expansions. During his time with Kennecott, he had a large exploration budget where he drilled over 110 gold projects and annually up to 150 reverse circulation (RC) holes per year at 10 different projects.

Following Kennecott, Craig was VP Exploration of four junior exploration companies, which he led to new discoveries, expansion of current resources, and development of new mining operations. He has a Masters in economic geology from Colorado State University, is a Certified Professional Geologist from AIPG and qualifies as a Qualified Person (QP). 

Nathan Tribble has +13 years of professional experience in exploration and mining, with a focus on gold and base metal exploration and project evaluation. Past experience includes Director of Windfall Geotek, Senior Principal Geologist for Sprott Mining, Senior Geologist for Bonterra Resources, Jerritt Canyon Gold, Kerr Mines, Northern Gold, Lake Shore Gold and Vale Inco. He was also part of the exploration team that discovered the 8.2 million-ounce Côté Lake gold deposit for Trelawney Mining and Exploration. Tribble is registered as a professional geoscientist in Ontario and holds a Bachelor of Science degree in geology from Laurentian University.

Investor info

Provenance Gold’s share structure is reasonably tight, at 60.977 million issues and outstanding shares, and 18.29 million warrants.

The stock trades under the symbol PAU on the Canadian Stock Exchange, PVGDF on the OTC market and 3PG on the Frankfurt Stock Exchange.

In April of this year Provenance Gold closed a non-brokered private placement totaling $315,000. The $0.10 financing will be put towards exploration and general working capital, according to the company.

2021 exploration

Provenance Gold has a busy summer and fall ahead.

Drilling at White Rock began last week — 5,000 meters in 30 to 40 drill holes are planned and budgeted.

Provenance is looking to confirm historical drill holes that intersected numerous thick intervals of potentially open-pit grade gold mineralization, while confirming the company’s new understanding of the structural and stratigraphic controls of the gold mineralization. Drilling started near a historical hole that reported 76m of 0.6 g/t gold, within which 3.5 meters ran 5.7 g/t. The initial holes have already clarified and begun to confirm the new structural model for the gold system. Assay results are expected by early August, and visible observation of the drill samples is encouraging, the company reports.

At Mineral Hill, initial field work has focused on sampling and mapping the old workings and extending the mineral system beyond the historical production areas.

Provenance will start drilling the property after it completes the required meters at White Rock. The high-grade silver potential at Mineral Hill is compelling and so far what the company has found is encouraging.

A recent sample of on-site tailings assayed 216 g/t Ag. Five assays of lower loose rock piles, discarded from earlier mining, assayed from 6.1 to 301 g/t Ag, @ an average grade of 180 g/t Ag. Provenance notes that chip samples of wall rock from the historical mining averaged 430 g/t Ag. This compares to Coeur Mining’s active Rochester mine in Nevada, which averages around 20 g/t Ag.

To re-iterate, Mineral Hill has never seen modern exploration, and this represents a compelling upside for shareholders. Although a number of earlier holes were drilled into the unmineralized footwall of the mineralized zone which dipped steeply to the west, many were lost in open stopes.

As Provenance explains, The assay results from this historic drilling are nevertheless very encouraging.  The highest silver value reported over 1.5 meters was 1200 g/t (38.6 oz/t) with every hole returning silver values from 34 g/t to 544 g/t (1 oz/t to 17.5 oz/t). Overall, the Company considers the Santa Fe program to be of limited success because they were unable to properly test the mineralized zone. An accurate test requires drilling angle holes across the mineralized 30-to-100-meter-wide zone, which extends for at least 1000 meters along the hill crest.  Surface geology and historic prospects suggest the mineralization follows more than one zone and may also follow cross-structures.

In the July 8 news release, CEO Rauno Perttu states, “I have been to the property several times and every visit makes me more enthusiastic about the potential for high-grade silver along with bulk-tonnage silver amenable to modern open pit mining.”

Conclusion

Provenance is exploring for silver and gold in Nevada — in 2020 voted the best jurisdiction for mining investment attractiveness  — at an interesting time for precious metals. Some of the world’s largest economies have emerged from the pandemic with advanced-stage vaccination programs and a loosening of restrictions. Normally, good economic news makes gold and silver prices track lower, yet despite experiencing a significant correction in June, gold is back above $1,800 and silver is holding steady around $24. (the monetary and industrial metal plunged to a virus-related 11-year low in June, 2020)

This week stock markets lurched due to worries over the highly contagious Delta variant, setting the stage for potentially another period of economic uncertainty that could benefit gold and silver. The US Federal Reserve has maintained its dovish monetary policy in spite of a robust US economic recovery, and that is being priced into spot gold and gold futures.

Last Wednesday gold climbed $18 to $1,826 per ounce, on dovish comments from Fed chair Jerome Powell.

At AOTH we love gold and silver, especially when the metals appear to be on the brink of a strong up-leg.

Consider: real interest rates are currently negative and have been for some time. The benchmark 10-year Treasury yield rose to 1.73% in April, amid inflation concerns, but since then, the yield has dropped to 1.3%, while the June inflation rate has risen to 5.4%, leaving a negative real yield of -4.1%!

Negative real rates historically have correlated to higher gold prices.

Given, therefore, the likelihood of a weak US dollar (many believe that the dollar, which fell to a 2.5-year low last year, will continue to face downward pressure in 2021 regardless of economic recovery), higher inflation owing to massive government stimulus and continued quantitative easing from the Fed and other central banks, and interest rates likely to stay low for the next couple of years, we think there is a strong case for taking a position in gold right now.

Gold (and silver) juniors historically offer the best leverage against rising prices, and one of the most promising I’ve seen in this current market is Provenance Gold.

The company offers assay catalysts at two of its projects, White Rock which it is currently drilling, then Mineral Hill.

Of the two, Mineral Hill is arguably the more exciting play, given its very high-grade historical silver intercepts and the potential for finding more of the same. Remember, the property hasn’t seen any modern exploration. Until now.

Provenance believes that White Hill contains a large, near-surface oxide gold system suitable for heap leaching, and that the geological setting is similar to Newmont’s nearby Long Canyon open-pit mine. Could White Rock be open-pittable? We know drilling has started near a historical hole that reported 76m of 0.6 g/t gold — a very acceptable grade for open-pit mining.

The same open-pit potential exists at Mineral Hill, with high-grade kickers. Provenance Gold recently received a $315,000 boost to its treasury, giving it the runway to complete drilling at two properties.

If the assays come through, reasonably priced PAU, which currently trades at just 12 cents Canadian per share, could be in for a very exciting late summer/ fall run.

Provenance Gold Corp 
CSE:PAU, OTCQB:PVGDF, Frankfurt:3PG
Cdn$0.12, 2021.07.20
Shares Outstanding 60.9m
Market cap Cdn$6.6m
PAU website

Richard (Rick) Mills
aheadoftheherd.com
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Economics

How Science Becomes Religion

How Science Becomes Religion

Authored by Sheldon Richman via The Libertarian Insititute, 

The popular slogan today is "Believe in science."…

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How Science Becomes Religion

Authored by Sheldon Richman via The Libertarian Insititute, 

The popular slogan today is "Believe in science." It’s often used as a weapon against people who reject not science in principle but rather one or another prominent scientific proposition, whether it be about the COVID-19 vaccine, climate change, nutrition (low-fat versus low-carb eating), to mention a few. My purpose here is not to defend or deny any particular scientific position but to question the model of science that the loudest self-declared believers in science seem to work from. Their model makes science seem almost identical to what they mean by, and attack as, religion. If that’s the case, we ought not to listen to them when they lecture the rest of us about heeding science.

The clearest problem with the admonition to "believe in science" is that it is of no help whatsoever when well-credentialed scientists–that is, bona fide experts–are found on both (or all) sides of a given empirical question. Dominant parts of the intelligentsia may prefer we not know this, but dissenting experts exist on many scientific questions that some blithely pronounce as "settled" by a "consensus," that is, beyond debate. This is true regarding the precise nature and likely consequences of climate change and aspects of the coronavirus and its vaccine. Without real evidence, credentialed mavericks are often maligned as having been corrupted by industry, with the tacit faith that scientists who voice the established position are pure and incorruptible. It’s as though the quest for government money could not in themselves bias scientific research. Moreover, no one, not even scientists, are immune from group-think and confirmation bias.

So the "believe the science" chorus gives the credentialed mavericks no notice unless it’s to defame them. Apparently, under the believers' model of science, truth comes down from a secular Mount Sinai (Mount Science?) thanks to a set of anointed scientists, and those declarations are not to be questioned. The dissenters can be ignored because they are outside the elect. How did the elect achieve its exalted station? Often, but not always, it was through the political process: for example, appointment to a government agency or the awarding of prestigious grants. It may be that a scientist simply has won the adoration of the progressive intelligentsia because his or her views align easily with a particular policy agenda.

But that’s not science; it’s religion, or at least it’s the stereotype of religion that the "science believers" oppose in the name of enlightenment. What it yields is dogma and, in effect, accusations of heresy.

In real science no elect and no Mount Science exists. Real science is a rough-and-tumble process of hypothesizing, public testing, attempted replication, theory formation, dissent and rebuttal, refutation (perhaps), revision (perhaps), and confirmation (perhaps). It’s an unending process, as it obviously must be. Who knows what’s around the next corner? No empirical question can be declared settled by consensus once and for all, even if with time a theory has withstood enough competent challenges to warrant a high degree of confidence. (In a world of scarce resources, including time, not all questions can be pursued, so choices must be made.) The institutional power to declare matters settled by consensus opens the door to all kinds of mischief that violate the spirit of science and potentially harm the public financially and otherwise.

The weird thing is that "believers in science" sometimes show that they understand science correctly. Some celebrity atheists, for example, use a correct model of science when they insist to religious people that we can never achieve "absolute truth," by which they mean infallibility is beyond reach. But they soon forget this principle when it comes to their pet scientific propositions. Then suddenly they sound like the people they were attacking in the previous hour.

Another problem with the dogmatic "believers in science" is that they assume that proper government policy, which is a normative matter, flows seamlessly from "the science," which is a positive matter. If one knows the science, then one knows what everyone ought to do–or so the scientific dogmatists think. It’s as though scientists were uniquely qualified by virtue of their expertise to prescribe the best public-policy response.

But that is utterly false. Public policy is about moral judgment, trade-offs, and the justifiable use of coercion. Natural scientists are neither uniquely knowledgeable about those matters nor uniquely capable of making the right decisions for everyone. When medical scientists advised a lockdown of economic activity because of the pandemic, they were not speaking as scientists but as moralists (in scientists’ clothing). What are their special qualifications for that role? How could those scientists possibly have taken into account all of the serious consequences of a lockdown–psychological, domestic, social, economic, etc.–for the diverse individual human beings who would be subject to the policy? What qualifies natural scientists to decide that people who need screening for cancer or heart disease must wait indefinitely while people with an officially designated disease need not? (Politicians issue the formal prohibitions, but their scientific advisers provide apparent credibility.)

Here’s the relevant distinction: while we ought to favor science, we ought to reject scientism, the mistaken belief that the only questions worth asking are those amenable to the methods of the natural sciences and therefore all questions must either be recast appropriately or dismissed as gibberish. F. A. Hayek, in The Counter-Revolution of Science, defined scientism as the "slavish imitation of the method and language of Science."

I like how the philosopher Gilbert Ryle put it in The Concept of Mind: "Physicists may one day have found the answers to all physical questions, but not all questions are physical questions. The laws they have found and will find may, in one sense of the metaphorical verb, govern everything that happens, but they do not ordain everything that happens. Indeed they do not ordain anything that happens. Laws of nature are not fiats."

"How should we live?" is not one of those questions which natural scientists are specially qualified to answer, but it is certainly worth asking. Likewise, "What risks should you or I take or avoid?" There is a world of difference between a medical expert’s saying, "Vaccine X is generally safe and effective" and "Vaccination should be mandatory." (One of the great critics of scientism was Thomas Szasz, M.D., who devoted his life to battling the medical profession’s, and especially psychiatry’s, crusade to recast moral issues as medical issues and thereby control people in the name of disinterested science.)

Most people are unqualified to judge most scientific conclusions, but they are qualified to live their lives reasonably. I’m highly confident the earth is a sphere and that a water molecule is two parts hydrogen and one part oxygen. But I do not know how to confirm those propositions. So we all need to rely on scientific and medical authorities–not in the sense of power but in the sense of expertise and reputation. (Even authorities in one area rely on authorities in others.)

But we must also remember that those authorities’ empirical claims are defeasible; that is, they are in principle open to rebuttal and perhaps refutation, that is, the scientific process. Aside from the indispensable and self-validating axioms of logic, all claims are open in this sense. That process is what gets us to the truth. As John Stuart Mill pointed out in On Liberty, even a dissenter who holds a demonstrably wrong view on a question might know something important on that very question that has been overlooked. To our peril do we shut people up or shout them down as heretics. That’s dogma, not science.

Tyler Durden Sat, 07/31/2021 - 13:00
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Precious Metals

Constant Inflation Doubletalk from Fed Erodes Confidence

The summer doldrums in precious metals markets have tested the patience of bulls. The silver market has been hit especially hard…

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Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.

The summer doldrums in precious metals markets have tested the patience of bulls. The silver market has been hit especially hard in recent weeks, but price stayed above the $24 level and avoided dipping to new lows for the year.

Nervous and frustrated investors who bailed out this summer may have made a huge mistake. Gold and silver markets appear to now be catching a break on the upside.

On Thursday, gold gained 2% to record its best close since mid-June. As of this Friday recording, the monetary metal trades at $1,830 an ounce and is up 1.1% for the week.

Turning to silver, prices are advancing by 1.4% this week to check in at $25.62 per ounce. Platinum, which was basically flat through Thursday, now shows a weekly loss of 1.8% to trade at $1,056. And finally, palladium is drifting slightly lower by 0.9% to come in at $2,682 per ounce.

Metals markets stand to benefit from renewed weakness in the dollar.

Since late May, U.S. dollar strength versus foreign currencies had put downward pressure on hard assets. The U.S. Dollar Index rallied from about 89.50 to just over 93 before momentum waned in recent days.

The Index failed to make a new high for the year on its summer rally, setting the stage for a potential bearish reversal. That reversal appears to have taken place this week, with the Dollar Index breaking down below 92 yesterday.

Currency traders were unimpressed by the Federal Reserve’s latest policy briefing. On Wednesday, the Fed announced it would leave its benchmark Funds rate unchanged and continue its $120 billion in monthly asset purchases.

No tapering was on the table, though there was some taper talk. It amounted to vague indications of future tightening after the U.S. economy attains "substantial further progress."

Fed Chairman Jerome Powell tried to quell inflation concerns. He reverted again to his “transitory” claims, but in remarks to the media he seemed confused about what his own definition of transitory inflation means.

Jerome Powell: The increases will happen. We're not saying they will reverse. That's not what transitory means. It means that the increases in prices will happen. So, there will be inflation, but that the process of inflation will stop, so that there won't be ...

When we think of inflation, we really think of inflation going up year, upon year, upon year, upon year. That's inflation. When you have inflation for 12 months, or whatever it might be, I'm just taking an example, I'm not making an estimate, then you have a price increase but you don't have an inflation process. And so, part of that just is that if it doesn't affect longer term inflation expectations, then it's very likely not to affect the process of inflation going forward.

So, what I mean by transitory is just something that doesn't leave a permanent mark on the inflation process. Again, I don't mean that producers are going to take those price increases back; that's not the idea. It's just that they won't go on indefinitely. We have two mandates, maximum employment and price stability. Price stability for us means inflation average of 2% over time. And so, we've got to be very careful about that, but I think it's a good point that it's a term, what it really means is "temporary." But then you've got to understand that it doesn't mean that the increases will be taken back. Some of them will be, but that's not really what it means.

Well, anyone wants to make sense out of all that would need a degree in Fedspeak. We are supposed to believe that stable prices actually means prices rising at a 2% average rate – except when the Fed wants inflation to run higher. But when it does, it’s only transitory – except when it affects the inflation process, which happens when long-term inflation expectations rise, which the Fed says won’t happen but at the same time doesn’t really know what will happen in the future.

Maybe what the Fed says matters less than what economic realities say. Investors would be better served focusing on fundamentals than trying to decipher central bankers’ forecasts.

Unfortunately, investors can’t ignore the Fed entirely. Since its monetary policy decisions can and do drive financial markets, it is necessary to pay attention to what the Fed is actually doing.

Right now it is still stimulating rather than fighting inflation, still holding interest rates artificially low, and still offloading negative real yields upon savers and investors.

That puts both the bond and stock markets in precarious positions. If inflation expectations were to shift to rising prices being a long-term rather than a transitory problem, a dramatic downside readjustment in interest-rate sensitive financial assets would commence.

There would also likely be a dramatic upside revaluation of hard assets including precious metals.

Whether investor psychology shifts suddenly or gradually toward an inflation-protection mindset remains to be seen. Metals markets tend to move slowly at the beginning of bull markets, then rapidly and even violently toward the end.

Market timing is an impossible task given the unpredictable nature of people and circumstances. What is possible is to capitalize on opportunities when markets are over-pricing financial assets and under-pricing hard assets.

The opportunity exists now, but it won’t last forever. There may even come a day when the opposite is true – hard assets are overpriced with inflation expectations running way ahead of actual inflation realities and financial assets offering tremendous value as a result.

Yes, that could happen. It did in the early 1980s.

But the early 2020s look more like the start of a new inflationary cycle rather than the unwinding of one.

Well, that will do it for this week. Be sure to check back next week for our next Weekly Market Wrap Podcast. Until then this has been Mike Gleason with Money Metals Exchange, thanks for listening and have a weekend everybody.

      

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Economics

Michael “Big Short” Burry: This Is The Greatest Bubble Of All Time In All Things “By Two Orders Of Magnitude”

Michael "Big Short" Burry: This Is The Greatest Bubble Of All Time In All Things "By Two Orders Of Magnitude"

Earlier this year, none other…

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Michael "Big Short" Burry: This Is The Greatest Bubble Of All Time In All Things "By Two Orders Of Magnitude"

Earlier this year, none other than Michael 'Big Short' Burry confirmed BofA's greatest fears, as he picked up on the theme of Weimar Germany and specifically its hyperinflation, as the blueprint for what comes next in a lengthy tweetstorm cribbing generously from Parsson's seminal work, warning that:

"The US government is inviting inflation with its MMT-tinged policies. Brisk Debt/GDP, M2 increases while retail sales, PMI stage V recovery. Trillions more stimulus & re-opening to boost demand as employee and supply chain costs skyrocket."

#ParadigmShift

 "The life of the inflation in its ripening stage was a paradox which had its own unmistakable characteristics. One was the great wealth, at least of those favored by the boom..Many great fortunes sprang up overnight...The cities, had an aimless and wanton youth"

"Prices in Germany were steady, and both business and the stock market were booming. The exchange rate of the mark against the dollar and other currencies actually rose for a time, and the mark was momentarily the strongest currency in the world" on inflation's eve.

"Side by side with the wealth were the pockets of poverty. Greater numbers of people remained on the outside of the easy money, looking in but not able to enter. The crime rate soared."

"Accounts of the time tell of a progressive demoralization which crept over the common people, compounded of their weariness with the breakneck pace, to no visible purpose, and their fears from watching their own precarious positions slip while others grew so conspicuously rich."

"Almost any kind of business could make money. Business failures and bankruptcies became few. The boom suspended the normal processes of natural selection by which the nonessential and ineffective otherwise would have been culled out."

"Speculation alone, while adding nothing to Germany's wealth, became one of its largest activities. The fever to join in turning a quick mark infected nearly all classes..Everyone from the elevator operator up was playing the market."

"The volumes of turnover in securities on the Berlin Bourse became so high that the financial industry could not keep up with the paperwork...and the Bourse was obliged to close several days a week to work off the backlog" #robinhooddown

"all the marks that existed in the world in the summer of 1922 were not worth enough, by November of 1923, to buy a single  newspaper or a tram ticket. That was the spectacular part of the collapse, but most of the real loss in money wealth had been suffered much earlier."

 "Throughout these years the structure was quietly building itself up for the blow. Germany's #inflationcycle ran not for a year but for nine years, representing eight years of gestation and only one year of #collapse."

His punchline: the above was "written in 1974 re: 1914-1923" and then makes the ominous extrapolation that "2010-2021: Gestation" adding that "when dollars might as well be falling from the sky...management teams get creative and ultimately take more risk.. paying out debt-financed dividends to investors or investing in risky growth opportunities has beaten a frugal mentality hands down."

And, as if reading from the same playbook, Paul Tudor Jones warned yesterday that things are "bat shit crazy" and if Jay Powell

“The idea that inflation is transitory, to me ... that one just doesn’t work the way I see the world."

All of which led to Burry's latest tweet warning this morning...

"People always ask me what is going on in the markets. It is simple. Greatest Speculative Bubble of All Time in All Things. By two orders of magnitude. #FlyingPigs360"

In other words: "Brace!"

So what are you going to do about it?

Tudor Jones had some simple advice: "buy commodities, buy crypto, buy gold."

Tyler Durden Tue, 06/15/2021 - 11:10

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