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iMetal Resources Begins Trenching At Flagship Gowganda West Project

iMetal Resources, Inc. (TSXV: IMR) today announced the commencement of trenching operations at its Gowganda West property in Northern Ontario.
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This article was originally published by The Deep Dive

iMetal Resources, Inc. (TSXV: IMR) today announced the commencement of trenching operations at its Gowganda West property in Northern Ontario. The property covers roughly 147 square kilometres in the Shining Tree volcano-sedimentary succession of the Abitibi Greenstone Gold Belt.

The program is taking place over a two-week time frame, and will focus on Zone 1 and Zone 3. The two zones notably returned strong gold values in an April 2021 sampling program, with Zone 3 seeing samples containing 11.3 g/t, 29.6 g/t and 67.9 g/t gold, while Zone 1 returned sample values of 27.2 g/t and 16.35 g/t gold.

Activities at Zone 1 will include stripping exposures that were cleared in recent decades, where bedrock reveals silica flooding and potassic alteration. Trenching is to be conducted over a 50 metre length, where the firm will see field crews take continuous samples of the mineralized system, from which the company is to identify potential drill targets.

Zone 3 is currently slated to see three trenches conducted over a 200 metre strike length, to assess the continuity of mineralization and further test the grades. iMetal is hopeful that trenching operations will show these grades extending to the northeast.

iMetal Resources, Inc. last traded on the TSX Venture at $0.10.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post iMetal Resources Begins Trenching At Flagship Gowganda West Project appeared first on the deep dive.




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Economics

“$3000 In Months, Not Years” – Gold’s Inflation-Protection Means “Violent” Run-Up Imminent

"$3000 In Months, Not Years" – Gold’s Inflation-Protection Means "Violent" Run-Up Imminent

While cryptocurrencies have been stealing the headlines…

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“$3000 In Months, Not Years” – Gold’s Inflation-Protection Means “Violent” Run-Up Imminent

While cryptocurrencies have been stealing the headlines recently with record highs amid ‘inflation hedge’ narratives, commodities have put in a strong performance amid supply chain shocks and unprecedented demand interference (monetary/fiscal policy). As everything from copper to crude and aluminum to zinc has soared, one metal has lagged…

But, as Bloomberg reports, two of the biggest names in Canadian mining – the former chiefs of Goldcorp, David Garofalo and Rob McEwen – predict investors will catch on soon that global inflationary pressures are far less transitory and more intense than central bankers and hedonically-adjusted consumers price indexes suggest.

When that realization sets in, gold’s inflation-protection appeal probably will send prices to $3,000 an ounce, from about $1,800 now, according to Garofalo. Such a run-up would be a “down-payment” to McEwen’s $5,000 long term prediction.

“I’m talking about months,” he said.

“The reaction tends to be immediate and violent when it does happen. That’s why I’m quite confident that gold will achieve $3,000 an ounce in months not years.”

McEwen warns that the global monetary and debt expansion to cope with the pandemic, as well as secondary drivers associated with supply disruptions, will have people turning back to traditional methods of protecting wealth.

“It’s not just the dollar,” he said.

All currencies are buying less than what they were buying a year ago. So I look at that as an unprecedented development at least in our lives that is going to affect the value of fiat currencies around the world.”

We have seen this kind of delayed response before…

As Peter Schiff recently noted, the knock on gold and silver has always been that you forgo interest. Higher interest rates increase the opportunity cost of owning the metals. For example, if interest rates are 10% and you own gold, you’re giving up 10% interest on the money you have in the yellow metal. But when rates are negative, it doesn’t matter.

If they’re negative 2% or negative 10%, nobody wants a negative yield. So, as long as yields are negative, you want to get out of bonds. It doesn’t matter how negative. Once you’re losing, it’s a loss.”

Ultimately, a negative rate environment, no matter how negative, should be bullish for gold and silver.

The other tailwind for gold and silver is traders still expect the Federal Reserve to respond to inflation by tightening monetary policy – and thus raising interest rates.

Oil prices are rising as a result of inflation. Gold should also be rising as a result of inflation. It should not be falling because investors expect the Fed to fight inflation. Again, if the Fed could fight inflation, they’d be fighting it right now. The reason they’re not fighting it, the reason they’re pretending that it’s not a problem, and so there’s no need to fight it, is because they can’t. But they’re never going to admit that. That would be a complete disaster. So, they have to pretend that it’s transitory, that it’s not a real problem, but also pretend that if it ever becomes a real problem, well, they’re going to do something about it. But of course, they can’t do anything about it. So, they won’t.”

But while price has lagged, there are plenty that are using this ‘cheapness’ to back up the truck.

Gold demand in China was up in September, as the country approaches a peak gold-buying season. September is typically a strong month for wholesale gold demand in China as it leads up to an important holiday season. October is traditionally a big month for gold jewelry sales during the seven-day National Day Holiday in early in the month. Both gold withdrawals from the Shanghai Gold Exchange (SGE) in September and gold imports in August were up, a sign that the Chinese gold market continues to recover after it was hit hard by the coronavirus pandemic.

Rising local premiums also signal growing demand for gold in China. The local gold price premium rose for the third straight month in September, averaging US$7.5/oz. That was $1.70 higher month-on-month.

So, it appears the Chinese (and the Russians) get it and Peter Schiff thinks the markets will figure this out eventually.

In an inflationary environment – and we are in the most inflationary environment we’ve ever been in – the riskiest things you can own are bonds. And it doesn’t matter what bond you have. Treasuries are no safer than the riskiest junk bond when the threat is the loss of purchasing power to inflation. The real safe haven in this environment is gold. And as soon as investors understand the difference between gold and Treasuries, they will then start moving into gold as a safe haven, and they will not be deterred in their buying of gold when bonds go down because they will expect bonds to go down. When you’re looking to remove inflation risk from your portfolio, you sell bonds, including Treasuries, and you buy gold and silver.”

Its universality and 4,000 year-old history mean gold is better positioned than crypto-currencies as a hedge against an inflationary environment that “will have deep and meaningful impacts on our capital,” Garofalo concluded

Tyler Durden
Mon, 10/25/2021 – 05:45














Author: Tyler Durden

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Economics

How Bitcoin Hedges Both Inflation And Deflation

How Bitcoin Hedges Both Inflation And Deflation

Authored by Peter St.Onge via CryptoEconomy substack,

In the 1970’s, Saturday Night Live…

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How Bitcoin Hedges Both Inflation And Deflation

Authored by Peter St.Onge via CryptoEconomy substack,

In the 1970’s, Saturday Night Live had a mock commercial for Shimmer Floor Wax, tagline: “It’s a floor wax AND a dessert topping!”

Between supply chains, rising prices, and falling growth, we’re living in hazy times, economically. Investors don’t know whether we’re due for a stretch of serious inflation or if, instead, we’ll get socked by a deflationary stagnation either as prelude or as crash. They don’t know if they need the wax or the snack.

As people struggle to protect against both, there is one hedge that actually covers them all: runaway inflation, runaway stagnation, even the “Goldilocks” scenario that historically burns gold investors. And that one hedge is Bitcoin.

Crystal balls cracking

One Hedge for All Seasons

Universal hedge is counterintuitive, since inflation and deflation are opposites, while Goldilocks is the opposite of the opposites. But the universality hinges on two mechanisms that are only present in Bitcoin: central banks addicted to printing, combined with Bitcoin’s dot-com levels of secular growth that approach historical levels of bona fide money replacement.

First, let’s sketch the economy at the moment.

Fed chair Powell is still predicting medium-term disinflation, but a substantial minority of macroeconomists are predicting “significantly higher” inflation. Meanwhile, growth figures are trending down worldwide, partly as a result of chaotic supply chains causing shortages from groceries to Christmas trees to aluminum chassis – I wrote about this last week. This drama is reaching into GDP statistics, with Atlanta Fed’s “GDPNow” estimate now limping along at 0.5% – flat per capita.

Into this chaotic world strides Bitcoin to heal all worries, to hedge all fears.

Atlanta Fed watching it melt

Hedging Inflation

Hedging both inflation and deflation may seem odd – make up your mind. But the key here is that, like an incontinent dog that pees when startled, today’s central banks print money in response to any sudden movement. They print when they’re happy – the economy can soak it up. And they print when they’re scared – the economy needs it.

One might think central banking has become an elaborate hoax to print as much money as possible no matter what, which is basically true. Of course, they print not because it’s the correct thing to do, but because legal counterfeiting is their business — barbers are paid to cut hair, central bankers are paid to print money.

To be sure, happy-printing and scared-printing lead to different collateral damage for the economy. Printing in good times sparks a “tissue fire” boom that creates malinvestments — investments that only happened because money was so cheap. While printing in bad times slows the liquidation of those malinvestments until some become “zombies” like Japan has endured for decades. If you’re interested, there was a whole “liquidationism” debate in the 1930’s which, obviously, the good guys lost.

Still, what both stages of printing do have in common is they dilute your money. This automatically benefits anything priced in dollars, like Bitcoin or, say, donuts. And it can reinforce since dollars, having no intrinsic value, float on expectations about how much the central bank will magic up in future. So it’s possible that even a small printing can lead to a large drop in purchasing power if people expect the printing to go nuts. While the more usual is that a large printing, like the 40% jump in dollars in 2020, leads to a small change in value since people don’t expect it to last or don’t expect all those dollars to circulate “in the wild” for long.

Hedging Deflation

What about deflation, shouldn’t that do the opposite? After all if Bitcoin is priced in dollars, then a stronger dollar should reduce Bitcoin’s price. And here the key is where the deflation is coming from. It it’s healthy deflation driven by technology or productivity improvements then it would be inherently neutral to the Bitcoin price in dollars. So before the deflation, Bitcoin might be worth $60,000, which buys 3 months at a luxury resort. And after the deflation Bitcoin might still be worth $60,000, which now buys 4 months at that luxury resort. Good for Bitcoiners, just as it’s good for dollar owners.

Alas, this “healthy” deflation is rare nowadays, because central bankers stop it — no sense leaving money-printing opportunities on the table.

So, instead, deflation today is more likely to come from the kind central bankers actually create: debt deflation. This is where a lot of credit evaporates overnight — it won’t be repaid. We saw this in the 1930’s, and again in the 2008 crisis. Of course, in 2008 it didn’t turn to full-blown deflation, because the Fed stepped in – well, it flopped in – with $1.6 trillion of fresh money, of which $1.2 trillion went directly into the banking system.

The Fed has never regretted that 13-figure bail-out, nobody went to jail for it, and they repeated that script in Covid. So we can be fairly certain they’ll do it again next time.

The Dreaded Goldilocks

Now the final possibility, the one that keeps goldbugs up at night: Goldilocks. A scenario where governments and central bankers steer the ship of economy through the shoals and hurricanes until we end up with pretty good growth and pretty good inflation. Say, 2% on both.

The reason for focusing here is because Goldilocks scenarios have been terrible for gold these past 50 years. Indeed, gold’s three big losing streaks since the 70’s have been the early 80’s, the late 90’s, and the early 2010’s. All periods of economic calm where people relaxed, stopped worrying about the future, were happy enough to leave it to government, and sold their boring gold for exciting plastics, dot-coms, or electric car stonks.

Gold vs Bitcoin: Goldilocks has a favorite

Setting aside how unlikely Goldilocks is given the gang in charge, even in that doldrums scenario Bitcoin is likely to do just fine. Because, unlike gold, Bitcoin has enormous underlying user growth – currently running 40% year-on-year in the number of wallets in existence.

Indeed, remember that up until Covid we’d been in roughly a decade of Goldilocks, during which gold dropped from $1,900 to under $1,200, while Bitcoin went from one five-thousandth of a Papa John’s pizza to $8,000 on the eve of Covid.

I’ve written about some reasons why this secular growth might actually accelerate in the years to come, including El Salvador’s legal tender law that raises Bitcoin’s odds of replacing fiat, and rapid growth in Bitcoin’s Lightning Network that make it a superior daily-use money. One could imagine other reasons – demographics, regulation, company and investor learning curves. And the punchline is even in the classic macro doldrums scenario, Bitcoin’s got a lot else going on besides macro.

Conclusion

Boiling it down, inflation is always good for money hedges, and in this crisis Bitcoin has so far replaced gold as the hedge of choice. If we instead get deflation, it’s good-to-neutral for Bitcoin but, given today’s Fed, will probably be converted to inflation anyway. And in that last “Goldilocks” scenario, Bitcoin’s underlying growth is likely to carry any slack, sparing it gold’s humiliating plunge into periodic obscurity.

Finally, which macro outcome is most likely? You’d make a lot of money guessing that correctly, and there are excellent arguments for both inflation, stagnation, and even their demon offspring, stagflation. For now, unless you actually enjoy existential speculation, I think the prudent hedge is simply buy and hodl Bitcoin.

*  *  *

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Tyler Durden
Mon, 10/25/2021 – 03:30












Author: Tyler Durden

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Precious Metals

Last Week’s Bitcoin Buzz

A lot is happening in the cryptocurrency market these days and what follows is a recap of some of the major developments this past week.
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A lot is happening in the cryptocurrency market these days and what follows is a recap of some of the major developments this past week.

By Lorimer Wilson, Managing Editor of munKNEE.com

1. Paul Tudor Jones’s Views About Cryptocurrencies As An Inflation Hedge 

Billionaire investor Paul Tudor Jones, in an interview with CNBC’s “Squawk Box”, claimed that surging inflation is now “the single biggest threat to certain financial markets and probably…to society in general” adding that October’s 5.4% YOY CPI number, which matched readings from June and July, was perhaps the most glaring warning yet and warned that it’s likely only going to get worse. He believes that cryptocurrencies are a hedge against central bank money printing and that …crypto…is winning the race against gold at the moment [and]…would be a good inflation hedge.” While Jones prefers direct ownership, he thinks the new Bitcoin ETF will be “fine” and the SEC’s blessing is reassuring.

2, Latest Fear & Greed Index for Bitcoin & Other Large Cryptocurrencies Shows Extreme Greed 

According to Alternative.me’s multi-factorial crypto market sentiment analysis, which gathers data daily from five sources on a simple meter from 0 to 100 to visualize a meaningful progress in sentiment change of the crypto market. Zero means “Extreme Fear”, while 100 means “Extreme Greed”. When Investors are getting too greedy it means the market is due for a correction and the current Index reading is 75, down from 82 yesterday. See here for the latest reading.

3. 50 Experts Say Bitcoin Will Reach Over $5M By 2030 – Yes, $5M!

50 industry experts were asked in late September to early October by finder.com for their thoughts on how Bitcoin will perform over the next decade and their average view (see here) was that Bitcoin will be worth US$71,415 by the end of 2021, before rising to US$249,578 by 2025 and reaching US$5,237,082 by 2030.

4. Bitcoin Is Going To $500,000! Here’s Why

According to Luke Lango’s Hypergrowth Investing article this week (see here), gold is typically bought as a store of value to protect against inflation, but this year, instead of buying gold, they’re buying Bitcoin. Lango maintains that since the gold market is an $11 trillion market were Bitcoin to get that big, you’re talking an $11 trillion market on 21 million tokens, which implies a price per token of about $500,000.

5. New ProShares Bitcoin Strategy ETF Launched This Week

According to a private investor from the Netherlands, the new ProShares Bitcoin Strategy ETF (BITO), which started trading this week, will be a game-changer for the crypto market making the process of investing in Bitcoins considerably easier, safer, and more convenient for these 5 major reasons.

6. Walmart Pilot Program Allowing Customers To Purchase Bitcoin and Redeem It For Merchandise  

Walmart (NYSE:WMT) has launched a pilot program that allows customers to purchase bitcoin (BTC-USD) through Coinstar kiosks – enabled by Coinme, a crypto wallet and payment firm that specializes in bitcoin ATMs (BTMs) – in 200 of its stores across the United States. After inserting bills into the machine, a paper voucher is issued. The next stage involves setting up a Coinme account and passing a know-your-customer (KYC) check before the voucher can be redeemed. The machine charges a 4% fee for the bitcoin option, plus another 7% cash exchange fee, according to the Coinstar website and verified by CoinDesk.

7. Valkyrie Bitcoin Strategy ETF To Launch Today & Become Second Bitcoin Futures ETF

A second U.S. Bitcoin futures ETF will reportedly hit the market Friday, with the Valkyrie Bitcoin Strategy ETF (BTF) set to take on the hot new ProShares Bitcoin Strategy ETF (NYSEARCA:BITO) then.

8. VanEck Bitcoin Strategy ETF Set To Launch Next Monday

VanEck wrote in a U.S. Securities Exchange Commission filing Wednesday that its new VanEck Bitcoin Strategy ETF (BATS:XBTF) will be available “as soon as practicable” after this coming Saturday, Oct. 23. That presumably would mean next Monday, Oct. 25. Like BITO, the VanEck ETF will offer investors a way to gain exposure to Bitcoin (BTC-USD) through the futures market.

9. Grayscale Investments Hopes To Convert Its Bitcoin Trust Into a Bitcoin Spot ETF

Grayscale Investments announced Tuesday that it’s filed with the U.S. Securities and Exchange Commission to convert the popular Grayscale Bitcoin Trust (OTC:GBTC) into a Bitcoin spot ETF.

10. Interactive Brokers Has Introduced Cryptocurrency Trading For Registered Investment Advisors

Interactive Brokers (NASDAQ:IBKR) has introduced cryptocurrency trading for registered investment advisors in the U.S., allowing them to trade and custody bitcoin (BTC-USD), ethereum (ETH-USD), litecoin (LTC-USD) and bitcoin cash (BCH-USD) via Paxos Trust on behalf of clients.

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Author: Lorimer Wilson

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