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Peter Schiff: Post-Payrolls/Taper Gold-Gains Signal Sellers Are Exhausted

Peter Schiff: Post-Payrolls/Taper Gold-Gains Signal Sellers Are Exhausted

Via SchiffGold.com,

Despite the Fed announcing it will begin tapering…

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This article was originally published by Zero Hedge

Peter Schiff: Post-Payrolls/Taper Gold-Gains Signal Sellers Are Exhausted

Via SchiffGold.com,

Despite the Fed announcing it will begin tapering QE and a better than expected jobs report, gold rallied on Friday. In his podcast, Peter Schiff said this is sign sellers are exhausted.

According to the October non-farm payroll numbers, the US economy added 531,000 jobs, well above the projection of 450,000. The two prior months also saw significant upward revisions. The unemployment rate dropped to 4.6%. The one weak spot was labor rate participation, which remained at 61.6% instead of increasing to 61.8%, indicating a lot of people aren’t returning to the workforce.

Meanwhile, stock markets continue to surge to new records. In the eyes of investors, everything is great. But Peter said it’s not because the economy is booming. It’s because the Fed has promised to continue the stimulus indefinitely.

Even though they’re going to be tapering, they did leave the door open to tapering the taper if the data turns. Powell has reassured everybody that interest rates are locked at zero for the foreseeable future – potentially indefinitely. And that’s exactly what the market wants to hear. Because as long as interest rates are not going up, and they’re going to stay at zero, and money is free, well then there’s no price too high for the stock market.”

Even with the taper and employment news, gold had a breakout day on Friday. It was up about $26 and closed solidly above $1,800 an ounce — previously an area of strong resistance. Peter said the fact gold rallied on a strong jobs report is more significant than the dollar amount of the rally. Over the past several years, gold has been clobbered after strong jobs numbers.

Some of the biggest down days gold has had this year have all occurred on days where a stronger than expected jobs report was released. A lot of times, gold would drop 20, 30, 40, even 50 dollars following a stronger-than-expected jobs report. Why? Because signs of a strong economy mean the Fed is going to be tighter. They’re going to raise rates sooner. They’re going to taper bigger. So, gold has been very nervous about the jobs numbers.”

Conversely, gold has had some of its biggest rallies after weak employment reports. All-in-all, the jobs report has been one of the biggest market-moving events for gold. So, the fact that we got a stronger than expected jobs report and gold not only didn’t go down but actually had a pretty solid day is significant.

And last Wednesday, gold didn’t drop on the taper announcement either. At the time, Peter said that indicated the taper had already been priced into the gold market.

And Friday’s action is more confirmation. Because now we got a strong jobs number and gold just shrugged it off and went higher. So, if gold didn’t go down on the taper, if gold didn’t go down on the strong jobs report, when will gold go down? It probably won’t. Because it probably means the sellers are gone.

The people who are looking to sell the taper — they’ve already sold. The people who want to sell strong jobs reports, they’ve already sold. So, all we have left are buyers. We don’t have a lot of sellers. The fundamental case for gold has never been stronger. And so, gold’s going is going a lot higher.”

In this podcast, Peter also broke down the jobs numbers, talked about the Peloton stock, discussed Michael Saylor’s claim gold will go to zero, and explained how the IRS tricked the middle class.

Tyler Durden
Mon, 11/08/2021 – 12:30

Author: Tyler Durden

Precious Metals

These 29 Analysts See Silver Going Up Dramatically This Decade

More and more analysts are forecasting a significant increase in the price of silver over the balance of the decade and below are their projections.
The…

More and more analysts are forecasting a significant increase in the price of silver over the balance of the decade and below are their projections.

An original article by Lorimer Wilson, Managing Editor of munKNEE.com – Your KEY To Making Money!

1. Goldrunner: $800 to $1,200 by 2025; $5,300 by 2030/32

“My fractal analysis chart work on Silver points to a potential price for Silver of something like $800 to $1,200 a bit later than 2025 and $5,300 by the end of this decade or early in the next based on Gold reaching Jim Sinclair’s forecast of $80,500 and using a 1 to 16 ratio of Silver to Gold.” (personal email)

2. Keith Neumeyer: $300 to $1,000

“Silver is an extremely critical metal – a strategic metal – and the investment community will figure it out eventually” and, when they do, he believes the white metal could reach the $130 level and, if gold were to hit $10,000, he could see silver at $1,000. Source

3. Hubert Moolman: +$675

“The 70s pattern is very similar to the pattern that currently exists. Therefore, I do not think it is wishful thinking that silver will reach the target of $675 as a minimum.” Continue reading…

4. Egon von Greyerz: $600 to $1,000

“If we assume $10,000 for gold and a gold:silver ratio decline to the historical average of 15, we would see a silver price of $666…If we look at silver adjusted for real inflation based on ShadowStatistics, the $50 high in 1980 would equal to $950 today so silver at between $600 and $1,000 is not an unrealistic targetContinue reading…

5. Satori Traders: $50 by 2023; $1,350 by 2028

“My long-term forecast for Silver is $600 per ounce.” Source

6. Gary Christenson: $100 to $500 in 5-7 years; +$500 by 2030

“Silver prices for the next decade are dependent upon many unknowns but a ‘more of the same’ financial world suggests silver prices will rise toward $100 in the next 5 – 7 years. A more aggressive chart interpretation shows prices for silver rallying toward $200 – $300. Indeed, if the powers-that-be create or can’t stop hyper-inflation of the dollar, $500 silver will look inexpensive by the end of the decade.”   Continue reading…

7. Peter Krauth: $300+

‘I think silver’s ultimate peak could be $300, and I won’t rule out possibly even higher.” Source

8. David Smith: $166 to $250

“[If my forecast of $10,000 gold is realized, as I think it will then] you could see $166 silver, and if…[the gold:silver ratio] drops down to 40:1, which is not out of the question, [you could easily see] $250 silver.” Source

9. Mike Maloney: $100 to $200 in 5 years

“Investment demand for silver bullion has risen sharply and, with the silver market being so tiny, it doesn’t take much investment to have an out-sized impact on its price. Silver is dramatically undervalued and represents a very compelling investment opportunity. My prediction for silver 5 years out is $100-$200.” Source 

10. Jason Hamlin: $169 by end of 2025

“The silver bull has awakened and when silver finally breaks out, the move tends to be very explosive! I think we could see silver climb to $169…by the end of 2025.″ Source 

11. Nick Giambruno: +160 

“Once the dollar starts to lose its value in earnest…people will panic into precious metals just like they did in the ’70s and ’80s, and much of that money will make its way into the tiny silver market (roughly 1/10th the size of the gold market). This will cause the price to spike above $160. It’s a predictable pattern. Bottom line, the stars are aligned for a silver price spike for the record books and now is the perfect time to get in.” Continue reading…

12. Chris Vermeulen: $90 to $550

“We believe silver will soon…move up to well above $85 per troy ounce. Ultimately, we estimate it will likely top somewhere between $90 and $550.” Continue reading…

13. CoinPriceForecast.com: $84.81 by end of 2020; $100.12 by the end of 2032

“Silver price will hit $30 by the end of 2021 and then $40 by the end of 2023. Silver will rise to $50 within the year of 2024, $60 in 2026, $70 in 2027,   $75 in 2028, $80 in 2029, $90 in 2031 and $100 in 2032.” Source

14. Jeff Clark: $30 in 2021 to +$100 in 5 years

“My most confident prediction is that over the next five years, the silver price is going to increase a minimum of $100.” Source

15. Metals Focus: +$100

“See silver prices pushing “well above” $30 an ounce.

16. Paul Mladjenovic: +$100

“Triple-digit silver—$100 or more—is a possibility in the near future.” Source

17. David Morgan: $100

“Assuming a $4,000 gold price target in two to three years’ time, which is roughly a 100% increase from current levels, and assuming a normalization of the gold-silver ratio to 40-1, then silver should be trading at $100 by the time gold doubles in value.” Source

18. Gov Capital: $70 to $95 in 5 years

“Based on our custom algorithm we predict that silver will range between $70 and $95 in 5 years time.” Source

19. Mark O’Byrne: $50 to $100

“It is important investors focus on gold and silver’s value as hedging and safe haven assets rather than their nominal price highs in dollars.” That being said he believes silver could rise to between $50 and $100. Source

20. Dumb Money: $62

“History does serve as a guide for what’s normal and, based on the simple historical average, the price of silver should be about $62.” Source

21. Andrew Hecht: +$50

“Silver’s consolidation period and tightening price ranges could be the prelude to a new record high above the 1980 $50.36 peak in the COMEX futures market.” Source

22. CPM Group: +$50

“We fully expect silver to hit a new all-time high above $50.”

23. Lorimer Wilson: $40 to $60 by 2025

Every time the gold:silver ratio has reached at least 82:1, it has led to major rallies in the silver market. For example, in mid-2003 the gold:silver ratio peaked at 82:1 and over the next 5 years, silver went up 320%; at the end of 2008 the gold:silver ratio again peaked above 82:1 and, over the next 2 years, silver went up 453%. In early 2020 the gold:silver ratio again topped 82:1 and silver has already gone up by 124% since then so, based on history, silver could easily advance to somewhere between $40 and $60 per troy ounce.

24. Eric Fry: +$50

“When this ballgame ends…silver will be topping $35 and an extra-inning affair would not surprise me, lifting…the silver price to a new all-time high above $50.” Source

25. Bank of America: $35 in 2021; $50 in medium term

“$35 silver is feasible next year, but…could rally to $50 in the medium-term.” Source

26. Tom Fitzpatrick: $50

“A move back once more towards the $50 area is a very realistic target for Silver – and not necessarily something that will take years to materialize.” Source

27. Jim Willie: $50

“A quick march to the $35 mark, then to $50 in….a few months, not a couple of years.” Source

28. Don Durrett: $50

“Once we get over $30, we will run to $35 for one final pause. Then it will be off and running to $50 and an ATH. Get ready. It’s coming.” Source

29. Lawrence Williams: +$35

“While I still think $50 silver is perhaps just about out of sight, the metal can certainly move up to perhaps $35 or more given the current momentum.” Source

 

 

The post These 29 Analysts See Silver Going Up Dramatically This Decade appeared first on munKNEE.com.





Author: Lorimer Wilson

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Ground Breakers: Costs rise for ASX gold miners as inflation bites

Gold miners have endured an arduous 2021 in equity markets. While cash has been easy to come by and deals … Read More
The post Ground Breakers: Costs…

Gold miners have endured an arduous 2021 in equity markets.

While cash has been easy to come by and deals are being done, most gold producers have been hit by poor sentiment as prices have struggled to break out.

Over the past year the All Ordinaries Gold Index has sagged around 20%.

Although most are still making good money, rising costs and the impact of inflation and labour challenges are also hitting miners in the hip pocket.

Metals Focus says the global average all in sustaining cost for gold miners hit its highest level since 2013 in the September quarter, rising 3.6% quarter on quarter to US$1123/oz.

Costs are on the rise for gold producers
Pic: Metals Focus

Australian miners were the worst off when it came to cost pressures, with costs in Australia climbing by an average of 13.1%.

Global AISC margins fell by 9% QoQ to US$667/oz, with Australia’s sliding 18%, Canada’s dropping 5% and Russia’s falling 7%.

Margins remain high historically speaking, and 94% of gold operations tracked by Metals Focus remain profitable.

“As might be expected, increasing costs and a lower gold price have squeezed margins in the September quarter,” they said.

“However it is worth noting that their margins are still substantially higher than in previous years.”

“Despite the relatively healthy margins, the lower gold price and rising costs are putting pressure on higher cost operators,” Metals Focus said.

“While the proportion of output that is profitable remains high at 94%, it has fallen from 98% in Q2.21. A number of operations and projects are already under strategic review with regards to increasing costs.”

Costs are up for goldies for the fourth straight quarter
A few more gold miners are touching the margins. Pic: Metals Focus

“If cost inflation persists and margins diminish even further it is likely that development project approvals will be delayed and also possible that the highest cost production of more marginal producers could potentially be closed.”

Although global average head grades rose 0.5% (5% in Australia), inflationary pressures including crude oil prices, rising salaries amid Covid restrictions, labour shortages and turnover, and the cost of equipment due to supply chain issues drove up operating costs for the fourth straight quarter.

Markets reacted badly this morning to news of the spread of the omicron coronavirus variant around the world, with materials sliding 1.19% this morning.

Chalice soars on new Julimar discovery

Market darling is a phrase that doesn’t quite cut it with Chalice Mining (ASX:CHN), which is up 60 times over since making the Gonneville nickel-copper-PGE discovery 70km north of Perth early last year.

Shares jumped more than 4% this morning after Chalice announced another discovery at Julimar, where last month it declared Gonneville the world’s biggest nickel sulphide discovery in 20 years and Australia’s first major platinum group elements resource.

The new mineralised intrusion is an ultramafic unit to the west of Gonneville, separated by around 70m of metasediments.

Located immediately south of the 6.5km Hartog anomaly, Chalice struck 3m at 2g/t palladium, 0.3g/t platinum, 0.6% nickel, 0.5% copper and 0.05% cobalt for a 1.7% nickel equivalent from 68m in one hole.

The second mineralised intercept struck 2m at 1.8g/t Pd, 0.2g/t Pt, 0.6% Ni, 0.5% Cu and 0.06% Co for a 1.9%NiEq from 139.2m.

The discovery did not show up on EM, “highlighting the potential for further blind discoveries” according to Chalice.

While Chalice has already drilled around 180,000m at Julimar, part of its value proposition is the idea that more will be found with the Gonneville resource accounting for just 7% of the 26km strike of the Julimar complex.

It has submitted a conservation management plan to get at the Hartog target, which will be a bit more thorny because unlike previous drilling which has been located on private farmland, Hartog lies beneath the Julimar State Forest.

Chalice says its CMP for drilling the Hartog-Baudin targets is sitting with the WA Government and it expects approvals shortly.

Chalice Mining share price today:

 

The post Ground Breakers: Costs rise for ASX gold miners as inflation bites appeared first on Stockhead.




Author: Josh Chiat

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QMines tops the class with second resource update just a few months after listing

Special Report: In just the six short months since making its debut on the ASX, QMines has delivered its second … Read More
The post QMines tops the…

In just the six short months since making its debut on the ASX, QMines has delivered its second resource estimate for the Mt Chalmers copper-gold project, which is 38% higher than the previous estimate and largely in the higher confidence measured and indicated categories.

QMines (ASX:QML) has delivered an updated resource for its flagship Mt Chalmers project in Queensland of 5.8 million tonnes at 1.7% for 101,000 tonnes of contained copper equivalent, which includes for the first time measured and indicated resources.

Significantly, 78% of the updated resource falls into the higher confidence measured and indicated categories. This is important because it gives an explorer sufficient information on geology and grade continuity to support mine planning and allows the definition of a reserve.

The updated resource is not far off the 120,000 tonnes that respected Australian investment firm Shaw and Partners forecast for the latest resource upgrade in a research note in early October.

Shaw and Partners, however, anticipated the updated resource would still be 100% inferred. This attracted an increased 72c price target from the investment firm which is a nearly 90% premium to the 38c share price QMines is trading at currently.

QMines share price chart (ASX:QML)


 

So the fact that such a large chunk of the resource is in the measured and indicated categories is a big leap in terms of confidence in the resource and should be a positive signal to the market of QMines’ ability to over-deliver against the target.

“As the company only listed in May 2021, it is a fantastic achievement to be delivering a resource upgrade for our shareholders in such a short period of time,” executive chairman Andrew Sparke said.

“It is very pleasing to see that the upgraded resource has substantially grown in both size and confidence level, with the measured and indicated categories now comprising 78% of the overall resource.”

Offering further exploration upside, Sparke says QMines has identified several volcanic-hosted massive sulphide (VHMS) prospects outside the known resource, which bodes well for further resource upgrades and the potential for future development.

A world class mine in the making

Mt Chalmers is already considered one of the world’s highest-grade gold-rich VHMS systems.

QMines has previously demonstrated the significant size potential and high-grade nature of the deposit, with recent peak grades of from a 15-hole, 2,182m diamond drilling program including 5.3% copper, 11.75 grams per tonne (g/t) gold, 243g/t silver, 33% zinc and 19% lead.

Those results, which were reported just last week, follow close on the heels of ‘bonanza’ grade copper, gold, silver, lead and zinc intercepts announced in October.

A major 30,000m drilling program continues unabated, with a third resource upgrade planned for the first half of 2022.

QMines

 

This article was developed in collaboration with QMines, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post QMines tops the class with second resource update just a few months after listing appeared first on Stockhead.






Author: Special Report

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