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Precious Metals

Platinum Price Prediction After WPIC’s Quarterly Report

Platinum price is on a corrective rebound after plunging into the oversold territory earlier in the week. While it may remain under pressure in the near…

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This article was originally published by Invezz - Commodities
platinum price

Platinum price is on a corrective rebound after plunging into the oversold territory earlier in the week. While it may remain under pressure in the near term, 2022’s outlook is rather positive.

Quarterly outlook

Platinum price is on a rebound after the week-long downtrend. Earlier in the week, it plunged further after World Platinum Investment Council (WPIC) adjusted its market outlook for Q4’21. In the Platinum Quarterly report released on 24th November, the organization raised the expected surplus for 2021’s last quarter from 190,000 ounces to 769,000. Besides, it expects the precious metal to remain in surplus in the coming year.

Notably, reduced investment demand and the chip shortage have contributed to the increased supply. Nonetheless, the expected rise in demand is expected to boost platinum price in coming months. According to WPIC, the metal’s demand in the automotive industry will likely grow by 14% and 20% in 2021 and 2022 respectively. In the industrial sector, it will likely record a recovery rate of 26% in 2021 and exceed 2019 levels in the coming year. The organization also expects heightened demand from the jewelry sector.

Platinum price prediction

Platinum price has taken a break from its week-long downtrend. In the past week, it rose to a four-month at 1,112.03. Since then, it has dropped by about 12.10%. At the time of writing, the precious metal was up by 1.79% at 992.33.

On a four-hour chart, it is trading below the 25 and 50-day exponential moving averages. Following its corrective rebound, it is now out of the oversold territory with an RSI of 41. Earlier in the week, it plunged to a one-and-a-half month low that pushed it to the oversold zone with an RSI of 17.

 Based on both the fundamentals and technicals, platinum price will likely remain under pressure for a while. In the immediate term, it may continue trading within a horizontal channel with the week’s low of 956.19 and 25-day EMA of 1004.35 being the lower and upper borders respectively.  A move below the channel’s lower border may place the support level at around 945.65. On the upside, it may rebound further to the 50-day EMA at 1,024.38 before pulling back to around the psychological level of 1,000.

platinum price
platinum price

The post Platinum price prediction after WPIC’s quarterly report appeared first on Invezz.

Author: Faith Maina

Precious Metals

Changes to Price Discovery If the Futures Market Fails

The U.S. dollar and precious metals futures have one thing in common. The value of the greenback and a contract for future delivery of metal are completely…

The U.S. dollar and precious metals futures have one thing in common. The value of the greenback and a contract for future delivery of metal are completely dependent on confidence. When, or if, that disappears, neither will be worth the paper they aren’t printed on.

The futures market is where gold and silver prices are set. “Managed” might be a better word. People who recognize price discovery is broken and corrupted often wonder what it will look like should the current system fail.

It is important to acknowledge upfront there is no telling if the futures markets will end in shambles, or end at all. It is possible for regulators and bankers to find religion and implement reforms.

And it is possible for these markets to persist without reforms. There is, after all, ample evidence of price rigging and other crooked behavior in the public record. Yet plenty of participants remain willing to trade there.

Bullish speculators are still buying contracts based on two key assumptions. They believe they have a fair chance at success versus those who are short the market, and they trust there is metal available if they should stand for delivery.

If buyers lose trust and start leaving in droves, the paper derivative price-setting mechanism will lose its relevance.

What happens to the prices of physical precious metals may be altogether different. If a collapse in futures (paper metal) is accompanied by a surge in demand for actual coins, rounds, and bars, bullion prices could skyrocket.

The premium investors pay to buy a 1,000-oz bar of silver, for example, may determine the spot price of silver. In other words, if the futures market price used as the basis for valuing bullion products becomes irrelevant, the remaining component – the premium – could become 100% of an item’s price.

Perhaps the price of actual exchange-sized bars will replace the futures price as the new basis.

The main lesson for bullion investors today is to remember that electronic futures prices are not a reliable signal for what is happening in the physical markets. A decline in gold or silver prices, as reported by CNBC, might just be very good news for your investment in physical bullion.

      



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Copaur Minerals Looks To Acquire New Placer Dome Gold In An All-Stock Deal

Copaur Minerals Inc. (TSXV: CPAU) announced on Friday evening a binding letter agreement stipulating its planned acquisition of all the
The post Copaur…

Copaur Minerals Inc. (TSXV: CPAU) announced on Friday evening a binding letter agreement stipulating its planned acquisition of all the issued and outstanding common shares of New Placer Dome Gold Corp. (TSXV: NGLD). The acquisition is expected to be settled in an all-stock deal.

The combination of the British Columbia-focused Copaur Minerals and Arizona-focused New Placer Dome Gold is said to “create a leading gold-copper exploration and development company with a portfolio of assets in two of North America’s foremost mining districts.”

Under the terms of the agreement, each New Placer Dome Gold share held will be exchanged for 0.1182 shares of Copaur Minerals, the ratio being a 55% premium on the 20-day average price of each company as of November 30, 2021.

The firm reported that after the transaction, New Placer Dome Gold will become a wholly-owned subsidiary representing 47% equity in Copaur Minerals and will be delisted from the TSX Venture Exchange. New Placer Dome Gold is also being proposed to get a minimum of two seats on the Copaur Minerals board, subject to the latter’s approval.

Currently, New Placer Dome Gold has approximately 170.4 million shares while Copaur Minerals has roughly 23.0 million shares.

In their latest quarterly financials dated September 30, 2020, Copaur Minerals recorded total assets worth $5.87 million and a net loss of $0.07 million while New Placer Dome Gold reported a total of $14.59 million in assets and a net loss of $0.08 million.

A concurrent financing by the two companies is in the pipeline as a condition to the transaction, with plans to raise gross proceeds of up to $15.0 million. Copaur Minerals will also lend New Placer Dome Gold $0.8 million in debt to fund the latter’s exploration work on the Bolo property. The loan is convertible to company units at $0.08 per unit at the sole discretion of Copaur Minerals.

The proposed transaction is expected to close in March 2022, subject to the approval of the shareholders of New Placer Dome Gold and customary regulatory approvals and closing conditions.

Copaur Minerals last traded at $1.16 while New Placer Dome Gold last traded at $0.085 on the TSX Venture. Trading for both shares has been halted since the announcement of the acquisition.


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 Copaur Minerals Looks To Acquire New Placer Dome Gold In An All-Stock Deal appeared first on the deep dive.




Author: ER Velasco

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Precious Metals

Top Silver Stocks To Watch In December

3 Silver Stocks For Your Watchlist…

3 Silver Stocks For Your Potential Watchlist

In recent times, the market for silver stocks has been fairly interesting to follow. Throughout the last year and a half, the price of silver assets has skyrocketed due to the pandemic. Many silver assets gained more in percentage terms than gold stocks. This drew a large number of new investors to the metal who had previously disregarded it.

The pandemic and market uncertainties have produced a level of volatility that has prompted some investors to reinvest in silver stocks. Silver stocks were also boosted as mainstream media reported that Reddit traders were pushing the metal’s price higher at the start of 2021. This drew a lot more attention to silver equities and, as a result, more investors.

So, why should you buy silver stocks? Silver, like gold, is an asset that people may own rather than money. When a metal is utilized more frequently by industrial enterprises, it tends to perform better. Fears of inflation are also affecting this industry right now, and no one knows what will happen in the end. So, plainly, there is a lot to consider if you are considering investing in silver stocks. Some people make an investment plan to pick which tickers to buy. With this in mind, let’s take a look at three silver stocks to keep an eye on right now.

Top Silver Stocks To Watch

Fortuna Silver Mines Inc. (NYSE: FSM)

Fortuna Silver Mines is a company that explores, extracts, and processes precious metals. The company is looking for reserves of silver, gold, zinc, and lead. Its main assets include the Cayloma and San Jose mines, as well as the Lindero Gold Project.

The business recorded a record third-quarter 2021 output of 87,950 gold equivalent ounces on October 12th. Its overall gold production in the quarter was 26,235 ounces, with 24,318 ounces in dore and a 1918 ounce gain in gold-in-carbon inventory. It produced 68,088 ounces of gold in the first nine months of 2021. This figure is consistent with the company’s revised annual outlook.

The company stated that “Gold production was 1,529 ounces, an increase of 12 percent over the third quarter of 2020. The increase in production is due to higher head grades located in the Animas NE vein. Gold production for the first nine months of 2021 totaled 4,712 ounces, which is above plan.” Will FSM be on your list of silver stocks to watch?

Endeavour Silver Corp. (NYSE: EXK)

Endeavour Silver Corp. is a silver firm that we have previously discussed extensively. This corporation acquires, explores, and develops land. Endeavour is working on mineral processing, refining, and reclamation. The majority of Endeavour’s key assets are in both Mexico and Chile. Endeavour’s mines are mostly used to mine silver and gold.

On December 2nd, the company announced that it has intersected high-grade silver-gold mineralization at its Guanacevi and Bolanitos operations. At its Guanacevi operations, it reported 1.97 gpt Au and 1,254 gpt Ag for 1,412 gpt AgEq over a 3.22 m ETW, and 4.36 gpt Au and 1,450 gpt Ag for 1,798 gpt AgEq over a 3.18 m ETW. At Bolanitos, Endeavour reported 8.08 gpt Au and 151 gpt Ag for 797 gpt AgEq over a 1.67 m ETW, and 1.26 gpt gold and 241 gpt silver for 342 gpt AgEq over a 0.96 m ETW.

CEO of Endeavour, Dan Dickson said, “We continue to see exceptional drilling results within the El Curso and the Santa Cruz Sur systems at our Guanacevi silver mine. We have been operating at Guanacevi for more than 15 years and these encouraging results support our view that we can continue to extend the mine life.” Will EXK be on your silver stock watchlist?

Harmony Gold Mining Company Limited (NYSE: HMY)

Harmony Gold Mining Company Limited is a mining stock that has been mentioned a lot on goldstocks.com in the past. This firm searches for, extracts, and processes gold, silver, copper, and uranium. It presently operates in South Africa and Papua New Guinea, both of which have proven to be profitable for the company.

The company’s earnings and revenues increased year over year in fiscal year 2021, according to the most recent release. This was owing to rising metal prices and the company’s rapid expansion. Given that Harmony hasn’t issued any updates in quite some time, it’ll be interesting to see what they have in store for their shareholders before the end of the year.

Best Silver Stocks In 2021?

It’s challenging to decide which silver stocks to buy. There are several factors to consider before investing in mining companies. However, completing an extensive study and selecting what is ideal for you will be quite beneficial throughout the process. Which silver stocks will you be keeping an eye on for the time being?

The post Top Silver Stocks To Watch In December appeared first on Gold Stocks to Buy, Picks, News and Information | GoldStocks.com.

Author: Joe Samuel

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