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Top Stories This Week: Gold Ends August Strong, Pops on Jobs Data

Catch up and get informed with this week’s content highlights from Charlotte McLeod, our editorial director.
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This article was originally published by Investing News Network

The beginning of August was rocky for gold, but the yellow metal finished off the month fairly strong, staying steady above the US$1,800 per ounce level.  

September has so far been even better for gold, which rose to around the US$1,830 level on Friday (September 3) after the latest American jobs numbers came in lower than anticipated.

The US Department of Labor reported that only 235,000 jobs were added in August, far below the 720,000 expected by economists and the worst total since January. The unemployment rate dropped to 5.2 percent from 5.4 percent, which was in line with estimates.

 

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“The labor market recovery hit the brakes this month with a dramatic showdown in all industries,” Daniel Zhao, senior economist at jobs site Glassdoor, told CNBC. “Ultimately, the Delta variant wave is a harsh reminder that the pandemic is still in the driver’s seat, and it controls our economic future.”

Gold’s upward momentum in September comes after it dropped below US$1,800 last week following the US Federal Reserve’s meeting in Jackson Hole, Wyoming. At the annual event, Chair Jerome Powell said he supports tapering bond purchases this year, but didn’t indicate a timeline.

Speaking about the central bank’s latest meeting, Chris Marchese of GoldSeek and SilverSeek described the tone as “very dovish,” which is good news for precious metals. He also pointed out that the Fed is still a long way from hiking interest rates, and said it will still be buying assets even when tapering starts.

Chris has a positive outlook on gold overall, and reminded investors who may be discouraged by this year’s performance that the biggest pullbacks come during bull markets.

“The financial system has not been fixed since 2008, 2009. It’s still a mess, and we’re just trying to paper it over by printing more and more money. That has never been successful in the history of the world, so I don’t see why it would be now” — Chris Marchese, GoldSeek & SilverSeek

Also this week, INN’s Priscila Barrera looked at ESG, a topic that’s becoming increasingly important across the mining sector. ESG is an acronym used to represent environmental, social and governance issues, meaning that it brings non-financial variables into investing.

ESG is a wide-ranging concept, and since it’s still relatively early days it can be difficult for investors to understand whether a company is doing a good job hitting ESG targets. To solve that problem, many firms have devised rating systems to evaluate companies’ efforts — but even then it can be tough to directly compare businesses focused on different industries.

 

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“It’s really challenging to ‘grade’ a certain company, just because there’s no universal metric that applies to every company” — Federico Gay, Refinitiv

So what should resource investors know about ESG? For now, one key takeaway is that mining companies have a high capacity to be impacted by ESG concerns.

“(Mining companies) have a number of issues that they have to deal with, which have a high capacity to affect returns and business growth. In terms of management, disclosures are still weak in some companies, they are still catching up, especially in emerging markets” — Dana Sasarean, Sustainalytics

But there are options out there — Wheaton Precious Metals (TSX:WPM,NYSE:WPM), Franco-Nevada (TSX:FNV,NYSE:FNV) and Teck Resources (TSX:TECK.A,TSX:TECK.B,NYSE:TECK) are three mining companies that research firm Sustainalytics has given high ESG ratings.

With ESG in mind, we asked our Twitter followers this week whether it’s an idea they consider when they make investments in the mining space. By the time the poll closed respondents were split fairly evenly — about 55 percent said yes and 45 percent said no.

We’ll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there’s someone you’d like to see us interview, please send an email to cmcleod@investingnews.com.

And don’t forget to follow us @INN_Resource for real-time updates! 

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

 

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The post Top Stories This Week: Gold Ends August Strong, Pops on Jobs Data appeared first on Investing News Network.

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Aldoro Resources covering all bases with rubidium, lithium, nickel, copper, gold and more in rock chip samples

Special Report: Aldoro Resources is covering all bases across its diverse prospects in WA, posting high-grade rock chip assays for … Read More
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Aldoro Resources is covering all bases across its diverse prospects in WA, posting high-grade rock chip assays for a suite of metals including gold, copper, nickel, lithium and rubidium.

Junior explorer Aldoro (ASX:ARN), is using grassroots exploration techniques to improve the surface geochemical knowledge of its tenements across the Wyemandoo pegmatite, Narndee Igneous Complex, and Quandong Well target, collecting 20 rock chip samples.

Evidence of mineralisation across pegmatite, magmatic nickel-copper gossan and VMHS gold-copper targets was uncovered at all three targets.

Samples from the Wyemandoo pegmatite returned top grades of 0.80% rubidium and 0.81% lithium.

A high-grade rubidium-lithium lepidolite pegmatite sample from Wyemandoo. Pic: Aldoro Resources

The results are exciting after Aldoro recently identified world-class rubidium potential of its nearby Niobe project, and warrant drilling investigation.

At Narndee, top results from samples included up to 0.37% nickel, 0.15% copper, 0.09% cobalt, 27ppb palladium and 22ppb gold.

That included two samples taken from gossans within a couple of kilometres of the VC1 target, where Aldoro struck magmatic sulphides in the first drilling undertaken at Narndee in a decade.

Aldoro Resources
Gossan 2, exposed in a historical exploration pit 1000m SSW of the significant VC1 drill hole. Pic: Aldoro Resources

Meanwhile, sampling at Quandong Well returned best results of 1.93g/t gold and 0.45% copper.

BHP subsidiary Dampier Mining explored Quandong Well in the 1970s, drilling 31 holes for 1731m that are yet to be compiled and validated by Aldoro.

The old timers reported significant copper, zinc, and gold results in oxide phases close to the surface, grading into a sulphide assemblage of pyrrhotite and chalcopyrite at depth.

Next steps

The rock sampling program was an important step for Aldoro, which noted the surface geochemical dataset is inadequate over most of its tenement package.

Initial results have enabled the company to develop an industry-standard database as a launchpad to future exploration success at Wyemandoo, Narndee and Quandong Well.

Aldoro plans to complete systematic rock chip and soils sampling programs and detailed mapping over the Wyemandoo pegmatite swarm.

This will identify the most prospective zones for drill targeting and locate pegmatite strike extensions and occurrences under soil cover.

The company said field reconnaissance and field mapping will continue to locate and assess all prospective areas of the tenement package for LCT pegmatites, nickel gossans, and copper-gold gossans.

 


 

 

This article was developed in collaboration with Aldoro Resources, 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 Aldoro Resources covering all bases with rubidium, lithium, nickel, copper, gold and more in rock chip samples appeared first on Stockhead.

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Cannindah up 21pc on gigantic copper hit

Special Report: First assays from an ongoing drilling program at the historic Mt Cannindah copper-gold-silver project in central Queensland are … Read…

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First assays from an ongoing drilling program at the historic Mt Cannindah copper-gold-silver project in central Queensland are in – and they look very good.

The recent increase in copper prices has underlined the significant value of Cannindah Resources’ (ASX:CAE) brownfields ‘Mt Cannindah’ copper-gold-silver project, which boasts an existing JORC resource of 5.5 million tonnes @ 0.93% copper and significant exploration upside.

The company is currently undertaking a 1,450m drilling program to explore both new and existing areas.

Mt Cannindah project: location of identified resources & known targets.

 

Success has come quickly, with the top portion of hole two hitting 117m at 1.01% copper, 0.39g/t gold and 28g/t silver from 34m to 151m.

Assays are pending for the subsequent 180m interval from 150m to 330m. This bottom portion “contains visual primary copper mineralisation, many metres of which looks similar in tenor to the 34m-151m interval”, the company says.

Coming next – hole 3 (21CAEDD003) — completed for 762.2m vs the planned 250m — has also encountered significant copper, the company says. The exciting visuals of the core has driven the significant increase in meterage.

The hole was drilled to the drill rig’s capacity and ended in copper-rich sulphidic breccia.

It is now the deepest hole drilled within the Mt Cannindah mine area, the company says.

“Copper assays are awaited, [but] preliminary tests from visual estimates of chalcopyrite, and PXRF analyses of sludge samples to date, all indicate significant copper values should be returned over large sections of at least the first 500m or so of hole 21CAEDD003,” Cannindah says.

Results received to date underpin potential extension of the current 5.5Mt JORC resource, with the supergene zones offering further grade upside upon incorporation.

“Although assays are needed to confirm the significance of the discovery, CAE are highly encouraged that this strategy has been successful and a major extension to the known Cu-Au-Ag resources at Mt Cannindah mine will likely follow from the drilling of hole 21CAEDD003,” the company says.

“This goal has eluded the major mining houses that have previously explored Mt Cannindah.”

New diamond drilling is yet to occur on other targets such as Cannindah East, where the explorer is also expecting encouraging results. Cannindah East has a non JORC gold resource of 245,000t grading 2.8g/t.

The $77m market cap stock is up 383% year-to-date.

 

Cannindah Resources share price today:


This article was developed in collaboration with Fresh Equities, 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 Cannindah up 21pc on gigantic copper hit appeared first on Stockhead.

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Precious Metals

UPDATE – Gold:Silver Ratio Suggests Much Higher Future Price for Silver (+30K Views)

Silver is currently greatly undervalued relative to its average long-term historical relationship with gold and, as such, it is realistic to expect that…

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Silver is currently greatly undervalued relative to its average long-term historical relationship with gold and, as such, it is realistic to expect that silver will eventually escalate dramatically in price. How much? This article applies the historical gold:silver ratios to come up with a range of prices based on specific price levels for gold being reached.

By Lorimer Wilson (www.munKNEE.com)  – “ The internet’s most unique site for financial articles! (Here’s why)”.

Gold to Silver Ratio

How both gold and silver perform, in and of themselves, does not tell the complete picture. More important is the price relationship – the correlation – of one to the other over time, the gold:silver ratio.

Let’s look at the gold:silver ratio from several different perspectives:

  • Over the last 50 years, the average value of the gold-silver ratio was approximately 57:1.
  • Over the last 25 years, the average value of the gold-silver ratio was 64:1.
  • Over the last 10 years it was 66:1.
  • since 1985 the mean ratio has been 45.7:1

Let’s now look at the various price levels for gold and the various gold:silver ratios mentioned above, one by one, and see what conclusions we can draw.

First let’s use the price of $1,750 for gold and apply the gold:silver ratios mentioned above in approximate terms and see what they do for the potential % increase in, and price of, silver.

  • Gold @ $1,750 using the 57:1 ratio (50-yr. avg.) puts silver at $30.70
  • Gold @ $1,750 using the 66:1 ratio (10-yr. avg.) puts silver at $26.51

Now let’s apply the projected potential parabolic peaks of $2,000, $3,000, $5,000 and $10,000 to the various gold:silver ratios and see what they suggest is the parabolic top for silver.

Silver’s Potential Price Range With Gold At $2,000

  • Gold @ $2,000 using the ratio of 57:1 puts silver at $35.09
  • Gold @ $2,000 using the ratio of 66:1 puts silver at $30.30

Silver’s Potential Price Range With Gold At $3,000

  • Gold @ $3,000 using the ratio of 57:1 puts silver at $52.63
  • Gold @ $3,000 using the ratio of 66:1 puts silver at $45.45

Silver’s Potential Price Range With Gold at $5,000

  • Gold @ $5,000 using the gold:silver ratio of 57.1 puts silver at $87.72
  • Gold @ $5,000 using the ratio of 66:1 puts silver at $75.76

Silver’s Potential Price Range With Gold at $10,000

  • Gold @ $10,000 using the gold:silver ratio of 57:1 puts silver at $175.44
  • Gold @ $10,000 using the ratio of 66:1 puts silver at $151.52

It would appear that, any way we look at it, physical silver is currently undervalued compared to gold bullion and is in position to generate substantially greater returns than investing in gold bullion.

Gold to Silver Ratio Conclusion

This fiat currency experiment will end badly in a currency crisis and when that happens, as it surely will, gold will go parabolic and silver along with it – but even more so – as the gold:silver ratio adjusts itself to more historical correlations.

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The post UPDATE – Gold:Silver Ratio Suggests Much Higher Future Price for Silver (+30K Views) appeared first on munKNEE.com.

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