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Silver Lining To Silver Mining Stocks?

Joe Samuel

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mining stock

The price for silver has dropped 16% in the last year, troubled by trade war tensions and strengthening U.S. dollar. Additionally, the potential of the Fed rate hike has combatted the white metal. A growing economy gives the Federal Reserve reason to raise rates. It is a well-known fact that higher U.S. rates dent the appeal of silver as it does not offer interest. Consequently, an interest rate hike, which is likely at the FOMC meeting on Sep 25-26, is likely to drag down silver further.

So it may be a bit too early to write-off silver and silver-mining stocks. Despite the troubling price trends, silver’s basic image looks relatively strong. Silver may end up bouncing back and following are the factors that can be instrumental in its turnaround.

Silver’s unmatched fundamentals act as the base for many industrial products. Industrial demand primarily accounted for 60% of global silver consumption in 2017. The U.S. economy is expanding at its fastest pace in years and growing industrial activity will provide the much-needed boost for silver demand.

In addition, the demand for jewelry creation is expected to jump. Silver demand from the jewelry sector stakes claim to roughly one-fifth of total silver demand. For many fashion-conscious consumers, silver is more desirable than gold because of its color neutrality, which provides more versatility. Moreover, silver serves as a safe haven asset in times of uncertainty.

China will continue to be a major driver in the global silver market for years to come, fueled by continued industrial demand and silver mining activity. China is by far the largest consumer of silver globally, accounting for around 18% of global fabrication demand. In fact, China’s robust demand for the metal makes it a major destination for imported silver products fabricated in the United States, Japan, and other countries.

The demand for silver continues to climb, especially with more uses in technology as the world creates more electric cars and robotics. The continual revolution in green technologies, helped by the strong growth of new energy vehicles and investment in solar photovoltaic energy, will be a major boon. To curb pollution, governments globally are providing financial incentives and imposing regulations that favor the development of electric and hybrid vehicles. Additionally, rising investment in solar energy applications will boost silver demand in the years to come.

Global silver mine production suffered a dip of 4.1% to 852.1 million ounces in 2017 – its second consecutive annual decline. There has also been a downward trend in silver scrap supply since 2011. The prospects of a dwindling supply loom large on the industry. This is due to the absence of a development of new projects, declining ore grades, and depleting reserves. A potential silver deficit will provide a strong ground for silver prices.

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Gold Stocks To Watch As Yield Curve Inverts

Jon Phillip

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gold stocks to watch

The world has been in all sorts of economic chaos due to the range of macroeconomic issues that have engulfed it in 2019. That has meant that investors have had a hard time getting comfortable. In such a situation, investors look toward things like gold stocks and other safe haven stocks for proverbial “security.” As the trade war between the United States and China rages and uncertainties regarding rate cuts continue, the price of gold is expected to rise.

Gold Stocks To Watch

Some of the notable stock gainers include:

  • Asanko Gold Inc (TSX:AKG) up 50% in the past two months
  • Harmony Gold Mining Co. (NYSE:HMY) has gained about 95% since early July
  • NovaGold Resources Inc. (TSX:NG) is up over 85% since early June and made a new 52-week high last week.

But this is just the tip of the iceberg as the gold price boom reaches far and wide. Tepid global economic data continues to suggest a bullish case for gold. Non-farm jobs figures, China PMI and the business climate for countries like Germany could point to a slowing economy. This would help the stance on safe-haven stocks. Furthermore, if the Fed sticks to a plan that would involve more rate cuts, there could be even brighter days ahead for the yellow metal.

Gold Stocks #1: RosCan Gold (ROS.V)

These are “early days” in its exploration program. RosCan Gold Corporation (ROS.V) property position is not only on the prolific Siribaya Structure which hosts the Siribaya, Kabaya, Seko and Mankouke discoveries but also covers many other gold anomalies and several other structures. With a significant land position of 100%-owned permits in an area of producing mines, this junior miner may soon hit the radar of gold bulls.

gold stocks to watch ROSCAN GOLD

RosCan recently announced positive assay results from both its diamond drilling and air core (AC) drilling programs at its Kandiole Project in Mali, West Africa. This drilling program was completed during April to July of 2019 and was designed to test both the north and south extensions of the Mankouke gold discovery zone and many other strong termite and soil, gold anomalies. Based on these highlights, RosCan management appears optimistic about the future prospects of the property:

In hole ACMan 19-1675.86 g/t Au over 26.0 m (incl. 9.44 g/t Au over 10.0 m)
In hole ACMan 19-1683.74 g/t Au over 30.0 m (incl. 6.73 g/t Au over 6.0 m)
In hole DDH 19-048.63 g/t Au over 10.0 m (incl. 11.48 g/t Au over 7.0 m)
In hole DDH 19-036.53 g/t Au over 5.0 m (incl. 10.09 g/t Au over 3.0 m)
In hole DDH 19-035.56 g/t Au over 3.0 m (incl. 7.14 g/t Au over 2.0 m)
In hole DDH 19-083.45 g/t Au over 10.0 m (incl. 6.76 g/t Au over 3.0 m)

This drilling indicates that the initially reported gold discovery (News Release January 24, 2019) has “roots” and is not near-surface enrichment (supergene). This drilling information clearly shows the potential at depth in this area and identifies that this is typical Birimian, hydrothermal-type gold mineralization.

RosCan Corporate update, July 22, 2019

Gold Stocks #2: Eldorado Gold (EGO)

At nearly $9 a share, you would hardly believe that earlier this year, Eldorado Gold (TSX:EGO) was just a penny stock. This gold stock has rallied from 52-week lows of US$2.52 to 52-week highs of US$8.99 within the span of a few months. JP Morgan raised its price target this week from C$10 to C$13. National Bank followed suit by raising its target C$0.50 to C$11.50.

Though the company missed earnings estimates, prospects for gold are too hard to ignore. Gold production for the quarter totaled 91,803 ounces with 174,780 ounces produced year-to-date. Gold production included 33,140 ounces from Lamaque in its first quarter of commercial operations, of which 5,057 ounces were produced from stockpiles mined during the pre-commercial production period.

Furthermore, the company finished the quarter with approximately $300 million of available cash including $119.9 million in cash, cash equivalents and term deposits and approximately $179 million available under its $250 million line of credit, with $71 million of capacity on the line of credit allocated to secure certain obligations in connection with its operations.

Gold Stocks #3: Yamana Gold (YRI)

The third company on this list of gold stocks to watch: Yamana Gold (TSX:YRI). Similar to Eldorado, Yamana made new 52-week lows and highs within the span of just a few months. In May, the gold stock traded as low as $1.78 and just a few days ago it hit highs of $3.74.

Yamana saw its fare share of target price increases over the last few days as well. National Bank ($C4.50 to C$5.25), Either Capital (C$4.50 to C$5.5), RBC Capital (C$3 to C$3.50) and Raymond James (C$3.25 to C$3.50) all raised price targets. Yamana also announced the Reference Yields and Consideration payable in connection with its previously announced cash Tender Offer for its 4.78% Senior Notes due 2023.

Yamana Gold Inc. is a Canadian-based precious metals producer with significant gold and silver production, development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile, and Argentina.

Key Reasons Behind A Move In Gold

At the start of the year, gold was trading at just under $1,300 per ounce but since then it has gone on an incredible rally as more and more capital flowed into it. Over the past days, the price of gold hit $1520 per ounce. Many analysts believe that the price is going to rise further during the rest of the year. While Goldman Sachs stated last week that it believes that the price could breach $1600 per ounce in the second half of 2019, there are other analysts who believe that gold could even hit $2000 per ounce.

<Read More> Gold Prices Have Investors Scrambling & Analysts Clamoring For Junior Gold Stocks

The assertion of these analysts is not completely overblown, considering the fact that the trade war between the United States and China has taken a turn for the worse. The two nations seemed to have been on the path to reconciliation toward the end of July but last week United States President Donald Trump imposed tariffs on $300 billion worth of Chinese goods.

In retaliation, China devalued its currency and analysts believe that it could also spark a currency war between the two nations. In such a situation, it is only natural for investors to quickly look for safer assets to invest in and at this point in time, it is hard to look past gold.

gold stocks to watch
Disclaimer: Pursuant to an agreement between Midam Ventures LLC and RosCan Gold Corporation (ROS.V), Midam has been paid $100,000 by RosCan Gold Corporation (ROS.V) for a period from July 1, 2019 to November 1, 2019. We may buy or sell additional shares of RosCan Gold Corporation (ROS.V) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about RosCan Gold Corporation (ROS.V). Click For Full Disclaimer.

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Gold Jumps Over $1,500 Mark Amidst Renewed Optimism: Stocks To Watch

Joe Samuel

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gold stocks to buy and sell

The overall uncertainty in the global economy has been the biggest bane of investors for much of 2019 and there is currently no end in sight to that particular problem. Stock markets almost all over the worlds have been muted for long periods due to the continuing U.S.-China trade tensions, uncertainties with regards to central bank rate cuts and concerns about global growth.

[Read More] Gold Prices Have Investors Scrambling & Analysts Clamoring For Junior Gold Stocks

In such a situation, investors have instead gone for safer avenues in order to protect their capital and that resulted in more investments in gold. The metal has had an incredible rally for much of the year and on Wednesday gold futures soared further to hit $1500 per ounce. On that note, it is interesting to take a look at some gold stocks

Roscan Gold Corp (ROS.V) – Making New August Highs

Shares of RosCan Gold Corporation (ROS.V) have been climbing since mid-July. After hitting lows of CA$0.11 on July 16, Roscan stock price has climbed to highs of CA$0.185 this month.

gold stocks to watch ROSCAN GOLD

RosCan Gold Corporation (ROS.V) has amassed a significant land package. It encompasses 271km2, through option agreements to acquire 100%-owned permits. These are in the prolific gold prospective Birimian rocks of west Mali. Roscan believes these are high potential properties. Why? They are located in an area of existing gold deposits and multi-million-ounce producers.

This includes B2 Gold’s Fekola Mine, which lies in a contiguous property to the west of its Kandiole project. RosCan Gold Corporation (ROS.V) may be on the verge of something big. RosCan’s initial compilation of technical information of the Kandiole Project identified several areas of immediate interest.

[NEW DEVELOPMENT] Roscan (ROS.V) Expands Gold Zone at Mankouke and Makes a New Discovery at Its Kandiole Project in Western Mali

Roscan Gold reported positive assay results from both its diamond drilling and air-core (AC) drilling programs at its Kandiole Project in Mali, West Africa. The drilling program was completed during April to July of 2019 and was designed to test both the north and south extensions of the Mankouke gold discovery zone and many other strong termite and soil, gold anomalies.

gold stock to buy or sell ROSCAN GOLD

B2Gold Corp. (BTO.TO) – Opportunity In Pullback or New Lows Coming?

The gold penny stock rose by as much as 11% at one point on Wednesday. This came after its Q2 2019 results beat analysts’ expectations. The company generated $52 million in net income for the quarter. But the more important thing to consider is that it also generated 246,020 ounces of gold.

According to management, B2Gold’s (BTO.TO) current strategy is to continue to reduce debt. It also wants to expand the Fekola Mine throughput and annual production. Management would like to further advance its pipeline of development and exploration projects and evaluate exploration opportunities.

The Company has recently commenced the mill expansion at the Fekola Mine, which is expected to be completed early in the fourth quarter of 2020 and to significantly increase annual gold production and enhance the Fekola Mine economics. In addition, infill drilling is ongoing on the Fekola North Extension to convert inferred gold resources to indicated resources.

Americas Silver Corp (USA.TO) – Gold Stock To Continue Higher In August?

This gold stock has been in an uptrend since early June. Americas Silver (USA.TO) cracked new 2019 highs on Thursday after rallying to highs of $3.63. This move came as the company reported Q2 results. Americas Silver President and CEO Darren Blasutti said in a press release, “The second half of 2019 will be a very exciting period for our Company as we expect not only higher silver production, but most importantly, first gold pour from the Relief Canyon Mine.”

  • Consolidated silver production for the second quarter of 2019 was 345,695 ounces and silver equivalent production was approximately 1.7 million ounces, an increase of 15% year-over-year for both metrics.
  • Cash costs (consolidated) increased 235% to $8.28 per silver ounce year-over-year and AISC increased 199% to $16.15 per silver ounce compared year-over-year.
  • Consolidated zinc production increased by 27% year-over-year, while consolidated lead production increased by 16% year-over-year.
Gold stocks to buy or sell USA

Other popular gold stocks include First Majestic Silver Corp. (FR.TO) and New Gold Inc (NGD.TO)

Can Gold Price Continue To Soar?

The rise in price per ounce stood at 2.6% as gold reached its highest levels since 2013 and it is interesting to note that in 2019 alone, it has jumped by as much as 19%. While it is true that the rise in the price of gold this year has been triggered by the factors mentioned above, the recent spoke has been brought on by escalation of tensions between the United States and China.

United States President Donald Trump imposed fresh tariffs on hundreds of billions of dollars worth of Chinese goods last month. In retaliation, the Chinese devalued their currency. The devaluation has pretty much offset the tariffs that Chinese exporters have to pay at this point in time. This could be seen as a clear escalation of tensions and currently, there is no end in sight.

An executive at the commodities and foreign exchange department of UBS Group AG stated that gold is now being used as a safe haven asset by investors. On top of that, Goldman Sachs Group also stated that the rising worries with regards to growth could see the price of gold eventually touch as much as $1,600 per ounce within the upcoming six months. In such a situation, the price of gold mining stocks also tends to go up and more often than not, the stock prices rise at a quicker rate than that of gold.

gold stocks
Disclaimer: Pursuant to an agreement between Midam Ventures LLC and RosCan Gold Corporation (ROS.V), Midam has been paid $100,000 by RosCan Gold Corporation (ROS.V) for a period from July 1, 2019 to November 1, 2019. We may buy or sell additional shares of RosCan Gold Corporation (ROS.V) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about RosCan Gold Corporation (ROS.V). Click For Full Disclaimer.

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Gold Jumps to New Highs; Adds To Safe Haven Rush

A. Lawrence

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gold stocks to watch

Due to the range of macroeconomic issues that have plagued the world over the course of the past year, the price of gold has climbed at a breakneck rate. It is at its highest levels since 2013. The trade war between the US and China created a highly volatile investment climate. As a result, many investors parked their money in safer assets like gold.

On the other hand, the uncertainty with regards to the rate cuts from the US Federal Reserve had also played its part. On Monday morning, the price of gold moved beyond $1,470 per ounce. Now, plenty of investors are considering whether they should get involved in this rally or not.

Fed Supports Gold

Experts believe that the latest rate cut from the Fed was a significant trigger behind the rally that gold experienced last week. However, there’s a widespread belief that another rate cut is going to take place later this year. That has made plenty of analysts believe that the gold rally is going to continue.

spot gold price

In fact, some experts have stated that the price could even go beyond $1600 per ounce. Additionally, there is no shortage of anxiety in the financial markets either. The U.S.-China trade war is far from being resolved, while the Brexit issue in the UK is going to rumble on for some time.

Read More

Gold Prices Have Investors Scrambling & Analysts Clamoring For Junior Gold Stocks

Canadian Gold Stocks In Focus As Gold Price Reaches Multi-Year Breakout

The possibility of a ‘no deal’ Brexit is going to spook investors if the new Prime Minister is unable to agree on a deal with the European Union prior to the deadline. In this regard, it needs to be pointed out that the stock price of companies involved in gold mining rises at a faster rate than the price of gold and investors should consider having a look at some of those companies if they want to profit from this gold rally.

Gold Stocks To Watch

Some of the gold stocks to watch are New Gold Inc (NGD Stock Report), and Kinross Gold Corporation (KGC Stock Report), AngloGold Ashanti Limited (AU Stock Report) and others. Barrick Gold (ABX Stock Report) (GOLD) has hit new highs this week amid the gold price rally.

Barrick Gold Corporation president and chief executive Mark Bristow said his meeting today with prime minister James Marape had served to confirm the need for a partnership approach to the future of the Porgera gold mine. This was Bristow’s second meeting with the recently elected prime minister and his third visit to Papua New Guinea since he joined Barrick at the beginning of the year.

Porgera’s special mining lease expires this month and the government is currently considering an application for a 20-year extension by its operator, Barrick Niugini Limited, a joint venture between Barrick and Zijin Mining Group of China.

Roscan Gold Corporation (ROS.V): The Next Canadian Gold Stock To Watch For 2019

RosCan Gold Corporation (ROS.V) has already positioned itself in one of the most prolific gold regions in the world. Specifically, RosCan is currently in the process of assembling a sizeable land package in the Birimian Rocks of West Mali, the most productive greenstone gold belts on the continent.

And RosCan Gold Corporation (ROS.V) is in one of the hottest regions on the planet.  Africa holds 40% of the world’s gold reserves. Ghana, Burkina Faso, and Mali produce nearly twice what South Africa did in 2018.

RosCan Gold Corporation (ROS.V) has amassed a significant land package. It encompasses 271km2, through option agreements to acquire 100%-owned permits. These are in the prolific gold prospective Birimian rocks of west Mali. Roscan believes these are high potential properties. Why? They are located in an area of existing gold deposits and multi-million-ounce producers.  

This includes B2 Gold’s Fekola Mine, which lies in a contiguous property to the west of its Kandiole project. RosCan Gold Corporation (ROS.V) may be on the verge of something big. RosCan’s initial compilation of technical information of the Kandiole Project identified several areas of immediate interest.

Billionaires Are Already Starting To Pour Money Into Gold Stocks

When it comes to gold and gold stocks, most novices will hear about big money from “Main Street.” But this usually comes well after Wall Street hedge funds have already piled in. So it’s important to read between the lines and sniff out early institutional bulls.

In recent months, some of the most elite investors have turned to precious metals like gold. This is part of their overall investment strategies. Whether you like Trump or not you’ll most likely agree on one thing. That one thing is that he’s thrown a wrench into the U.S. political climate. It remains to be seen what comes of that. But the president’s actions so far have some billionaires expecting his disruptive political influence to spill further into the markets.

That “pile in” we talked about may have quietly, already begun. Billionaire hedge fund manager and DoubleLine Capital founder, Jeffrey Gundlach said in a recent interview, “I am certainly long gold… Gold and commodities broadly should benefit this year.”

This isn’t a secret anymore. With continued global financial uncertainty, a push for further decentralization of currencies, and the clear demand by the world’s biggest billionaires to shift investment into gold, what better time is there to take a serious look at gold stocks?

gold stocks
Disclaimer: Pursuant to an agreement between Midam Ventures LLC and RosCan Gold Corporation (ROS.V), Midam has been paid $100,000 by RosCan Gold Corporation (ROS.V) for a period from July 1, 2019 to November 1, 2019. We may buy or sell additional shares of RosCan Gold Corporation (ROS.V) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about RosCan Gold Corporation (ROS.V). Click For Full Disclaimer.

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