JD400
1 week ago
Save Canadian Mining - The Big Push
Sep 17, 2024
Naked Short Selling has cost Canadian small cap companies upwards of $1 Trillion according to Terry Lynch referencing a recent Globe & Mail article.
Terry Lynch is the CEO of Power Nickel and the Founder of "Save Canadian Mining", the small cap stock advocacy group backed by industry giants such as Eric Sprott, Keith Neumayer, Robert McEwen and multiple sponsors who have worked tirelessly and given generously over the last 4 years to conduct research, create reports and meet with key government officials & regulatory bodies - all for the singular purpose of putting an end to the devastating practice of illegal short selling in the Canadian small cap market.
FRIDAY THE 13TH UPDATE VIDEO FOLLOWS BLACK FRIDAY AND GOOD FRIDAY VIDEOS
On a couple of occasions over the past 10 months Save Canadian Mining has held major webcasts for the industry, beginning with the Black Friday event (November 2023) in which Wes Christian and David Wenger discussed the landmark decision in a New York case in which Broker-Dealers could now be liable for failing to fulfill their "Gatekeeping Responsibilities" of monitoring client trading actions
Then came the Good Friday video (March 2024) in which Terry and his team not only discovered the shocking mechanism to facilitate the firehose of naked short selling - but along with it the specific actions that could easily be taken by regulators and/or government officials in order to put an end to it.
Thousands of small cap companies and tens of thousands of investors participated.
As a result of the reaction and reach of that video, which laid the foundation for both a massive industry wide social media campaign and a potential billion dollar plus class action lawsuit against one of Canada’s big banks, Save Canadian Mining was able to secure meetings with leading Ontario Provincial Government officials. At that point, a decision was made to pause the campaign in order to give the talks a chance to bear fruit.
We are going to talk about those talks, as well as, a shocking revelation that came out of a legal document filed with the Supreme Court of British Columbia recently.
RCMP & DOJ RECEIVE EVIDENCE DETAILING EVIDENCE OF COLLUSION BETWEEN BANKS AND REGULATORS TO SUPPRESS THE TRUTH
12 Years
166 Exhibits
3,631 Pages
“A Pattern Consistent With The Definition Of Organized Crime”
Suffice it to say, this 3rd installment of the Save Canadian Mining video series is the most serious and important one yet
SUE + SOCIAL MEDIA PRESSURE + EMBARRASS. THE PLAN TO MOBILIZE SMALL CAP COMPANIES, INVESTORS AND VENDORS
While the class action ramps up, we have put together a plan to mobilize hundreds of small cap companies, their investors and their vendors with a coordinated social media campaign that simply can not be ignored by the banks, regulators and government.
Finally, for investors that are active, vocal and passionate about this topic on social media platforms, there is an Easter Egg waiting for you in this video that you 100% guaranteed will NOT want to miss.
Thank you for now taking the time to watch this video and please be sure to share it with your networks across all of your social media platforms.
Let the Big Push Begin to make Canadian markets fair to all investors.
0:00 PRE-AMBLE
4:00 Doug Ford Talks
6:35 Ontario PC Understanding
7:55 Market Cap Destruction
9:50 Alcohol Over Naked Shorting
12:48 BIM Organized Crime Filing
13:58 Terry's Reaction
18:00 Trillion Dollar Terror
18:35 Stop The Bleeding
19:17 3 Brokers Support
21:25 Walls Closing In
23:20 The Brawl Phase
24:45 The Class Action
27:00 The CIBC "Kiss"
29:40 Joining Forces
31:08 Donations Big & Small
32:00 Search For Pit Bull
35:55 Social Media Reward Plan
41:10 Commodity Market Optimism
Save Canadian Mining
https://savecanadianmining.com
JD400
1 week ago
$MUX Institutional corrupted mining stocks rise on Chinese stimulus
Of course nothing to do with MUX or even mining & metals
Everything to do with corrupted Banksters or as Rob calls it (Markets)
Ambrose Evans-Pritchard: Groundswell builds for massive Chinese stimulus but today wasn't real thing
Submitted by admin on Tue, 2024-09-24 22:07 Section: Daily Dispatches
By Ambrose Evans-Pritchard
The Telegraph, London
Tuesday, September 24, 2024
China urgently needs a stimulus of shock-and-awe proportions, backed by a deep cleansing of its broken banks along the lines of America's "TARP" (Troubled Asset Relief Program) rescue in 2008. The latest package announced today falls far short.
The drumbeat for radical action is by now deafening. It dominated the weekend's China Macroeconomy Forum in Hong Kong, where a chorus of influential voices called for a fiscal blast of up to $1.4 trillion to pull the country out of debt deflation and cosmic gloom.
iu Shijin, a former rate-setter at the People's Bank of China, said the government should issue special bonds worth 8% of GDP to boost social spending, pensions, and health care. And to convert the galactic glut of unsold flats into homes for the 180-million-strong army of migrant workers caught in the no-man's land of the semi-feudal Hukou system.
Mao Zhenhua, co-director of the Renmin Institute of Economic Research, wants a similar package of $1.4 trillion -- or 10 trillion yuan -- proposing direct cash transfers to citizens akin to Covid cheques in the West.
The authorities have been dribbling out stimulus for months but it has been too half-hearted to arrest the slide into a Keynesian liquidity trap. Disappointing data over recent weeks have finally caused the dam to break. The PBOC cut the reserve requirement ratio by 50 points today. There were targeted measures to prop up the crumbling housing market.
Raymond Yeung, China strategist at Australia's ANZ bank, said the measures will inject a trillion yuan into the banking system but do not add up to a genuine bazooka. "We question whether today's package can lift China from the deflationary spiral. Massive easing and a complete change in mindset are required," he said. ...
... For the remainder of the report:
https://www.telegraph.co.uk/business/2024/09/24/groundswell-building-for-massive-chinese-stimulus/
*https://www.gata.org/node/23385
*Subdivisions: Neil Peart nails it. Of course.
JD400
2 weeks ago
If my mining stocks are stalled before the precious fed pivot tomorrow why are they not going up today.
Lost in Center field
Black and Yellow Gold Nearing Breaks as Participants Regroup
The two quintessential commodities crude oil and gold both appear to be near inflection points.
Carley GarnerSep 16, 2024 6:45 PM EDT
For this article, we have turned our attention to the two quintessential commodities: crude oil and gold. As we generally do, we are paying attention to what the Commitments of Traders (CoT) report issued weekly by the Commodity Futures Trading Commission tells us.
We suspect both products could be nearing a break in the trend as market participants regroup. Let’s start with oil.
Black Gold (Crude Oil)
Crude oil speculators haven’t gone short the market, but their long positions have dwindled to about 200,000 net long futures; levels that are generally supportive of prices.
In the mid-2010s, each time speculators held this small of a bullish position, the oil market found a reason to tag $20.00 to $30.00 to the price of oil. In 2016, a similar setup on the CoT chart pushed prices from about $30.00 per barrel to nearly $80.000, and in 2023, we saw a rally from the low $60.00s into the $90.00s. It is still unknown if speculators will continue their unwind to push oil prices much lower or if we will see another price bump as speculators put long positions back on, but we are leaning toward the latter.
The weekly crude oil chart depicts technical support roughly between $65.00 and $60.00 per barrel. In fact, last week’s sudden flush-out might have been the low for the move. In any case, there is a good argument for being bullish on dips as we advance.
The 200-week moving average near $78.00 is still in an uptrend, and it would be par for the course to see oil prices make another run at it. If the market can chew through it, trendline resistance at about $80.00 will present another challenge to the bulls, but above this level, we could see a nice boost as traders unwind their deflation trades (long stocks, short commodities). Who knows? Maybe $90.00 is still in play.
Gold of the Yellow Variety
Just as everyone is finally starting to get on the bullish gold bandwagon, it feels like the rug could be pulled from beneath the market.
According to the CoT report, large speculators hold one of the most significant net long positions ever recorded in gold futures. In the past, this group getting aggressively bullish hasn’t always resulted in immediate selling pressure, but it might be a sign that the “easy” money (if such a thing exists) has been made on the upside. Things could get pretty rocky as we advance.
Seasonality doesn’t offer the bulls any comfort. According to our friends at MRCI, the last 15 years of price data suggest a seasonal high in early September, followed by about three months of weakness.
Lastly, we revisit the monthly chart of gold. We have been following and sharing this chart for two or more years to support the idea of a run to about $2,600 (the target started around $2,450/$2,500, but due to the passing of time and the slope of the trendline, the new target is $2,600/$2,650). In any case, we are roughly there.
If you made money on the way up, be sure to lock-in, or at least protect gains. If you are a bear, this is probably a time to be net-short gold in a small way while we see what happens with the Fed meeting and the U.S. election.
All along, we have assumed that the 2023/2024 gold market is a replay of the 2010/2011 rally. Thus far, that has been a relatively accurate take.
If we continue to follow the 2010/2011 game plan, the highs in gold are probably near. The RSI indicator on this chart displayed three rally waves to conclude the 2011 rally in which the middle wave produced the highest RSI reading. With this in mind, we suspect the third wave of the current RSI pattern will fall short sooner rather than later. Perhaps this week’s Fed meeting will be the catalyst for lower prices. It should also be noted that the 2011 high occurred in September. Never underestimate the market’s tendency to repeat history.
Conclusion
We’ve seen market participants become comfortable with the idea of lower crude oil and higher gold prices. Still, perhaps everyone in a position to act on this opinion has already done so.
In short, the oil speculators have liquidated long holdings, and gold bulls have likely deployed the majority of their capital. Unless we get a continuous stream of overwhelming fundamental news confirming these stances, the most likely scenario is a trend reversal (firmer oil and softer gold).
https://pro.thestreet.com/market-commentary/black-and-yellow-gold-nearing-breaks-as-participants-regroup
*John Fogerty - Centerfield
JD400
1 month ago
Recent and Upcoming McEwen Mining and McEwen Copper Presentations
Thursday, August 22, 2024 4:05 PM PDT
GLOBENEWSWIRE
TORONTO, Aug. 22, 2024 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) and McEwen Copper Inc. are pleased to announce their participation in Fastmarkets’ “Argentina: An emerging powerhouse for copper and lithium” webinar and in three upcoming industry conferences.
In the Fastmarkets webinar (available here), McEwen Mining’s CEO and Chief Owner Rob McEwen participated in a panel discussion exploring Argentina’s vast copper and lithium reserves and how these resources are positioning the country as a pivotal player in the global energy transition.
For the upcoming conferences, Rob McEwen will be joined by Michael Meding, Vice President and General Manager of McEwen Copper. Rob McEwen will provide insights into McEwen Mining’s projects and operations, while Michael Meding will present on the Los Azules copper project.
Jefferies Global Metals & Mining Conference, September 4-5, 2024, New York, NY
Presentation Details Date: Wednesday, September 4, 2024 Time: 3:40-4:10 PM EDT Link: https://wsw.com/webcast/jeff303/mux/1724250 (Recording will be available at this location for 90 days following the presentation)
H.C. Wainwright 26th Annual Global Investment Conference, September 9-11, 2024, New York, NY
Presentation Details Date: Monday, September 9, 2024 Time: 7:00-7:30 AM EDT Link: https://journey.ct.events/view/631ba475-0941-405b-9ed4-c1bc35dde713 (Recording will be available at this location for 90 days following the presentation)
2024 Beaver Creek Precious Metals Summit, September 10-13, 2024, Beaver Creek, CO
Presentation Details Date: Tuesday, September 10, 2024 Time: 4:15-4:30 PM MDT (6:15-6:30 PM EDT) Event Link: https://www.gowebcasting.com/C1664 (Presentations will be archived at https://www.precioussummit.com)
The links to these presentations will also be available on our company’s Media page:
https://www.mcewenmining.com/media/overview[
https://www.mining.com/press-release/?id=66c7d12b93921002d58ad41c
JD400
1 month ago
Argentina to sign deal with US to boost metals mining
Bloomberg News | August 21, 2024 | 9:52 am News Latin America USA Copper Lithium
Argentina will sign an agreement with the US to draw more investment and trade in critical-minerals mining, a State Department official said, part of an ongoing US effort to boost supply chains for the metals that don’t involve China.
President Javier Milei’s government will sign the agreement with the US during a visit to Argentina this week by US Under Secretary of State Jose Fernandez. Argentina has vast resources of copper and lithium but has only tapped a tiny portion of them.
The agreement with Argentina will make it easier for the nation to work with countries in the Minerals Security Partnership, a US-led grouping that includes 14 countries and the European Union. The strategy aims to ease dependence on China for minerals that go into electric vehicle batteries and solar panels by linking foreign investors with mining projects and adhering to strict environmental standards.
“It’s a way for Argentina to literally make pitches to 14 countries and the EU in one fell swoop,” Fernandez said in an interview before the announcement. “Producing countries want the kinds of investments that we’re proposing, investments that will benefit communities, that will bring growth, that will observe national laws.”
Fernandez will also travel to Ecuador and Peru for meetings on trade, investment, sustainable agriculture and a separate regional initiative known as the Americas Partnership for Economic Prosperity.
Launched in 2022, the US-led minerals push has so far resulted in high-level talks but few tangible investments. And while Milei is adamant about aligning with Washington, it will be tough to draw Argentina out of Beijing’s orbit given China is its largest trading partner after Brazil.
Before the announcement, the State Department welcomed people to register for a Minerals Security Partnership forum event in Buenos Aires on Aug. 23 to “learn more about lithium and copper extraction opportunities in Argentina.” Describing the country as a global leader for new resource development, it added that “there are many lithium and copper projects available for investment across several provinces.”
The minerals agreement doesn’t address Argentina’s inability to qualify for incentives for lithium production under the US Inflation Reduction Act of 2022, a law aimed in part at speeding EV adoption. Argentina is currently locked out of those benefits because it doesn’t have a free-trade deal with the US, and Argentine officials have been seeking access.
(By Eric Martin)
https://www.mining.com/web/argentina-to-join-us-group-for-spurring-metals-investments/
Good Morning
Coldplay - Viva La Vida (Live In São Paulo)
JD400
2 months ago
Gold price surpasses $2,500 for first time ever
Staff Writer | August 2, 2024 | 8:19 am Markets USA Gold
Gold surpassed $2,500 per ounce for the first time in history on Friday in the wake of rising geopolitical tensions and new data indicating a weakening US economy.
Gold contracts for December delivery reached an all-time high of $2,522.50 in the early trading hours, before shedding its gains to trade at $2,475.90 an ounce by 11:00 a.m. ET.
Spot gold posted a marginal loss of 0.5% at $2,432.86 per ounce, having hit as high as $2,477.10 — just within grasp of its all-time peak of $2,483.73 set earlier this month.
Bullion has gained about 3% so far this week, on track for its best week since April, as rising safe-haven demand from Middle East tensions and expectations of rate cuts made the metal more appealing to investors.
Meanwhile, US 10-year yields dropped to their lowest since December and the dollar index hit its lowest since March after data showed that employers added fewer jobs in July than economists had forecasted, while the unemployment rate increased to 4.3%.
The data follows comments from Fed Chair Jerome Powell, who on Wednesday said that rates could be cut as soon as September if the US economy follows its expected path.
“The marketplace just now is factoring in a better-than-70% chance for a 50-basis-point cut by the Fed at the September FOMC meeting,” said Jim Wyckoff, senior market analyst at Kitco Metals in a note to Reuters.
“Lower yields, some safe-haven buying and then the idea of a weakening economy which is bringing rates lower along with the dollar, all of those are in support of the gold market,” said David Meger, director of alternative investments and trading at High Ridge Futures.
(With files from Reuters)
Read More: Global gold demand reaches Q2 record — report
https://www.mining.com/gold-price-surpasses-2500-for-first-time-ever/
Meanwhile Gold miners sold off into oblivion like attending a funeral for grandma who was mugged in the alley and they stole her purse
Hehe
Elton John - Funeral For A Friend / Love Lies Bleeding (Live At Madison Square Garden)
JD400
3 months ago
Thanks Man ! $MUX starting it's run.........
Panic short-covering ignites Comex copper as shipments fail to arrive
Reuters | July 5, 2024 | 9:31 am Markets USA Copper
CME cobalt contract use soars above LME as big players join
Credit: CME Group
Comex copper futures surged on Friday as some players bought back bearish, or short, positions to reduce their exposure due to expected shipments of copper failing to arrive in the United States, traders and analysts said.
A frenzied rally based on speculative buying sent copper futures on both Comex and the London Metal Exchange (LME) to record peaks in May, partly due to a short squeeze on Comex
Since then copper prices have slid, partly due to expectations that shipments of material would arrive in the United States allowing the cover of exposed short positions.
Short positions can be bets on lower prices or producers hedging their output. A short squeeze occurs when parties holding such positions are forced to buy them back at a loss or deliver physical copper to close them out.
“Some participants cannot stomach the volatility and there is certainly some panic covering to avoid the moves we saw last time around,” a trader said.
“But if anything the situation could potentially be more volatile due to the lack of usual participants.”
The Comex buying has led to a wide spread or arbitrage between prices on the two exchanges, with the Comex premium doubling to more than $300 a metric ton over the past two days.
August futures on Comex on Friday climbed to a five-week high of $4.6965 a pound or $10,354 a metric ton and was up 2.5% at 1500 GMT. The market hit a record of $5.1015 a pound on May 21.
That compares to an intraday peak of LME three month copper of $10,000 and a gain of 0.7%.
“Inventory that was supposed to come to the US clearly hasn’t arrived,” said Dan Smith, head of research at Amalgamated Metal Trading.
It was unclear what was causing the delay in shipments to the United States.
The lack of shipments is evident in copper inventories in CME warehouses, which have tumbled 71% since late March to 8,947 tons, the lowest since 2008, data shows.
“People have already been burned on this once, so they’re much more cautious now, but we’re all a bit nervous it’s going to blow out again,” Smith added.
During the May short squeeze commodity traders Trafigura and IXM were looking to buy physical copper to deliver against large short positions, but it was unclear which participants were covering positions at the moment.
Comex is owned by the CME Group while the LME is owned by owned by Hong Kong Exchanges and Clearing Ltd.
(By Eric Onstad; Editing by Veronica Brown and David Evans)
https://www.mining.com/web/panic-short-covering-ignites-comex-copper-as-shipments-fail-to-arrive/
Bon Jovi - Runaway HQ
Hope Y'all had a good holiday ☺️
JD400
3 months ago
Ross Norman: Gold is defying gravity
Submitted by admin on Tue, 2024-07-02 19:12 Section: Daily Dispatches
7:13p ET Tuesday, July 2, 2024
Dear Friend of GATA and Gold:
Ross Norman, former proprietor of London bullion dealer Sharps Pixley, now CEO of Metals Daily, writes today that the price of gold has been rising not because of genuine physical demand but because of options buying on the Shanghai Futures Exchange.
Norman writes: "The initial effect on spot gold -- intended or not -- was to bring about a 'gamma squeeze.' The Chinese buying gold calls (on the expectation prices would rise) leaves the other side to the trade (bullion banks) temporarily short (gamma) or gold and vulnerable to a rise in prices.
"Typically on granting those calls the bullion banks would purchase the equivalent to about half their exposure. Problem is, if these positions are sufficiently large, then their buying/hedging itself drives gold prices higher and so they have to purchase more gold to more fully hedge themselves as gold moves towards the strike price -- which pushes prices higher again, and so on.
"You become trapped in a self-fueling cycle that pushes gold onto an entirely new orbit divorced from its fundamentals ... or even reality. This might also explain why gold is yo-yo-ing in a range well above what most investors would consider 'fair value' ... while physical demand is through the floor.
"In short, gold is defying gravity."
Norman's analysis is headlined "Gold Price -- Out of This World?" and it's posted at Metals Daily here:
https://www.metalsdaily.com/archive/ross-norman-gold-price-out-of-this-world-/356660
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
https://www.gata.org/node/23277
Independence Day
JD400
3 months ago
And now a word from former queen Argentine President Cristina Fernández de Kirchner
I was curious what her take on President Javier Milei new plan for Argentina was.
So here it is, Quite the contrast and some interesting points of view.
CFK: The Libertarians' zero deficit is a fabrication
Monday, July 1st 2024 -
Former Argentine President Cristina Fernández de Kirchner (2007-2015 / CFK) said during an interview on the internet streaming channel Gelatina outside mainstream media that the Liberal administration's “fiscal surplus is increasingly trumped up.”
Hence, what President Javier Milei and Economy Minister Luis Toto Caputo boast as a milestone achievement would be nothing short of a fabrication. “The fiscal surplus is more and more a fraud,” CFK stressed in her first appearance after the parliamentarian passing of the so-called Bases Law around which the ruling party's economic plan is said to hinge.
“The energy companies are asking to be paid and the provinces are not paying anything, zero pesos; they do not buy food; they do not buy medicines; they suspended 3,000 public works and, therefore, their payment, so it is trumped up, but besides being trumped up, it is unsustainable,” CFK argued about Milei's government.
The incumbent President “is only supported by capital, because he proposes unusual things, which would not be working,” CFK also explained when addressing the so-called Incentive Regime for Large Investments (RIGI) with which Milei intends to lure large-size investors (mostly from abroad) at the expense of local SMEs. However, CFK made it clear that she did not want Milei's plan “to fail” but insisted corrections were needed. It remained to be seen whether they would be implemented by Milei or by somebody else.
Regarding Milei's foreign policy, CFK stressed that “we cannot continue thinking that the threat is communism, because you seem dissociated from reality. I hope facts will prevail.” Milei is clinging to “a world that no longer exists,” CFK pointed out.
In CFK's view, Argentina's main problem is not the deficit, but “the lack of dollars and indebtedness.” And with the RIGI no dollars will be arriving shortly besides those the agricultural sector might provide. “The only one who thinks that the problem is the deficit is the President,” the populist leader who also completed a term as Vice President on Dec. 9, 2023, under Alberto Fernández, also told interviewer Pedro Rosemblat.
“The market knows how to add up and knows that there are zero dollars. The problem is the shortage and the debt. The maturities that are coming...,” she added while noting that the lack of dollars is not compensated with the surplus Milei repeatedly highlights.
“At times when the tectonic plates of currencies begin to move, people go to gold as a sure thing. In that world, we cannot continue thinking that the threat is communism, because you seem dissociated from reality. The facts will force us to get in touch with reality,” CFK also forecasted. The BRICS (the multinational group Argentina refused to join under Milei after being invited to during the previous administration) “is going to start leaving the dollar and the Arabs are already trading without dollars,” CFK also noted.
https://en.mercopress.com/2024/07/01/cfk-the-libertarians-zero-deficit-is-a-fabrication
Mountain ~ Mississippi Queen (remaster)
JD400
3 months ago
Golden Nugget
Friday, 6/28/2024 09:01
So much smarter than the other gold bugs...
GOLD is misunderstood, but the misunderstanding extends to those critical of others for misunderstanding it, writes Gary Tanashian in his Notes from the Rabbit Hole.
Because in Wonderland what is, it wouldn't be.
The subject of this post has been made anonymous, as I've decided to release it to a wider audience. Said subject anonymized those he was critical of and so, turnabout is fair play.
Elliott Wave technical analyst Mr.Anonymous (Mr.A) has an article explaining his view of why gold is misunderstood by analysts that claim it is a hedge against inflation and a hedge against stock market weakness. On the surface, he is correct. You cannot argue with facts and the facts are that gold has been a less than stellar inflation hedge (under certain inflationary circumstances) and it did go down significantly during Armageddon '08 and the 2020 pandemic crash.
As noted more times than I care to remember, there are far better hedges against inflation than gold when the inflation manufactured by policymakers is working, albeit temporarily, in support of the economy. Mr.A is also correct in noting that gold went down in the market crash of 2008 and the lesser crash in 2020.
So what is my beef here?
Well, we have yet another analyst discussing gold as if it were simply an asset among other assets, focusing on its nominal performance rather than its long-term value and importantly, its relative value when marked up or marked down, as the anti-bubble to most other asset markets, which have been sustained for decades now by a bubble in aggressive and inflationary policy-making.
It is a bubble that I believe has ended, although it doesn't consciously know it yet, with policy-propped asset markets now little more dead men walking. That assertion is based on several macro indicators I use, but none are more visually striking than the decades long trend break in the 30-year Treasury yield Continuum.
Among other things, that trend break implies that the ease with which policymakers were able to inflate the system at every crisis or even hint of crisis is a thing of the past. The sedate bond market signaling gentle disinflation gave license to inflationary policy at every sharp downward turn of the Continuum. That ease and simplicity is history now, and hence the odds have increased that the bubble is done (although still stumbling forward trying to make its way to or through the US presidential election with several fiscal initiatives beyond the scope of this article in play).
But here is the key point: Gold is the anti-bubble. Its positive correlation with bubble beneficiary markets since it ended its post-2020 corrective phase in Q4, 2022 is one of two things: cause for concern about the nominal gold price when stock markets take the next bear, or the beginning of the new macro as gold looks ahead to the obvious end of the policy-induced bubble. When stock markets take the bear, I would not bet on gold merrily going up. So there again, on the surface Mr. A is correct. However, it sure as shootin’ will outperform.
Let’s take a few quotes and rebut, shall we?
I do not have to go back terribly far in history to prove this premise as being an outright falsehood. First, let’s start with early 2020. As the SPX proceeded to crash during the Covid outbreak, did gold rally? Nope. Did gold at least remain stagnant? Nope. In fact, gold proceeded to drop by 15% during that time. Silver was even worse as it lost almost 40% of its value during that same timeframe.
Now, if you are still not convinced, well, let’s go back a bit further to the Great Financial Crisis of 2008. Again, did gold rally during this financial upheaval during which the perceived “safety” of gold was sorely needed? Nope. Did gold at least remain stagnant? Nope. Gold lost 30% of its value, which clearly outlined that you cannot rely upon gold as a hedge against stock market upheaval. And, again, silver was much worse as it lost 60% of its value during this time.
Gold got hammered during Armageddon ’08 (which for stocks, actually extended to Q1, 2009), but in relative terms it rose strongly vs. SPX and rocketed higher vs. cyclical commodities like oil and base metals. It then went on to out and under perform periodically as cyclical inflation manifested out of the 2008 policy panic and subsequent years of Zero Interest Rate Policy (the financial blight known as ZIRP).
Gold is not supposed to rally in nominal terms during crises. It is supposed to retain relative value. Here is what gold did in relative terms to SPX during that crisis. After its relatively moderate nominal decline, gold led most markets out of the abyss before the inflationary bailout operations of central banks and governments set it up for a long correction as cyclical markets regained footing. That was as it should be for the anti-bubble.
As for silver, it is not gold. I don’t know why it is even included in this conversation. Silver is even further from an effective disaster hedge than gold, as it has more cyclical industrial qualities than gold (although it can be a better inflation hedge).
But, clearly, history did not teach this lesson to everyone, as many completely ignored what occurred during this timeframe, and again expected gold to save them during the Covid crisis. And, the many that have still not learned this lesson now come back to prognosticate that gold will provide safety in the event the stock market turns down.
What is most interesting is that most of these same folks also maintain a world view that gold will not rally alongside the equity market. In fact, I just read another article which outlined this erroneous commonly held view, and claim surprise when it does rally alongside the equity market.
The point with gold is its relative performance. Nominally, it is going to go up or down as the prevailing winds and varied macro inputs (economic, policy both monetary and fiscal, inflation/deflation, disinflation, psychological/sentiment, etc.) dictate. But the big picture macro is what is important. Where has it been? Where is it going? What is it indicating? As for the “surprise” of gold being correlated with asset markets lately, it is already noted above that gold is either being set up for price pressure when a broad bear market ensues or it is diverging to indicate the new macro.
Mr. A goes on to discuss what I have harped upon for many years, that gold is not usually an effective inflation hedge, at least during the pro-cyclical previous several decades. Let’s not dig that up again. Anyone who bothered to look beyond the standard gold bug dogma already knows that. Let’s however, rebut one final point.
My friends, at some point, one has to open their eyes and look at markets objectively. Gold is not driven by inflation. Nor is it driven by deflation. Nor is it driven by the dollar. Nor does it fall when the equity market rallies or vice versa. Gold is driven by market sentiment. And, it is the only constant in the gold market which allows one to maintain an objective perspective on the price trend in gold, and be able to prognosticate that trend in any reliable and consistent manner.
Gold’s case should not be simplified to only sentiment unless we are discussing the very big macro picture. While sentiment is an important tool in managing an inherently emotional sector like the precious metals, it is far from the only consideration. Mr. A is writing in linear fashion, as if the decades of the Continuum’s downtrend were still intact. The gold market going forward will respond to policy initiatives and constraints, economic acceleration or more likely in the few years ahead, deceleration. Gold market sentiment is a knock on effect of what is already happening. That is what sentiment is, a tail chasing the dog. The dog being macro fundamentals and technicals.
Notice I did not mention war, pestilence (the hard post-pandemic correction for gold was in the bag by mid-2020 due to damaging hype), China/India buying or any of the other common themes put forth as fundamentals for gold? Boiling it down, gold is about policy and sentiment. Aside from being a very long-term holder of real monetary value gold is a barometer to mass confidence or lack thereof in policymakers in government and finance trying to regulate the economy and associated markets to desired and by definition, manipulated ends.
So yes, gold is about sentiment. But it is about big picture sentiment on a societal level. That is why a significant change in the long-term macro is so important. It is going to feed sentiment on a mass scale in the years ahead. My rebuttal seeks to add layers and detail to another analyst’s opinion, rather than express outright criticism.
https://www.bullionvault.com/gold-news/history/gold-inflation-stock-market-hedge-062820241
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JD400
3 months ago
Video: McEwen aims to build copper industry’s ‘jewel’ at Los Azules in Argentina
Northern Miner Staff | May 28, 2024 | 10:33 am News Latin America Copper
Mining entrepreneur Rob McEwen wants to build the Los Azules copper project in Argentina’s high desert with advanced mining facilities, a hotel and visitor’s centre blending into the landscape.
“I’d like to put a jewel on the side of the mountain and to shock people into seeing how mining really is today,” the founder and CEO of McEwen Mining (TSX: MUX; NYSE: MUX) told the Energy Transition Metals Sumit in Washington, D.C. in late April.
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McEwen envisions Los Azules as a leader in sustainability, innovation and economic viability. The mine would use less than a quarter of the water required by conventional copper processing methods, emit less than half the carbon and consume less than half the power. Additionally, all the electricity is to come from renewable sources. The CEO forecasts a production cost of $1.07 per lb. copper.
The project being built by subsidiary McEwen Copper has the notable backing of Nuton, a Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO) venture that has developed a propriety copper heap leaching technology. Rio and automaker Stellantis, which holds Fiat Chrysler and Peugeot, each hold 14.2% of McEwen Copper, while McEwen owns 13.8%.
The Northern Miner Group event ran in coordination with Precious Metals Summit Conferences. Watch the full presentation below.
Click here
https://www.mining.com/video-mcewen-aims-to-build-copper-industrys-jewel-at-los-azules-in-argentina/
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