• Gold: 1,661.35 17.84
  • Silver: 18.64 0.14
  • Euro: 1.082 -0.003
  • USDX: 99.567 0.23
  • Oil: 52.16 -1.28

Silver Seeker Report: This Week in Mining Issue #1

17 hours 57 min ago

Alexco: is in the process of divesting its profitable and fast-growing remediation business (AEG) to the AEG management group. On closing of the transaction AEG will be pay Alexco $12.1m in cash, with the balance of $1.25m payable pursuant to a promissory note maturing on February 14th, 2021. This will go a long way to reducing the required capital investment to bring several Keno Hill mines back into production, feeding a central mill. Construction will start in 2020 and the because the company has already built the mill and started mine development, the buildout period is estimated at 8 or so months... Companies covered in this weekly report: $AXU $USAS $KOR.to $AG $FSM $KNT.v $GSV $KL $OR $SILV $PAAS $TXG.to $WGO.v

December 17: Gold and Silver Gain Almost 1% While Stocks Drop Over 2%

Gold saw slight losses in Asia, but it then climbed steadily higher in London and New York and ended near its early afternoon high of $1248.10 with a gain of 0.65%. Silver rose to as high as $14.70 and ended with a gain of 0.62%.

December 18: Gold Gains While Stocks Struggle Higher

Gold erased early Asian gains and dipped to $1245.10 at about 2AM EST before it rallied up to $1250.30 in London and then fell to see slight losses by midmorning in New York, but it then climbed back higher into the close and ended with a gain of 0.24%. Silver chopped between $14.721 and $14.613 and ended with a loss of 0.2%.

December 19: Gold and Silver Fall After Fed Tightens

Gold edged up to $1251.40 in Asia before it dropped back to $1246.80 in London and then jumped up to $1258.00 at about 10:30AM EST, but it then fell to as low as $1241.90 after today’s fed announcement and ended with a loss of 0.58%. Silver rose to as high as $14.821 before it fell back to $14.55, but it ended with a loss of just 0.41%.

December 20: Gold and Silver Gain Over 1% While Stocks Drop Nearly 2%

Gold gained $24.30 to a new 5-month high at $1266.30 by early afternoon in New York before it chopped back lower into the close, but it still ended with a gain of 1.53%. Silver rose to as high as $14.841 and ended with a gain of 1.3%.

December 24: Gold and Silver Gain Over 1% While Stocks Drop Almost 3%

Gold gained nearly $10 in Asia before it halved its gains in London, but it then rose to new 6-month highs in New York and ended with a gain of 1.08%. Silver climbed to as high as $14.776 and ended with a gain of 1.03%.

December 26: Gold and Silver Closed Mixed While Stocks Rebound

Gold gained $10 to a new 6-month high at $1279.00 by late morning in New York before it sold off in afternoon trade, but it ended with a loss of just 0.22%. Silver rose to as high as $15.17 and ended with a gain of 1.76%.

December 27: Gold and Silver Hold 1% Gains in Face of Stocks Reversal

Gold gained $12.70 to $1278.90 in early afternoon New York trade before it edged back lower into the close, but it still ended with a gain of 0.69%. Silver rose to as high as $15.267 and ended with a gain of 1.33%.

December 28: Gold and Silver Gain Roughly 2% and 5% on the Week

Gold gained $7.10 to $1282.00 in Asia before it pared back in London, but it then bounced back higher in New York and ended with a gain of 0.4%. Silver rose to as high as $15.389 and ended with a gain of 0.92%.

Gold to Silver Ratio: So What?

Silver prices move up and down farther than gold prices. That pushes the gold-silver ratio too high, like now, when silver is inexpensive. Or it pushes the ratio too low, as in January 1980, when silver prices zoomed upward too far and too fast. When the gold to silver ratio exceeds 80, it is often a good time to buy silver.

January 2: Gold and Silver End Higher in Mixed Trade

Gold gained $6.50 to $1288.70 in late Asian trade before it dropped back under unchanged at $1278.90 by early afternoon in New York, but it then bounced back higher into the close and ended with a gain of 0.06%. Silver rose to as high as $15.607 and ended with a gain of 0.26%.

January 3: Gold and Silver Gain About 1% While Stocks Drop Roughly 3%

Gold gained $9.30 to $1292.30 in Asia before it dropped back to $1284.80 just after 8:15AM EST, but it then climbed back higher in New York and ended near its new 6-1/2 month high of $1294.70 with a gain of 0.9%. Silver rose to as high as $15.751 and ended with a gain of 1.42%.

January 4: Gold Gains and Silver Rises 2% on the Week

Gold edged up to $1298.40 in Asia before it fell back to $1277.30 by midmorning in New York and then bounced back higher into midday, but it still ended with a loss of 0.75%. Silver slipped to as low as $15.585 and ended with a loss of 0.32%.

Surest Way to Overthrow Capitalism

As the price of silver rose over 2% this week, the cobasis basically held steady. There is some buying of metal here, and some speculation too. This is not exactly the picture of a feeding frenzy, with an outlook of silver-to-da-moon. But nor is it a sign of a speculative blip, with a prognosis of a crash. The Monetary Metals Silver Fundamental Price rose 12 cents, to $15.91. This week, of course, the stock market went up. Does the incredible bull market roar back to life? We are not stock market prognosticators, but we don’t think so if the Fed stays the course. As we’ve written, the discount on future earnings is higher now and therefore the present value is lower. Also, the interest expense is up and this will crush the marginal debtors.

What’s the best speculative asset for 2019: silver or Bitcoin?

Silver is a somewhat comparable speculative alternative to Bitcoin. It has been used as money since the dawn of civilisation, albeit as monetary metal not computer code. In recent years silver has become more of a speculative asset than a currency, although it is also a very useful industrial metal. It’s vital for smartphones and other electronic products.

January 15: Gold and Silver End Slightly Lower in Mixed Trade

Gold dipped $4 to $1287.60 at about 5AM EST before it rose to as high as $1294.70 by midmorning in New York and then fell to a new session low of $1286.90 by early afternoon, but it then rallied back higher into the close and ended with a loss of just 0.19%. Silver chopped between $15.542 and $15.694 and ended with a loss of 0.38%.

January 16: Gold and Silver Rise with Stocks

Gold edged up to $1292.70 in Asia before it pared back to $1288.00 in London, but it then climbed to a new 6-month high at $1294.90 in New York and ended with a gain of 0.32%. Silver chopped between $15.494 and $15.642 and ended with a gain of 0.13%.

January 17: Gold and Silver Edge Lower While Stocks Rise on Trade Talk

Gold chopped between $1291.40 and $1295.00 in Asia before it dipped to $1288.90 by midmorning in New York, but it then bounced back higher into the close and ended with a loss of just 0.12%. Silver slipped to as low as $15.457 and ended with a loss of 0.38%.

January 18: Gold and Silver Fall Almost 1% and 2% on the Week

Gold fell $10.50 to $1281.30 at about 8:30AM EST before it chopped back higher in morning New York trade, but it then fell back off gain in late trade and ended with a loss of 0.86%. Silver slipped to as low as $15.327 and ended with a loss of 1.29%.

Arizona Legislator Proposes Securing State Reserves with Gold and Silver

An Arizona legislator has put forward a bill to de-risk the state’s financial holdings with a modest allocation to physical gold and silver in the state’s reserve fund. Introduced by Representative Mark Finchem (R-Tucson), the Arizona Sound Money Stabilization Act (HB 2500) requires that at least 10% of Arizona’s Budget Stabilization Fund be held in the monetary metals in a secure depository.

Silver Market Trends - 2019 (The Silver Institute)

(Washington D.C. – February 5, 2019) Last year, the silver market faced a challenging environment which was reflected in a muted price performance. Preliminary estimates point towards a minor 0.3 percent increase in total supply whereas demand contracted 3 percent. A slowing Chinese economy, coupled with rising U.S. interest rates, an equity market bull run, and global trade tensions, affected the price performance across many markets, including gold and silver. This year, we expect the sentiment to be more supportive for the silver market. The start of 2019 has already proven to be good for silver investors. The U.S. Mint for example, sold 12 percent more American Eagles in January compared to January 2018. In addition, the expected slowdown in the U.S. FED rate hiking cycle should also benefit silver, which in comparison to gold, has a very attractive price point based on the high gold:silver ratio at around 82. Against this backdrop, the Silver Institute provides the following insights on 2019 silver market trends.

New Pacific Reports High Recovery of Silver Achieved for Sulphides and Transitional Mineralized Materials from Silver Sand, Bolivia

VANCOUVER, British Columbia – February 7, 2019 – New Pacific Metals Corp. (TSX-V:NUAG) (OTCQX:NUPMF) (the “Company”) is pleased to announce the preliminary results of the first metallurgical test work for its Silver Sand project in Potosi, Bolivia. Metallurgical sampling and test work commenced in September 2018 – the flotation recovery and bottle roll leaching test works for the transition and sulphide mineralized materials have been completed and test work on the oxides is under way. All tests, including column leaching test works, are expected to be completed by the end of April 2019. Positive recovery results have been achieved in the extraction of silver by the processes of flotation and direct cyanidation from the initial metallurgical test work.

Assay Results 'Give a Sense of the Tremendous Scope' of Bolivia Project

We are barely into the third month of the year, but New Pacific Metals Corp. (NUAG:TSX.V; NUPMF:OTCQX) has been moving nonstop, announcing major land expansion news and off-the-charts drill results. In January, the company announced a major land expansion of its Silver Sand project in Bolivia though an agreement with Corporación Minera de Bolivia (COMIBOL) granting New Pacific the right to carry out exploration, mining and production on lands adjoining Silver Sand. The Mining Production Contract (MPC) is for a total of 56.9 square kilometers, a many-fold increase from the original 3 square kilometer Silver Sand land package.

Kootenay Reports Positive Metallurgical Results from Cervantes Gold Project, Sonora, Mexico - under Option to Aztec Minerals

The Cervantes Property is held under an earn-in option to agreement whereby Aztec Minerals can acquire up to 100% interest in the property in two stages, with Kootenay retaining a 2.5 % NSR and receiving a payment of US$5.00 per ounce or gold equivalent based on a NI 43-101 Resource Estimate. See Kootenay news release dated October 13, 2015.

Precious Metals Update Video: Gold-Silver ratio is starting to favor silver

Precious Metals Update Video: Gold is not overbought. Silver - lower lows, lower highs.

The gold/silver ratio is also a bullish sign for the white metal

Negative real rates could pave the way for gold, and platinum’s rally this year. As the growing list of negatives in the markets adds up, it strengthens the case for holding precious metals. Ranjeetha Pakiam of Bloomberg writes “with bond prices on the rise as investors seek havens, that means the yields they now pay are lower than the pace of consumer price gains. That’s a tremendous boon for good, which doesn’t pay interest.” Silver has surged 13 percent this month and hit a two-year high on Wednesday, benefitting like gold is from the global economic outlook falling. The gold/silver ratio is also a bullish sign for the white metal. In July one ounce of gold was worth 93 ounces of silver and now that ratio is down to just under 84, but still above the 30-year average of 67 ounces.

Silver Is Still A Must Buy At These Levels

We are coming into the traditional season for intense silver rallies. With silver recently making a really important breakout, things are setting up for a memorable period in the silver markets. Furthermore, the decision to buy silver for the long-term is basically a no-brainer given that the Gold/Silver ratio is still around 80...

Silver Technical Update - right at a support area

Gold-silver ratio still favors silver. Historically looking at markets, when silver is stronger than gold, it has the makeup of a general uptrend. Silver is fighting a battle at the 18-DMA: Video Update

Silver Update: Due for a bounce (video update)

These (silver) moves go down usually as fast as they go up. But now silver is getting ready for a bounce:

Why Are People Now Selling Their Silver?

Was the attack on Saudi oil foreseen by market participants over a month ago? We doubt it (though we don’t know). But what seems clear is that the marginal market participant sees rising risks to be in the dollar, and is choosing to own metal. And at the current gold-silver ratio, the choice at the margin has been to hold silver. In addition to the growing risks of the irredeemable currencies, there is the problem of negative interest rates. Savers may be disenfranchised—i.e. unable to affect the interest rate—but they can dump the paper altogether in exchange for gold and silver.

U.S. Is Pursuing More Charges at JPMorgan Over Metals Trades

“We created market activity which artificially drove the sale price up and induced other market participants to purchase at an inflated price,” he said. Edmonds entered into a cooperation agreement with the CFTC in July.

Silver and the Yield Curve Inversion

Yield curve inversions have historically been great for silver prices. Currently we are experiencing such a phenomena, and again it is evidence of conditions that are conducive to some impressive silver rallies. Below, is a long-term chart showing the spread between the 10-year Treasure Note Yield and the 3-month Treasury Bill Rate.

Silver and Gold Into Year End

Back in January, we predicted that in 2019 the precious metals would see their best annual gains since 2010...and so far, they have! So now the question becomes: will the metals hold these gains and extend or will they fall back in the fourth quarter?

Kootenay Drills Multiple High-grade Silver Intercepts at Columba Silver Project, Mexico

Kootenay President and CEO James McDonald states, “We continue to be pleased with the drill results at Columba. Step-out drill hole 19-012 intercepted 699 gpt silver over 2.1 meters and 755 gpt silver over 1.75 meters at a depth deeper than any previously known mineralization. In addition, drilling continues to hit multiple high-grade silver intercepts above and below known historic silver veins and to demonstrate excellent lateral and vertical extent along the F vein.”

Nickel, silver score big gains in the third quarter

The silver-to-gold ratio, or the amount of silver ounces to one ounce of gold, fell to lows around 32 in 2011 and peaked around 95 in July of this year—the highest ratio since 1991, says Peter Spina, president of silver news and analysis provider SilverSeek.com. “If we see the ratio just move back to the mid-point of the two extremes over the last several years, silver should be in the low $20s and thus still looks undervalued here from a gold perspective.” During its pullbacks, silver has shown some “great support” under $18, though it could find difficulty getting into the lower $20s in the short term without gold prices reaching new highs, he says. In the coming months, Spina says silver could build a strong base around $18, with $20 to $21 as the “next major technical resistance,” and he’d be a buyer of silver at $18 or less.

Silver/Gold Ratio Is a Guide As Inflation Signals Fade Again

The interplay between gold and silver is a critical component to understanding what is out ahead; to understanding whether long-term Treasury yields will rise and if they rise, whether it will be due to inflationary pressures. It is a critical component to understanding whether cyclical commodities and other aspects of a greater inflation/reflation trade will finally break existing downtrends. See…

Ted Butler: JP Morgan Precious Metals Traders Charged By DOJ, Losses To Shorts Mount

Last week the Department of Justice not only charged several JP Morgan traders with manipulating the market, but even invoked the RICO act, which is traditionally reserved for organized crime cases. Of course for those who have been following Ted Butler’s research in recent years, the news hardly comes as a surprise. Although it does certainly add a new volatile element into the equation, which Ted was kind enough to join me on the show and discuss.

Kootenay Completes Surface Access Agreement on the Copalito Silver-gold Project, Mexico

The Copalito Project is a classic low sulphidation epithermal vein system which has numerous small old workings and no evidence or reports of historic exploration drilling. The Property consists of seven concessions totaling approximately 3,700 hectares and is located 35 kilometres east of McEwen Mining’s “El Gallo Mine” complex in Sinaloa State, along the western fringes of the Sierra Madre Occidental in northwestern Mexico. The Copalito Project has good access, topography and infrastructure. Kootenay’s wholly owned Mexican subsidiary can acquire a 100% ownership in the concessions by making staged payments over a 4-year period.

Kootenay Announces $2 Million Investment from Sprott Asset Management

James McDonald President and CEO stated, “We are happy to have initially secured the personal support of Eric Sprott and now separately, Sprott Asset Management LP(1). With this additional investment we are in a strong position to continue to aggressively move both our high-grade projects, Columba and Copalito ahead over the coming months.”

Silver Eyes Fourth Quarter Rebound

We will be watching the gold:silver ratio closely during days when precious metals markets rally for confirmation that silver is leading. In a healthy bull market for the metals, silver leads on both the upside and the downside – both rallying and declining more sharply than gold.

2020: Year Of The Silver Metal Rat

I don’t expect a major rise in inflation in 2020, but I think institutional money managers will show enough concern about it to make silver and the miners of this awesome metal the world’s top performing asset in 2020, the year of the metal rat!

Admission of Conspiracy, Guilt and Collusion

Having long been a researcher of the gold and silver markets I have become familiar with the labels, “conspiracy theorist”, “gold bug”, “tin foil hat” and a host of others – less flattering. Over the years I have listened to a host mainstream economic commentators incredulously lament, “gold bugs actually believe that people meet – in rooms - and conspire to suppress the price of precious metals”. These same mainstream economic commentators frequently scoff, “if such activities were actually being undertaken, surely someone from “officialdom” would go rogue and out the perpetrators. They frequently cite the lack of such “outings” as concrete evidence that market manipulations on the part of or complicity with regulators as being “hearsay” or the product of delusionals. Well ladies and gentlemen; conspiracy theorists are deluded no more.

New Pacific Announces the Appointment of Dr. Mark Cruise as Chief Operating Officer

“On behalf of New Pacific, we welcome Mark to our team,” said Dr. Rui Feng, Chief Executive Officer and Director of New Pacific. “We’re excited to secure the services of someone with his level of experience and calibre. Mark will be an incredible addition and his involvement should be very beneficial to our shareholders.”

New Pacific Continues to Intersect Multiple Broad Interval of Silver Mineralization at Silver Sand Project, Bolivia

Vancouver, British Columbia – December 2, 2019 – New Pacific Metals Corp. (TSX-V: NUAG) (OTCQX: NUPMF) (“New Pacific” or the “Company”) is pleased to announce assay results from 75 drill holes from its resource definition drilling program at its wholly-owned Silver Sand Project, Department of Potosí, Bolivia. In summary, drilling continues to intersect broad intervals of vein and fracture controlled, near surface, silver mineralization with results from this program ranging from approximately 50 to 200 metres (“m”) thick and returning average silver values from 33 to 289g/t. Within these broad intervals, narrower zones of higher grade silver occurs commonly from 2.5 to +10m wide with average values over those widths of up to 1,035g/t.

Silver and the Deep State

The “Deep State” has been a high-profile topic for several years. Opinions are divided and strong. Those who benefit from the Deep State power and influence support the Deep State and fight against its opposition. Others think it’s the cause of much that is wrong in the world. Rather than wade into the debate, consider the wit and wisdom of Bill Bonner regarding the Deep State..

New Pacific Acquires the Silverstrike Project, Bolivia

The Silverstrike Project, at an elevation of 4,000 to 4,500 metres (“m”), is located approximately 140 kilometres (“km”) southwest of La Paz, Bolivia or approximately 450 km northwest of New Pacific’s Silver Sand Project. The Silverstrike Project consists of nine (9) Special Temporary Authorizations (“ATEs”) with an area of approximately 13km2 currently in the process of conversion to ‘Mining Administrative Contracts’ before AJAM. The Vendor has also applied for exploration rights over areas surrounding the Silverstrike Project as part of the transaction.

Hi-yo Silver Away!

Silver is expected to begin the next decade newly burnished, through a combination of higher industrial and investment demand, and tightened supply owing to mine production issues and output cuts. As December winds down and precious metals trade volumes dwindle, market analysts including us at Ahead of the Herd are crunching the numbers from 2019 and looking ahead to what the New Year might bring. A banner year..