• Gold: 1,607.55 18.70
  • Silver: 14.42 0.49
  • Euro: 1.086 -0.008
  • USDX: 100.027 0.551
  • Oil: 22.06 0.91

Silver and Sanity

19 hours 44 min ago

Silver is real money, not a debt-based fiat currency that will eventually fail. Silver bullion production requires capital and effort to mine and refine. We use it for solar panels, iPhones, cruise missiles and thousands of other items. Silver is monetary sanity.

What the Rally in Gold Means for Silver Prices (video)

Bloomberg: In this edition of "Charting Futures," Interactive Brokers Chief Strategist Steve Sosnick examines the rally in precious metals with Bloomberg's Abigail Doolittle on "Bloomberg Markets: The Close." (Source: Bloomberg)

Fool's Silver: Why Most “Silver Miners” Don't Live Up to Their Name

If you buy shares in a silver mining company, you will have to assume additional market risks compared to ownership of silver bullion. You may wish to do so in order to potentially gain leveraged exposure to silver prices. What you may not realize, however, is that most of the publicly traded “silver” stocks out there are primarily in the business of mining other metals – sometimes gold, often copper, zinc, lead, and other base metals.

Will Silver’s Surprising Summer Surge Continue?

Just a few weeks ago, silver naysayers told us we’d have to wait months, or even years, before the market made a big move. Now they are eating their words! The white-hot metal surged past $18.50/oz this morning to reach its highest level in more than two years. Silver is up more than 13% in the month of August alone, a time when many precious metals analysts had expected summer doldrums. Even some long-term silver bulls became short-term bears.

New Pacific Continues Reporting Wide Drill Intercepts at Silver Sand Including an Intercept of 93.5 Metres Grading 336 Grams per Tonne Silver

Since the release of assay results of second batch of 31 drill holes on August 6, 2019, the Company has received assay results of an additional 20 drill holes from Silver Sand Project which were drilled to infill the drill grid to a density of 25 metres by 25 metres to confirm continuity of mineralization in selected areas drilled in 2018. Holes were approximately oriented at azimuths of 60 degrees with dips of -45 degrees normal to the strike and dip of mineralized structures. All holes continuously intercept significant wide silver mineralization in fractures developed in bleached quartz sandstones. Drill hole DSS525006 intersected the mineralized zone of 165.5m @ 204g/t Ag including a bonanza grade subzone of 45.0m @ 641g/t Ag. The drill results indicate that high grade centres exist in broad mineralization.

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…

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.

Mining Stocks Are Historically Cheap

While the micro-cap junior exploration stocks are by far the cheapest segment of the mining stock sector in terms of potential risk/reward, investor distaste and market inefficiency occasionally feeds prospecting mining stock investors an expected “golden nugget,” if you will. Fortuna Silver is a current example. Chris Marcus invited me onto his Arcadia Economics podcast to discuss why I put a strong buy on FSM in July when the rest of the market was dumping the shares:

Discovery Drill Hole Intercepts 72.4 Metre Mineralization Grading 279 Grams per Tonne Silver, Including 33 Metre Mineralization Grading 517 Grams per Tonne Silver at the Snake Hole Prospect

New Pacific Metals Corp. (TSX-V: NUAG) (OTCQX: NUPMF) (“New Pacific” or the “Company”) is pleased to announce the assay results of the first 19 holes of the initial 24 hole, 6,000 metres, exploration drill program at the Snake Hole prospect, Silver Sand Project, Bolivia. Snake Hole is one of nine high priority silver targets identified by the Company and is located approximately 600 metres east of the core area of the Silver Sand Project. Fifteen of the nineteen drillholes returned significant results defining structurally controlled, sandstone-hosted, silver mineralization similar to the main Silver Sand area. Drill highlights are as follows..

Silver Technical Update (video): Not keeping up with gold

Dr. Copper down hard, silver following too. Gold to Silver ratio showing that silver is not keeping up with gold prices. Ratio nearing 90 ounces of silver to 1 ounce of gold. Lower highs, lower lows, silver not trending. Copper prices could get a bounce, highly oversold. Platinum fighting 18 day moving averages of closes but trending lower, with bias down. Palladium lost its bullish embedded reading, it often leads to a pullback to its 18-d.m.a. Momentum lost, has to rebuild.

David Jensen: As Palladium Continues To Soar, Is Platinum Next...

So I was fortunate to have David join me on the show and explain what’s happening. Explain how the imbalance is going to have to be resolved. And share what he’s now seeing in the platinum market, where the lease rate indicates a similar pattern might soon be underway. Of course this does have the potential to filter over to the other precious metals markets like gold and silver. So to find out what’s happening from the man who forecast it over a year in advance, click to watch the interview now!

Kootenay Announces Drilling Begins at Columba High-grade Silver Project, Mexico

Kootenay President and CEO, James McDonald stated: "These next 6 months will be very exciting as we will have a steady flow of news from two drills at Columba while we follow up on the numerous high grades confirmed from the 2019 program. Not only that but we are preparing an inaugural drill program for our second high-grade vein property Copalito; expected to begin in the first quarter." The Company has contracted GlobeXplore, S.A. de C.V. of Hermosillo, Sonora, Mexico to conduct the drilling at Columba. Results of the drill program will be announced as soon as the assays are received and interpreted by the Company.

New Pacific Reports Final 2019 Drill Results from its Silver Sand Project, Bolivia - Continues to Return Broad Intervals of Near Surface Silver Mineralization

New Pacific’s Exploration Group is currently completing detailed geological and structural mapping and associated geochemical sampling on the wholly owned Silver Sand North Block which is located approximately two kilometres to the north of the Silver Sand deposit, including the recently acquired El Bronce Property (see the Company’s news release dated December 19, 2019 for details). The results will be utilized for subsequent target generation and initial drill testing. At the Silver Sand deposit the Company recently commenced a four-hole, 800 metres, metallurgical drill sampling campaign to support subsequent Preliminary Economic Assessment level studies including initial processing plant flow sheet design. Detailed structural, geological and geochemical modeling is ongoing which will be used for future advanced engineering (geotechnical, geometallurgical) studies and resource expansion target generation. Other activities remaining include geological logging and sampling of completed holes, data analysis and various QA/QC initiatives in preparation for the inaugural NI 43-101 resource estimate around the end of Q1 2020.

Silver Hits Wall, Pulls Back Towards $18 Level

Silver prices have reversed directions and headed lower, after a strong rally which saw silver move close to the $19.00 level on Monday.

Silver technical update: stuck within a wide band (video)

Market was a lot about margin calls. Gold-Silver Ratio EXPLODED. I have been adamant this week, silver is not acting like a precious metals, it is an industrial metal and it acted more like that this week. Silver is down over 10% this week. Silver has no trend, went from a high to a low within a broad band..

Silver Seeker Report: This Week in Mining Issue #3

Aurcana: Increased the previously announced non-brokered private placement from $4m to $5.76m and completed the second tranche. This will go toward underground development (and in turn, reducing cap-ex) to bring its principle asset (Revenue-Virginius) into production and ideally, the remaining capital investment will be funded via debt or at least in large part. While it is difficult to generate positive operating cash flow in the current silver price environment, due to the higher grade nature of the deposit and in turn AISC/AgEq oz. is sub-$10.75/oz. (or $8/oz. Ag), due in part to a resource grade >1k g/t, this shouldn’t be an issue. The asset currently has a relatively small resource base of 21.2m oz. (2P), 29.9m (M&I inclusive of 2P), and an additional 13.2m oz. (Inferred). This asset, while small, will also derive the vast majority of revenue from precious metals: silver (71%) and gold (9%). $AUN.v $BCM.V $CALDAS $EQX $FSM $GOLD.TO $GORO $HIGH.V $MAG $MMX $SAND $SMF.TO $SILV $WM.TO

Silver Seeker Report: This Week in Mining Issue #4

$USA $EDV.to $EQX.to $FSM $FNV $WPM $KGC $MAX.to $OSK.to $PVG $NVO.V | America’s Gold and Silver Corp: Reported FY 2019 production of 5.8m AgEq oz, though only 1.2m oz. of that was actual silver ounces, the rest being base metals converted to silver equivalent. 2019 was a transition year for the company as it recapitalized and entered into a JV agreement with Eric Sprott for its Galena Complex. Having visited the site a couple times over the years, it is a solid smaller silver operation but optimization measures, a larger resource base and in turn production coupled with higher silver prices will make this a profitable operation in a couple of years. The real-story here is achieving commercial production at its Relief Canyon gold mine. When first acquired, this was going to be a profitable operation but with low margins, but now with gold $200-$250/oz. higher, it should have solid margins (assuming a long-term gold price deck between $1,450-$1,500/oz). In other words, it is looking like the worst days are behind it and over the next year and a half, should begin to generate a fair amount of cash flow.

Physical demand for silver spikes as price drops to an 11-year low

“The poor man’s gold is on sale today and the fire sale will not last unless there is an all-out deflationary crash which brings its own appeal in holding silver as a hedge,” said Peter Spina, president of silver news and analysis provider SilverSeek.com.

What may be the best looking chart in the world right now? Silver

Please double-click to enlarge what may be the best looking chart in the world right now: silver.

Silver Seeker Report: This Week in Mining Issue #2

Companies covered in this weekly review: $BTG $KOR.TO $EDV.TO $GCM.TO $MAG $SKE.V $AUY MAG Silver: Construction of the world class Juanicipio silver project continues to progress. The underground mine will commence production ahead of schedule in mid-2020. Over 25km of underground development has been completed to date. There are slight capital-cost over-runs relative to the January 2018 estimate, now estimated at $440m ($194m attributable to MAG). The ramp up will take some time on this large underground mine but this won’t really impact profitability as silver grades are highest in the earlier years. The project is now expected to reach 85% of nameplate capacity in Q4 2021 (up from 65% previously) and 90-95% in 2022. Commissioning of the flotation plant will start mid-2021.

Silver technical update: stuck within a wide band (video)

Market was a lot about margin calls. Gold-Silver Ratio EXPLODED. I have been adamant this week, silver is not acting like a precious metals, it is an industrial metal and it acted more like that this week. Silver is down over 10% this week. Silver has no trend, went from a high to a low within a broad band..

Silver Backwardation Returns

If we had to guess, we would not expect silver stackers to panic and sell their metal at this point. Those who own the metal today likely hold it for reasons other than false certainty of endless gains (which did occur at certain times in the past). However, if economic hardship hits them, they may be forced to unload silver to put food on the table. This may seem premature in the US, but we will write about our observations in Asia. Here is one picture Keith took in the virtually empty Jewell Mall attached to Chiangi Airport in Singapore.

Gold has Immunity, Silver has Ratio

On June 12, 2019, the gold-silver ratio hit a 26-year high by breaking through the 90-ounce mark – meaning it took over 90 ounces of silver to purchase one ounce of gold. The higher the number, the more undervalued is silver or, to put it another way, the farther gold is pulling away from silver, valued in dollars per ounce. For the past several weeks the gold-silver ratio has stayed around 86-88:1. Since the coronavirus outbreak though, the gold-silver ratio has rocketed to a new record of 95:1. This is so far out of whack from the historical ratio of 54:1, that silver is on sale.

U.S. Mint Silver Eagle Sales Surge First Three Days In March Due To Global Contagion

When investors become increasingly concerned about the financial system, they rush into physical precious metals. And, this is precisely what we see taking place at the U.S. Mint as sales of Silver Eagles surged in the first three days of March versus the entire month of February. The U.S. Mint hasn’t seen this type of buying for several years. For the past three years, annual Silver Eagle sales fell below 20 million, reaching a low in 2019. However, that may all change this year as the global contagion spreads, motivating investors to shed paper assets and move into physical precious metals. For sure, investors should be worried when the Fed starts to do “LIQUIDITY BOMBS” via its Repo Operations

Silver Seeker Report: This Week in Mining Issue #3

Aurcana: Increased the previously announced non-brokered private placement from $4m to $5.76m and completed the second tranche. This will go toward underground development (and in turn, reducing cap-ex) to bring its principle asset (Revenue-Virginius) into production and ideally, the remaining capital investment will be funded via debt or at least in large part. While it is difficult to generate positive operating cash flow in the current silver price environment, due to the higher grade nature of the deposit and in turn AISC/AgEq oz. is sub-$10.75/oz. (or $8/oz. Ag), due in part to a resource grade >1k g/t, this shouldn’t be an issue. The asset currently has a relatively small resource base of 21.2m oz. (2P), 29.9m (M&I inclusive of 2P), and an additional 13.2m oz. (Inferred). This asset, while small, will also derive the vast majority of revenue from precious metals: silver (71%) and gold (9%). $AUN.v $BCM.V $CALDAS $EQX $FSM $GOLD.TO $GORO $HIGH.V $MAG $MMX $SAND $SMF.TO $SILV $WM.TO

Silver Seeker Report: This Week in Mining Issue #4

$USA $EDV.to $EQX.to $FSM $FNV $WPM $KGC $MAX.to $OSK.to $PVG $NVO.V | America’s Gold and Silver Corp: Reported FY 2019 production of 5.8m AgEq oz, though only 1.2m oz. of that was actual silver ounces, the rest being base metals converted to silver equivalent. 2019 was a transition year for the company as it recapitalized and entered into a JV agreement with Eric Sprott for its Galena Complex. Having visited the site a couple times over the years, it is a solid smaller silver operation but optimization measures, a larger resource base and in turn production coupled with higher silver prices will make this a profitable operation in a couple of years. The real-story here is achieving commercial production at its Relief Canyon gold mine. When first acquired, this was going to be a profitable operation but with low margins, but now with gold $200-$250/oz. higher, it should have solid margins (assuming a long-term gold price deck between $1,450-$1,500/oz). In other words, it is looking like the worst days are behind it and over the next year and a half, should begin to generate a fair amount of cash flow.

Gold is Setting Records Dating Back Over 5,000 years — against Silver

According to Marshall Gittler, head of investment research at BDSwiss, the ratio of gold to silver is the highest it’s been for 5,120 years.

Investors Turn Sour on Silver in Worst Losing Streak Since 1983

"The white metal, used in solar panels, jewelry and electronic components, is down 28% in the past eight sessions, the worst streak since 1983, as the coronavirus disrupts global economic activity, weakening consumption of industrial raw materials. The demand outlook is worsening at a time when silver already facing oversupply."

Physical demand for silver spikes as price drops to an 11-year low

“The poor man’s gold is on sale today and the fire sale will not last unless there is an all-out deflationary crash which brings its own appeal in holding silver as a hedge,” said Peter Spina, president of silver news and analysis provider SilverSeek.com.

Ted Butler - Worsening Silver Shortage Q&A

We reached out to Ted Butler of ButlerResearch.com to get some of his thoughts on spot price plunges this past month in COMEX silver and COMEX gold specifically. We sourced a dozen questions both internally and externally too online. Ted Butler has been analyzing the silver bullion and gold bullion markets for his loyal newsletter subscribers for many decades. Many self-proclaimed gold and silver experts originally found out about precious metals from Ted’s trailblazing writings during the early days of the internet.

Silver Seeker Report: This Week in Mining Issue #5

Endeavour Silver: Things are going from bad to worse for the higher-cost silver producer. In 2019, the company announced its El Cubo mine (which was its most profitable operation for a couple years) had become depletes of mineral reserves and it would be winding down operations until the company could drill out additional resources. This lowered output and caused an increase in companywide all-in sustaining costs (AISC). Further, due to heavy selling in silver and the company’s all-in cost structure being well above spot prices, should this continue for a prolonged period of time, it will be a cash drain. Beyond that, this week, the company completed the updated pre-feasibility study (PFS) at its Terronera silver project. Based on the preliminary economic assessment (PEA) and initial PFS, in addition to encouraging drill results after the study was completed, Terronera was to be its cornerstone asset, and by a substantial margin. Instead of publishing a summary of the PFS, Endeavour is now reviewing the study internally as it is less robust relative to the previous PFS. This could be resolved and be every bit at economic as originally thought but this in nonetheless unsettling news for the time being. | $AUY $PAAS $SILV $SVM $NEE.V $NGD $MUX $KL $GUY.TO $GCM.TO $EXK $ELY.V $GOLD $ALO $AGI

Next Generation Silver Producers: Part I

While there are a dearth of primary silver producers and even fewer quality companies, the same can’t be said of the next generation of primary silver producers. With the exception of Pan-American, Hochschild, Hecla, Fortuna, Fresnillo and arguably First Majestic Silver, there are essentially only a couple to no other high-quality primary silver producers (meaning no other companies derive at least 65% of total revenue from silver-equivalent production (silver and gold) and at least 40%-45% +/- from silver, now or in the future (inclusive a company’s advanced development projects), and have an all-in sustaining cost (AISC) profile per ounces of silver in the lowest quartile or bottom 40-50% on the industry cost curve (which may exclude First Majestic Silver for the time being).

Silver ETFs post 'massive' inflows as prices recover

“Silver ETFs have registered massive inflows this week,” said Commerzbank analyst Carsten Fritsch. Inflows of 57 metric tons were reported Thursday, with just shy of 560 tons going into these ETFs since the start of the week, Fritsch said. Further, inflows over the past seven trading days have totaled nearly 1,000 tons.

Silver Seeker Report: This Week in Mining Issue #6 -- Temporarily Suspended Mining Operations

Due to government mandated shutdowns of select businesses and in this case, mining, in response to the COVID-19 outbreak, there has been rather limited news flow except that related to temporarily suspending mining operations. It is important to note those companies which have temporarily placed operations on care and maintenance (C&M) will see cash outflows from those assets as C&M cost money. Strong balance sheets and available liquidity are imperative given the current market uncertainty. $AEM $AGI $BTC $CXB.TO $CG.TO $EGO $EDV.TO $EQX $FSM $HL $IAG $HL $LUG.TO $MUX $OGC.TO $PAAS $SSRM

Silver and Sanity

Silver is real money, not a debt-based fiat currency that will eventually fail. Silver bullion production requires capital and effort to mine and refine. We use it for solar panels, iPhones, cruise missiles and thousands of other items. Silver is monetary sanity.

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