Today London analyst Alasdair Macleod told King World News that Asians are buying gold once again and this has bullion bank shorts frightened.
Asians Buying Gold Again
October 8 (King World News) – Alasdair Macleod: Eric, there are some interesting developments in gold trading. Firstly, the perceived wisdom is that high prices in Asian currencies are encouraging sellers, but now when we wake up in London, we find overnight prices are higher, which tells us the Asian markets are net buyers again. Of course, on Comex the bullion banks take the price down because they are very short and wish for the lowest price possible.
Record Comex Delivery
This pattern is underwriting the gold price at current levels as the consolidation from early August plays out. It is also worth noting that deliveries on the non-active October contract, including yet to be delivered in the coming days amount to 62 tonnes. The next active contract is December, which may seem far away, but bullion banks will soon be steeling themselves for what could be a record delivery.
The second development is that with covid-19 resurging, every day that passes the global economic outlook deteriorates and more money printing by the Fed will be required to rescue the American economy. Michael Kiley, a senior economist at the Fed calculates that the Fed will need to inject another $3.5 trillion into the US economy by QE. I don’t think it ends there.
Trouble For Gold Shorts…Again
Soon, there will be a broader understanding that the dollar is losing purchasing power relative to commodities, wider goods and other currencies, and that the loss of its purchasing power has hardly started. Those who are short of Comex gold must be very frightened by these developments. I just don’t see the price staying at these levels much longer and yet again, those who try to trade it will probably miss the turn.
Agnico Eagle Announces Strategic Investment
The Eagle Has Landed
Eric King: “Obviously this deal that was just announced with Agnico Eagle is very big news.”
Strategic Investment And Partnership With Agnico Eagle
Matthew Hornor: “In a word, it’s completely transformational for us. We have now checked all of the boxes in order for the market to understand and believe that our future potential is astronomical. We have the best partner on the planet that we could have hoped for. Agnico Eagle is the biggest gold producer in Quebec.
The project they are contributing to the joint venture is a past high-grade producer. It produced more than a million ounces at almost 6 grams per tonne of gold. They stopped production in the 1990s when the price of gold was in the $300 range. We believe they left a lot of gold behind and we are extremely excited to combine the two projects — the Joutel Project and the Douay Project — with Agnico Eagle.
Over $30 Million Of Cash And Committed Funding
It’s worth mentioning that Canadian Malartic, one of the largest gold producing gold projects in Canada and the world is operated jointly by Agnico Eagle and Yamana Gold. So Agnico Eagle knows what to do with these kind of projects in Quebec. And Agnico Eagle has now bought a significant stake in Maple Gold and is also contributing their expertise and their capital in the ground to execute drilling so we don’t have to raise money again.
They have purchased this stake in our company at a roughly 50% premium to our share price, and with the commitments they have made going forward that leaves us extremely well funded with $12 million in the bank and Maple Gold now benefits from more than $30 million of available cash and committed JV funds combined.
Agnico Eagle To Assist With Any Project Funding
And if we take this project to production, Agnico Eagle has also promised to assist us with project financing. So what we announced today transforms Maple Gold Mines into what we believe will be the next preeminent gold company in Canada.
As I have said in numerous interviews over the past few years, what this company needed was that big brother strategic partner. And I cannot stress enough how pleased we are to have closed this deal with Agnico Eagle, which is the best in the business quite frankly, especially given Agnico’s prowess in Quebec specifically. They are the #1 gold producer in Quebec and they know the geology better than anybody.” Maple Gold Mines, symbol MGM in Canada and MGMLF in the US.
Click on the 1 minute video below!
***KWN has now released this timely and powerful audio interview with Michael Oliver and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
Policymakers Must Force Gold Price Higher Or Face Systemic Crash
***ALSO JUST RELEASED: Policymakers Must Force Gold Price Higher Or Face Systemic Crash, Also, WTF? And Insanity Reigns Supreme At Central Banks CLICK HERE.
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