Today one of the greats in the business said the price of gold may be preparing to break out.
Michael Oliver’s (of MSA) audio interview has now been released. In the meantime…
Gold Preparing To Break Out?
October 26 (King World News) – Alasdair Macleod: “Gold and silver recovered some lost ground this week, with gold up $22 from last Friday’s close to trade at $1506 in early morning trade in Europe. Over the same time period, silver rose 47 cents to trade at $18.04.
Gold firmed up all week, suggesting the consolidation which commenced in September might have run its course. As shown in the next chart from Goldprice.org the price appears to be breaking out on the upside.
This is not a guarantee that gold is off to the races, more an indication that market pressures appear to be resolving in favour of the bulls. But we must not forget that the establishment, in the form of bullion banks particularly, are likely to resist upward pressure because they run short positions.
However, the worm is turning. Ongoing demand for liquidity in US money markets seems to be growing, which suggests systemic banking problems are increasing at a time when the global economy, which is run on dollars, is moving into recession. While public statements are mollifying, there are signs of official concern. The IMF issued a paper warning of a $19 trillion corporate debt timebomb, which is another dot to join with the problems in the repo market. And McKinsey issued their annual banking report, in which they stated that 60% of banks globally are unprofitable in terms of return on capital.
A credit crisis is a growing risk, and if bankers take it seriously (as they should) they will try to take avoiding action. It is the spectre of Irving Fisher’s warning from the 1930s about contracting bank credit undermining collateral values and guaranteeing bank failures.
For gold there is a hurdle to overcome, and that is the widespread belief that deteriorating economic conditions will lead to a demand for cash. That being the case, it is argued that financial assets will face a wave of liquidation, and that must include gold. Therefore, the gold price should fall on a crisis, not rise. This was what happened on the Lehman crisis.
Perhaps the difference this time is central banks appear to be anticipating a possible crisis and are already easing. It is therefore likely that a dash for cash will be offset by an expansion of narrow money, which would improve the outlook for precious metals and at the same time remove pressure to sell them for scarce dollars.
Silver now appears to be outperforming gold in the short run, which is generally bullish. Furthermore, in the context of monetary debasement beginning to spur precious metal prices generally, platinum has been badly neglected, which is our last chart.
This is probably the most interesting chart of all the precious metals. The price fell between 2011 and 2018 to return to the post-Lehman lows, driven by auto manufacturers switching to palladium and rhodium for catalytic converters. The chart is telling us that that is now fully factored in, and a base prior to a substantial move to the upside has been completed.
Bonanza Grade Silver Samples Everywhere
October 28 (King World News) – Eric King: “Your company has just released incredibly exciting results showing that you may have uncovered a massive silver discovery.”
Ivan Bebek: “We have stumbled upon a monster silver target with over 50 samples averaging above 200 grams of silver in a 4.5 square kilometer area. So this project has now reported jaw-dropping samples of up to 14 kilo silver and 23 grams per tonne of gold in one of the most prolific mining belts in the world.
As a company we are now going to be viewed as pulling off a ‘hat trick’ with a potential tier one gold discovery, a tier one copper discovery and we have now have a shot at a tier one silver discovery, with all three located in the Americas.
Our Curibaya project came together after 4 years of working and patiently waiting two key land acquisitions, which has some the most impressive abundance of silver on surface that we have seen in our careers – we are talking about several multi-hundred gram to multi-kilo silver samples over a large footprint. This is an indicator of what could be a monster silver deposit and the grades are truly world class. For shareholders in Auryn it’s the most exciting early days of uncovering this massive potential silver deposit.
It’s also exciting to have multiple tier one swings in our company as we head into one of the greatest bull markets in history that we believe will take place in gold, silver, and copper.
A Tier One Copper Swing
We are also on the cusp of making a world class copper gold discovery at our Sombrero project where we are on the verge of receiving our first ever drill permits for that massive project. This project has received tremendous attention from all of the largest mining companies in the world, and that includes the behemoths. This project may become one of the largest copper discoveries on the planet in the past two decades, and this has investors extremely excited.
The ‘Hat Trick’ – Gold
We had a massive surge in our share price on Friday when investors saw the latest drill results and realized we are now on the verge of hitting massive high-grade gold targets at Committee Bay.
The Perfect Trifecta
2019 has been defined by identifying all three tier one discovery opportunities, and 2020 will be defined by drilling them. So we are about to unleash the perfect trifecta of tier one discovery opportunities into a historic bull market.” Auryn Resources, symbol AUG in the US and Canada. To read today’s exciting press release CLICK HERE.
Michael Oliver’s (of MSA) audio interview has now been released CLICK HERE OR ON THE IMAGE BELOW
One Of The Most Important Interviews Of 2019
READ THIS NEXT! One Of The Most Important Interviews Of 2019: Michael Oliver – This Is About To Put Wind At The Back Of The Gold Market CLICK HERE TO READ.
More articles to follow…
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