Another week of wild trading, but here is an important gold and silver update, plus a surprise.
September 5 (King World News) – Ole Hansen, Head of Commodity Strategy at SaxoBank: “Gold’s double top at $1555/oz attracting some attention with rising stocks and lower bonds reducing support. Key support at $1517/oz unlikely to be tested unless US 10-yr breaks above 1.55% (See below).
Gold’s $1,517 Support Unlikely To Be Tested
Silver’s impressive breakout during the past couple of weeks has yielded a 15% return but also, at least in the short-term, raised concerns about a correction…
Mining legend Ross Beaty (Chairman Pan American Silver) is investing in a company very few people know about. To find out which company CLICK HERE OR ON THE IMAGE BELOW.
During the past two months the gold-silver ratio has fallen to 79.7 from above 93 and is now less than 4% away from its five-year average. On that basis the relative cheapness that drove value investors into silver has started to fade. With an RSI reading into overbought territory, further upside may now hinge on gold’s ability to break resistance at $1550/oz. Something it may struggle to do, at least in the short-term. (See below).
SILVER: Short Term Overbought…May Need Gold To Break Above $1,550 To See Further Upside
Platinum almost kissed $1000 o/n and after outrunning gold by 17.5% in less than two weeks we may see it begin to struggle going further on its own. The discount to gold has narrowed to $550, a level where it stopped twice during July (see below).
SURPRISE: Platinum Nearly Hit $1,000 As Discount To Gold Narrowed To $550
Also of importance…
Eric King: “John, although K92 has had a pullback after a huge run, the underlying cash flow for the company has to be exploding with the price of gold near $1,550.”
$100 Million Of Profit, All-In Sustaining Costs Below $700
John Lewins, CEO: “The PEA shows that our all-in sustaining costs will be below $700 an ounce. And so when you are sitting with over $1,500 an ounce as the gold price, K92s margins are pretty substantial at well over $800 an ounce. And going forward, with the ramp up in production and the decrease in the all-in sustaining cost to produce, at these metals prices our long term shareholders understand that we will be generating a lot of cash. With production for 2020 slated to be 120,000 ounces of gold, at $1,500 gold we are talking about roughly $100 million of net profit.
Mining Friendly Country
And, Eric, we are talking about a very mining friendly country that is already working with Barrick Gold and others to renew their mining licenses. This is a country that is saying very categorically that they want mining development, they want companies coming in and creating jobs and opportunities for economic growth. Our license isn’t even up for renewal until 2024, so the recent reaction in our share price over this issue was ridiculous.
Rapidly Expanding High-Grade Gold Production
We also have 6 drill rigs operating and results pending, and this year every single hole has been hitting the vein system, which demonstrates how robust this high-grade gold system really is. This large scale drill program has us in a position to shortly announce a new resource estimate, which will lead to an updated PEA that will be the catalyst for us to expand production beyond the 120,00 ounce production target that is already underway. So the current pullback in the share price represents a huge buying opportunity for those looking to take advantage of what we anticipate will be temporary weakness in the stock before the share price heads to new all-time highs.” K92, symbol KNT in Canada and KNTNF in the US.
Gold On Target For $1,800, Leverage 2008 vs Today & More
READ THIS NEXT! Gold On Target For $1,800, Leverage 2008 vs Today, Bonds, Oil And What Would Be Bad News For The World CLICK HERE TO READ
More articles to follow…
In the meantime, other important releases…
$1,000 Silver, China’s Banking System Leveraged Nearly 50-1, Plus Look At What Just Hit The Highest Level In 40 Years CLICK HERE TO READ
“Poison” For The Entire Global Financial System Is Spreading CLICK HERE TO READ
$2,764 Gold, What A Summer For Silver, A Crazy World, Plus Chart Of The Day CLICK HERE TO READ
Silver Surges 5% And Gold Rallies Near $1,550 As Stocks Tumble But Here Are The Big Surprises CLICK HERE TO READ
We Are Now Reaching The Monetary Policy Endgame CLICK HERE TO READ
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