Look at who just said the silver bull will match crypto madness, plus dollar troubles and a look at gold.
Silver Bull Will Match Crypto Madness
May 18 (King World News) – Graddhy out of Sweden: I posted the big breakout 2 weeks ago. As expected, it held last week, backtesting blue support line. This week we are breaking away from blue support line. If you do not think a bull in best-of-the-best junior pm miners can match a crypto bull, think again.
Peter Boockvar: Yesterday I mentioned that the euro was quietly at the highest level since late February vs the US dollar. Today it is breaking above $1.22 and the DXY is below 90 again for the 1st time since early January. I’m going to include a chart here again of the US dollar vs the US budget deficit and the US trade deficit. We can of course, big picture, include the behavior of the Federal Reserve and its influence on the reserve currency.
Budget Deficit As % Of GDP (WHITE)
US Dollar (ORANGE)
US Trade Deficit (WHITE), US Dollar (ORANGE)
Positive On Gold & Silver
The idea that the US dollar is the purview of the US Treasury is nonsense. Inherent in price stability is a stable dollar because the combination maintains the purchasing power of it. Without price stability you do not have a stable dollar and thus a reduction in purchasing power is seen, aka inflation. In response, gold is at a 4 month high and silver is at the highest since it become a Reddit meme on February 1st. Take away that one day spike, it’s the highest since September. I remain very positive on both…
Billionaire and mining legend Ross Beaty, Chairman of Pan American Silver, just spoke about what he expects to see in the gold and silver markets and also shared one of his top stock picks in the mining sector CLICK HERE OR ON THE IMAGE BELOW TO HEAR BEATY’S INTERVIEW.
In the face of the sharp sell off in US Treasuries in March after the big decline in February, foreigners picked up their buying big time led by China. Foreign buying of notes/bonds totaled a net $118.9b BUT that only mostly replaces the net selling of $135.3b in the 3 prior months. For all the talk of Japan taking advantage of a yield opportunity and low FX hedging costs, they only bought a net $3.6b of notes and bonds after selling a total of $10b over the 3 prior months. And, they were large sellers of T-bills (or at least let them mature and didn’t choose to roll).
China came in with net purchases of notes and bonds of $41.6b in March, about double the net sales in December thru February. Singapore bought almost $15b in March and all of Europe purchased $21b. Bottom line, while foreigners came back in March to ‘buy the dip’, they were only replenishing what’s been sold. Net, net, we can expect the percentage foreign ownership of US Treasuries to continue to decline, leaving it up to the US buyer, whether private or the Federal Reserve’s monetization to pick up the slack.
Foreign Ownership Of US Bonds Continues To Plunge
Foreign ownership of US marketable Treasuries is at 33% vs 42% in January 2020 and 50% in January 2015.
Also of importance…
Eric King: “Mike, you guys are finding more gold at Eau Claire according to today’s news. How important are these results and what do they do for Eau Claire?”
Mike Timmins: “These are key holes that really open up our Snake Lake target and the potential we have been pursuing since we started drilling late last year. We are seeing high grade, a new horizon of gold, and most of the holes we have drilled and are drilling have visible gold in them which is truly a compliment to the robust grade in the system. We have a great high-grade gold deposit, however we feel there is a strong potential to double or triple the resource and these holes support that thesis.
We have outlined exciting expansion and discovery programs at our Homestake and Committee Bay Project as well. We don’t feel the market is paying attention to these projects yet as we get to drill them for the first time this summer. The news flow and catalysts of drill results is going to be exhilarating as we will have continuous results over the next few months and we plan to start drilling our high grade Homestake Gold Silver project in the Golden Triangle in BC. Of course the home run new discovery potential at Committee Bay.
So we are drilling, results are pending with visible gold in them, and I believe we are one of the few companies that have three high quality gold projects with high quality ounces, which are all being drilled this year. We offer deep value with our current valuation primarily because we have not started drilling our other projects which we plan to this summer. Our projects are all in Canada, a great geopolitical location, and we will have a minimum of two drills turning through the rest of the year.
We have spent the last 6 months preparing for this move we are seeing in gold and we are extremely well positioned to capitalize with our high grade assets and robust exploration with potential to move the discovery needle. We anticipate a constant flow of news for the rest of this year from drill results on all three gold projects, so this this will be a huge year for our shareholders.” Fury Gold Mines, symbol FURY in Canada and the US.
***To listen to James Turk discuss the key breakout numbers for gold, silver and the mining stocks as well as where the prices of gold and silver are headed long-term CLICK HERE OR ON THE IMAGE BELOW.
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