Posts tagged 'Gold and Silver'

Gold bullion1 continued to deliver strong performance and was up 17.38% YTD through June 30, 2020, and 26.36% YOY. At the same time, gold mining equities (SGDM)2 have gained 25.88% YTD, and 44.00% YOY as of June 30. This compares to -3.08% YTD and 7.51% YOY returns for the S&P 500 TR Index.6 Silver posted substantial gains in June and is on the move again; silver is up 1.99% YTD and 18.88% YOY as of June 30.

FUNDAMENTAL BACKDROP

Short-Term Risks

• Fed is tapering its liquidity injections and the balance sheet is actually falling.
• Trade war between China and the US is escalating.
• Risk of a Wave 2 of COVID-19 and renewed lockdowns, crashing the economy and stocks too in the short-term.
• Bankruptcies accelerate across all sectors.

Eric Sprott discusses a volatile week in precious metals and looks ahead to an interesting month of July.

Eric Sprott discusses the precious metals markets and the mining shares.

Beginning with the fundamental backdrop, we’re seeing an increasing number of headlines and States signaling a resurgence of COVID-19, or “Wave 2”, and talk of renewed lockdowns. This comes on the heels of the Fed’s taper of liquidity, which I discussed last week. This spells disaster for the economy and a double whammy for stocks.

We warned about this move many months ago and just 6 days ago we issued a research post suggesting Gold had cleared major resistance and would start a rally mode to push above $2000 – possibly above $2100. Well, guess what happened right after we made that statement? Yup – Gold started to rally higher and is currently trading near $1790 – about to break $1800 for the first time in 2020.

With COMEX gold getting very near new 2020 highs, concern is growing that COMEX silver is not coming along for the ride. Let's give it a few days and then check back.

The Fed has now tapered liquidity injections to $80 billion per month in U.S. treasury bonds compared to rapidly rising government deficits and debt and the massive increase in the supply of bonds as a result.

Eric Sprott discusses events that impacted the prices of gold and silver over the course of the past week.

Eric Sprott provides analysis of recent developments in the gold and silver markets as well as commentary on some of his recent investments.

Eric Sprott discusses the global economy and the rationale for owning precious metals and the mining shares.

The Perth Mint is churning out Gold and Silver coins at a rapid pace, and we’re seeing that ease some of the supply issues. Their Kangaroos in both metals are amongst the lowest priced 1 oz. coins out there, with purities of 0.9999%. That said, premiums remain very high, which suggests that although supply has improved slightly, demand remains high.

Eric Sprott discusses factors driving precious metal prices higher and assesses the terrific performance of the mining shares.

Both Gold and Silver Futures have been struggling to rally above recent high levels since the start of the global stock market collapse related to the COVID-19 virus event. Yet, the Junior Gold Miners appear to be telling us the Precious Metals market is boiling hot.

Eric Sprott talk about the recent price moves and break down all the gold and silver news you need as we head into May.