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Another Big Month For The Silver Price?

Another Big Month For The Silver Price?

Precious metals investors are wondering if the Silver Rally will continue in September.  After the silver price reached nearly $30 in August, it has been consolidating lower over the past few weeks.  However, silver tried to surpass the $29 level but fell last week along with the broader markets.  So, the trend for silver in September may rely upon the broader markets.

I discussed this in my newest YouTube video update, Another Big Month For The Silver Price?  In the video, I explain some of the forces that will impact the silver price in September.

Furthermore, the $26 level on silver’s weekly chart is a significant support level going back ten years.  As you can see, once silver broke above the $26 level in late 2010, it remained above it until 2013.

We need to keep an eye on the broader markets as they will be one of the larger drivers of the gold and silver prices in September.  However, at some point, I believe the precious metals will DISCONNECT from the broader markets as investors move into gold and silver to protect wealth.

If you have not seen this article, it’s worth a read as Peru’s silver production declined in July, suggesting that the virus is still impacting the mining industry in the country.

With Peru’s silver production declining in July, this could cause more issues in the silver market as investors continue to move into the shiny metal.

CHART OF THE WEEK: Primary Silver Miners REAL COST Higher Than Published All-In-Sustaining Cost

CHART OF THE WEEK: Primary Silver Miners REAL COST Higher Than Published All-In-Sustaining Cost

The chart of the week shows that some of the leading primary silver miners total REAL COSTS are higher than their published All-In Sustaining Cost.  My analysis suggests that the companies’ All-In Sustaining Costs (AISC), are not really “All-In.”  So, I quickly did my calculations based on these companies’ adjusted earnings.  If I used their net income, their estimated Breakeven would be much higher.

In the chart below, the four primary silver mining companies (if we can still call some of them that) posted their AISC for Q1 2020.  The biggest JOKE of them all is Hecla, which reported a low $11.06 All-In Sustaining Cost for silver.  Well, that’s surprising when Hecla suffered a $17 million net income loss for the period.  So, how could Hecla be losing money if its All-In Sustaining Cost was $11.06 when they received $16.94 per ounce for their silver during Q1 2020?

It’s quite simple… the All-In Sustaining Cost is a BOGUS METRIC used to confuse and bamboozle unsophisticated investors… and it works like a charm:

So, if you scan across the chart above, you will see the individual company’s AISC in BLUE, while the RED BARS show my simple estimated Breakeven for each. Endeavour Silver gets the TAKE ME OUT THE WOODSHED AWARD because it’s losing money hand-over-fist ever since it had to shut down its El Cubo Mine, a COMPLETE WASTE of a mine that should have never been acquired by the company.

In a nutshell, if you are a new investor looking for HOT silver mines to invest, do me a favor and pay no attention whatsoever to the All-In Sustaining Cost metric.  I need to do more analysis in this area to help investors from buying the WORST CANDIDATES in the industry.

Important Factors Impacting The Gold & Silver Supply And Price

Important Factors Impacting The Gold & Silver Supply And Price

The majority of analysts still don’t understand that gold and silver are based on two different price or value functions.  To understand the future forecasts for precious metals, investors need to the difference between the two value functions.

In my newest video update, Important Factors Impacting Gold & Silver Price And Supply, I discuss in detail the two different price functions and why the current commodity-based mechanism differs from the precious metals “Store of Value.”

In the video, I explain why the “commodity-priced mechanism” is important as a floor for the gold and silver prices.  Unfortunately, because Harry Dent doesn’t understand this mechanism, he continues to put out faulty and incorrect analysis on the gold price.  Dent stated in his April 13th video update that during the next deflationary collapse of the markets, gold would head back down to $900-$1,000 or the lows of 2008 at $700.

Dent’s gold forecasts continue to be wrong because he fails to incorporate the impact of “ENERGY” and the “COST OF PRODUCTION” on the gold mining industry.

I updated Barrick and Newmont’s combined total production cost versus the gold price for Q1 2020, and was quite surprised.  Again, I explain why I don’t see gold heading anywhere near $700 due to the significant increase in cost to produce the yellow metal since 2006 when gold was the same price.

This video took longer to publish then I had planned due to the research.  I was quite surprised to see Barrick and Newmont’s total production cost rise to nearly $1,400 an ounce for Q1 2020 versus the $1,272 average for 2012, when oil prices were over $100 a barrel.

…click on the above link to read the rest of the article…

The Coming Exponential Silver Price Movement

The Coming Exponential Silver Price Movement

As the global highly-leveraged debt-based financial system comes under serious stress, investors are going to finally realize that the silver market is very tiny and extremely undervalued.  This is when we will likely see the exponential silver price movement.  And, it’s not a matter of “IF,” but rather a case of “WHEN.”

While most precious metals analysts focus on the systemic risks in the financial system to own Silver, I believe the real problem has to do with the HUGE ISSUES we are now facing with ENERGY.  In my newest video, The Coming Exponential Silver Price Movement, I discuss the two reasons why I believe we are going to BIG MOVE in the silver price.

In the video, I show why the huge U.S. Total Debt to GDP of 346% is unsustainable due to the coming collapse of the U.S. Shale Oil Industry.  Without oil production growth, there is no GDP growth. And, when there is no GDP growth, then the entire highly-leveraged debt-based financial system starts to disintegrate.

When Americans are faced with the task of “Protecting Wealth,” they will find out that “PAPER” or “DIGITS” will not make the CUT.  Why?  Paper money and Digits are based on future energy production.  Thus, they are ENERGY IOU’s.  However, Silver is money or wealth because it is a store of Energy Equivalent Value.

Also, in the video, I discuss some updated charts on U.S. Physical Silver Investment from 2010-2018 (Source: Metals Focus Silver Investment Report for the Silver Institute– OCT 2019):

…click on the above link to read the rest of the article…

What The Gold-Silver Ratio Says About The Future Silver Price

What The Gold-Silver Ratio Says About The Future Silver Price

In my recent youtube video, Amazing Silver Setup & Stock Market Update, I had a few comments stating the selloff of silver and rise in the stock market suggested that my analysis was incorrect.  I find this sort of short-term thinking quite interesting when I noted that the information in the video was presented to occur over the next 1-2 years.  Furthermore, in looking at my Youtube analytics of that video, the average watch time was about 10 minutes.  The video was 24 minutes long.

Unfortunately, the attention span of individuals today isn’t what it used to be.  So, even though the material is presented in detail, many people don’t even take the time to either read or watch it in its entirety.  Moreover, when someone replies that the silver price selling off since the video was produced doesn’t understand that markets trade over a LONG PERIOD OF TIME.  Anyone who is concerned with the silver or gold price on a daily basis (not including professional traders), needs to realize that TRENDS TAKE TIME.

Also, the naysayers that claim the precious metals analysts have been wrong since 2012 tend to overlook the massive money printing, the enormous increase in debt and the continued disintegration of the global oil industry.  If I am not getting my point across, let me provide the following chart that shows just how quickly things can fall apart when investors have been BAMBOOZLED by the Fed and Wall Street:

How did Bear Stearns go from nearly $90 a share down to $2 in a relatively short period?  How did the market not realize the big problems at Bear Stearns had taken place years prior to its selloff??  The market was oblivious due to the type of rubbish put out by Wall Street analyst CNBC’s Jim Cramer on March 8th, 2008 stating the following:

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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