Citigroup estimates silver could surge to $40 an ounce in the next 12 months due to a recovery in industrial demand and strong investor appetite for precious metals. Analysts including Max Layton wrote in a note that silver will outperform gold because it is “more levered than gold to inflation overshoots, rebounding manufacturing activity.”
The metals remain in a trading range as do the mining stocks likely due to the both the upcoming election and the announcement of the next stimulus bill, which is coming closer to both parties agreeing on. I don’t think we will get one before the Nov 3rd.
This was another week full of production results from gold and silver producers. This is far and away the most companies I’ve ever seen reporting quarterly production numbers instead of waiting until earnings. Again, this is likely because investors who know production numbers ahead of earnings could lead to buying earlier, pushing up stock prices.
Silver has taken a lot of signal for gold and while more volatile. The news cycle effecting gold has resulted in a number of false breakouts for silver that caught a number of technical traders by surprise. We have seen a breach of the long established trend support line that never turned in to a further move to the downside and a break to the topside as traders tried to digest and second guess the stimulus package news.
Today silver is looking a bit heavy and another close below trend…
The best performing precious metal for the week was silver, up 5.97 percent, perhaps related to Goldman Sachs suggesting investors go long with the boost seen from a greater expansion of solar energy. Gold rose for a second straight day on Thursday on hopes that Congress will provide another round of stimulus for the economy. The yellow metal was then up 2 percent on Friday morning on a weaker U.S. dollar.
Silver had its best quarter since 2010, up a massive 27.62 percent for the three months ended September 30. Gold also had a strong quarter, up 5.89 percent despite a weak September. Holdings in gold-backed ETFs saw an eighth straight quarter of expansion. So far in 2020 they have added around 860 tons.
James McDonald, President and CEO of Kootenay stated: “We are excited about the resource and grade potential of these breccias and stockworks because they offer potential for both high grades and large tonnages.
Over eight years, 15 traders at the biggest U.S. bank caused losses of more than $300 million to other participants in precious metals and Treasury markets, according to court filings on Tuesday. JPMorgan admitted responsibility for the traders’ actions. The Justice Department filed two counts of wire fraud against the bank’s parent company but agreed to defer prosecution related to the charges, under a three-year deal that requires the bank to report its remediation and…