Thursday, August 22, 2019

Top Gold Miners Production Declined 15% While Costs Escalate

by Steve St. Angelo, SRSRocco Report:

Even though the gold price increased in 2018, the top gold miners production declined while costs continue to escalate. Output at three of the top gold miners in the world fell in the first half of 2018 compared to the same period last year.  With rising costs due to higher energy prices, on top of decreasing production, the top gold miners free cash flow declined precipitously in 2018.

While many analysts focus on the company’s profits or net income, I like to pay attention to its free cash flow.   Free cash flow is nothing more than subtracting capital expenditures from the company’s cash from operations.  Because the gold mining industry is very capital intensive, the company’s free cash flow is a better indicator of financial health rather than the net income.

GOLD AND SILVER RISE DUE TO GLOBAL ROUT: GOLD UP $11.85 TO $1233.65/SILVER IS UP 22 CENTS TO $14.56

by Harvey Organ, Harvey Organ Blog:

ITALY REFUSES TO BACK DOWN FROM THE DEMANDS OF THE EU TO REDO ITS BUDGETARY DEFICIT: 4 MAJOR STORIES ON THIS TONIGHT/MORE STORIES ON KHASHOGGI/OIL ALSO CRASHES/MORE SWAMP STORIES FOR YOU TONIGHT

Sorry Permabulls, It’s Not Different This Time – Got Gold?

by Dave Kranzler, Investment Research Dynamics:

An inverted yield curve has historically been the most accurate indicator of an impending or concurrent recession. The inversion during late 2006 and most of 2007 is a good example. Studies have shown that curve inversions precede a recession anywhere from 6 months to 2 years. I would argue that, stripping away the affects of inflation and data manipulation, real economic activity has been somewhat recessionary for several years.

The shelf-life of financial topics is about as long as the lifespan of a mayfly (about 24  hours). Several months ago, a debate raged about the significance of the inverted yield curve (short term rates are higher than longer term rates). Most perma-bull pundits who populate mass financial media advised their minions to ignore the yield inversion because “it’s different this time.”

World Produces More Gold In A Day Than It Did For An Entire Year During 16th Century

by Steve St. Angelo, SRSRocco Report:

After Columbus discovered the New World in 1492 and the Spanish began to extract vast amounts of gold and silver from Mexico and South America during the 16th century, the global production of precious metals would grow considerably over the following centuries.  However, the rise of gold production during this period still pales in comparison to what is taking place in the modern gold mining industry today.

2019 Money Metals Outlook

by Clint Siegner, Money Metals:

Precious metals markets enter 2019 with an opportunity to shine. Several major bullish drivers are lining up to start the New Year – including technical, fundamental, monetary, and political drivers.

Before delving into each of them, let’s consider where we’ve been over the past 12 months.

To be frank, 2018 wasn’t a particularly bright year for gold and silver prices. Gold will finish with a slight loss; silver with a larger loss just shy of 10%.

STOCK INVESTORS, LIKE ALFRED, TO LOSE 98% OF THEIR INVESTMENT

by Egon Von Greyerz, Gold Switzerland:

Imagine a casino full of slot machines that all guarantee a constant high return. All you need to do is to put in a bit of money and you will get an incredible income stream for life.

Well, this is exactly what the stock market is, namely a remarkable slot machine with a continuous flow of guaranteed payouts. No skill is required, and relatively little money. And the wonderful thing is that you don’t even need to be lucky since the machine just continues to spew out money without the need for either a strategy or dexterity.

GOLD DOWN $1.75 TO $1201.15/SILVER DOWN 15 CENTS TO $14.00

by Harvey Organ, Harvey Organ Blog:

DESPITE THE DROP IN PRICE HUGE INCREASES IN COMEX OPEN INTEREST PLUS EFP’S/CHINA IS ENDURING ITS FIRST CURRENT ACCOUNT DEFICIT DUE TO INVESTORS CASHING IN THEIR CHINESE BONDS/ TODAY IS THE LAST DAY FOR ITALY TO RESUBMIT ITS BUDGETARY DEFICIT: IT FILED TODAY THE SAME BUDGET/EXPECT A MAJOR INCURSION INTO THE GAZA STRIP BY THE ISRAELIS/CRUDE CRASHES AS THE SAUDI ABANDON PRODUCTION CUTS/LOOKS LIKE MORE MUELLER INDICTMENTS COMING IN THE NEXT FEW DAYS/MORE SWAMP STORIES FOR YOU TONIGHT

Gold Hedges Against Currency Devaluation and Cost Of Fuel, Food, Beer and Housing

by Mark O’Byrne, Gold Core:
– Gold hedge against currency devaluation – cost of fuel, food, housing
– True inflation figures reflect impact on household spending
– Household items climbed by average 964{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}
– Pint of beer sees biggest increase in basket of goods – rise of 2464{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}
– Bread rises 836{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}, butter by 1023{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} and fuel (diesel) up by 1375{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}
– Gold rises 2672{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} and hold’s its value over 40 years
– Savings eaten away by money creation and negative interest rates
– Further evidence of gold’s role as inflation hedge and safe haven

Hitler’s Gold Hunters Reportedly Stumble Upon Likely Hiding Place of Fabled Amber Room

from Government Slaves:

The hatch leading to the bunker which may house the legendary treasure trove appears to be blocked by a tree which grew on top of it, which “proves that no one has opened the manhole for the last several decades”, one of the treasure hunters noted.

Dedicated treasure hunters who chase rumours may have discovered the location of the fabled Amber Room, a trove of amber and jewels that used to adorn the palace of the Russian royals near St. Petersburg, which was plundered by Hitler’s troops during World War II, the Daily Express reports.