Barrick Gold and NovaGold Resources’ proposed Alaskan gold mine finally received environmental clearance by the U.S. Army Corps of Engineers, the Canadian miners.
The project is expected to cost 6.7 billion, and produce 39 million ounces of gold.
Simon Black, the Sovereign Man has a wonderful website that holds a wealth of ideas for free spirited thinkers. He is the self described permanent traveller, international entrepreneur, investor and a free man, He just released an interesting article sharing his thoughts on gold, to his subscribers. There are many ways to take advantage of the big wave of growth in this sector. You can consider gold as insurance: buying physical gold, roughly 5-10% of your assets and having it sit in a safe haven vault. The second is to consider buying mining companies, from exploration to production. Take a look at WWPM under Made the Grade, or other pieces within Camp Chatter where we discuss the merits of gold.
We do not cover diamonds on this site but there is a connection and not simply because of mining. I work through a well known and respected precious metal dealer called World Wide Precious Metals and they have a diamond specialist. I mention this, not only as diamonds for investment but more out of consideration for gifts. The relationships he has with producers means that if you come in with the exact cut,colour, and of diamond you want he has always been able to find one at significantly better prices than at retail. So next time you are at Harry Winston's, Tiffany's or Birks find a ring, get the certificate (details) and send to me for a quote. Let's see if we can find you the exact type diamond for incredible value.
Last week we saw Morgan Stanley come out and make the announcement that they use gold as the marker for the dollar, for inflation. The World Gold Council just released a report that shows the correlation between gold and interest rates is growing dim, but gold and the US dollar is tracking predicatively. This is a short term analysis, so it is unsure if it is just shifted due to the chaos and volatility in the markets. It certainly lays credibility to the notion that gold still plays a massive role in global finance. It reminds us of those countries like China that keep their gold; Russia who have bought large quantities to become the 5th largest holder; and other countries like Germany, Italy and Turkey calling in their gold from 'safe keeping' in the US.
Turkey has joined the list of countries including Germany and Hungary repatriate gold home. Last year Turkey reclaimed 220 tonnes and whether this is a political signal to Trump or an economics indicator of lack of confidence in the US dollar, it adds more concern on what the future holds for $US.
Turkish media reports Erdogan saying:
"These debts should be in gold. Because at this point the karat of gold is unlike anything else. The world is continually putting us under currency pressure with the dollar. We need to save states and nations from this currency pressure.”"
Interesting link to a podcast on the 'under-captilized' resource industry. In terms of the size of today's funds, ETF's, and money managers it takes a small percentage shift to start driving the resource sector. There is a desperate need for many elements and minerals for computers, phones, electric cars and the green revolution in industry. People are starting to pay attention to, and acknowledging the need to address these issues and mining s a place we can start It is time for people to take a more active approach with there money. Tougher markets loom and it is time to stop being passive. Look to resources like gold, silver and copper. Look to the mining sector and resources companies meeting the needs of the modern world.
Rates remain unchanged today as the bank cites inflation and wage growth as key reasons. Personally, I see this as being a long term, heads up caution that rates will be continuing to move up for some time to get back to more reasonalbe historical levels. We all know that we must ease into correcting the situation our country and is bank has created for its taxpayers.
“We think the bank is on track to raise rates by July,” said Sal Guatieri, senior economist at BMO Capital Markets.
“Clearly any bad news on the trade protectionism front or NAFTA talks would delay the Bank of Canada or if we see the housing market weakening more than expected in response to the tougher mortgage rules,” Guatieri added.
Zimbabwe has offered to sell shares, primarily in gold mines which have been failing due to mismanagement. Confidence would be low in this region. Trust in the government would also be extremely low from outside investors as to the ability to turn around a mine without substantial oversight. Patrick Chinamasa, the Minister of Finance said government ministries would present privatisation plans to cabinet for each entity within 100 days, .The country nationalised a massive diamond mine in 2008 and has the possibilities of a major lithium discovery according to Reuters (https://af.reuters.com/article/investingNews/idAFKBN1FQ1CZ-OZABS): "To lure foreign investment into a mining sector that he says is under-capitalised and under-explored, Chitando has announced changes to mining laws, limiting indigenisation rules that mandate majority ownership for the state to just diamonds and platinum."
Even instituting regulations and laws in this country would require extreme caution and trust. Zimbabwe like South Africa are falling apart despite massive mining possibilities....and so the cycle continues.
Quebec lithium mining company Nemaska announced closing of the deal which provides financing structure to fund the construction, commissioning, working capital and reserve funds for its Whabouchi lithium mine and Shawinigan electrochemical plant (the "Project Financing") and also for general corporate working capital.
"We have made solid progress in our project financing endeavours over the past couple of weeks, firstly with a private placement with SoftBank, a global technology leader, and now with the signing of this agreement with Orion, a leading and well-regarded financier in the mining industry," said Guy Bourassa, President & C.E.O. of Nemaska Lithium. "This Streaming Agreement is a financing tool which limits shareholder dilution, lowers Nemaska Lithium's cost of capital, and is under terms which are both competitive and flexible," Bourassa continued.
The price of copper is down for the quarter, roughly 7% but rising imports have coincided with a build-up of inventories with stockpiles on the Shanghai exchange nearly doubling in 2018. As predicted and expected China needs an enormous amount of copper and iron for its new silk road project: One Belt One Road Initiative.
February customs data from China showed import volumes of unwrought copper totalled 436,000 tonnes in March. First quarter shipments came to 1.23m tonnes, up 7.3% compared to Q1 2017.