Monday, 12 February 2018

Gold miners persistently lagging the metal

The latest downturn of gold brought the yellow metal to a Friday close of $1315.7, easing barely 1.22% over the week and still holding on to a tiny advance year-to-date.
However the HUI plunged 7.17% leveraging gold down sixfold. While miners had been persistently lagging the metals throughout 2017, their decline currently is aggravating.

Wednesday, 31 January 2018

End of the Palladium surge?

The Palladium price surpassed that of Platinum late September. An precedent dated to the beginning of the century. Since October 10, Palladium has been more expensive than Platinum, widening the gap throughout the rest of 2017.

Sunday, 10 December 2017

Pre-positioning for a January rally

For the seventh consecutive year, there has been no autumn precious metals rally. About the best we got were some strong September months, after which a new slide was taking grip, occasionally interrupted by a half hearted recovery attempt.

Thursday, 30 November 2017

Sunday, 29 October 2017

Persistently lagging the metals

The last downturn of gold and silver brought the yellow metal to a Thursday close of $1266.2 to end the week at 1273.2, easing barely 0.53% over the week. However the HUI plunged 5.31% leveraging gold down tenfold. Miners have been persistently lagging the metals for most of 2017. 

Saturday, 9 September 2017

Euro Gold: a foreign perspective on the recent rally

There have been plenty of market comments on gold breaking above $1300/oz and holding on. Geo-political tensions on the North-Korean long-range missile launches and on nuclear tests - the last one with an H-bomb - predominated.  As we write September, raising the debt ceiling is another tough issue, possibly propelling gold.

Sunday, 27 August 2017

Primero Mining: from heaven to hell

Primero Mining slid to the last but one position in the Canadian Gold Pulse database in terms of return since inclusion. Remarkably, this miner used to be one of the better performers in 2014, when the miner bear market had slashed mining stock valuations across the board.

Wednesday, 19 July 2017

Review of gold price volatility: 1973 till 2017

It’s often heard that gold takes the staircase up, but the elevator down. A gold rally would then consist in a gradual process of relatively small but consistent daily upward moves. The gold cartel (bullion banks and investment banks, backed by the FED) would not allow gold to rally over 2% daily.

Thursday, 15 June 2017

Is a 'Palladium - Platinum price inversion' in the cards?

A 'Palladium - Platinum price inversion' is it conceivable? Well, there has been a precedent:

Near the end of the 20th century, the days of cheap Palladium were numbered. Norilsk used to have ample Palladium supply after starting up its large Russian nickel mine. As the supply overhang disappeared in the late 1990's, the Pd price surged. Remember that gold quoted near its bear market bottom at that time. It didn't take much time for Palladium to leave behind gold. During 1999 Palladium was challenging the Platinum price, occasionally surpassing it on its rocky ride to the top.

Friday, 12 May 2017

Global mine production of gold and silver

While explaining very long wave patterns in precious metal prices, it is often stated that "low prices are the cure for low prices". The underlying rationale is that low prices impose marginal mine production to close down thereby diminishing global output.  Resulting high prices would then allow mining companies to ramp up production by bringing on line mines and ore layers that were not profitable at the much lower precious metal prices.  These simplifications are tending to overlook the essential.