InvestMacro

By Admiral Markets

Source: Economic Events May 20, 2020 – Admiral Markets’ Forex Calendar

Gold bulls made a clear statement at the start of the week by pushing the precious metal to new yearly highs.

Nevertheless, technically the bearish divergence in the RSI(14) on a daily time-frame is still on the table. So, while the door is open for a stint at the current Gold all-time high around 1,920 USD, Gold bulls still should stay cautious in regards to overly aggressive long engagements, even though from a fundamental perspective, the path higher seems set.

Fundamentally the driver higher can surely be found in the testimony from Fed chairman Powell in front of the US congress already last week on Wednesday.

While his remarks on his assessment of the current US economic situation and the taken measures of the Fed to counter the economic downturn driven by the ‘Corona lockdown’ didn’t surprise, the comments on the Fed not having a plan in regards to negative rates, despite US president Trump’s tweets last Tuesday and the market has priced-in Fed funds going into the negative in the futures market at the beginning of May for the first time ever, were mostly ignored with Gold pushing higher.

In fact, the statement seems clear here: “We expect the Fed to do everything they can and flood markets with trillions of US-Dollar if necessary – and thus push the price of Gold higher.”

Indeed, this expectation was partly confirmed from Powell last Sunday in CBS “60 Minutes” where Powell said, “In the long run, and even in the medium run, you wouldn’t want to bet against the American economy” while acknowledging that the unemployment rate could hit as high as 25%.

If today’s FOMC Minutes are interpreted in this direction as well, even though only between the lines, chances seem good that we already see the current all-time high in Gold get in our focus into the second half of the week.

Technically, the picture stays bullish as long as we trade above 1,660 USD:

Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between February 18, 2019, to May 18, 2020). Accessed: May 18, 2020, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2015, the value of Gold fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, in 2019, it increased by 18.9%, meaning that after five years, it was up by 28%.

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Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

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3. Each of the Analysis is prepared by an independent analyst (Jens Klatt, Professional Trader and Analyst, hereinafter “Author”) based on the Author’s personal estimations.
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5. Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results.
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By Admiral Markets

By Orbex

Record Rise in Jobless Claims

The latest data released from the Office of National Statistics this week showed that the number of people claiming unemployment benefits in the UK rose by its highest level on record from March to April.  2.1 million people claimed unemployment over the period. This marked a jump of 69% on the prior month. It is the biggest monthly increase since the ONS began collecting data in 1971.

Joblessness on the Rise

The jobless figure, which rose by 856,500 over the month provides a clear picture of how the economy is suffering as a result of the ongoing COVID-19 lockdown.

The UK officially went into lockdown on March 23^rd. As of May 7^th, this was extended through to the next review on June 1^st.

Some parts of the economy have been re-opening on a small scale. However, the vast majority of hospitality, retail, and leisure businesses remain closed. This means that the labor market data is unlikely to improve in the near term. May’s data should confirm an extension of this weakness.

Traders Increasing Expectations of Negative UK Rates

The dire state of the UK economy is drawing increased attention from traders who have now started to increase speculation that the BOE will introduce negative rates over the next 12 months.

This view was bolstered this week by comments from BOE member Silvana Tenreyo who said that “The BOE has not ruled out any policy tool”.

Going further, Tenreyo said:

“My personal view, which comes from the reading of the European experiences, is that negative rates have had a positive effect in the sense of having a fairly powerful transmission to real activity.”

BOE Cites Uncertainty in Outlook

The BOE has now reduced rates to record lows of just 0.10%. This is in a bid to buffer the economy during the ongoing disruption caused by the virus along with restarting QE of £200 billion.

While the BOE kept rates on hold at its recent May meeting, traders are expecting that the central bank will be forced to ease further in the coming months.

The BOE itself has noted that, while it expected the economy to recover gradually following the end of lockdown, there is a high level of uncertainty in the outlook.

Risks as Lockdowns Ease

As lockdown restrictions ease now, incoming health data will be keenly watched to see if there is any reoccurring spike in infections. If so, this could lead to stricter lockdown measures needing to be introduced.

In such a situation, the UK labor market would suffer an even worse blow, further adding to the misery seen across the economy.

GBPUSD Recovers Back Above 1.2190

Following the breakdown below the 1.2190 support level, price has since recovered back above the level. While above here, bulls will be looking for a rotation back towards the 1.2586 level. This is a key topside level and capped the recent recovery off 2020 lows.

However, if we turn lower again, focus will shift back onto a test of deeper support at the 1.1929 level. This is the last key structural level ahead of the main 2020 lows at 1.1413.

By Orbex

By IFCMarkets

Drought may damage coffee crops

Somar Meteorologia agency reported the rainfall in the Brazilian state of Minas Gerais last week was only 57% of its historical average. This state is the main producer of arabica coffee. The emerging strengthening of the Brazilian real against the United States dollar may further contribute to a possible increase in coffee prices. The Vietnamese National Center for Hydro-Meteorological Forecasting reported rainfall in Central Highlands, the country’s main region for growing Robusta coffee, has 30% less rainfall than normal. Despite the pandemic of coronavirus, coffee exports from Vietnam in January-April 2020 increased by 4.5%. American marketing company IRI reported arabica coffee sales in the US in April fell by 20%. It can be assumed that amid rising unemployment due to quarantine caused by Covid-19, part of consumer demand “flows” from one sort of coffee to another. 1 ton of arabica now costs $ 2,350, while Robusta – $ 1,190, which is much cheaper. Note also that $ 1100 is the minimum for Robusta since it began being traded in 2009.

Summary of technical analysis

Market Analysis provided by IFCMarkets

By Lukman Otunuga, Research Analyst, ForexTime

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Sector expert Michael Ballanger anticipates the come-from-behind winning run of silver.

By The Gold Report – Source: Michael Ballanger for Streetwise Reports   05/18/2020

In the late 1930s, a young stallion was born in Lexington, Ky., at the legendary Calumet Farm, that went on to win seventeen major races from 1940–1942, including the Triple Crown (Kentucky Derby, Preakness and Belmont Stakes) in 1941. Named after his brood-mare mother, Dustwhirl, this record-breaking stallion went by the moniker of “Whirlaway,” and was famous not only for his speed and power but also for his “quirkiness.”

Whirlaway had a bad habit of “drifting out” to the middle of the track, taking him out of contention in races that were clearly his to win. This behavior was so troublesome that trainer Ben A. Jones fitted the colt with a special full-cup blinder over his right eye while preparing for the Kentucky Derby, and after cutting a tiny hole in it to allow a limited field of vision, Whirlaway stayed on course and blew the field away with a record-breaking eight-length victory.

Another trait of this magnificent horse was his preference for lagging the field, and one of the trademark phrases used countless times as the horses rounded the Clubhouse Turn was “and here comes Whirlaway!” The crowds would roar as he turned on the afterburners, passing the field in a blaze of acceleration and focus.

What, pray tell, does this have to do with the metals markets or COVID-19 or the inflation-deflation debate? Nothing. Nothing at all. But what it does perfectly describe is the behavior of the one precious metal that we love to hate and that we hate to love— silver.

Which of the metals, packed with superlative fundamentals and above average technicals, tends to “drift out” into the middle of the track, aimlessly lagging its precious metals brethren, gold and the gold mining equities? Silver. Since this golden bull market exploded out the starting gate in May 2019, there have been countless times that I have wanted to fit a full-cup blinder over silver’s right eye to keep it on course.

During the summer of 2019, as I was contemplating the launch of GGM Advisory, gold broke out of a multiyear ceiling at US$1,375/ounce and rocketed to the $1,565/ounce. I watched in abject horror as the GSR (gold-to-silver ratio) flew to 95, leaving behind a trail of heartbroken silver bugs, aghast at the underperformance and outraged at the blatant interventions that capped it.

Whether it is silver’s Whirlaway-like “quirkiness,” or the odious machinations of the bullion banks, the metal has had a habit recently of exhibiting aberrant behavior, which has cost me and many other investors not only a lot of money but also a loss of willpower, where our bullish conviction is wrung out of us by the absurdity of silver’s tape action.

However, you will recall what I said about Whirlaway’s preference of “lagging the field?” There isn’t a day that goes by when I don’t look at the silver quote and see that mighty stallion, lollygagging at the back of the precious metals field, totally ambivalent to the thundering hooves of GLD, GDX, GDXJ and a myriad of junior miners. To describe it as “maddening” is understatement of the highest order. To call it “bizarre” is testimonial to the criminality of the exchange upon which it resides. Whatever the case, it has been agony.

However, just as I have watched the horse come from last to first in a mere quarter-mile of pulsating excitement, I have always known that my little silver “Whirlaway” was going to make his move, exactly as happened in 1941, when he captured the Triple Crown. Sure enough, it was only eight days ago that I issued Email Alert (EA) 2020-80 and wrote: “I am finally confident enough to assume that the GSR (gold-silver ratio), currently at 111, is heading back to 80 over the balance of 2020.” I then proceeded to “damn the torpedoes” and doubled down on SLV (IShares Silver Trust), while adding another huge swath of the July $17 calls.

Call it whatever you wish—luck, clairvoyance, acumen (or dementia)—Friday May 15 had gold sporting a 0.67% gain and silver up a huge 4.33% (!), taking the GSR to its lowest post-crash reading at 103.65.

To put this into perspective, shortly after gold bottomed in late 2015, the GSR rose to around 83 by February of the following year, with silver “lagging the field,” just like the last two months. Then, as if injected with amphetamines, silver vaulted forward, taking the GSR from 83 to 66 in three months.

Understanding silver’s “quirkiness” is many times difficult, and trading around its idiosyncratic nuances can be very costly, but once you know that it has finally taken the bit in its teeth, silver gives one a ride fifty times as exciting as any amusement park “coaster” or Elon Musk stock promotion.

Writing about silver conjures up memories of superstitions of days gone by. Forecasting a sharply higher price is like being in the dressing room between second and third periods, up 3–0, and saying out loud the word “shutout.” It is like Bill Murphy’s LeMetropole Cafe website, where we beg him to not show a rocket blasting off with the word “silver” on it. No dearth of leprechauns, rabbits feet, four-leaf clovers or Amazonian virility symbols are enough to ward off the silver demons, because we have endured the silver jinx all too many times.

The point of this missive is this: False breakouts notwithstanding, when silver finally catches a bid, as happened in late 1979, early 2016 and August 2019, the moves are breathtaking. At the very least, a test of the September 2019 highs at US$19.75/ounce appears to be the most likely target.

The period of seasonal weakness referred to in earlier missives is mainly for gold; silver is not as suspect because it responds to different stimuli not related to seasonality. In the 2020-80 EA, I spoke of a flat gold price and a GSR of 80. If that holds, with gold at US$1,750, silver will print US$21.875, a 44.3% advance from the May 8 entry at US$15.15.

Another important consideration is this: Silver’s underperformance was one of my causes for concern for the Senior and Junior Gold Miner exchange-traded funds (ETFs; GDX:US & GDXJ:US), and now that silver has assumed a leadership role, the odds of a meaningful correction in gold (and the miners) are diminished. While I have elected to stand aside on the GDX/GDXJ combo, the massive July call position in SLV will compensate in spades if we get the Whirlaway charge.

Let us not forget that our second largest portfolio position remains Aftermath Silver Ltd. (AAG:TSX.V) (CA$0.28 / US$0.208 per share); behind the mighty Getchell Gold Corp. (GTCH:CSE), so we have enormous leverage to both rising gold and galloping silver prices. As the post-lockdown period unfolds and you are trying to figure out what silver is going to do, remember the immortal words of Derby announcer Dave Johnson in 1941:

“. . .and h-e-r-e c-o-m-e-s Whirlaway!”

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

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Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Aftermath Silver, Getchell Gold. My company has a financial relationship with the following companies referred to in this article: Aftermath Silver, Getchell Gold. I determined which companies would be included in this article based on my research and understanding of the sector. Additional disclosures are below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Aftermath Silver. Please click here for more information. Within the last six months, an affiliate of Streetwise Reports has disseminated information about the private placement of the following companies mentioned in this article: Aftermath.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Aftermath Silver, Getchell Gold, companies mentioned in this article.

Charts provided by the author.

Michael Ballanger Disclaimer:
This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

( Companies Mentioned: AAG:TSX.V,
GTCH:CSE,
)

In this conversation, Bob Moriarty of 321gold and Maurice Jackson of Proven and Probable discuss the coronavirus, the stock market, what lies ahead for gold and silver, and junior mining companies with potential.

By The Gold Report – Source: Maurice Jackson for Streetwise Reports   05/18/2020

Maurice Jackson: Joining us for a conversation is Bob Moriarty, the world-renowned, bestselling author and founder of the websites 321gold and 321energy.com.

Bob Moriarty: Hi, Maurice. It’s good to talk to you.

Maurice Jackson: Always a pleasure, sir. I was revisiting our last interview entitled, “He Nailed It,” where you discuss virtually all that’s come to fruition in the last 60 days. And I have to give credit where credit is due, sir, you absolutely nailed it, which is precisely why we’re delighted to speak to you today.

Bob, let’s begin with a phrase that you’ve cautioned readers about: when a financial guru states, “This time, it’s different.” As we look at the world today, is it different this time?

Bob Moriarty: Absolutely.

Maurice Jackson: Bob, in what regards is it different?

Bob Moriarty: We have the stock market hitting new highs, and we have 30 or 40 million Americans out of work. And if that isn’t different, I don’t know what is.

Maurice Jackson: Beginning with COVID-19, what has your attention regarding the virus that many people may be overlooking and need to really consider?

Bob Moriarty: Everybody’s lying and has an agenda. You’re not being told the truth by anybody, and there are some fairly simple questions that anyone can ask and they can come up with conclusions for themselves. That’s one of the points that I try to make in my books: It was to teach people how to think for themselves. So, I’m going to put it to you. Do you believe the United States are reporting the number of deaths in the United States? Do you believe that’s accurate information? Too high or too low?

Maurice Jackson: I don’t believe it’s accurate information. I believe they may be tying other deaths into that number. So I believe maybe that the numbers probably would be lower.

Bob Moriarty: So let me ask another question that’ll make it a lot clearer. The population of the United States is 4% of the world’s population. If the numbers that are being reported are accurate, is there any way the United States could represent 33% of the cases?

Maurice Jackson: No, that doesn’t seem logical to me.

Bob Moriarty: Absolutely not. Couldn’t possibly happen. Here’s what’s happening. Even Dr. Deborah Birx admitted what’s true. You can die with the coronavirus or you can die of the coronavirus. If you die with the coronavirus and it’s written down as pneumonia, the hospital gets $13,000. If you die of the coronavirus, then obviously we cured your pneumonia, but you just happened to die, it was the virus. The hospital gets $39,000. They have a financial incentive to over-report the numbers. The CDC [Centers for Disease Control and Prevention] came out with some statistics showing the difference between dying of the virus and dying with the virus, and the numbers are overstated by about 500%.

Maurice Jackson: That’s truly a shame that there’s that financial incentive in that regard. When you hear of normalcy, do you foresee us being able to return to a pre-COVID-19 way of life? Or is this the new normal?

Bob Moriarty: No, we will be able to return it, return to a pre-COVID-19.

Maurice Jackson: When do you foresee that coming?

Bob Moriarty: Ten years.

Maurice Jackson: Ten years?

Bob Moriarty: I always try to justify my opinion with facts. The stock market hit a high in September of 1929. I’m sure you’re aware of that. When did it get back to the same number that it was in September of 1929? How long did it take?

Maurice Jackson: The 1960s, or am I completely wrong here?

Bob Moriarty: You’re pretty close. It was 1954.

So there’s two issues you should be talking about. Now you’re addressing the COVID-19 issue or the coronavirus issue. The depression is far more important—the depression that you and I were talking about a year ago, that I said was going to start in October, and we talked about in January (interview here), when I reiterated that we were going to go into a depression. Everybody was going to get hurt. It’s here. If we come out of it inside of 15 years, it will be pretty remarkable.

Maurice Jackson: You and I had a discussion prior to this interview and you inquired about my background on classical education, which I didn’t have any, but to my amazement, based off of our discussion, you referenced someone named Cassandra. Can you fill us in on that?

Bob Moriarty: One has to go back to the Iliad and the Odyssey, Greek mythology. Cassandra was the daughter of King Priam. She was gifted with the ability to predict the future. However, she was cursed in that nobody believed her. And strange enough—and you and I were talking about this—I make a lot of predictions that people think I’m crazy, and a lot more of them come true than people want to admit. But I’m looking at a consensus, and when everybody says the stock market’s going to go up, I know that it’s going to go down. And when everybody says gold is going to go down, I know that it’s going to go up. I pay great attention to natures of psychology and consensus. And if you do that, you’ll be right a lot of the time.

Maurice Jackson: Speaking of psychology, I have a chart before us from Google Trends that my son, Brayden, and I were reviewing. And we noticed that when we put it in the search term COVID-19, it spiked to 100 in March and it has fallen off dramatically. Now, although he’s nine, he drew a conclusion that people were getting relaxed and there was a greater potential in his view for more infections. Now, I hope we’re incorrect. Sir, you’re a big advocate of using Google Trends. What does this chart indicate to Bob Moriarty?

Bob Moriarty: People are bored.

Maurice Jackson: And if they’re bored, what kind of situation does that really create for us?

Bob Moriarty: Well, we don’t really know. And your son is absolutely correct that having a recurrence of the virus is certainly a possibility.

But there are three issues that we need to think about, one issue being how dangerous is the virus? The secondary issue [is] how dangerous is the depression that we’re in? And the third issue that, quite bluntly I absolutely missed, is being quarantined for a period of time, you eventually get to a point you start going stir crazy and you can absolutely see it. There has been a lot of social unrest in the last month and quite bluntly it’s because everybody is bored silly being at home. They want to do something else.

So it’s certainly possible that there’s a recurrence in the virus. My big problem with the virus is, it’s been going on for five months. We still don’t know how deadly it is. We don’t know what the cures are for it. They’ve got all these agendas. You have any idea what the average age of the people in Italy who died was?

Maurice Jackson: I’m going to assume, not knowing that number, in the 60s?

Bob Moriarty: Seventy-nine and a half.

Maurice Jackson: Well that’s—I mean, you’re close to your expiration date and I hate to say it in that regard, but I mean, there’s a number of factors that go into that number of mortality.

Bob Moriarty: When you’re 79.5 years old, don’t go to the store and buy green bananas.

Maurice Jackson: Might be a good way to put it. Well, let’s discuss the stock market. And again, it fits into the narrative of the depression. The Dow hit an air pocket in March and it descended fast, and last month it’s been trying to climb again. Is this the right time for investors to get back into general equities?

Bob Moriarty: Anybody who invests in the general stock market in the next 15 years is begging to give their money away. There’s only one safe haven.

Maurice Jackson: And we’ll get to that here shortly. So let me ask you this, coincidentally. If general equities are not the place to be, how about the contrarian sector of the stock market—resource stocks and, in particular, junior mining companies. Is this a place where someone should have some exposure?

Bob Moriarty: Yes.

Maurice Jackson: Speaking of the junior mining companies, are there any that have your attention at the moment, and why?

Bob Moriarty: A whole bunch of them. First of all, commodities in general are at the lowest price they’ve been in 55 years relative to the stock market. So commodities—all of them, soy beans, wheat, corn, copper, lead, zinc, gold, silver, platinum, palladium—everything is cheap in relative terms. And even in the depression, you still need commodities.

But the real key is, for the mining stocks, it is such a small door that when people try to fit through it, it’s going to get very crowded. So overall, I like the market. You had mentioned some stocks, tell me which one you’d like me to cover.

Maurice Jackson: Let’s begin with Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX).

Bob Moriarty: Lion One is a junior that has 100% ownership of the only alkaline deposit in the entire world owned by a junior, the Tuvatu Gold Project (3D Vrify). It’s on the Ring of Fire in Fiji. The Tuvatu is approximately 20 kilometers away from a mine that has produced 7 million ounces of gold. LIO is currently drilling, and assay results should be coming in from Australia soon. Lion One Metals has a number of holes that are in for assaying.

This stock has all the potential of being a home run, and they currently undervalued in my opinion. I think people will do very, very well owning Lion One. If gold and silver do what Lawrence Lepard says I agree: The production stories and pre-production stories are going to be the best investments you could make. Now, I’ve talked in the past about stocks that have tenfold potential. Lepard and I both believe that gold and silver, they go into hyper-inflation, so there are a lot of stocks that you could be buying mow that have hundred-fold potential.

Maurice Jackson: How about Hannan Metals Ltd. (HAN:TSX.V; HANNF:OTCPK)?

Bob Moriarty: Hannan Metals is down in Peru, and they have an unusual form of silver-copper sedimentary deposit. I think it’s going to be a giant district—I mean literally hundreds of kilometers—and Hannan is very cheap. I think they’re $0.20 a share. They have a CA$14 million market cap. Quinton Hennigh, who is my best friend, is an advisor to the company. I own shares. I think it’s a great company. I think it will do very well.

Maurice Jackson: Speaking of Dr. Hennigh, he’s also affiliated with Lion One Metals, the aforementioned company, and speaking of his companies, how about Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX) and Irving Resources Inc. (IRV:CSE; IRVRF:OTCBB)?

Bob Moriarty: They’re moving right along. Quinton has been very quiet about Novo Resources. We know that he’s trying to do a deal on the Millennium Mill. Millennium was very poorly run, very poorly managed. I wrote about that years ago and said so. They went into bankruptcy. Their main creditor has taken control of the mill. It costs them $30,000 a day to keep the electricity turned on. So I think there’s a lot of incentive for the creditor to do a deal with Novo, and it would turn Novo into a producer, literally immediately.

Irving Resources is drilling. They are drilling at the Omu Project and have sent the core off for assaying, which is now en route to Canada. Akiko Levinson is doing a remarkable job there. And I think it’s going to be another home run.

Maurice Jackson: We were just in Peru. Let’s go to Nicaragua. How about Calibre Mining Corp. (CXB:TSX.V; CXBMF:OTC.MKTS)?

Bob Moriarty: Calibre is in production. They’ve picked up two mines from B2Gold Corp. (BTG:NYSE; BTO:TSX; B2G:NSX), which was a fantastic acquisition. They have really good management. B2 Gold released the two newly acquired project to Calibre as they were expanding their portfolio and efforts in the Far East and Africa, so they didn’t need their Nicaragua assets. Calibre’s in production, and they’re absolutely going to get enormous benefit from the price of oil going down by two-thirds.

Maurice Jackson: One more. How about GSP Resource Corp. (GSPR:TSX.V)?

Bob Moriarty: GSP Resources is a really interesting stock. I own some. I participated in a placement, and their advertisers. When I looked at it, I couldn’t quite believe the numbers. The Alwin Project is next to the Highland Valley copper mine in central British Columbia, and Highland Valley is drilling toward the Alwin Project, and they have very similar geochemical signatures. I believe that Highland Valley will eventually do a deal with them. GSP Resources has only have 12 million shares outstanding, with a market cap of $2 million. And in Vancouver, if you’ve got a secretary and a three-line phone, you should be worth $5 million.

Maurice Jackson: All right, sticking with investment opportunities, let’s discuss the physical precious metals. Are you surprised at the precious metals price response in the last 60 days?

Bob Moriarty: No. I’ve been saying that same thing for years. Why would I be surprised? This is what I said was going to happen.

Maurice Jackson: Well, I think what a lot of investors were looking at, with all the printing and devaluation of the currency, the immediate response was silver should jump, gold should jump. And gold has actually made a little move, but silver has kind of remained stagnant. Which metals have your attention, at least, and why right now?

Bob Moriarty: In 5,000 years, the highest the gold-silver ratio ever got to was 101 ounces of silver to buy one ounce of gold. In the middle of March, it went up to 131:1.

Silver is the easiest call for an investment that I have ever seen. Period. I don’t care that gold’s at the top. I don’t care if gold stays sideways and I don’t give a care if gold goes down. Silver is going to gain value substantially against gold. It literally is the best time in 5,000 years to be buying silver. And I am not a silver bug. Silver bugs are nuts. I mean, they’re bat crazy. They worship silver. Gold and silver are not something to be worshiped. They represent real value, and I believe that we will go back to a gold and silver standard, but there’s nothing you need to worship about it. But as an investment, silver is a good deal.

Maurice Jackson: There’s another metal that you and I like, and that is platinum. What are your thoughts on platinum right now?

Bob Moriarty: Same thing with platinum, but it’s not as extreme. Platinum’s in the same position today that rhodium was in three or four years ago. Everybody hates it. Nobody wants it. I’m going to eat a worm.

Maurice Jackson: Just for some giggles here, rhodium, as you referenced, three years ago was $600 an ounce. And as of March, rhodium reached up to $13,000. Readers can view our call on rhodium (here).

Bob Moriarty: Yes.

Maurice Jackson: Look at those numbers. And again, I don’t know of any of my online peers, then and or now, referencing the move that rhodium has made. It’s just remarkable. This is that classical education Cassandra call.

And as a reminder, I am licensed to buy and sell physical precious metals through Miles Franklin Precious Metals Investments. I would be honored to have an opportunity to earn your business. The contact details are available below.

Sir, what keeps you up at night that we don’t know about?

Bob Moriarty: Strange enough, what kept me up last night was the power went out and I couldn’t sleep without some lights on.

Maurice Jackson: Well, you would think you’d want it dark. OK, but you needed some lights. Everyone’s different. OK.

Bob Moriarty: When the lights go out in this little town, it is really, really dark.

Maurice Jackson: I can imagine. All right, last question, and that is, what did I forget to ask?

Bob Moriarty: I think you pretty much covered it.

Maurice Jackson: Awesome. Well, great to hear that. Bob, for someone listening that wants to get more information about your books and your work, please share the website addresses.

Bob Moriarty: 321gold and/or 321energy. Readers can find my work on Amazon and put in Robert Moriarty; I published a number of books. I’m working on another one right now. And one of them, Basic Investing in Resource Stocks, is perfectly timed. If you do not own some resource stocks right now, you understand neither economics nor history. And I stole that line.

Maurice Jackson: Well, before you make your next bullion purchase, make sure you call me. I’m a licensed representative for Miles Franklin Precious Metals Investments, where we provide a number of options to expand your precious metals portfolio from physical delivery, offshore depositories, and precious metal IRAs. Call me directly at (855) 505-1900 or you may e-mail [email protected].

Finally, please subscribe to www.provenandprobable.com. We provide mining insights and bullion sales. Subscription is free.

Bob Moriarty of 321gold and 321energy, thank you for joining us today on Proven and Probable.

Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.

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Disclosure:
1) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Lion One Metals, Calibre Mining, Hannan Metals, Novo Resources and Irving Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: Lion One Metals, Calibre Mining, Hannan Metals, Novo Resources and Irving Resources are sponsors of Proven and Probable. Proven and Probable disclosures are listed below.
2) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Lion One Metals, Calibre Mining, Hannan Metals, GSP, Novo Resources and Irving Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: Lion One Metals, Calibre Mining, Hannan Metals, Novo Resources, GSP and Irving Resources are sponsors of Proven and Probable. Proven and Probable disclosures are listed below.
3) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Lion One Metals. Click here for important disclosures about sponsor fees.
4) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
5) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own shares of Irving Resources, a company mentioned in this article.

Proven and Probable LLC receives financial compensation from its sponsors. The compensation is used is to fund both sponsor-specific activities and general report activities, website, and general and administrative costs. Sponsor-specific activities may include aggregating content and publishing that content on the Proven and Probable website, creating and maintaining company landing pages, interviewing key management, posting a banner/billboard, and/or issuing press releases. The fees also cover the costs for Proven and Probable to publish sector-specific information on our site, and also to create content by interviewing experts in the sector. Monthly sponsorship fees range from $1,000 to $4,000 per month. Proven and Probable LLC does accept stock for payment of sponsorship fees. Sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

The Information presented in Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. You should not make any decision, financial, investments, trading or otherwise, based on any of the information presented on this forum without undertaking independent due diligence and consultation with a professional broker or competent financial advisor. You understand that you are using any and all Information available on or through this forum at your own risk.

Images provided by the author.

( Companies Mentioned: HAN:TSX.V; HANNF:OTCPK,
IRV:CSE; IRVRF:OTCBB,
LIO:TSX.V; LOMLF:OTCQX,
NVO:TSX.V; NSRPF:OTCQX,
)

By CentralBankNews.info

Japan’s central bank will hold an unscheduled monetary policy meeting on Friday, May 22, “on possible new measures to provide funds to financial institutions.”
The Bank of Japan (BOJ) said in a statement the chairman of the policy board had called the meeting to discuss “monetary control matters” based on a staff report that was compiled following a request by Chairman Haruhiko Kuroda at the April 27 policy meeting.
BOJ’s next meeting on monetary policy was scheduled for June 15 and 16.
Separately, Japan’s Economy Minister Yasutoshi Nishimura told a news conference in Tokyo today that Japan was ready to deploy all available fiscal and monetary means to protect jobs and businesses from the widening fallout from the coronavirus pandemic, according to Reuters.
He was also quoted saying it would not be good if Japan were to slip back into deflation just because there was too much concern over fiscal health.
Japan officially fell into recession in the first quarter of this year as its gross domestic product shrank 0.9 percent following a fall of 1.9 percent in the fourth quarter of 2019, the country’s first recession since late 2014.
On an annual basis, GDP shrank 2.0 percent in the first quarter after shrinking 0.7 percent in the previous quarter.
Inflation was steady at 0.4 percent in March and February.
At its April policy meeting, the BOJ slashed its forecast for growth and inflation, and boosted its asset purchases, also known as quantitative easing.
BOJ forecast the economy would shrink between 0.4 percent and 0.1 percent in the 2019 fiscal year, which ended on March 30, down from its January forecast of growth of 0.8 to 0.9 percent.
For fiscal 2020, which began on April 1, BOJ forecast the economy would shrink a further 5.0 to 3.0 percent before expanding between 2.8 and 3.9 percent in fiscal 2021.
BOJ forecast consumer prices would decline 0.7 to 0.3 percent in the current fiscal 2020 before rising to 0.0 to 0.7 percent in fiscal 2021, well below its 2.0 percent target.
In its April policy statement, BOJ said it would not hesitate to take additional easing measures if necessary and expects short- and long-term interest rates to remain at their present or lower levels.
BOJ also boosted it purchases of commercial paper and corporate bonds to 7.5 trillion yen for each asset class from an earlier limit of 1 trillion, and boosted the purchases of exchange-traded funds (ETFs) and real estate trusts (J-Reits) to 12 trillion and 180 billion, respectively, from an earlier limit of 6 trillion and 90 billion.
BOJ also said it would be buying Japanese government bonds, or JGBs without an upper limit so the 10-year yields remain around zero percent.
Previously, BOJ had a target of buying some 80 trillion yen of government bonds annually but it has also used a combination of negative interest rates – 0.10 percent on banks’ excess reserves – and so-called “yield curve control” since September 2016 to ensure bond yields remain low.

 www.CentralBankNews.info

Shares of Moderna Inc. traded higher, setting a new 52-week high price, after the firm reported positive interim results in its Phase 1 study of mRNA Vaccine (mRNA-1273) against SARS-CoV-2.

By The Life Science Report – Source: Streetwise Reports   05/18/2020

Clinical-stage biotechnology company Moderna Inc. (MRNA:NASDAQ), which focuses on developing therapeutics and vaccines utilizing messenger RNA (mRNA), today announced “positive interim clinical data of mRNA-1273, its vaccine candidate against novel coronavirus (SARS-CoV-2), from the Phase 1 study led by the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH).”

The company stated that “mRNA-1273 was generally safe and well tolerated, with a safety profile consistent with that seen in prior Moderna infectious disease vaccine clinical studies.”

The firm advised that “based on the interim Phase 1 data, the Moderna-led Phase 2 study will be amended to study two dose levels, 50 µg and 100 µg, with the aim of selecting a dose for pivotal studies.” The company mentioned that it believes that it will establish a dosage of between 25 µg and 100 µg in its Phases 3 study, which it anticipates will commence in July, subject to finalization of the clinical trial protocol.

The company’s Chief Medical Officer Tal Zaks, M.D., Ph.D., commented, “These interim Phase 1 data, while early, demonstrate that vaccination with mRNA-1273 elicits an immune response of the magnitude caused by natural infection starting with a dose as low as 25 µg…When combined with the success in preventing viral replication in the lungs of a pre-clinical challenge model at a dose that elicited similar levels of neutralizing antibodies, these data substantiate our belief that mRNA-1273 has the potential to prevent COVID-19 disease and advance our ability to select a dose for pivotal trials.”

Moderna’s CEO Stéphane Bancel remarked, “With today’s positive interim Phase 1 data and the positive data in the mouse challenge model, the Moderna team continues to focus on moving as fast as safely possible to start our pivotal Phase 3 study in July and, if successful, file a BLA…We are investing to scale up manufacturing so we can maximize the number of doses we can produce to help protect as many people as we can from SARS-CoV-2.”

The company explained that “mRNA-1273 is an mRNA vaccine against SARS-CoV-2 encoding for a prefusion stabilized form of the Spike (S) protein, which was selected by Moderna in collaboration with investigators from Vaccine Research Center (VRC) at the NIAID, a part of the NIH.”

The firm noted that to date, greater than 1,400 individuals have participated in its infectious disease vaccine clinical studies in the Australia, Europe and the U.S. The company added that it now has nine development candidates in its prophylactic vaccines modality including vaccines against respiratory infections, vaccines against infections transmitted from mother to baby and vaccines against highly prevalent viral infections. The firm indicated that so far it has demonstrated positive Phase 1 data readouts for seven prophylactic vaccines and highlighted that its CMV vaccine is currently in a Phase 2 dose-confirmation study and that its investigational Zika vaccine (mRNA-1893), which is currently in a Phase 1 study, was granted FDA Fast Track designation in August 2019.

Moderna Inc. is a clinical stage biotechnology company headquartered in Cambridge, Mass., engaged in transformative medicines based on messenger ribonucleic acid (mRNA). The firm is pursuing mRNA science to minimize the undesirable activation of the immune system by mRNA and to maximize the potency of mRNA once in the target cells. The company has a diverse development pipeline of 24 programs with multiple clinical studies underway. Its therapeutics and vaccine development programs span infectious diseases, oncology, cardiovascular diseases and rare genetic diseases.

Moderna began the day with a market capitalization of around $24.8 billion with approximately 371.2 million shares outstanding and a short interest of about 6.00%. MRNA shares opened 29% higher today at $86.14 (+$19.45, +29.16%) over Friday’s $66.69 closing price and reached a new 52-week high price this morning of $87.00. The stock has traded today between $75.66 and $87.00 per share and is currently trading at $84.28 (+$17.59, +26.38%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

( Companies Mentioned: MRNA:NASDAQ,
)

By Jameel Ahmad, Global Head of Currency Strategy and Market Research at FXTM

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

By Elliott Wave International

– People across the entire planet remain very much aware of the COVID-19 health threat.

The global disruption associated with the pandemic far surpasses other major health scares in modern history.

Even so, you may recall 2009 news articles similar to this one from the New York Times (June 11, 2009):

It came as no surprise [on June 11, 2009] when the World Health Organization declares that the swine flu outbreak had become a pandemic.

The disease has reached 74 countries … .

And, going further back in time, the World Health Organization provided this July 5, 2003 update on the Severe Acute Respiratory Syndrome, known as SARS:

To date, 8439 people have been affected, and 812 have died from SARS.

The reason for briefly reviewing the swine flu and SARS is to point out that, as surprising as it may be, both outbreaks marked not the start, but the end of a downtrend in emerging markets stocks.

That’s a big reason why, amid the COVID-19 scare, Elliott Wave International’s April 2020 Global Market Perspective, a monthly publication which covers 40+ worldwide financial markets, showed this chart and said:

The dramatic drop has created an enormous [bullish] opportunity in the form of a completed contracting triangle pattern in emerging markets overall, as shown by the Vanguard FTSE Emerging Markets ETF, which is the largest emerging markets ETF by market capitalization.

The current, May Global Market Perspective follows up with this chart of the MSCI Emerging Markets Index. The last quarterly bar shows the substantial jump in prices since the March lows. Our global analyst remarked:

That this [price rise] has begun amid the COVID-19 pandemic only adds to the evidence supporting it: Asian-Pacific and emerging markets also began bull markets amid the SARS epidemic of 2003 and the Swine Flu pandemic of 2009, as the chart shows.

Of course, COVID-19 and past outbreaks didn’t “cause” stock prices to climb. The point — as our Global Market Perspective has said — is that epidemics tend to occur at the end of major sell-offs.

“Tend to” is the key phrase here, of course. There are no guarantees in financial markets. Besides, this outbreak is a full-blown pandemic with social and economic consequences that have already far surpassed anything we saw in 2003 or 2009.

Having said that, emerging markets did rebound, which is something Global Market Perspective subscribers were prepared for, and it’s worth noting. What happens next depends on the Elliott wave patterns in market psychology, which our global analysts are tracking in emerging markets (and developed ones) right now.

You can get free access to analysis from our global market experts in “5 Global Insights You Need to Watch,” which is a short, 5-video series (plus, two quick reads).

You get our latest forecasts for cryptocurrencies, crude oil, interest rates, deflation and the future of the European Union — all in just 13 minutes.

The 5 videos and 2 excerpts are straight from the Global Market Perspective — so yes, this is premium, subscriber-level.

All that’s required to access “5 Global Insights You Need to Watch” is a free, Club EWI membership.