Silver Miners’ Q1’20 Fundamentals

By Adam Hamilton – Re-Blogged From Silver Phoenix

The silver miners’ stocks have surged higher since mid-March’s COVID-19 stock panic, clocking in some big and fast gains.  Nevertheless, this long-struggling sector remains vexing.  By mid-May as their latest earnings season was wrapping up, the silver stocks were lagging the gold stocks’ powerful upleg.  And the silver miners’ Q1’20 operational and financial results were disappointing compared to the gold miners’.

Silver and its miners’ stocks have had one heck of a roller-coaster ride in recent months.  With primary silver miners a dying breed, and silver stocks languishing deeply out of favor for years, there are only a couple silver-stock ETFs trading in the US.  The leading one remains the SIL Global X Silver Miners ETF.  And it is still tiny, a rounding error with just $527m in net assets in mid-May.  Silver stocks are left for dead.

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You Can’t Just Print More Gold

By Frank Holmes – Re-Blogged From Gold Eagle

“I think there is a strong likelihood we will need another bill.”

That’s according to Treasury Secretary Steven Mnuchin, who supports additional fiscal stimulus to combat the economic impact of the novel coronavirus—within reason.

The secretary’s statement comes after the House passed a record-shattering $3 trillion relief package, though leaders in the Senate have said they will not put it up for a vote. Senate Majority Leader Mitch McConnell has made it clear that the next coronavirus bill “cannot exceed $1 trillion,” according to reporting by Axios.

Even so, the U.S. government’s response is already massive, dwarfing anything that’s come before it.

Oil Price Boom Expected Following Pandemic Crash

If history is a guide, an oil price boom is coming after the pandemic-generated crash.

While the near-term demand picture is highly uncertain, as people reconsider their travel and work habits, this latest bust, the worst of them all, is unlikely to hasten the demise of oil.

“The only way to get away from the boom-bust cycle is to get off of oil,” said Bob McNally, president of Rapidan Energy Group and the author of a book on the topic called Crude Volatility.That’s really tough because there are no scalable substitutes. As a result, we expect a thirstier world will collide into insufficient supply, and crude prices will have to rise sharply to balance the market.”

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European Lawmakers to Consider Tougher Climate Law

Such goals are required if the world is to stick within limits scientists say are needed to avoid devastating fallout from global warming, the lead author of the document, Swedish lawmaker Jytte Guteland, said.

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Mexico’s President Is Betting Big Against Renewables

By Irina Slav Re-Blogged From Oilprice.com

It sounds like a news report out of yet another dystopian novel: Mexico is halting grid connection for new solar and wind power projects. In a world rushing to produce clean energy, Mexico has suddenly stood out like a sore thumb. But, as usual, there’s more to the story.

The country’s National Energy Control Center, or Cenace, announced it would suspend grid connections of new solar and wind farms until further notice earlier this week. The motivation behind the decision was the intermittency of solar and wind power generation, which, according to the state-owned power market operator, could compromise Mexico’s energy security in difficult times.

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Gold: The Never Normal

By John Ing – Re-Blogged From Gold Eagle

During the Great Depression, stocks lost 90 percent of their value, people lost savings and jobs. Today there are a record 33 million jobless Americans, double the 15 million jobless in the Thirties or 25 percent of the population then. And today, there are long food lines that rival those of the Great Depression. Yet looking at the stock market and its robust snapback rally, the juxtaposition between the comeback and an economy in freefall is contradictory. Of interest is that at the onset of the Great Depression, stocks actually rallied 50 percent, before losing 90 percent of their value three years later. And, looking for clues about the future from the bond market is futile given the Fed’s dominant presence. While there are similarities, they are differences.

Yet few are putting forward the consequences of the inexorable rise in debt to save the world and fewer are looking at a “never normal” future.

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World Now Faces ‘Monetary Armageddon’

By Mike Gleason – Re-Blogged From Gold Eagle

Mike Gleason (Money Metals Exchange): It is my privilege now to interview our good friend, Greg Weldon, CEO and President of Weldon Financial. Greg has decades of market research and trading experience specializing in the metals and commodity markets and he even authored a book back in 2006 titled Gold Trading Boot Camp where we accurately predicted the implosion of the U.S. credit market and urged people to buy gold when it was only $550 an ounce. He’s made some fantastic calls over the last few years here on our podcast and it’s great to have him back with us.

We did speak to you back at the end of February before all this madness started. At the time, COVID-19 had begun seriously impacting economic activity in global markets, maybe not so much in the U.S. Now, just two months later, more than 30 million people have filed for unemployment, GDP was deeply negative in the first quarter and figures to be even worse here in Q2. But the equity markets are acting as if the worst is behind us. We got a major correction followed by an almost relentless rally. Our take is that equity markets are completely disconnected from reality. They are hitched, instead, to the Fed’s magic money machine. What is your take on how stock markets are behaving here, Greg?

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