The Federal Reserve cut interest rates on Wednesday (July 31, 2019) for the first time in more than a decade. It was trying to keep America’s record-long economic expansion going by insulating the economy from mounting global threats.
Source: US Federal Reserve
Donald trump slaps 10% tariff on $300bn in Chinese goods
August 1, 2019, just a day after Fed rate cut, US President Donald Trump said the US would place a 10 per cent tariff on $300bn in additional Chinese goods. This escalation of the trade war between Washington and Beijing is a new threat to the global economic outlook. The announcement unsettled financial markets on Friday, which led to haven buying of bonds and a broad equity sell-off.
Gold chart shows 6-year technical breakout above $1,380. Head and shoulder pattern indicates imminent reaching of $1,660/oz
With US presidential election coming in 2020 and the Fed’s having little stomach for a market correction, analysts agree that the path of least resistance for interest rates is down. This will bode very well for gold and silver shares in the next 12 to 18 months.
Silver could rocket to $28 as the gold/silver ratio hits a quarter-century high
At 90, the gold/silver ratio is the highest it’s been in 25 years. The average level since 1990 has been 67.
Silver performed well historically after an extremely high gold/silver ratio reading is reached, with an average gain of close to 10% over the ensuing 12 months after the gold/silver ratio hits 90.
Silver could hit $28/oz in the near term, catching up to gold.
|Best stock trade for doubling down on silver|
|Prophecy (TSX:PCY, OTCQX: PRPCF) is the trade for doubling down on rising silver prices. Prophecy’s Pulacayo-Paca project has 30 million indicated silver ounces, 21 million inferred silver ounces; and only 30% of the known mineralization explored. With 95 million Prophecy shares outstanding, investors are getting half an ounce of silver in the ground for every share of Prophecy. Talk about extreme leverage!
Smart investors are pouring into Prophecy, whose silver project grades are at 256g/t open pit and 455g/t underground. Those high grades offer a potentially fat margin, and rank Pulacayo near some of highest-grade silver deposits in the world (silver resource and grade from www.prophecydev.com).
Prophecy (TSX:PCY, OTCQX: PRPCF) share price trades at the rock bottom price of $0.17 and stands to double if investors value in-ground silver at $1 per oz. At last check, silver trades at over $16/oz.
With past drill intercepts such as 1,031 g/t Ag over 25 meters (PUD 109), and 1,248 g/t Ag over 10 meters (PUD 118), Prophecy is preparing to drill in the fall. Investors will no doubt rejoice again over this giant sleeper discovery and bid up the stock handsomely.
Visit the Pulacayo presentation (pdf) for details and check the latest Prophecy prices (TSX:PCY, OTCQX: PRPCF). Don’t miss the chance; start a Prophecy position at below 20 cents by visiting your broker (links below).
China is buying more gold as the trade war drags on; Russia joins the freight
The rise China’s gold holding reflects the Chinese government’s “determined diversification” away from dollar assets, according to Argonaut Securities (Asia) Ltd analyst Helen Lau. She added that retail demand has also picked up. At this rate of accumulation, China could buy 150 tons in 2019, she says.
“It’s a diversification away from the U.S. dollar, particularly given the trade tensions and the potential technology cold war that’s evolving,” says Bart Melek, global head of commodity strategy at TD Securities. “We have to remember that gold is nobody’s liability.”
Russia’s total gold reserves top $100 billion as central bank adds another 600K ounces in June
The Russian Central Bank bought 200,000 ounces in May, 550,000 in April, 600,000 in March, one million in February, and 200,000 in January.
During the last decade, Russia’s gold reserves have gone from 2% to 19% (as of the end of 2018 Q4), according to the World Gold Council.
|With central banks rushing to buy gold, other institutions and retailers will surely follow.|
|Prophecy (TSX:PCY, OTCQX: PRPCF) is a hidden gem with maximum silver exposure to your portfolio.
Start a Prophecy position at rock bottom prices by visiting your broker (links below).
With real estate crumbling, investors rush to gold and silver
|With the housing market toppling, it’s no surprise investors are turning to gold and silver, the hard assets whose value has stood the test of time.|
|Silver and gold are now the only game in town. Let Prophecy (TSX:PCY, OTCQX: PRPCF) protect your investments from fallen real estate, crypto, cannabis, and FAANG stocks.
Ray Dalio says gold will be a top investment during the upcoming “paradigm shift” for global markets
Hedge fund multi-billionaire kingpin Ray Dalio is seeing a case for gold as central banks (1) get more aggressive with policies that devalue currencies and (2) are about to cause a “paradigm shift” in investing.
Dalio, the founder of the world’s largest hedge fund, wrote in a LinkedIn post that investors have been pushed into stocks and other assets that have equity-like returns. As a result, too many people are holding these types of securities and are likely to face diminishing returns.
“I think these are unlikely to be good real returning investments and that those that will most likely do best will be those that do well when the value of money is being depreciated and domestic and international conflicts are significant, such as gold,” the Bridgewater Associates leader said.
|Silver bargain of a lifetime, with massive insider buying|
|Prophecy (TSX:PCY, OTCQX: PRPCF) is trading at 17 cents and $15 million market capitalisation. This is one twentieth (1/20) of the value of its neighbor, the silver explorer New Pacific (TSX-V: NUAG). It has a market capitalisation of $300 million.
Management has hitherto been focusing on operations rather than marketing. This is about to change as they are about to embark on a roadshow in US, Canada, and Europe to tell this exciting silver story.
The sleeping silver giant is about to be awoken by the fed
Prophecy has no debt and only 95 million shares outstanding. Its Pulacayo-Paca silver project has 30 million indicated silver ounces, 21 million inferred silver ounces in the ground. With only 30% of the known mineralisation drilled, Prophecy’s Pulacayo-Paca project is truly a sleeping silver giant to be re-discovered by the silver investors. With rising silver prices and insiders having bought hundreds thousands shares in recent months, there may never be a better time to buy Prophecy (TSX:PCY, OTCQX: PRPCF).
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained on this webpage (including statements which contain the words “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, and similar expressions) and statements related to matters which are not historical facts constitute “forward-looking” information within the meaning of applicable securities laws. Such forward-looking statements, which express management’s expectations regarding Prophecy’s future growth, results of operations, performance, business prospects, and opportunities, are based on certain factors and assumptions. They involve known and unknown risks and uncertainties that may cause the actual results, performance, or achievements to be materially different from the future results, performance, or achievements expressed or implied by such forward-looking statements.