investmentwatchblog--2020-11-23--Why Gold Could Be Heading To $5000

Why Gold Could Be Heading To $5000

Gold prices were already on a tear amid wild pandemic , economic and electoral uncertainty , with big banks predicting $ 3,000 gold … Right before Biden ’ s electoral victory , JPMorgan had called another 5 % price hike in a “ blue wave ” .
Though Trump loves gold and adorns everything with the precious metal , the precious metal itself was banking on a Biden win .
Why ?
Because what it loves more than anything is the Biden-backed promise of monetary stimulus .
And today is no different .
But the best way to take advantage @ @ @ @ @ @ @ at the center of the next major discovery … Where will the next major gold discovery be ?
The Canadian province of Quebec has long been renowned as a hotspot for gold seekers across the globe… .
But that doesn ’ t mean its time in the spotlight is over just yet .
Home to 30 major gold-mining venues and 160 exploration projects , Quebec is the undisputed queen of gold .
But even with that title , only 40 % of the province ’ s mineral potential has been tapped into .
@ @ @ @ @ @ @ big discovery .
And it isn ’ t just ripe , it ’ s already in major new discovery mode .
And the next in line could be Starr Peak Exploration , which hopes to be like Amex ’ s twin brother after gobbling up the most sought after properties adjacent to their property .
In times like these , gold isn ’ t just a safe haven , it may be a massive opportunity .
And the most rewarding opportunities are often found among the junior mining stocks , which are set @ @ @ @ @ @ @ .
But the biggest prize is the junior miner that makes the next huge gold discovery–and it ’ s sitting on gold that ’ s likely worth billions more than its market cap .
We recently saw a stunning high-grade gold discovery by Amex Exploration ( TSX.V : AMEX ) in one of the most prolific venues in the world–Quebec .
You missed the massive 7,000 % rally on that one .
But another company is gearing up for a repeat , and even some Amex directors and shareholders are piling into it @ @ @ @ @ @ @ Ltd. ( TSX : STE.V ; OTC : STRPF ) and they are getting ready for a drill campaign right next to Amex ’ s discovery .
As legendary gold voices predict $ 3,000 or even $ 5,000 per ounce prices in our uncertain future , there ’ s probably no better place to be than on the edge of the next big discovery in a venue that is both prolific and largely untapped .
And there ’ s not much time left before this news goes mainstream , and Starr Peak ’ @ @ @ @ @ @ @ this year .
Want to Ride the Gold Train ?
Head to Quebec Quebec is already home to at least 30 major venues and 160 exploration projects .
Yet , only some 40 % of the province ’ s mineral potential is known today .
The province ’ s Abitibi Greenstone Belt is where Amex Exploration recently hit very high-grade gold in its Perron Gold Project .
In a perfectly timed move , Starr Peak swooped in and scooped up land adjoining and adjacent to Amex right before the big discovery .
From @ @ @ @ @ @ @ aggressively making acquisitions to expand its position .
Starr Peak didn ’ t stop there .
In what could be considered to be a major coup amongst junior gold companies , Starr Peak was successful in acquiring the past-producing gold mine on the other side .
Now , it ’ s got 74 mining claims on some 2,280 hectares in one of the world ’ s hottest gold venues .
• The NewMétal Property contains 53 mineral claims covering 1,420 hectares of highly prospective ground adjacent to the AMEX discovery .
• The @ @ @ @ @ @ @ which approximately 10.1 million tonnes grading 2.24 % Cu , 5.41 % Zn , 0.526 g/t Au , and 44.45 g/t Ag were extracted periodically between 1937 and 1975 .
• The Normetmar mine shows a historic resource of 306,000 t grading 11 % zinc , of which only ~48,000 t has been mined since 1990 .
It also shows several gold intersections .
• Rousseau is a bloc of 12 claims covering over 470 hectares in the Rollmac gold zone of 31,298 tonnes grading 11.99 g/t Au ( historical ) … • @ @ @ @ @ @ @ claims covering almost 113 hectares with samples at the water line assaying up to 168.3 g/t Au , 30.2 g/t Au and 23.7 g/t Au ( GM 52490 ) and a drill hole assaying 18.7 g/t Au over 3.09 m , including 68.9 g/t Au and 10.48 g/t Ag over 0.4 m. ( historical ) .
From there , it ’ s easy to follow what could come next : Right now , Amex is drilling with a vengeance .
And it ’ s drilling closer and closer to Starr Peak ’ s @ @ @ @ @ @ @ is now drilling within 750 meters of Starr Peak ’ s property line .
As they keep drilling towards Starr Peak the grades keep getting higher and thicker .
In other words , Amex is drilling closer and closer to Starr Peak and each time it announces new results , Starr Peak looks like it ’ s sitting on an even sweeter gold play .
That ’ s why the stock bounces every time Amex makes an announcement .
But Starr Peak ( TSX : STE.V ; OTC : STRPF ) isn ’ @ @ @ @ @ @ @ .
Far from it .
Starr is fully funded to drill .
Why ?
Because the Amex land deal wasn ’ t just a simple land-grab—it even convinced some Amex directors themselves to jump in on Starr as shareholders .
Right now , Starr Peak is identifying targets .
In August , the company signed on top geological consulting firm Laurentia Exploration–the same firm behind the Amex discovery .
In early September , Starr launched VTEM ( Versatile Time Domain Electromagnetic ) system surveys on the main block of its NewMétal property .
@ @ @ @ @ @ @ surveys over the entire property , including its new plays of Rousseau and Turgeon Lake Gold .
After years of cost-cutting , gold miners are now ready to spend , spend , spend on exploration – globally .
But not in the way you would expect … Mining majors don ’ t really explore these days .
Instead , they let the junior miners do all the heavy lifting and then buy them up when they make a major discovery , or when they prove it up in the development phase .
That @ @ @ @ @ @ @ much upside to junior miners–so much so that Wall Street is expecting them to outperform the market and even short-sellers are now giving them a wide berth .
The upside is found in some very simple math : When you ’ re a junior miner with a tiny market cap and you make a discovery showing you are sitting on a potentially massive gold discovery , your stock is headed for gains that are out of this world .
This is where millionaires are minted in the end .
In this case , @ @ @ @ @ @ @ miner sitting right next to another gold discovery .
That miner has moved fast to expand its position in a flanking movement .
And now , Amex–which has already announced high-grade gold discoveries–is drilling closer to Starr Peak , and the winds of discovery could well be blowing in its favor .
Other Companies Looking To Capitalize On The Gold Rally : While Freeport-McMoRan ( NYSE : FCX ) is primarily known for its significant copper mining operations , the resource giant also has a fair influx of gold as well .
In @ @ @ @ @ @ @ holds of the world ’ s largest deposits of copper and gold .
But that ’ s just scratching the surface of the miner ’ s global assets .
Freeport-McMoRan also has extensive operations across the Americas , including mines in Arizona , Mexico and Peru .
Though its business struggled as global demand for copper took a hit , panic-buying from China has lifted prices higher in recent months – and that ’ s good news for Freeport-McMoRan .
In addition to climbing copper prices , gold prices hit record levels , @ @ @ @ @ @ @ mining giant ’ s bottom line .
Freeport-McMoRan has had a solid year , with the price of its stock bouncing off a low of $ 5.31 back in March to a high of $ 15.70 today , representing a strong 195 % gain for shareholders .
Gold Fields ( NYSE : GFI ) has catapulted itself into the global mining elite in recent years thanks to its forward-looking vision and exceptional management .
Based out of Johannesburg , South Africa , Gold Fields is one of the de facto leaders in the @ @ @ @ @ @ @ , Ghana , Australia and Peru , Gold Fields is well-diversified .
In 2019 , Gold Fields produced over 68 tons of the precious metal , up nearly 8 % from the year before .
And thanks to this year ’ s rally in gold prices , it ’ s on track to produce even more by the end of 2020 .
Last September , Gold Fields was trading at only $ 5.12 per share , but thanks to its increased production , and the dramatic rise in gold prices , it ’ @ @ @ @ @ @ @ which means investors who held on have brought home over 150 % returns – with many analysts suggesting the stock could go even higher .
It ’ s rare to see miners from outside of North America on the New York Stock Exchange , but Compania de Minas Buenaventura ( NYSE : BVN ) is an exception .
Listing on the NYSE in 1996 , Minas Buenaventura has clawed its way up the ranks of the global mining elite .
Currently valued at $ 3.51 billion , the mining giant is far from @ @ @ @ @ @ @ s not down for the count just yet .
Minas Buenaventure is exposed to six different mining properties around the globe which bring in an estimated 945,000 ounces of gold every year .
But that ’ s not all its got going for it .
It is also has exposure to a number of silver mines which produce as much as 26.5 million ounces per year , and tens of thousands of metric tons of industrial metals such as zinc , lead and copper from its domestic mines .
Harmony Gold ( NYSE @ @ @ @ @ @ @ miner which has exploded onto the radars of investors this year .
Though it ’ s only the third-largest miner in the country , it has made some stellar moves in the marketplace .
Domestically , it has nine underground mines in the resource-rich Witwatersrand Basin and one open-pit mine in the Kraaipan Greenstone Belt .
It also has a major joint-venture with Newcrest Mining in Papua New Guinea .
Earlier this year , Harmony raised a whopping $ 200 million to partially fund a key acquisition of AngloGold ’ s assets in @ @ @ @ @ @ @ expected to more-than-triple its gold production to as much as 1.8 million ounces per year .
This time last year , Harmony was trading at just $ 3.22 , dropping to a low of $ 1.93 in March as a result of the wider market downturn , but it has since soared by 260 % in a matter of months , now trading at $ 6.95 per share .
AngloGold Ashanti ( NYSE : AU ) is the third-largest gold mining company by production volume .
And though it has had some problems @ @ @ @ @ @ @ the early 2010s when the gold market took a major hit forcing many miners , including AngloGold to shutter operations , the mining giant has persevered .
AngloGold is one of the more diverse miners on the planet , shielding itself from country-specific regulatory troubles or civil strife .
It has operations on four continents including Africa , Australia , South America and North America .
Though AngloGold hasn ’ t performed quite as well as some of its peers over the past year , it has shown that it still has the @ @ @ @ @ @ @ 2015 , the company ’ s share price dropped to just $ 5.97 , but since then , investors who have been able to hold onto the stock have seen a 401 % return over a five-year period .
Canadian miners are in the race , as well : Yamana , has recently completed its Cerro Moro project in Argentina , giving its investors something major to look out for .
The company ramped up its gold production by 20 % through 2019 and its silver production by a whopping 200 % .
@ @ @ @ @ @ @ free cash flow if precious metal prices remain stable .
Recently , Yamana signed an agreement with Glencore and Goldcorp to develop and operate another Argentinian project , the Agua Rica .
Initial analysis suggests the potential for a mine life in excess of 25 years at average annual production of approximately 236,000 tonnes ( 520 million pounds ) of copper-equivalent metal , including the contributions of gold , molybdenum , and silver , for the first 10 years of operation .
The agreement is a major step forward for the Agua Rica @ @ @ @ @ @ @ working on it .
Eldorado Gold Corp. ( TSX : ELD ) is a mid-cap miner with assets in Europe and Brazil .
It has managed to cut cost per ounce significantly in recent years .
Though its share price isn ’ t as high as it once was , Eldorado is well positioned to make significant advancements in the near-term .
In 2018 , Eldorado produced over 349,000 ounces of gold , well above its previous expectations , and boosted its production even further in 2019 .
Eldorado ’ s President and @ @ @ @ @ @ @ “ As a result of the team ’ s hard work in 2018 , we are well positioned to grow annual gold production to over 500,000 ounces in 2020 .
We expect this will allow us to generate significant free cash flow and provide us with the opportunity to consider debt retirement later this year .
“ Though First Majestic recently took a significant blow , as a strong dollar weighed on precious metals resulting in a poor quarterly earnings report , there ’ s still a lot of bullishness surrounding the stock @ @ @ @ @ @ @ however , was a string of highly valuable acquisitions which are likely to turn around for the metals giant in the mid-to-long-term .
While it ’ s primary focus remains on silver mining , it does hold a number of gold assets , as well .
Additionally , silver tends to follow gold ’ s lead when wider markets begin to look shaky .
And with analysts sounding the alarms of a global economic slowdown , both metals are likely to regain popularity among investors .
Wheaton is a company with its hands @ @ @ @ @ @ @ As one of the largest ‘ streaming ’ companies on the planet , Wheaton has agreements with 19 operating mines and 9 projects still in development .
Its unique business model allows it to leverage price increases in the precious metals sector , as well as provide a quality dividend yield for its investors .
Recently , Wheaton sealed a deal with Hudbay Minerals Inc. relating to its Rosemont project .
For an initial payment of $ 230 million , Wheaton is entitled to 100 percent of payable gold and silver at a @ @ @ @ @ @ @ $ 3.90 per ounce respectively .
Randy Smallwood , Wheaton ’ s President and Chief Executive Officer explained , “ With their most recent successful construction of the Constancia mine in Peru , the Hudbay team has proven themselves to be strong and responsible mine developers , and we are excited about the same team moving this project into production .
Rosemont is an ideal fit for Wheaton ’ s portfolio of high-quality assets , and when it is in production , should add well over fifty thousand gold equivalent ounces to our @ @ @ @ @ @ @ is a world-class mining operation with active projects in Mexico , Peru , Canada , Bolivia and Argentina .
Though silver has seen better days , it is still a favorite among investors stocking up on safe haven assets .
Recently , Pan American made a major acquisition of Tahoe Resources , absorbing the company ’ s issued and outstanding shares .
Michael Steinmann , President and Chief Executive Officer of Pan American Silver , said : “ The completion of the Arrangement establishes the world ’ s premier silver mining company with @ @ @ @ @ @ @ robust growth profile and attractive operating margins .
We are also now the largest publicly traded silver mining company by free float , offering silver mining investors enhanced scale and liquidity.
” **IMPORTANT !
BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING .
PLEASE READ CAREFULLY** This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements .
Forward looking statements in this release include that prices @ @ @ @ @ @ @ as currently expected , or could rise based on political considerations ; that Starr Peak can fulfill all its obligations to acquire its Quebec properties ; that Starr Peak ’ s property can achieve drilling and mining success for gold ; that historical geological information and estimations will prove to be accurate or at least very indicative ; that high-grade targets exist ; and that Starr Peak will be able to carry out its business plans , including timing for drilling .
These forward-looking statements are subject to a variety of risks and @ @ @ @ @ @ @ actual events or results to differ materially from those projected in the forward-looking information .
Risks that could change or prevent these statements from coming to fruition include that politics don ’ t have nearly the strong effect on gold prices as expected ; the Company may not complete all the property purchases for various reasons ; it may not be able to finance its intended drilling programs ; Starr Peak may not raise sufficient funds to carry out its plans ; geological interpretations and technological results based on current data that may @ @ @ @ @ @ @ ; and despite promise , there may be no commercially viable minerals or ore on Starr Peak ’ s property .
The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances , except as required by law .
This communication is for entertainment purposes only .
Never invest purely based on our communication .
We have not been compensated by Starr Peak but may in the future be compensated to conduct investor awareness @ @ @ @ @ @ @ .
The information in our communications and on our website has not been independently verified and is not guaranteed to be correct .
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This is neither a solicitation nor an offer to Buy/Sell securities .
No representation is being made that any account will or is likely to achieve profits similar to those discussed .

By Shawn Yandell
Gold prices were already on a tear amid wild pandemic, economic and electoral uncertainty, with big banks predicting $3,000 gold …
Or even $5,000 gold …
Right before Biden’s electoral victory, JPMorgan had called another 5% price hike in a “blue wave”.
Though Trump loves gold and adorns everything with the precious metal, the precious metal itself was banking on a Biden win.
Why? Because what it loves more than anything is the Biden-backed promise of monetary stimulus.
Historically, gold has risen consistently on similar economic packages…
And today is no different.
But the best way to take advantage of a transformative year for gold is at the center of the next major discovery …
Where will the next major gold discovery be?
The Canadian province of Quebec has long been renowned as a hotspot for gold seekers across the globe….
But that doesn’t mean its time in the spotlight is over just yet.
Home to 30 major gold-mining venues and 160 exploration projects, Quebec is the undisputed queen of gold.
But even with that title, only 40% of the province’s mineral potential has been tapped into.
That makes it ripe for the next big discovery.
And it isn’t just ripe, it’s already in major new discovery mode.
Amex Exploration Inc has made a monstrous discovery
And the next in line could be Starr Peak Exploration, which hopes to be like Amex’s twin brother after gobbling up the most sought after properties adjacent to their property.
Source: Northerminer.com
In times like these, gold isn’t just a safe haven, it may be a massive opportunity.
And the most rewarding opportunities are often found among the junior mining stocks, which are set to outperform the market in this environment.
But the biggest prize is the junior miner that makes the next huge gold discovery–and it’s sitting on gold that’s likely worth billions more than its market cap.
We recently saw a stunning high-grade gold discovery by Amex Exploration (TSX.V:AMEX) in one of the most prolific venues in the world–Quebec. You missed the massive 7,000% rally on that one.
But another company is gearing up for a repeat, and even some Amex directors and shareholders are piling into it.
The company is Starr Peak Exploration Ltd. (TSX:STE.V; OTC:STRPF) and they are getting ready for a drill campaign right next to Amex’s discovery.
As legendary gold voices predict $3,000 or even $5,000 per ounce prices in our uncertain future, there’s probably no better place to be than on the edge of the next big discovery in a venue that is both prolific and largely untapped.
And there’s not much time left before this news goes mainstream, and Starr Peak’s stock has already gained 600% this year.
Want to Ride the Gold Train? Head to Quebec
Quebec is already home to at least 30 major venues and 160 exploration projects.
Yet, only some 40% of the province’s mineral potential is known today.
The province’s Abitibi Greenstone Belt is where Amex Exploration recently hit very high-grade gold in its Perron Gold Project.
In a perfectly timed move, Starr Peak swooped in and scooped up land adjoining and adjacent to Amex right before the big discovery.
From then on, Starr Peak has been aggressively making acquisitions to expand its position.
Starr Peak didn’t stop there. In what could be considered to be a major coup amongst junior gold companies, Starr Peak was successful in acquiring the past-producing gold mine on the other side. Now, it’s got 74 mining claims on some 2,280 hectares in one of the world’s hottest gold venues.
The NewMétal Property contains 53 mineral claims covering 1,420 hectares of highly prospective ground adjacent to the AMEX discovery.
The Normétal Mine is a past-producing mine from which approximately 10.1 million tonnes grading 2.24% Cu, 5.41% Zn, 0.526 g/t Au, and 44.45 g/t Ag were extracted periodically between 1937 and 1975.
The Normetmar mine shows a historic resource of 306,000 t grading 11% zinc, of which only ~48,000 t has been mined since 1990. It also shows several gold intersections.
Rousseau is a bloc of 12 claims covering over 470 hectares in the Rollmac gold zone of 31,298 tonnes grading 11.99 g/t Au (historical) …
Turgeon Lake gives Starr Peak two more claims covering almost 113 hectares with samples at the water line assaying up to 168.3 g/t Au, 30.2 g/t Au and 23.7 g/t Au (GM 52490) and a drill hole assaying 18.7 g/t Au over 3.09 m, including 68.9 g/t Au and 10.48 g/t Ag over 0.4 m. (historical).
From there, it’s easy to follow what could come next:
Right now, Amex is drilling with a vengeance. And it’s drilling closer and closer to Starr Peak’s property line. In fact, Amex is now drilling within 750 meters of Starr Peak’s property line. As they keep drilling towards Starr Peak the grades keep getting higher and thicker.
In other words, Amex is drilling closer and closer to Starr Peak and each time it announces new results, Starr Peak looks like it’s sitting on an even sweeter gold play. That’s why the stock bounces every time Amex makes an announcement.
Fully Funded to Drill
But Starr Peak (TSX:STE.V; OTC:STRPF) isn’t just banking on Amex results here. Far from it. Starr is fully funded to drill. Why? Because the Amex land deal wasn’t just a simple land-grab—it even convinced some Amex directors themselves to jump in on Starr as shareholders.
Right now, Starr Peak is identifying targets.
In August, the company signed on top geological consulting firm Laurentia Exploration–the same firm behind the Amex discovery.
In early September, Starr launched VTEM (Versatile Time Domain Electromagnetic) system surveys on the main block of its NewMétal property. It also launched high-resolution drone mag geophysics surveys over the entire property, including its new plays of Rousseau and Turgeon Lake Gold.
Small-Cap Companies Behind Supermajor Discoveries
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After years of cost-cutting, gold miners are now ready to spend, spend, spend on exploration – globally.
But not in the way you would expect …
This isn’t a supermajor game anymore.
Mining majors don’t really explore these days. Instead, they let the junior miners do all the heavy lifting and then buy them up when they make a major discovery, or when they prove it up in the development phase.
That’s why there’s so much upside to junior miners–so much so that Wall Street is expecting them to outperform the market and even short-sellers are now giving them a wide berth.
The upside is found in some very simple math: When you’re a junior miner with a tiny market cap and you make a discovery showing you are sitting on a potentially massive gold discovery, your stock is headed for gains that are out of this world. This is where millionaires are minted in the end.
In this case, we’re looking at a small-cap miner sitting right next to another gold discovery. That miner has moved fast to expand its position in a flanking movement.
And now, Amex–which has already announced high-grade gold discoveries–is drilling closer to Starr Peak, and the winds of discovery could well be blowing in its favor.
Other Companies Looking To Capitalize On The Gold Rally:
While Freeport-McMoRan (NYSE:FCX) is primarily known for its significant copper mining operations, the resource giant also has a fair influx of gold as well. In fact, its Grasberg mine in Indonesia holds of the world’s largest deposits of copper and gold. But that’s just scratching the surface of the miner’s global assets. Freeport-McMoRan also has extensive operations across the Americas, including mines in Arizona, Mexico and Peru.
Though its business struggled as global demand for copper took a hit, panic-buying from China has lifted prices higher in recent months – and that’s good news for Freeport-McMoRan. In addition to climbing copper prices, gold prices hit record levels, which will add even more to the mining giant’s bottom line.
Freeport-McMoRan has had a solid year, with the price of its stock bouncing off a low of $5.31 back in March to a high of $15.70 today, representing a strong 195% gain for shareholders.
Gold Fields (NYSE:GFI) has catapulted itself into the global mining elite in recent years thanks to its forward-looking vision and exceptional management. Based out of Johannesburg, South Africa, Gold Fields is one of the de facto leaders in the region. With operations in South Africa, Ghana, Australia and Peru, Gold Fields is well-diversified.
In 2019, Gold Fields produced over 68 tons of the precious metal, up nearly 8% from the year before. And thanks to this year’s rally in gold prices, it’s on track to produce even more by the end of 2020.
Last September, Gold Fields was trading at only $5.12 per share, but thanks to its increased production, and the dramatic rise in gold prices, it’s now trading at $13.15, which means investors who held on have brought home over 150% returns – with many analysts suggesting the stock could go even higher.
It’s rare to see miners from outside of North America on the New York Stock Exchange, but Compania de Minas Buenaventura (NYSE:BVN) is an exception. Listing on the NYSE in 1996, Minas Buenaventura has clawed its way up the ranks of the global mining elite. Currently valued at $3.51 billion, the mining giant is far from its all-time highs. But it’s not down for the count just yet.
Minas Buenaventure is exposed to six different mining properties around the globe which bring in an estimated 945,000 ounces of gold every year. But that’s not all its got going for it. It is also has exposure to a number of silver mines which produce as much as 26.5 million ounces per year, and tens of thousands of metric tons of industrial metals such as zinc, lead and copper from its domestic mines.
Harmony Gold (NYSE:HMY) is another South African miner which has exploded onto the radars of investors this year. Though it’s only the third-largest miner in the country, it has made some stellar moves in the marketplace. Domestically, it has nine underground mines in the resource-rich Witwatersrand Basin and one open-pit mine in the Kraaipan Greenstone Belt. It also has a major joint-venture with Newcrest Mining in Papua New Guinea.
Earlier this year, Harmony raised a whopping $200 million to partially fund a key acquisition of AngloGold’s assets in its home country. The deal is expected to more-than-triple its gold production to as much as 1.8 million ounces per year.
This time last year, Harmony was trading at just $3.22, dropping to a low of $1.93 in March as a result of the wider market downturn, but it has since soared by 260% in a matter of months, now trading at $6.95 per share.
AngloGold Ashanti (NYSE:AU) is the third-largest gold mining company by production volume. And though it has had some problems over the past decade, specifically in the early 2010s when the gold market took a major hit forcing many miners, including AngloGold to shutter operations, the mining giant has persevered.
AngloGold is one of the more diverse miners on the planet, shielding itself from country-specific regulatory troubles or civil strife. It has operations on four continents including Africa, Australia, South America and North America.
Though AngloGold hasn’t performed quite as well as some of its peers over the past year, it has shown that it still has the potential for long-term growth. Back in 2015, the company’s share price dropped to just $5.97, but since then, investors who have been able to hold onto the stock have seen a 401% return over a five-year period.
Canadian miners are in the race, as well:
Yamana Gold (TSX:YRI)
Yamana, has recently completed its Cerro Moro project in Argentina, giving its investors something major to look out for. The company ramped up its gold production by 20% through 2019 and its silver production by a whopping 200%. Investors can expect a serious increase in free cash flow if precious metal prices remain stable.
Recently, Yamana signed an agreement with Glencore and Goldcorp to develop and operate another Argentinian project, the Agua Rica. Initial analysis suggests the potential for a mine life in excess of 25 years at average annual production of approximately 236,000 tonnes (520 million pounds) of copper-equivalent metal, including the contributions of gold, molybdenum, and silver, for the first 10 years of operation.
The agreement is a major step forward for the Agua Rica region, and all of the miners working on it.
Eldorado Gold Corp. (TSX:ELD) is a mid-cap miner with assets in Europe and Brazil. It has managed to cut cost per ounce significantly in recent years. Though its share price isn’t as high as it once was, Eldorado is well positioned to make significant advancements in the near-term.
In 2018, Eldorado produced over 349,000 ounces of gold, well above its previous expectations, and boosted its production even further in 2019.
Eldorado’s President and CEO, George Burns, stated: “As a result of the team’s hard work in 2018, we are well positioned to grow annual gold production to over 500,000 ounces in 2020. We expect this will allow us to generate significant free cash flow and provide us with the opportunity to consider debt retirement later this year. “
First Majestic Silver (TSX:FR)
Though First Majestic recently took a significant blow, as a strong dollar weighed on precious metals resulting in a poor quarterly earnings report, there’s still a lot of bullishness surrounding the stock. Adding to the negative numbers, however, was a string of highly valuable acquisitions which are likely to turn around for the metals giant in the mid-to-long-term.
While it’s primary focus remains on silver mining, it does hold a number of gold assets, as well. Additionally, silver tends to follow gold’s lead when wider markets begin to look shaky. And with analysts sounding the alarms of a global economic slowdown, both metals are likely to regain popularity among investors.
Wheaton Precious Metals Corp. (TSX:WPM)
Wheaton is a company with its hands in operations all around the world. As one of the largest ‘streaming’ companies on the planet, Wheaton has agreements with 19 operating mines and 9 projects still in development. Its unique business model allows it to leverage price increases in the precious metals sector, as well as provide a quality dividend yield for its investors.
Recently, Wheaton sealed a deal with Hudbay Minerals Inc. relating to its Rosemont project. For an initial payment of $230 million, Wheaton is entitled to 100 percent of payable gold and silver at a price of $450 per ounce and $3.90 per ounce respectively.
Randy Smallwood, Wheaton’s President and Chief Executive Officer explained, “With their most recent successful construction of the Constancia mine in Peru, the Hudbay team has proven themselves to be strong and responsible mine developers, and we are excited about the same team moving this project into production. Rosemont is an ideal fit for Wheaton’s portfolio of high-quality assets, and when it is in production, should add well over fifty thousand gold equivalent ounces to our already growing production profile.”
Pan American Silver (TSX:PAAS)
Pan American is a world-class mining operation with active projects in Mexico, Peru, Canada, Bolivia and Argentina. Though silver has seen better days, it is still a favorite among investors stocking up on safe haven assets.
Recently, Pan American made a major acquisition of Tahoe Resources, absorbing the company’s issued and outstanding shares.
Michael Steinmann, President and Chief Executive Officer of Pan American Silver, said: “The completion of the Arrangement establishes the world’s premier silver mining company with an industry-leading portfolio of assets, a robust growth profile and attractive operating margins. We are also now the largest publicly traded silver mining company by free float, offering silver mining investors enhanced scale and liquidity.”
By. Shawn Yandell
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Forward-Looking Statements
This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this release include that prices for gold will retain value in future as currently expected, or could rise based on political considerations; that Starr Peak can fulfill all its obligations to acquire its Quebec properties; that Starr Peak’s property can achieve drilling and mining success for gold; that historical geological information and estimations will prove to be accurate or at least very indicative; that high-grade targets exist; and that Starr Peak will be able to carry out its business plans, including timing for drilling. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that politics don’t have nearly the strong effect on gold prices as expected; the Company may not complete all the property purchases for various reasons; it may not be able to finance its intended drilling programs; Starr Peak may not raise sufficient funds to carry out its plans; geological interpretations and technological results based on current data that may change with more detailed information or testing; and despite promise, there may be no commercially viable minerals or ore on Starr Peak’s property. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
DISCLAIMERS
This communication is for entertainment purposes only. Never invest purely based on our communication. We have not been compensated by Starr Peak but may in the future be compensated to conduct investor awareness advertising and marketing for TSXV:STE. The information in our communications and on our website has not been independently verified and is not guaranteed to be correct.
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investmentwatchblog--2020-11-23--A $TSLA glass roof flies off randomly, nearly hitting the vehicles behind it in this video taken yes

A $ TSLA glass roof flies off randomly , nearly hitting the vehicles behind it in this video taken yesterday @ @ @ @ @

A $TSLA glass roof flies off randomly, nearly hitting the vehicles behind it in this video taken yesterday from a Chinese dashcam pic.twitter.com/VNaJt8Z1Pi
— Stultus (@StultusVox) November 23, 2020


investmentwatchblog--2020-11-23--Jim Willie: Trump’s Wildcard Is The US Military, Tribunals Coming

There ’ s a “ hot war ” between the NSA White Hats and the Deep State , and you @ @ @ @ @ Jim says the good guys may have just taken out… Click here for Part I @ @ @ @ @ II begins with Jim giving some background on the Supreme Court , and Jim speculates @ @ @ @ @ become compromised .
Why does this matter ?
Because Jim says there will be pressure @ @ @ @ @ the likes of which we ’ ve never seen before .
In Part II , @ @ @ @ @ his outlook .
• The US Military is behind President Trump .
• Trump may @ @ @ @ @ March .
• Trump may declare the major mainstream media outlets as treasonous .
But @ @ @ @ @ Jim says in the hard-hitting second half of the interview , so be sure to @ @ @ @ @ its entirety !

There’s a “hot war” between the NSA White Hats and the Deep State, and you won’t believe who Jim says the good guys may have just taken out…
Jim Willie of Golden-Jackass interviewed by Paul “Half Dollar” Eberhart
Welcome back to Part II.
Click here for Part I: About That Data
We are primarily funded by readers. Please subscribe and donate to support us!
Part II begins with Jim giving some background on the Supreme Court, and Jim speculates how the court may have become compromised. Why does this matter? Because Jim says there will be pressure on the Supreme Court, the likes of which we’ve never seen before.
In Part II, Jim is very optimistic with his outlook.
Additionally, Jim says –
The US Military is behind President Trump.
Trump will win reelection after a month’s long fight.
Trump may order a new election in March.
Trump may declare the major mainstream media outlets as treasonous.
But that’s not all Jim says in the hard-hitting second half of the interview, so be sure to tune-in to the discussion in its entirety!


investmentwatchblog--2020-11-23--Biden and Friends Busted Partying and Singing Without Masks or Social Distancing at Joe’s Elite Birt

Biden and Friends Busted Partying and Singing Without Masks or Social Distancing at Joe’s Elite Birthday Bash

Google will let users open bank accounts , pay friends and manage budgets through a new version of its app @ @

Democrats attend birthday parties indoors.
But expect you to celebrate Thanksgiving alone outside.
Americans are tired of the hypocrisy.
— Rep. Jim Jordan (@Jim_Jordan) November 22, 2020


investmentwatchblog--2020-11-23--Sydney Powell no longer on Trump Legal Team

Post Election Data Analysis Shows 500,000 votes switched from Trump To Biden , Another 2.9 million Trump votes were deleted

Rudy Giuliani and Jenna Ellis have released a statement from the Trump Legal Team pic.twitter.com/ZSlVLzr2Yc
— Jack Posobiec 🇺🇸 (@JackPosobiec) November 22, 2020


investmentwatchblog--2020-11-23--How Our AI Computer Forecasts the Failure of Schwab & World Economic Forum

I find it really interesting how Klaus Schwab champions the 4th Industrial Revolution and how Artificial Intelligence ( AI ) will change the world so we have to help shape it by destroying what we have to design the Great Reset .
Only an academic would be that arrogant .
The AI system I designed was from being a programmer and a trader – not an academic economist with book theories .
I find it ironic that the economic theories that dominated the world during the 19th century , with the exception of Marx , had hands-on experience .
Today @ @ @ @ @ @ @ claim they have degrees .
The world these people are trying to create is nothing more than a theory with no real-world experience .
I was a trader and one of the first hedge fund managers , not an academic economist .
They also do not have degrees in hedge fund management .
And as far as economics is concerned , of course , the first economic course was at Cambridge in 1902 .
Therefore , that means all those who preceded 1902 were self-taught in economics from Adam Smith and David Ricardo @ @ @ @ @ @ @ who also had no formal Economics Degree – John Maynard Keynes was educated at King ’ s College , Cambridge from 1902–1906 .
And , BTW , when John Maynard Keynes put forth his ideas the academics said he was wrong , absurd , and nobody should listen .
Only when the Great Depression unfolded did they turn to Keynes when the academics failed back then as well .
But Keynes NEVER advocated deficit spending perpetually and also advocated lowering taxes as a tool to stimulate the economy .
These solutions were ONLY @ @ @ @ @ @ @ academics and their socialist agenda that supported deficit spending year after year but always advocated raising taxes to achieve Marx ’ s social justice .
Sadly , what many believe is Keynesian Economics is a socialistic distortion of what Keynes actually advocated .
It was always traders who advanced the study of economics – not academics .
If you look at the first analyst to establish supply and demand , it was John Law who was a trader on the exchange in Amsterdam and observed it from market activity .
Even Adam Smith @ @ @ @ @ @ @ “ Wealth of Nations ” actually investigated Law ’ s work to come up with his invisible hand .
There was David Ricardo , who also made a fortune as a trader .
Those are the three greats and NONE of them had a formal economics degree .
Those of us who come from the real world of trading , do not have the luxury to create Utopian theories that sound nice .
We had to come up with ideas that worked because your money was really on the line .
Unless you @ @ @ @ @ @ @ that the market is always right .
If you do not listen to the market , you will lose everything .
I find it ironic that here we have Kaus Schwab telling the world how his Marxist ideas of social justice must be adopted .
He just advocated the fake virus to justify using these lockdowns to crush the economy destroying small businesses that are the future and employ 70 % of the people .
All of this to achieve his New Green Communist World Order .
He is an academic who has @ @ @ @ @ @ @ callously disposes of the future of our society and has the audacity to think it would work better if he played God and reordered society to function as he decrees .
Unfortunately , for Klaus , our AI system which is the ONLY fully function system in the world is forecasting that he will fail .
He will be lucky if the people do not storm his headquarters , drag him out with all his accomplices and burn them at the stake or behead them the old fashion way .
He has no @ @ @ @ @ @ @ stability of families and thinks he can just hand out Guaranteed Basic Income for all the countless millions he puts out of work .
Of course , I call this Communism 3.0 because what is different is that he is not planning on confiscating the assets of the elite .
He will not surrender his status , medals , and honors .
They are there to demonstrate that he is competent to sit in judgment over us .
Klaus argues that “ equality ” stops at the superrich for we need these people @ @ @ @ @ @ @ so they can control the world and keep us all in line – establishing the 21st aristocrats .
It is people like Schwab who are anti-religious as was Marx because they do not believe in such things as a divine power because they know far better how to redesign society and since it is flawed in their mind , God can not exist .
So here we have a computer which I designed based on what I experienced in trading .
Fundamentals mean nothing for they are just the excuses TV commentators make @ @ @ @ @ @ @ price action .
The 1987 Crash investigation showed the real danger which is not news .
They asked fund managers : Why did they sell ?
They called their brokers and asked why the market crashed and there was no logical explanation because there were no numbers or anything domestically people could point to .
The broker responded – I don ’ t know !
It was the void of information that caused professionals to sell because they had no way to assess the risk for the next day .
The real reason @ @ @ @ @ @ @ fall another 40 % .
Hence , the foreign investors were selling because of the currency – not because of some fundamental domestically be it interest rates , jobs , or GDP .
The capital flows revealed the high volatility in the flows of money which the standard analysis never saw coming .
I have shown that the stock market has NEVER peaked with the same level of interest rates because the academics are WRONG for they have no practical experience .
It has never been the mere direction of interest rates – @ @ @ @ @ @ @ you expect the market to double , you will pay 20 % interest .
If you think the market will rally even 1 % , you will not pay 0.5 % .
And for all the academics who teach that rising interest rates are bearish for the economy and the markets , sorry – wrong again .
Since Trump took office , rates began to rise as did the economy and the stock markets .
Let me set one thing straight .
Interest rates rise in a bull market not because of the @ @ @ @ @ @ @ a bid for the money as the economy is expanding .
Rates dropped from 6 % to 1 % during the Great Depression as they collapse during the 2007-2009 Financial Crisis .
They drop NOT because of the central bank , but because nobody wants to invest when there is no confidence in the future .
We were dealing with the Middle East in Geneva .
That is where all the OPEC money was being invested .
When I was asked to open up the offices in Japan , I was reluctant .
@ @ @ @ @ @ @ stunned at how many people I knew .
The top brokers who had been in Geneva dealing OPEC money had moved to Japan following the capital flows .
In the 1980s , it was clear to me that capital flows were the key and that the talent around the world moved with the capital flows .
When the CIA approached us after our 1998 forecast that Russia would fall , they too acknowledge that I had invented capital flow analysis others have tried to implement .
These observations were behind the design of @ @ @ @ @ @ @ Australia Office from 1986 with an IBM XT we would provide clients to access Socrates .
We were the largest forecasting firm in the world .
When I testified before Congress in 1996 , we have about 50 % equivalent of the entire US national debt under contract .
This was why the bankers assumed I had more influence than they did .
The real difference was we provided advice , rather than selling clients products that made the bank the best product rather than the client .
So we have the computer @ @ @ @ @ @ @ and it is forecasting that his dream to take over the world will FAIL .
Schwab will be remembered one day like Hitler and Napoleon with wild dreams of taking over the world and it is his ideas that will unleash World War III .
Schwab will create a steep economic depression because he is inspiring the destruction of small businesses around the world .
It has been our consumer economies that have created peace – not our nuclear arsenal .
And as for his “ inclusion and equality ” , he is @ @ @ @ @ @ @ to destroy businesses has set off a massive exodus from urban to suburban living behind ghost towns void of employment .
He has set in motion the hoarding of wealth and that will only lead to higher unemployment .
Schwab has not just set loose the dog of war , but the dogs of domestic war and civil unrest because under his ideas , equality can never be achieved .
By communism collapsing , people were free in China to be innovative which drove Chine to the # 2 world economy beating socialist @ @ @ @ @ @ @ The sooner the people rise up and put an end to these lockdowns , then the more we will preserve our world .
Otherwise , these academics have no idea how to create an economy .
Nobody has ever done so .
It is human ingenuity that creates ALL advancement .
No government told me I had to write a program .
What I wrote in code was to bring to life what I saw with my own eyes .
Nobody ever taught me about the world economy .
They still do not @ @ @ @ @ @ @ management .
These are all skills that are self-taught .
To this day , the elite bankers still hate my guts and claim I have too much influence .
But the truth is simply that we sell advice that is not laced with a conflict of interest .
We do not pitch any stock because we have investments in it .
We do not design products to sell to clients and then trade against them with inside knowledge .
So sorry Klaus .
You are championing the 4th Industrial Revolution who knows nothing @ @ @ @ @ @ @ because it takes people with real ideas and observations not centralize bureaucrats .
Well , this AI program is forecasting your Great Reset will FAIL .
You can take pride in knowing you have probably hurt far more people than even Karl Marx .
If I were you , I think you better build a bunker and stay in there and it better be underground .
When people rise up in Europe , they will be coming for your head .
You have probably created many Maximilien Robespierres who will seek revenge .
@ @ @ @ @ @ @ booth at your Davos events !
It will be better if history remembers me as NOT being a Davos Man .

by Martin Armstrong
I find it really interesting how Klaus Schwab champions the 4th Industrial Revolution and how Artificial Intelligence (AI) will change the world so we have to help shape it by destroying what we have to design the Great Reset. Only an academic would be that arrogant. The AI system I designed was from being a programmer and a trader – not an academic economist with book theories. I find it ironic that the economic theories that dominated the world during the 19th century, with the exception of Marx, had hands-on experience. Today, academics who lack any hands-on experience claim they have degrees. The world these people are trying to create is nothing more than a theory with no real-world experience.
I was a trader and one of the first hedge fund managers, not an academic economist. They also do not have degrees in hedge fund management. And as far as economics is concerned, of course, the first economic course was at Cambridge in 1902. Therefore, that means all those who preceded 1902 were self-taught in economics from Adam Smith and David Ricardo to Karl Marx and John Maynard Keynes who also had no formal Economics Degree – John Maynard Keynes was educated at King’s College, Cambridge from 1902–1906.
And, BTW, when John Maynard Keynes put forth his ideas the academics said he was wrong, absurd, and nobody should listen. Only when the Great Depression unfolded did they turn to Keynes when the academics failed back then as well. But Keynes NEVER advocated deficit spending perpetually and also advocated lowering taxes as a tool to stimulate the economy. These solutions were ONLY during a recession. It was the academics and their socialist agenda that supported deficit spending year after year but always advocated raising taxes to achieve Marx’s social justice. Sadly, what many believe is Keynesian Economics is a socialistic distortion of what Keynes actually advocated.
It was always traders who advanced the study of economics – not academics. If you look at the first analyst to establish supply and demand, it was John Law who was a trader on the exchange in Amsterdam and observed it from market activity. Even Adam Smith used John Law’s examples in “Wealth of Nations” actually investigated Law’s work to come up with his invisible hand. There was David Ricardo, who also made a fortune as a trader. Those are the three greats and NONE of them had a formal economics degree.
Those of us who come from the real world of trading, do not have the luxury to create Utopian theories that sound nice. We had to come up with ideas that worked because your money was really on the line. Unless you have traded, you will never understand that the market is always right. If you do not listen to the market, you will lose everything.
I find it ironic that here we have Kaus Schwab telling the world how his Marxist ideas of social justice must be adopted. He just advocated the fake virus to justify using these lockdowns to crush the economy destroying small businesses that are the future and employ 70% of the people. All of this to achieve his New Green Communist World Order. He is an academic who has never had a real job and so callously disposes of the future of our society and has the audacity to think it would work better if he played God and reordered society to function as he decrees.
Unfortunately, for Klaus, our AI system which is the ONLY fully function system in the world is forecasting that he will fail. He will be lucky if the people do not storm his headquarters, drag him out with all his accomplices and burn them at the stake or behead them the old fashion way. He has no concept that he is destroying the financial stability of families and thinks he can just hand out Guaranteed Basic Income for all the countless millions he puts out of work.
Of course, I call this Communism 3.0 because what is different is that he is not planning on confiscating the assets of the elite. He will not surrender his status, medals, and honors. They are there to demonstrate that he is competent to sit in judgment over us. Klaus argues that “equality” stops at the superrich for we need these people to retain their wealth and BigTech platforms so they can control the world and keep us all in line – establishing the 21st aristocrats. It is people like Schwab who are anti-religious as was Marx because they do not believe in such things as a divine power because they know far better how to redesign society and since it is flawed in their mind, God cannot exist.
So here we have a computer which I designed based on what I experienced in trading. Fundamentals mean nothing for they are just the excuses TV commentators make up to explain every day’s price action. The 1987 Crash investigation showed the real danger which is not news. They asked fund managers: Why did they sell? They called their brokers and asked why the market crashed and there was no logical explanation because there were no numbers or anything domestically people could point to. The broker responded – I don’t know! It was the void of information that caused professionals to sell because they had no way to assess the risk for the next day.
The real reason was the idea that the dollar would fall another 40%. Hence, the foreign investors were selling because of the currency – not because of some fundamental domestically be it interest rates, jobs, or GDP. The capital flows revealed the high volatility in the flows of money which the standard analysis never saw coming.
We are primarily funded by readers. Please subscribe and donate to support us!
I have shown that the stock market has NEVER peaked with the same level of interest rates because the academics are WRONG for they have no practical experience. It has never been the mere direction of interest rates – it is only the differential. If you expect the market to double, you will pay 20% interest. If you think the market will rally even 1%, you will not pay 0.5%.
And for all the academics who teach that rising interest rates are bearish for the economy and the markets, sorry – wrong again. Since Trump took office, rates began to rise as did the economy and the stock markets. Let me set one thing straight. Interest rates rise in a bull market not because of the central banks, but because there is a bid for the money as the economy is expanding. Rates dropped from 6% to 1% during the Great Depression as they collapse during the 2007-2009 Financial Crisis. They drop NOT because of the central bank, but because nobody wants to invest when there is no confidence in the future.
Japan Office
We were dealing with the Middle East in Geneva. That is where all the OPEC money was being invested. When I was asked to open up the offices in Japan, I was reluctant. When I went there, I was stunned at how many people I knew. The top brokers who had been in Geneva dealing OPEC money had moved to Japan following the capital flows. In the 1980s, it was clear to me that capital flows were the key and that the talent around the world moved with the capital flows. When the CIA approached us after our 1998 forecast that Russia would fall, they too acknowledge that I had invented capital flow analysis others have tried to implement.
These observations were behind the design of Socrates. Here I am in our Australia Office from 1986 with an IBM XT we would provide clients to access Socrates. We were the largest forecasting firm in the world. When I testified before Congress in 1996, we have about 50% equivalent of the entire US national debt under contract. This was why the bankers assumed I had more influence than they did. The real difference was we provided advice, rather than selling clients products that made the bank the best product rather than the client.
So we have the computer of Schwab’s 4th Industrial Revolution and it is forecasting that his dream to take over the world will FAIL. Schwab will be remembered one day like Hitler and Napoleon with wild dreams of taking over the world and it is his ideas that will unleash World War III. Schwab will create a steep economic depression because he is inspiring the destruction of small businesses around the world. It has been our consumer economies that have created peace – not our nuclear arsenal.
And as for his “inclusion and equality”, he is creating the exact opposite. His lockdowns to destroy businesses has set off a massive exodus from urban to suburban living behind ghost towns void of employment. He has set in motion the hoarding of wealth and that will only lead to higher unemployment. Schwab has not just set loose the dog of war, but the dogs of domestic war and civil unrest because under his ideas, equality can never be achieved. By communism collapsing, people were free in China to be innovative which drove Chine to the #2 world economy beating socialist Europe even with their single currency.
The sooner the people rise up and put an end to these lockdowns, then the more we will preserve our world. Otherwise, these academics have no idea how to create an economy. Nobody has ever done so. It is human ingenuity that creates ALL advancement. No government told me I had to write a program. What I wrote in code was to bring to life what I saw with my own eyes. Nobody ever taught me about the world economy. They still do not teach foreign exchange trading or hedge fund management. These are all skills that are self-taught.
To this day, the elite bankers still hate my guts and claim I have too much influence. But the truth is simply that we sell advice that is not laced with a conflict of interest. We do not pitch any stock because we have investments in it. We do not design products to sell to clients and then trade against them with inside knowledge.
So sorry Klaus. You are championing the 4th Industrial Revolution who knows nothing about how to write an AI program because it takes people with real ideas and observations not centralize bureaucrats. Well, this AI program is forecasting your Great Reset will FAIL. You can take pride in knowing you have probably hurt far more people than even Karl Marx. If I were you, I think you better build a bunker and stay in there and it better be underground. When people rise up in Europe, they will be coming for your head. You have probably created many Maximilien Robespierres who will seek revenge. I am glad I never took a booth at your Davos events! It will be better if history remembers me as NOT being a Davos Man.


investmentwatchblog--2020-11-22--A tightens COVID-19 mask restrictions, face coverings must be worn outdoors at all times per Gavin N

A tightens COVID-19 mask restrictions, face coverings must be worn outdoors at all times per Gavin Newsome in California

SAN FRANCISCO ( KGO ) — In an effort to curb the spread of rising COVID-19 cases , Governor Gavin @ @ @ @ @ California is “ pulling the emergency brake ” by moving 40 counties back to more @ @ @ @ @ the face mask rules in the state .
In a new update , people must @ @ @ @ @ all times when outside the home , even if exercising , if they are within @ @ @ @ @ in their household .

SAN FRANCISCO (KGO) — In an effort to curb the spread of rising COVID-19 cases, Governor Gavin Newsom said on Monday that California is “pulling the emergency brake” by moving 40 counties back to more restrictive reopening tiers and tightening the face mask rules in the state.
In a new update, people must wear a face covering at all times when outside the home, even if exercising, if they are within 6 feet of others not in their household.
We are primarily funded by readers. Please subscribe and donate to support us!
abc7news.com/california-coronavirus-updates-face-mask-guidelines-ca-covid-governor-gavin-newsom-update/8045692/


investmentwatchblog--2020-11-24--A Professor’s Mistaken Disparagement Of The Gold Standard

by Chris Powell of the Gold Anti-Trust Action Committee ( GATA ) GATA does not advocate returning currency systems to a gold standard .
This organization advocates free and transparent markets for the monetary metals and keeping government out of them .
Of course if governments adopted such a policy , people everywhere probably would remonetize gold as the world reserve currency in less than a week , diminishing the influence of government-issued money and thereby also diminishing government power .
That ’ s exactly why governments long have striven mightily — sometimes openly , sometimes surreptitiously — to drive @ @ @ @ @ @ @ and discredit it as money .
Gold is the most serious threat to government power and the strongest protector of individual liberty , a point that often has been made through the ages , almost back to the very invention of money , though it is most politically incorrect today .
Defending the monetary status quo this week , Michael Klein , professor of international economic affairs at the Fletcher School at Tufts University in Medford , Massachusetts , published an essay disparaging the gold standard and Federal Reserve Board nominee Judy Shelton @ @ @ @ @ @ @ Klein ’ s essay , “ What ’ s the Gold Standard , and Why Does the U.S .
Benefit from a Dollar That Isn ’ t Tied to the Value of a Glittery Hunk of Metal ?
, ” posted at The Conversation here — — may express the financial establishment view well enough but it is so misleading and even erroneous as to deserve rebuttal .
Professor Klein notes that the international gold standard that worked well throughout the first century of the industrial age was dropped at the outbreak of @ @ @ @ @ @ @ ’ t explain why it was dropped .
That is , of course , because monetary gold imposes restraint on government and thereby hampers the waging of war .
Professor Klein writes : “ Afterward , some countries such as the United Kingdom and United States continued to rely on gold as a centerpiece of their monetary policies , but lingering geopolitical tensions and the high costs of the war made it much less stable , showing its severe flaws in times of crisis.
” What this really means is that the gold @ @ @ @ @ @ @ stupid imperial wars and other governmental extravagance .
Would the U.S. have waged so many such wars after disconnecting the dollar from gold in 1971 if the country didn ’ t also have the advantage of issuing the world reserve currency ?
That advantage freed the U.S. from monetary restraint and allowed the country to stick the rest of the world with the cost of those wars .
Professor Klein writes : “ The onset of the Great Depression finally forced the U.S. and the other countries that still pegged their currencies to @ @ @ @ @ @ @ Economist Barry Eichengreen has found that efforts to maintain the gold standard at the beginning of the Great Depression ended up worsening the downturn because they limited the ability of central banks like the Fed to respond to deteriorating economic conditions .
For example , while central banks today typically cut interest rates to boost a faltering economy , the gold standard required them to focus solely on keeping their currency pegged to gold.
” But this is misleading , since governments that believe they need more money under a gold standard can @ @ @ @ @ @ @ .
That ’ s exactly what the U.S. did in 1933 and 1934 .
Professor Klein writes that since 1971 , when President Nixon terminated the international convertibility of the dollar to a fixed weight of gold , “ major currencies like the dollar have traded freely on global exchanges , and their relative value is determined by market forces.
” Free currency markets ?
Let ’ s hope that Professor Klein isn ’ t teaching that fable to his students .
Apparently he has never heard about central bank currency market intervention @ @ @ @ @ @ @ Bank for International Settlements , which acknowledges that its primary purpose is to give camouflage to central banks in their rigging of the currency markets , including the gold market : Professor Klein writes : “ The dollar in your pocket is backed by nothing more than your belief that you ’ ll be able to buy a hot dog with it.
” Not so .
Quite without formal convertibility to gold or to anything else the U.S. dollar and most government currencies are powerfully backed — by the taxing power of the @ @ @ @ @ @ @ governments that issue money that is not formally convertible at a fixed rate are free to issue essentially infinite amounts of money , as they lately have been doing , restrained only by the risk of currency devaluation .
Governments issuing inconvertible currency impose taxes not to raise money for themselves to spend but to create demand for and give value to their currencies .
Professor Klein writes : “ It is particularly odd , however , to advocate for a gold standard at a time when one of the main problems a @ @ @ @ @ @ @ inflation — has been low for decades.
” Apparently Professor Klein believes government data on inflation .
But many people who live in the real world — people who , for example , pay taxes , medical insurance premiums , and college tuitions and who buy food — don ’ t believe it as much as Professor Klein does .
Professor Klein writes : “ Clearly , it would be destabilizing if the dollar were pegged to gold when its price swings wildly .
Exchange rates between major currencies are typically much more @ @ @ @ @ @ @ of the gold price come from ?
Has Professor Klein ever investigated surreptitious intervention in the gold market by governments and central banks , precisely to prevent price stability ?
He gives no indication of doing so .
Professor Klein writes in defense of the Federal Reserve : “ The Federal Reserve is an independent agency that is vital to America ’ s economic stability and prosperity .
Like the courts , it is important that it acts with integrity and free from political considerations.
” But if it is acting with integrity @ @ @ @ @ @ @ is the Fed so often acting in secret as it bestows its monetary patronage on the favored few , especially investment banks ?
And since control of money and interest rates is essentially control of the value of all capital , labor , goods , and services in the world — control of nearly everything — how can this control be removed from politics without also removing it from democracy ?
Maybe someday one of Professor Klein ’ s students will challenge him on these issues .
That might be an interesting class @ @ @ @ @ @ @ Gold Anti-Trust Action Committee , cases of which were awarded to three lucky donors in GATA ’ s recent fundraising campaign , are now available for purchase by the case from Fay J Winery LLC in Texarkana , Texas .
Each case has 12 bottles and the cost is $ 240 , which includes shipping via Federal Express .
Here ’ s what the bottles look like : Buyers can compose their case by choosing as many as four varietals from the list here : GATA will receive a commission on each case @ @ @ @ @ @ @ you like wine and buy it anyway , why not buy it in a way that supports our work to achieve free and transparent markets in the monetary metals ?
To order a case of GATA-label wine , please e-mail Fay J Winery at bagman1236 @ aol.com .
“ Rigged ” is a concise explanation of government ’ s currency market rigging policy and extensively credits GATA ’ s work exposing it .
Ten percent of sales proceeds are contributed to GATA .
Buy a copy for $ 14.99 through Amazon — — @ @ @ @ @ @ @ a penny buy an autographed copy from Englert himself by contacting him at srenglert @ comcast.net .
Help keep GATA going : GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code .
Its e-mail dispatches are free , and you can subscribe at : To contribute to GATA , please visit :

by Chris Powell of the Gold Anti-Trust Action Committee (GATA)
Dear Friend of GATA and Gold:
GATA does not advocate returning currency systems to a gold standard. This organization advocates free and transparent markets for the monetary metals and keeping government out of them.
Of course if governments adopted such a policy, people everywhere probably would remonetize gold as the world reserve currency in less than a week, diminishing the influence of government-issued money and thereby also diminishing government power.
That’s exactly why governments long have striven mightily — sometimes openly, sometimes surreptitiously — to drive gold out of the world financial system and discredit it as money. Gold is the most serious threat to government power and the strongest protector of individual liberty, a point that often has been made through the ages, almost back to the very invention of money, though it is most politically incorrect today.
Defending the monetary status quo this week, Michael Klein, professor of international economic affairs at the Fletcher School at Tufts University in Medford, Massachusetts, published an essay disparaging the gold standard and Federal Reserve Board nominee Judy Shelton for her sympathy to it.
Professor Klein’s essay, “What’s the Gold Standard, and Why Does the U.S. Benefit from a Dollar That Isn’t Tied to the Value of a Glittery Hunk of Metal?,” posted at The Conversation here —
theconversation.com/whats-the-gold-standard-and-why-does-the-us-…
— may express the financial establishment view well enough but it is so misleading and even erroneous as to deserve rebuttal.
Professor Klein notes that the international gold standard that worked well throughout the first century of the industrial age was dropped at the outbreak of World War I. But he doesn’t explain why it was dropped. That is, of course, because monetary gold imposes restraint on government and thereby hampers the waging of war.
Professor Klein writes: “Afterward, some countries such as the United Kingdom and United States continued to rely on gold as a centerpiece of their monetary policies, but lingering geopolitical tensions and the high costs of the war made it much less stable, showing its severe flaws in times of crisis.”
What this really means is that the gold standard kept getting in the way of stupid imperial wars and other governmental extravagance. Would the U.S. have waged so many such wars after disconnecting the dollar from gold in 1971 if the country didn’t also have the advantage of issuing the world reserve currency? That advantage freed the U.S. from monetary restraint and allowed the country to stick the rest of the world with the cost of those wars.
Professor Klein writes: “The onset of the Great Depression finally forced the U.S. and the other countries that still pegged their currencies to gold to abandon the system entirely. Economist Barry Eichengreen has found that efforts to maintain the gold standard at the beginning of the Great Depression ended up worsening the downturn because they limited the ability of central banks like the Fed to respond to deteriorating economic conditions. For example, while central banks today typically cut interest rates to boost a faltering economy, the gold standard required them to focus solely on keeping their currency pegged to gold.”
But this is misleading, since governments that believe they need more money under a gold standard can always devalue their currencies in gold terms. That’s exactly what the U.S. did in 1933 and 1934.
Professor Klein writes that since 1971, when President Nixon terminated the international convertibility of the dollar to a fixed weight of gold, “major currencies like the dollar have traded freely on global exchanges, and their relative value is determined by market forces.”
Free currency markets? Let’s hope that Professor Klein isn’t teaching that fable to his students. Apparently he has never heard about central bank currency market intervention generally or, particularly, about the Bank for International Settlements, which acknowledges that its primary purpose is to give camouflage to central banks in their rigging of the currency markets, including the gold market:
www.gata.org/node/4279
www.gata.org/node/11012
Professor Klein writes: “The dollar in your pocket is backed by nothing more than your belief that you’ll be able to buy a hot dog with it.”
Not so. Quite without formal convertibility to gold or to anything else the U.S. dollar and most government currencies are powerfully backed — by the taxing power of the governments that issue them. Indeed, governments that issue money that is not formally convertible at a fixed rate are free to issue essentially infinite amounts of money, as they lately have been doing, restrained only by the risk of currency devaluation. Governments issuing inconvertible currency impose taxes not to raise money for themselves to spend but to create demand for and give value to their currencies.
Professor Klein writes: “It is particularly odd, however, to advocate for a gold standard at a time when one of the main problems a gold standard would supposedly address — runaway inflation — has been low for decades.”
Apparently Professor Klein believes government data on inflation. But many people who live in the real world — people who, for example, pay taxes, medical insurance premiums, and college tuitions and who buy food — don’t believe it as much as Professor Klein does.
Professor Klein writes: “Clearly, it would be destabilizing if the dollar were pegged to gold when its price swings wildly. Exchange rates between major currencies are typically much more stable.”
But where does the volatility of the gold price come from? Has Professor Klein ever investigated surreptitious intervention in the gold market by governments and central banks, precisely to prevent price stability? He gives no indication of doing so.
We are primarily funded by readers. Please subscribe and donate to support us!
Professor Klein writes in defense of the Federal Reserve: “The Federal Reserve is an independent agency that is vital to America’s economic stability and prosperity. Like the courts, it is important that it acts with integrity and free from political considerations.”
But if it is acting with integrity and serving the public interest, why is the Fed so often acting in secret as it bestows its monetary patronage on the favored few, especially investment banks? And since control of money and interest rates is essentially control of the value of all capital, labor, goods, and services in the world — control of nearly everything — how can this control be removed from politics without also removing it from democracy?
Maybe someday one of Professor Klein’s students will challenge him on these issues. That might be an interesting class.
CHRIS POWELL, H.S.G.
Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowellGATA.org
* * *
Toast to a free gold market
with great GATA-label wine
Wine carrying the label of the Gold Anti-Trust Action Committee, cases of which were awarded to three lucky donors in GATA’s recent fundraising campaign, are now available for purchase by the case from Fay J Winery LLC in Texarkana, Texas. Each case has 12 bottles and the cost is $240, which includes shipping via Federal Express.
Here’s what the bottles look like:
www.gata.org/files/GATA-4-wine-bottles.jpg
Buyers can compose their case by choosing as many as four varietals from the list here:
www.gata.org/files/FayJWineryVarietals.jpg
GATA will receive a commission on each case of GATA-label wine sold. So if you like wine and buy it anyway, why not buy it in a way that supports our work to achieve free and transparent markets in the monetary metals?
To order a case of GATA-label wine, please e-mail Fay J Winery at bagman1236@aol.com.
* * *
Support GATA by purchasing
Stuart Englert’s “Rigged”
“Rigged” is a concise explanation of government’s currency market rigging policy and extensively credits GATA’s work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon —
www.amazon.com/Rigged-Exposing-Largest-Financial-History/dp/1651…
— or for an additional $3 and a penny buy an autographed copy from Englert himself by contacting him at srenglert@comcast.net.
* * *
Help keep GATA going:
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
www.gata.org
To contribute to GATA, please visit:
www.gata.org/node/16


investmentwatchblog--2020-11-24--China Is TERRIFIED of Economic Decoupling

President Donald Trump has been threatening China with decoupling the US economy from the China economy .
So in the @ @ @ @ @ Chinese Communist Party , where China lays out the next five year plan for the @ @ @ @ @ Xi Jinping laid out what he called the dual circulation economy .
And it shows @ @ @ @ @ is terrified of the US decoupling from China .

President Donald Trump has been threatening China with decoupling the US economy from the China economy. So in the recent Fifth Plenum of the Chinese Communist Party, where China lays out the next five year plan for the Chinese economy, Chinese Chairman Xi Jinping laid out what he called the dual circulation economy. And it shows one thing—the Chinese Communist Party is terrified of the US decoupling from China.
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investmentwatchblog--2020-11-24--Saudi Aramco’s Landmark IPO Is Costing The Kingdom Billions

The initial public offering ( IPO ) of Saudi Aramco that was heralded by Crown Prince Mohammed bin Salman ( MbS ) as being a showcase flotation for raising massive new capital for the Kingdom and anchoring a major expansion of its international equities market presence has proven only to put Aramco into a debt spiral and highlighted a myriad of problems in Saudi Arabia to international investors .
Now , Aramco is digging itself further into serious debt through bond issuances simply to pay for the huge dividend payments promised by MbS that were absolutely required to persuade anyone @ @ @ @ @ @ @ At this rate , the debt taken on by Aramco and other Saudi bond offerings to pay for the dividends will be far more than the amount of money raised in the IPO .
As a direct result of MbS deciding to go ahead with yet another oil price war at the same time as the COVID-19 pandemic was gathering pace and destroying demand for oil , Aramco ’ s finances have suffered a massive hit .
For the first half of this year , the company saw a 50 percent plunge in @ @ @ @ @ @ @ this month , it reported another massive drop in profits of 44.6 percent for the third quarter , falling to SAR44.21 billion ( US $ 11.79 billion ) from SAR79.84 billion in the same period last year .
On the other side of the balance sheet , though , is the stark fact that because the company ’ s IPO was so toxic on so many levels that it was shunned by Western investors and had to be off-loaded to buyers who were either bullied or bribed into buying the stock Aramco is @ @ @ @ @ @ @ payments for the foreseeable future to those shareholders .
This huge guaranteed dividend payment of US $ 18.75 billion per quarter – US $ 75 billion for a full year – will have to be paid for through budget cuts over and above the US $ 15 billion in Aramco ’ s annual capital spending alluded to by Aramco ’ s chief executive officer , Amin Nasser , just after the first half profits figures were unveiled .
This will take the total down from around US $ 40 billion to around US @ @ @ @ @ @ @ stated that even this US $ 25 billion figure is set to be reduced by another US $ 5 billion , taking the total capital spending in this year from US $ 25 billion to US $ 20 billion .
Whatever the cuts , it remains the case that the first two dividends together for the first two quarters of this year – US $ 37.5 billion – far outstripped Aramco ’ s total free cash flow of US $ 21.1 billion for the same period .
The latest profits number for the @ @ @ @ @ @ @ 62.88 percent of the dividend payment , never mind any other expenses or investment for projects ongoing or planned that Aramco may have had in mind .
To put this even more clearly : Aramco ’ s entire profit for the third quarter can not even cover the dividend it owes for the same quarter , not even two-thirds of it !
As a result so far of the slide in Aramco ’ s profits , the once much-vaunted flagship US $ 20 billion crude-to-chemicals plant at Yanbu on Saudi ’ s Red @ @ @ @ @ @ @ according to various reports .
The similarly high-profile purchase of a 25 percent multi-billion-dollar stake in Sempra Energy ’ s liquefied natural gas ( LNG ) terminal in Texas is also apparently under threat , although Sempra for its part has said that it continued to work with Aramco and others “ to move our project at Port Arthur LNG forward.
” In the same vein , according to various news sources , Aramco has suspended its key US $ 10 billion deal to expand into mainland China ’ s refining and petrochemicals @ @ @ @ @ @ @ Northeastern province of Liaoning that would have seen Saudi supply up to 70 percent of the crude oil for the planned 300,000 barrels per day refinery .
In sum , it appears that all of Aramco ’ s principal projects aimed at diversifying Saudi Arabia away from the relatively zero added-value pursuits of just pumping and selling crude oil are now subject to review and/or outright suspension .
The chances of these – and other stalled projects – being resuscitated with money from other Saudi government departments looks minimal , as MbS ’ @ @ @ @ @ @ @ decimated these finances too .
Figures released at the end of September showed that Saudi Arabia ’ s economy contracted 7 percent year-on-year ( y-o-y ) in the second quarter of 2020 , with the Kingdom ’ s private sector showing a negative growth rate of 10.1 percent , while the public sector recorded negative growth of 3.5 percent .
Saudi ’ s oil revenue in the first half of the year was 35 percent lower than a year earlier , while non-oil revenue fell by 37 percent .
Moreover , in the @ @ @ @ @ @ @ Kingdom ’ s petroleum refining activities recorded a 14 percent y-o-y drop .
All of this resulted in a current account deficit of SAR67.4 billion ( US $ 18 billion ) , or 12 percent of GDP , in Q220 compared with a surplus of SAR42.9 billion , or 5.8 percent of GDP , a year earlier , according to Saudi Arabia ’ s General Authority for Statistics .
Therefore , Aramco has little choice but to continue to fund the dividend payments to its own shareholders by taking on more debt , @ @ @ @ @ @ @ new money that MbS said would flow into Aramco and then more broadly into the Saudi Tadawul stock market following the ‘ landmark IPO ’ .
In essence , Aramco has been left to take on debt to pay the people who bought it shares , which is akin to a family who decides that it has to sell the precious family silver to pay off debts but then ending up having to take out more debts to pay people to buy the silver .
Moreover , judging from last week ’ s @ @ @ @ @ @ @ that even those investors who have been willing to buy the company ’ s paper – so increasing their risk exposure to not just to the omni-toxic Aramco but also to Saudi as a sovereign issuer – might be reaching the limit of their appetite for either .
Saudi had been looking to raise US $ 8 billion from the five-part bond deal , which it did , but crucially it attracted just US $ 48.1 billion in orders for the debt sale , less than half of the amount that it received @ @ @ @ @ @ @ when it raised US $ 12 billion .
Even more indicative of increasing investor caution in taking on more exposure to Saudi risk – especially that of the increasingly indebted ( bonds plus dividend obligations plus revolving credit lines ) Aramco – is that in last year ’ s bond sale Aramco was able to price the bonds at a tighter spread to the benchmark than Saudi sovereign debt but this time Aramco ’ s bonds were priced wider .

By Simon Watkins
The initial public offering (IPO) of Saudi Aramco that was heralded by Crown Prince Mohammed bin Salman (MbS) as being a showcase flotation for raising massive new capital for the Kingdom and anchoring a major expansion of its international equities market presence has proven only to put Aramco into a debt spiral and highlighted a myriad of problems in Saudi Arabia to international investors. Now, Aramco is digging itself further into serious debt through bond issuances simply to pay for the huge dividend payments promised by MbS that were absolutely required to persuade anyone to buy into the omni-toxic IPO. At this rate, the debt taken on by Aramco and other Saudi bond offerings to pay for the dividends will be far more than the amount of money raised in the IPO. As a direct result of MbS deciding to go ahead with yet another oil price war at the same time as the COVID-19 pandemic was gathering pace and destroying demand for oil, Aramco’s finances have suffered a massive hit. For the first half of this year, the company saw a 50 percent plunge in net profit and at the beginning of this month, it reported another massive drop in profits of 44.6 percent for the third quarter, falling to SAR44.21 billion (US$11.79 billion) from SAR79.84 billion in the same period last year. On the other side of the balance sheet, though, is the stark fact that because the company’s IPO was so toxic on so many levels that it was shunned by Western investors and had to be off-loaded to buyers who were either bullied or bribed into buying the stock Aramco is left having to pay massive guaranteed dividend payments for the foreseeable future to those shareholders.
This huge guaranteed dividend payment of US$18.75 billion per quarter – US$75 billion for a full year – will have to be paid for through budget cuts over and above the US$15 billion in Aramco’s annual capital spending alluded to by Aramco’s chief executive officer, Amin Nasser, just after the first half profits figures were unveiled. This will take the total down from around US$40 billion to around US$25 billion. Further reports have stated that even this US$25 billion figure is set to be reduced by another US$5 billion, taking the total capital spending in this year from US$25 billion to US$20 billion.
Whatever the cuts, it remains the case that the first two dividends together for the first two quarters of this year – US$37.5 billion – far outstripped Aramco’s total free cash flow of US$21.1 billion for the same period. The latest profits number for the third quarter, meanwhile, covers just 62.88 percent of the dividend payment, never mind any other expenses or investment for projects ongoing or planned that Aramco may have had in mind. To put this even more clearly: Aramco’s entire profit for the third quarter cannot even cover the dividend it owes for the same quarter, not even two-thirds of it!
As a result so far of the slide in Aramco’s profits, the once much-vaunted flagship US$20 billion crude-to-chemicals plant at Yanbu on Saudi’s Red Sea coast has been indefinitely suspended, according to various reports. The similarly high-profile purchase of a 25 percent multi-billion-dollar stake in Sempra Energy’s liquefied natural gas (LNG) terminal in Texas is also apparently under threat, although Sempra for its part has said that it continued to work with Aramco and others “to move our project at Port Arthur LNG forward.” In the same vein, according to various news sources, Aramco has suspended its key US$10 billion deal to expand into mainland China’s refining and petrochemicals sector, via a complex in the Northeastern province of Liaoning that would have seen Saudi supply up to 70 percent of the crude oil for the planned 300,000 barrels per day refinery. In sum, it appears that all of Aramco’s principal projects aimed at diversifying Saudi Arabia away from the relatively zero added-value pursuits of just pumping and selling crude oil are now subject to review and/or outright suspension.
We are primarily funded by readers. Please subscribe and donate to support us!
The chances of these – and other stalled projects – being resuscitated with money from other Saudi government departments looks minimal, as MbS’s second oil price war has similarly decimated these finances too. Figures released at the end of September showed that Saudi Arabia’s economy contracted 7 percent year-on-year (y-o-y) in the second quarter of 2020, with the Kingdom’s private sector showing a negative growth rate of 10.1 percent, while the public sector recorded negative growth of 3.5 percent. Saudi’s oil revenue in the first half of the year was 35 percent lower than a year earlier, while non-oil revenue fell by 37 percent. Moreover, in the second quarter of 2020 alone, the Kingdom’s petroleum refining activities recorded a 14 percent y-o-y drop. All of this resulted in a current account deficit of SAR67.4 billion (US$18 billion), or 12 percent of GDP, in Q220 compared with a surplus of SAR42.9 billion, or 5.8 percent of GDP, a year earlier, according to Saudi Arabia’s General Authority for Statistics.
Therefore, Aramco has little choice but to continue to fund the dividend payments to its own shareholders by taking on more debt, in direct contrast to the influx of new money that MbS said would flow into Aramco and then more broadly into the Saudi Tadawul stock market following the ‘landmark IPO’. In essence, Aramco has been left to take on debt to pay the people who bought it shares, which is akin to a family who decides that it has to sell the precious family silver to pay off debts but then ending up having to take out more debts to pay people to buy the silver.
Moreover, judging from last week’s bond sale by Aramco, it appears that even those investors who have been willing to buy the company’s paper – so increasing their risk exposure to not just to the omni-toxic Aramco but also to Saudi as a sovereign issuer – might be reaching the limit of their appetite for either. Saudi had been looking to raise US$8 billion from the five-part bond deal, which it did, but crucially it attracted just US$48.1 billion in orders for the debt sale, less than half of the amount that it received for its debut bond sale last year when it raised US$12 billion. Even more indicative of increasing investor caution in taking on more exposure to Saudi risk – especially that of the increasingly indebted (bonds plus dividend obligations plus revolving credit lines) Aramco – is that in last year’s bond sale Aramco was able to price the bonds at a tighter spread to the benchmark than Saudi sovereign debt but this time Aramco’s bonds were priced wider.
By Simon Watkins for Oilprice.com