Precious Metals
Key Charts: The Two Strongest Forms Of Money On The Planet Over The Last 13 Years
In reflecting on this two-year smash of precious metals, and in particular, mining shares, let’s take a look at some currency history of the last decade to provide us with some much needed mental capital.With the help of Nick Laird over at Sharelynx.com, I was able to track down a few charts documenting the staggering percentage growth increases of gold and silver when compared to the world’s major currencies. What I found was shocking:
Despite recent setbacks, gold and silver have been the strongest currencies on the planet for the last 13 years.
Here is a chart of percentage growth returns of gold & silver vs. major world currencies:
(click to enlarge)
What’s important to note is that global supply of gold and silver remains somewhat constant—increasing at a rate of about 1% per year (and falling), while global supply of fiat paper currencies can be expanded by any percentage size, at anytime. Therefore, we must conclude that either pre-existing supplies of global currency units having been rushing into precious metals over the last 13 years, or the total global money supply of all currencies is expanding at a frightening rate—with gold and silver signaling the expansion.
Here is our second chart, showing percentage increases of gold when measured in various world currencies:
(click to enlarge)
It appears based on this chart (as well as the next) that South African & Indian Reserve Banks are far outperforming Bernanke’s Fed, in terms of increasing money supply—and devaluing their currencies against precious metals. Or rather, those two currencies are “voicing” their money supply growths (through the instruments of gold and silver) more promptly than the others.
Here is our third and final chart, expressing percentage increases of silver when measured in various world currencies:
(click to enlarge)
Bottom Line: Gold & silver have remained the same over the last thirteen years while world currencies have expanded in supply by staggering sums. Will currency supply expansion continue? Will quantitative easing programs expand to preserve global financial orders?
If the answer is yes to these questions, then ignore the short-term noise of the market and hold your long-term positions in the world’s oldest, strongest forms of money.
March 11, 2013 by Resource Intelligence · Leave a Comment
SilverCrest: Doubling Resources and Production
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The Santa Elena project is a high-grade, open pit, heap leach operation located in Sonora, Mexico. Read more
February 4, 2013 by Resource Intelligence · Leave a Comment
Alhambra hits paydirt; financings picture remains murky on TSX
Alhambra Resources (TSXV:ALH) announced assays from eight new drill holes at its Shirotnaia (for a backgrounder, watch this interview) project in Kazakhstan. Read more
November 14, 2012 by Resource Intelligence · Leave a Comment
Prodigy Gold and Argonaut gold agree to friendly $341MM takeover
Argonaut Gold Inc (AR.TO) announced it will buy Prodigy Gold Inc (TSX.V:PDG) for about C$341 million ($348 million), taking control of Prodigy’s Magino project in Ontario. Read more
October 15, 2012 by Resource Intelligence · Leave a Comment
Here’s how organic growth makes investors money
When assessing potential resource investments, many investors will be looking for the potential for notable organic growth—growth from within the company’s existing projects, rather than by M&A activity. Read more
October 1, 2012 by Resource Intelligence · Leave a Comment
Prodigy Gold: The Magino Mine project as you’ve never seen it before
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Brian Maher, CEO: We’re standing approximately in the middle of what will be our future open pit mining operation here at Magino. Read more
August 1, 2012 by 11 · Leave a Comment
FOCUS: Speculators Cut Back On Bullish Exposure To Precious Metals –CFTC
Click here to read the whole story.
By Debbie Carlson
Speculators cut back on their bullish exposure to precious metals, reversing gains seen the previous week in gold, and continuing the trend seen in other precious metals futures and options contracts traded on the Comex division of the New York Mercantile Exchange and on the Nymex, according to U.S. government data released Friday.
For the week ended July 24, speculators in the Commodity Futures Trading Commission’s weekly commitment of traders report reduced their net-long positions Read more
July 30, 2012 by Kitco · Leave a Comment
Prophecy Platinum Wellgreen Animation: A very large precious and base metals resource
Prophecy Platinum’s Wellgreen deposit in Canada’s Yukon Territory contains a very large and rich base and precious metals resource. Read more
July 18, 2012 by Resource Intelligence · Leave a Comment
Sultan Minerals breathes new life into the Kena gold project
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Sultan Minerals has owned the Kena gold project near Nelson, BC, for some time, but the company has had its sights set on its tungsten, lead, zinc and moly project to the south. Now that gold has proven it has staying power near $1,600 per ounce, Sultan’s CEO Art Troupe has turned his focus to the Kena project. With a new JV partner on the project, investors can expect to see results and potentially new mineralized zones in the near term. The project already has 381,000 oz gold measured and indicated (average grade 1.0 g/t, using 0.5g/t cutoff, NI 43-101), plus 389,000 oz gold inferred (average grade 1.0 g/t, using 0.5 g/t cutoff, NI 43-101). Executive Editor Doug Hadfield spoke to Troupe about the agreement and how he expects things to move more rapidly now that the drills will be turning again.
June 26, 2012 by Resource Intelligence · Leave a Comment
SilverCrest Mines takes investors on animated tour of 100MM oz AgEq project
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SilverCrest Mines has achieved steady production at its Santa Elena Mine in Sonora, Mexico. Total production for 2012 is targeted at 2.2 million ounces of silver equivalent*. Read more
June 20, 2012 by Resource Intelligence · Leave a Comment
SilverCrest Mines preps for underground mining, adds ounces
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SilverCrest Mines Inc. (TSX-V: SVL; OTCQX: STVZF) is a precious metals producer based in Vancouver, BC. The company’s flagship property is the 100% owned Santa Elena gold and silver mine, located 150 km northeast of Hermosillo, near Banamichi in the mining state of Sonora, Mexico. This mine is a high-grade, epithermal deposit with an estimated life of mine cash cost of US$8 per ounce of silver equivalent (55:1 Ag:Au). SilverCrest anticipates that the 2,500 tonnes per day facility should recover approximately 4,805,000 ounces of silver and 179,000 ounces of gold over the 6.5 year life of the open pit phase of the Santa Elena Mine. The company has also inferred more than 100 million ounces silver equivalent at its La Joya project in Durango. Executive editor Doug Hadfield spoke with SilverCrest’s COO Eric Fier about the rapid progress the company continues to make on both projects.
June 18, 2012 by Resource Intelligence · Leave a Comment
Environment seen remaining supportive for gold, juniors wait out the rain
The outlook for gold is rosy but the resource-mining sector remains a challenge, writes Liza Mayer.
May 31, 2012 by Resource Intelligence · Leave a Comment
