Gold Posts Solid Gains For The Week

Posted on by The INO.com Team

Gold prices closed higher on the day and the week resulting in solid gains. As of 5:50 PM, ET gold futures basis most active June contract is currently up $3.90 or 0.21%, fixed at $1845.10. Considering that gold futures traded to a low this week of $1785 and closed near the highest value this week of $1848.60, it had a good week.

Gold pricing had been under pressure for the fourth consecutive week before this week's trading activity resulting in defined technical chart damage with it breaking below its 200-day moving average last Thursday, May 12. This week's low occurred on Monday, May 16, when prices hit a low of $1785 and traded to a high of $1825 before closing above its opening price on Monday and above Friday's closing price at $1813.60. On Tuesday, gold traded to a higher high and a higher low than Monday, even though gold closed fractionally lower than its opening price. On Wednesday, gold traded to a lower low and a lower high than Tuesday's price action, but that all changed on Thursday. Continue reading "Gold Posts Solid Gains For The Week" →

S&P 500 Flirts With Bear Market

Posted on by The INO.com Team

The S&P 500 and stock market were under heavy pressure in early trading as the "R" word was thrown around. The S&P 500 was down as much as -2.3% earlier in the session. At the day's lows, the S&P 500 was -20.9% below its intraday high in January, which would signal an entry into a bear market.

There's no official bear market designation on Wall Street. Some will count Friday's decline at the intraday lows as confirmation of a bear market, whereas some may say it's not official until it closes -20% off its high. Regardless, it's the biggest downturn of this magnitude since the rapid bear market in March 2020 at the onset of the pandemic.

The S&P 500 finished +0.01% higher to 3,901.36 on Friday. The DOW rose 8.77 points, or +0.03%, to 31,261.90, and the NASDAQ fell -0.30% to finish the week at 11,354.62. Continue reading "S&P 500 Flirts With Bear Market" →

Three Gold Miners Trading At Deep Discounts

Posted on by Taylor Dart

It’s been a rollercoaster ride for investors in the Gold Miners Index (GDX), with the index starting the year up 24% only to find itself back at a negative year-to-date return. While this has led to disappointment among many investors, I believe that this complete retracement is a gift, and it's worth noting that the GDX is still massively outperforming other sectors despite the sharp reversal. However, the key when investing in gold miners is to buy quality, and it rarely pays to bet on turnarounds from the lower-quality or lower-priced names in hopes that they will play catch-up. In this update, we'll look at three sector leaders worthy of a closer look.

Agnico Eagle Mines (AEM), Eldorado Gold (EGO), and Maverix Metals (MMX) all provide exposure to the gold price but have little in common from a cost, scale, and jurisdictional standpoint. All three operate in very different jurisdictions and have costs ranging from $400/oz to $1,300/oz. From a size standpoint, Maverix produces as little as ~40,000 gold-equivalent ounces [GEOs] per annum on an attributable basis. In contrast, Eldorado Gold produces over 400,000 GEOs per year, and Agnico produces over 3 million ounces of gold each year. However, all three companies share one key trait: enviable organic growth. In a sector that lacks growth stories, with most being inorganic, these companies do not need a higher gold price to significantly increase cash flow per share looking out to FY2025.

Beginning with Agnico Eagle Mines (AEM), the company is the 3rd largest gold producer globally and expects to produce 3.3 million ounces of gold in 2022 at all-in sustaining costs [AISC] between $1,000/oz to $1,050/oz. The company's 10+ mines are located in Canada, Australia, Finland, and Mexico, and the company has a large development that could add 700,000+ ounces per annum of production by 2030. Among the million-ounce producers, this jurisdictional safety is a rarity and is one reason that AEM is a favorite among funds, with 95% of production coming from Tier-1 ranked jurisdictions vs. Barrick Gold and Newmont at less than 60%, and Gold Fields at less than 50%. Continue reading "Three Gold Miners Trading At Deep Discounts" →

Records Everywhere And Not A Drop To Spare

Posted on by Tim Snyder

“The following is an excerpt from Tim Snyder’s “Weekly Quick Facts” newsletter. Tim is an accomplished economist with a deep understanding of applied economics in energy. We encourage you to visit Matador Economics and learn more about Tim. While there, you can sign up for his completely free Daily Energy Briefs and Weekly Quick Facts newsletters.”

As we continue the gasoline discussion from last week, economists are fielding questions, from most of the conservative media, regarding just what needs to happen to change the trajectory of retail fuel prices in the U.S.

Last week, alone, I did 12 radio interviews and gave a lunch address to the Petroleum Engineers Club of Dallas. The subject for each one of those interviews was the same, "How high can prices go" and "How much longer with these record fuel prices hang on"?

To address these two questions, we must look at the remaining conditions, after the pandemic and the Biden administration. They are tight inventories for gasoline and diesel, drive season, and increased demand. I'm not even going to drift off into the fact that the Hurricane Season starts in 15 days.

We started the year at 232.8 million barrels, and As of 5-6-2022, gasoline inventories sat at 225 million barrels. As for the distillate inventories, they began the year at 126.8 million barrels and as of 5-6-2022 stood at 104 million barrels. Continue reading "Records Everywhere And Not A Drop To Spare" →

A New Way To Turn Your Portfolio Green

Posted on by Matt Thalman

Over the last few years, the move to "go green" with everything from vehicles, homes, food, and beyond has also hit the financial markets. But it may be harder than you think to actually find green investments since so many of the green companies still have a large carbon footprint.

Take the wind and solar companies and all the talk about how much dirty energy is used to make a windmill. Or how the solar industry is much dirtier than most would imagine due to the way solar panels are made and all the toxic materials that are inside solar panels, which could cause an environmental issue if the panel breaks.

With that said, we may finally have a way to invest in green initiatives and know that what we are investing in truly is green and promoting a reduced carbon footprint without many hidden dirty secrets.

The new investment option I am speaking of is the Continue reading "A New Way To Turn Your Portfolio Green" →