#Gold #Miners among top gainers on #MSCI #China Index in past 5 days

China's Gold Miners Gain as Investors Seek Haven Amid Trade War

Two top performers on the MSCI China Index are in the business

China's gold stocks are the latest haven for spooked investors sheltering from the trade war fallout.

Gold miners are among the top gainers on the MSCI China Index in the past five days. Zhaojin Mining Industry Co. in Hong Kong and Shandong Gold Mining Co. in Shanghai have surged at least 9%.

Others in the business also gained. Gansu Ronghua Industry Group Co., Yintai Resources Co. and Chifeng Jilong Gold Mining Co. have all advanced by at least 13% since late May. Zhongrun Resources Investment Corp., which produces minerals, rose by the 10% daily limit on Tuesday before paring gains to 7% at the close.

"Investors, some of whom are subject to a limit on cash holdings, are fleeing to the safest assets," Cheung said. "Equity investors are also choosing these stocks, which will benefit from the gold rally."

Companies in the gold business have benefited as escalating U.S.-China trade tensions hurt the outlook for economic growth, damping investors' risk appetite and triggering a flight from equity markets for safer investments.

https://www.bloomberg.com/news/articles/2019-06-04/china-s-gold-miners-gain-as-investors-seek-haven-amid-trade-war

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#Silver stocks - Horrible downtrend but the time to buy is when blood’s on the street...

At the bottom of the precious metals downtrend, in late 2015 early December 2016 (Fig. 2), The Silver 7 Index was just below 200. Subsequently silver traded up to US$ 20 per ounce by summer 2016 from US$ 15 (+ 33%), but the Silver 7 Index reached a top in summer 2016 of 925 (+360%).

Silver stocks - Terrible downtrend but maybe now it's time to have a serious look at them

Attachment 1 shows a medium-term chart of the Silver 7 Index. It is an index of so called silver stocks although most of the companies in the index have the majority of revenues from gold.

In alphabetical order these stocks are: First Majestic Silver, Coeur Mining (formerly Coeur d'Alene), Hecla Mining, PanAmerican Silver, Peñoles, SSR Mining (formerly Silver Standard) and Wheaton Precious Metals (formerly Silver Wheaton). What is true is that all these companies are producing a substantial amount of silver.

Silver stocks historically have always been more volatile than gold stocks, as silver, as a commodity, is much more volatile than gold in the markets.

 At the bottom of the precious metals downtrend, in late 2015 early December 2016 (attachment 2), silver traded around US$ 15 per ounce. The Silver 7 Index was just below 200. Subsequently silver traded up to US$ 20 per ounce by summer 2016 (+ 33%) and the Silver 7 Index reached a top in summer 2016 of 925 (+360%).

One doesn't need to be a mathematician to figure out what investors have to own when the precious metal markets are turning up. Even if silver goes to US$ 50 per ounce as so many "bla, bla, bla writers" (read website talkers) are predicting, that is around 240%, silver stocks will outperform the physical silver by milestones.

 BUY LOW - SELL HIGH. That is the way to make money. Silver stocks are cheap, out of fashion, and deeply oversold.

That is the time when the astute investor starts to build positions. It probably will take time until the big bull market gets going but the rewards will probably be extremely high.

 We have chosen the Silver 7 Index because it is composed of the larger silver producers and an index, which gets regularly published, although it cannot be traded.. However, there are many more silver companies, and to be fair, we list some of them below: 

Fresnillo

MAG Silver

Endeavour Silver

Fortuna Silver

Silvercorp

Avino Silver and Gold

SilverCrest Metals

Excellon Resources

Impact Silver

Silver One Resources

Great Panther Silver

Aurcana Corp.

Minco Silver

New Pacific Metals

#Hyperinflation: currency tranquility occurred during the heyday of the #gold standard. With the emergence and adoption of fiat currencies, the 20th century ushered in currency instability and #inflation.

The first hyperinflation occurred during the French Revolution (1789-96) when the mandat collapsed and the monthly inflation rate peaked at 143% in December of 1795. More than a century elapsed before another episode of hyperinflation occurred. Not coincidentally, this period of currency tranquility occurred during the heyday of the gold standard. With the emergence and adoption of fiat currencies, the 20th century ushered in currency instability and inflation. Indeed, since 1900 there have been 57 episodes of hyperinflation. And, five of those episodes can be claimed by Yugoslavia, Zimbabwe, and Venezuela. 

Read the article here: The Three M's: Milosevic, Mugabe, And Maduro
https://www.forbes.com/sites/stevehanke/2019/05/13/the-three-ms-milosevic-mugabe-and-maduro/

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