Mining Review Sunday Update 22nd August 2021
Once again gold was the focus this week, trading was shaky but in the end it ended up a single US dollar higher than the previous week’s close at $1781.
Iron ore prices fell 22% in a week.
Of the companies we follow, Osisko Development and Maple Gold were the standouts with positive exploration news.
Mining Review Sunday Update 22nd August 2021
Once again gold was the focus this week, trading was shaky but in the end it ended up a single US dollar higher than the previous week’s close at $1781. Some market commentators fear that, as gold has not regained the $1,800 level, another selloff could be on the way.
The Central Bank of Russia purchased 3.1 tons of gold recently, which did not feature in the popular western press.
One piece of news that did receive comment in the press was that a data analytics company, Palantir, has purchased $50 million worth of physical gold bars. This shocked Wall St., and perhaps is an indication that companies are becoming wary of holding their funds in dollars and bonds.
Silver had another poor week, losing 3%.
Lithium rose 6% to on the back of the strike by Albemarle employees in Chile. They produce 28% of the world’s lithium, so this strike was bound to result in a price spike.
Copper fell after the unions and BHP reached agreement, and the strike at the giant Escondida mine in Chile came to an end. The fall was exacerbated by fears that Chinese growth would be lower than anticipated.
Iron Ore prices were absolutely hammered, down 22% in a week! The fall month on month was an incredible 36%. This is since the Chinese government introduced their process of limiting speculation in strategic metal prices.
Of the companies we follow, Osisko Development and Maple Gold were the standouts with positive exploration news. Wesdome Gold released impressive Q2 results, and confirmed the restart of the Kiena Mill.
Stocks on our watchlist in the news last week
Maple Gold – Released 3D results from their Telbel prospect
Osisko Development – Hit 70.96 got Au over 2 m at the former Barkerville Cariboo project
Boab Metals – Released a new corporate presentation
Gold failed to finish above $1,800, leading some market commentators to believe that it may have another selloff, as the US $ Index rises, and FED tapering is once again threatened.
Another poor week for the PGM sector, with some car production being curtailed due to a shortage of micro chips / semiconductors. Substitution between palladium and platinum is also occurring.
Tin is the biggest loser after a tremendous run recently came to an abrupt halt and reversed. Copper and nickel declined due to concerns about Chinese GDP falling.
Iron ore took a huge tumble as market sentiment determined that demand would be poor. Coking coal was surprisingly stable given the news from iron ore.
The City Investors Circle
Mining Review Sunday Update for the 22nd August 2021 is complete
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