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$5,000 Gold Price Is Possible, Here's How - Peter Schiff

Long-term, gold will benefit from tailwinds caused by government policy failures.

Longer-term, gold prices are headed much higher than current levels and could even go to $5,000 an ounce, this according to Peter Schiff, CEO of Euro Pacific Capital.

“I do think that this is the beginning of the breakout of the consolidation that we’ve been in for the last several years, but ultimately I think gold’s going to go quite a bit higher than $5,000,” Schiff told Kitco News.

Gold’s move upwards can be attributed to monetary policies around the world, Schiff said.

“It is the monetary policies and the mistakes that are being made not just by the Federal Reserve but by central banks all around the world that is driving the narrative for gold because gold is an alternative to all these money substitutes,” he said.

Governments around the world are creating inflation and supporting asset bubbles by spending money they don’t have, Schiff noted, and this creates tailwinds for gold.

https://www.kitco.com/news/2019-07-30/-5-000-Gold-Price-Is-Possible-Here-s-How-Peter-Schiff.html

https://www.bloomberg.com/news/videos/2020-02-24/anglogold-ceo-won-t-rule-out-gold-going-pass-2-000-oz-video

Get ready for a record-breaking rally in global gold prices.

https://www.forbes.com/sites/simonconstable/2020/02/24/gold-prices-are-headed-to-record-highs-no-matter-where-you-live/#2d9fcef678d5

Gold price at these levels, I'm nor worried at all.

We'll know better when the results are out in a few weeks time.

rustybucket,

Petropavlovsk Investee IRC Makes Scheduled Loan Payment To Gazprombank

(Alliance News) - Petropavlovsk PLC said Tuesday its 31%-owned investee IRC Ltd reported its third quarter trading results on Tuesday, with the Russian-focused gold miner keen to point out IRC's loan repayment to Russian private bank Gazprombank.

Petropavlovsk said the USD10.3 million repayment was part of a facility agreed between Gazprombank and Hong-Kong based miner IRC, in December 2018, which Petropavlovsk has fully guaranteed.

IRC said the facility "removed the "financing uncertainty" weighing on its share price.

IRC completed the drawdown of the Gazprombank facility in the first half of 2019 and the loan proceeds were applied in accordance with the intended use of proceeds, IRC said in a statement. The company said the facility is secured by the assets of its K&S asset in far east Russia, and guaranteed by Petropavlovsk.

IRC also reported a 11% increase in iron ore concentrate production in the first nine months of 2019 to 1.9 million tonnes and a 9.7% rise in sales to 1.8 million tonnes.

This share has done well over the last five years, rising 400% and could rise another 400% within a year if gold stays on course.

" it has more going for it now with the benefits of the pox hub, than it had before, when it was just outside the FTSE100 "

Absolutely correct imo.

I'm sure we'll get there if the gold stay at these levels.

It's actually up 400% over the last five years.

This share has been rising for the last five years and is up 300% over that period. This is among the good performing shares over the last 5 years.

Typing mistakes, getting old.

$2000/oz may seem far fetched, but it's not. These is huge ammount of financial and economic uncertainty in the world. Gold prices rose nearly 800% in less than four years between Aug.1976 and Feb.1980. From around $100 /oz to nearly $800 . $800 then as worth much much more than $2000 now.

Gold price could cross $2000 soon if the trend continues.

$2000/oz may seem far fetched, but it's not. These is huge ammount of financial and economic uncertainty in the world. Gold prices rose nearly 800% in less than four years between Aug.1976 and Feb.1980. From around $100 /oz to nearly $800 than as worth much more than $2000 now.

Metals 17 Feb 2020 | 18:15 UTC London

Market seen tight again this year

Analyst Christopher LaFemina of international brokerage Jefferies said that for Rio, the negative impact of lower-than-expected volumes should be more than offset by the positive impact of higher-than-expected iron ore prices, as the iron ore market is expected again to be tight this year.

While the coronavirus has clearly hit Chinese demand for iron and steel, and Chinese imports account for 72% of seaborne iron ore demand, the impact of this fall in demand has been mitigated by the closure of China's own mines, which account for about 20% of China's iron ore supply, LaFemina said. "The supply shock of the closure of these mines is at least partially offsetting the demand shock relating to the coronavirus," he said.

"Our above-consensus forecast of $85/mt for benchmark iron ore fines compares to the current spot price of $90/mt and is conservative, in our view. Consensus estimates are simply too low," according to the Jefferies analyst.

BMO Capital Markets currently forecasts Pilbara shipments of 337 million mt in 2020.

"Although the company has not commented on the impact on operating costs and capex, we expect the company's maiden Pilbara unit cost guidance on February 26 is likely to reflect the impact of the cyclone disruptions. We currently forecast a unit cost of $14.20/mt for 2020," BMO analyst Edward Sterck said.

"Our preliminary analysis suggests that lower volumes are likely to impact Rio's 2020 EBITDA by 3%-5%. However, lower seaborne volumes, with Vale...also lowering Q1 shipment due to weather-related issues, could help to keep iron ore prices at elevated levels above our forecasts, at least in the short term."

Vale last week announced its guidance for iron ore fines production in Q1 was revised to 63 million-68 million mt from previous estimates of 68 million-73 million mt. This followed a fall in its 2019 fines output to 302 million mt, down 21.5% from the previous year as a result of the Brumadinho tailing dams collapse.

The giants iron ore producers will not easily let the prices go down.

"Rio Tinto has trimmed its 2020 iron ore shipments guidance"

https://www.spglobal.com/platts/en/market-insights/latest-news/coal/021720-rio-tinto-trims-iron-ore-guidance-market-sees-price-support

China’s steel, iron ore futures rise after rate cut
By RECORDER REPORT on February 22, 2020

https://www.brecorder.com/2020/02/22/573661/chinas-steel-iron-ore-futures-rise-after-rate-cut/

Mr Sinclair said the removal of the “complex” old system would “give management clearer line of sight and greater alignment of interest to long-term share price performance”.

The chief executive’s maximum future pay was also reduced by 29 per cent — or £2.8m — as part of a shift to a new type of long-term pay model. Mr Horta-Osório’s potential long-term bonuses will be halved, while the expected short-term payouts will increase.

Mr Sinclair said the removal of the “complex” old system would “give management clearer line of sight and greater alignment of interest to long-term share price performance”.

https://www.ft.com/content/a687031a-53b1-11ea-90ad-25e377c0ee1f

This should be due for a big jump too.