Silver and Gold Prices Move up Strongly as More Mining Operations Shut Down

JP Buntinx
March 27, 2020

All over the world, production of precious metals continues to slow down. In the most recent update, the Black Fox gold and silver mine in Argentina will be shutting down its operations for a few days. 

Major Changes for McEwen Mining Operations

The McEwen Mining group operates multiple mines all over the world. One of their biggest ventures is located in San Jose, Argentina. The local Black Fox mine is now suspending operations due to the coronavirus crisis. These measures will remain in effect until at least the end of March, albeit they may be extended if necessary.  

This news is not entirely surprising, as a lot of gold mines around the world have announced similar measures. In light of those events, McEwen Mining is also suspending operations in Ontario and Nevada. Both of those locations will face a similar shut down until the end of the month, with more potential measures to follow.

Despite the shutdown, Black Fox will continue its development activities for the Froome deposit. That deposit sits 900 metres from the Black Fox open pit. In Nevada, minor activities involving production and development will continue as well. All of this will occur while keeping the social distancing guidelines in mind at all times.

Interestingly enough, McEwen Mining is capable of operating one additional mine without too many restrictions. Its El Gallo heap-leach operation in Mexico is still going. Contrary to other countries, Mexico has not issued any orders regarding non-essential businesses such as precious metal facilities.

Markets Remain On Course

What is rather interesting is how both the silver and gold prices are moving up, and will likely continue to do so for some time to come.

On the weekly silver price chart below, there is a strong push from $12.5 to $14.4 in the span of five days.  Some experts had expected to see a stronger bounce, as the second “leg down” from two weeks ago has yet to be fully recovered. Overcoming the “first leg down” from $18.6 to $16.66 will not occur anytime soon, despite production being ramped down globally.

Gold, on the other hand, keeps noting a strong push to overcome its recent dip. Following the recent $130 gain in value, one has to wonder how long this uptrend will continue.  For now, the gold price is approaching another key Fib level near $1,638. Overcoming that level may be crucial to determine whether or not a new all-time high is within reach at some point in 2020.

Despite overall precious metal production slowing down, the markets are not slowing down. In fact, this may be the best time to obtain precious metals or maintain one’s portfolio accordingly. With these prices moving in the right direction again, the market momentum will only intensify accordingly.

Easily open your Swiss tax free gold vault in under 6 minutes

It’s Free to open a Swiss vaulting account, you can buy and sell gold directly to it instantly.

0 Comments

Trackbacks/Pingbacks

  1. 5 Reasons why Investing in Physical or Digital Gold is Always Worthwhile, Bar9, The New Bank Independent Savings Account - […] main benefit of investing in gold is how liquid the market is. Compared to some other investment options, precious…

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Silver Bug Profile: James Turk

Ever since retiring from his last position in 1987, James has been able to keep himself busy. Not only has he worked on The Freemarket Gold & Money Report, but also wrote several books.

Gold Bug Profile: Howard S. Katz

Even though Katz is rightfully called an early gold bug, it is evident that he was all too aware of how the markets evolved at any given moment.

Gold and Silver Futures Turn Bearish as International Demand Weakens

Some analysts expect a new all-time high for gold later this year, although there will be some volatility to contend with before that happens.

Gold, Silver, and Crypto Markets Seem Poised for a Massive Bounce

For companies that are publicly traded – and often work over the weekend – having 24/7 exposure across the markets would be ideal.

Welcome To The New Bar9 Rebranding

To all Bar9 customers, I'm proud to announce the rebranding of Bar nine and a whole new informative front end. As we move into 2020 Bar9's mission is to make it easier for anyone to move in and out of physical hard assets and become a little more bank independent. The...

Fortuna Silver Mines Notes Steep Silver and Gold Production Decrease in Q1 2020

More specifically, the production of both lead and zinc has increased by 8% and 5% respectively. This is a somewhat unexpected “bonus” for this mining operation.

Gold Bug Profile: Eric Sprott

It is also worth noting that Eric Sprott sold his first company – known as Sprott Securities – back in 2011. Interestingly enough, the company was purchased by other staff members.

Gold Bug Profile: Peter Thiel

Since his tenure at PayPal, Peter Thiel has made a lot of headlines due to his investments. More specifically, he is an active VC for tech companies in their early stage of development.

Gold and Silver Bounce Back as Stock Markets Continue to Struggle

Although the markets aren’t out of the woods yet, things are looking better. There is some positive momentum all around, for a change.

Gold Bug Profile: Ben Davies

Ben Davies is the co-founder and CEO of Hinde Capital. Founding this company came after building up over a dozen years of experience in financial and commodity markets.

Silver Bug Profile: Juerg Kiener

These days, Kiener is primarily involved in management resources mandates for SAC, with a strong focus on institutional clients and wealthy individuals.

Gold Bug Profile: Thomas Kaplan

The first link with precious metals became apparent in 1993. At that time, Kaplan founded Apex Silver Mines, taking up the role of chairman and chief executive officer.

Silver Bug Profile: Stewart Thomson

Many people keep an eye on the precious metals markets, as those segments have tremendous profit potential. Stewart Thomson can be classified as a silver bug, primarily because he expects things to head in a very promising direction.  Who is Stewart Thomson?...

Gold Bug Profile: Alan Greenspan

There are many pathways in life which can influence the future of one’s existence. For Alan Greenspan, one pathway of particular influence is called Objectivism.

The Silent Thief: How to Protect Savings from Inflation

How can you protect your savings from inflation? Horror stories of the prices of bread and milk spinning out of control have fixed the concept of inflation firmly in the public imagination. These hark back to the worst cases, like in the Weimar Republic where shoppers...

Silver Bug Profile: Ralph Aldis

Ralph Aldis has also been named twice as a US Metals and Mining “TopGun”. This title is “awarded” by Brendan Wood International every single year. He is also the Best Americas Based Fund manager in 2016, awarded by Mining Journal.

Silver Bug Profile: Peter Leeds

Similar to his opinion on gold, Leeds is very hopeful when it comes to silver. In fact, he considers it to be the top investment for 2020 and possibly beyond,

The Silverites: Advocating for Silver to Become the Unit of Money in the US

The best way to get something done in the United States is by leveraging one’s political position. The Silverites certainly explored that angle quite well.

Coronavirus-Infused Market Volatility is Bound to hit Australia and New Zealand

It now seems that Asian markets are recovering a bit. It is still too early to determine if the coronavirus crisis is under control in that part of the world.

Indian Officials Confiscate 9.3kg of Gold From Smugglers

What is rather interesting is how all of these bars have forged foreign markings. The objective of the individuals was to sell it in Mangaluru and districts of North Karnataka

Translate Blog Post

Article Categories

Blog Stats

  • 118,169 hits

Follow the CEO on Twitter

%d bloggers like this: