Latest news with #MikeMcGlone
Mint
02-06-2025
- Business
- Mint
Gold is sending markets a big warning signal
So far this year, gold is dramatically outshining other metals. It may be bad news for the economy. It is no secret that gold, traditionally a haven asset, has been on a tear, with prices up 40% in the past year, thanks to buying by central banks and a chaotic U.S. political scene. On Friday, gold traded at $3313 an ounce, down 0.9%, and about 3% below its April record. It has been a far different story for industrial metals such as copper, aluminum, and zinc. Their prices, driven by prospects for global economic growth, are down 10%, on average, in the past 12 months. That divergence in prices is ominous, according to a note Friday from Mike McGlone, a senior commodity strategist at Bloomberg Intelligence. 'The highest-ever gold price vs. the Bloomberg Industrial Metals Spot Subindex at the end of May, based on our database going back to 1991, isn't a good sign for the global economy," he wrote. There are some caveats, according to McGlone. U.S. stock prices remain high, and yields on Treasury bonds have been rising recently, not falling, as one would expect if nervous investors were dumping risky assets and buying the debt in a flight to safety. What is more, gold prices have been climbing steadily for several years, thanks to worries about inflation and buying by foreign central banks, which have been gradually diversifying their reserve assets away from the U.S. dollar. U.S. retail investors have been getting into the action too, snapping up gold bars at Costco, often as soon as they hit the shelves. By this reckoning, gold's price surge relative to more economically sensitive metals isn't necessarily a flashing red light for the economy. Instead, it merely suggests gold is in a bubble. That is certainly the view of plenty on Wall Street. Last month, a Bank of America Securities survey of global fund managers found 49% named gold the market's 'most crowded trade." The Magnificent Seven had held that honor for the previous two years. Still, writing off gold's price moves simply because the metal is making headlines and investors are piling in could be a mistake. After all, while gold prices are hovering near record highs, so is the S&P 500, with price-to-earnings ratios higher than at any time since the late 1990s. If U.S. stock prices were to tumble, perhaps in response to slowing U.S. economic growth or political turmoil, it could easily trigger a global selloff. That could see investors fleeing risky assets, including not just stocks, but Bitcoin and economically sensitive metals like copper. At least some of the money flooding out of these volatile assets would likely find shelter in gold, driving prices to new highs. 'Unprecedented U.S. tariffs are coming with the stock market historically elevated, which may test the inordinate burden on the S&P 500 to remain elevated to buoy all boats," he wrote. Write to Ian Salisbury at
Yahoo
12-05-2025
- Business
- Yahoo
Posthaste: You might not have heard of this recession indicator — but it's getting louder
Here's a recession warning you might not have heard of — and it's getting louder. Oil prices have plunged this year by almost 21 per cent while gold has gained about 26 per cent, widening the gap between the two to almost 50 per cent. 'Rapidly rising gold and plunging oil aren't good signs for the global economy and this year to May 5 is among the most extreme examples,' writes Mike McGlone, senior commodity strategist for Bloomberg Intelligence. 'A global reset signalled by gold's outperformance appears to be happening with implications for deflation that could be as steep as the inflation of the past few years.' The disparity is the fourth biggest in the years between 1925 and 2025, he said, and the closest parallels are 1934 and 2007, the years preceding the Great Depression and the Global Financial Crisis. In 1933, there was a 50 per cent gap between gold and oil, and in 2008 it widened to 60 per cent. The 47 per cent gap so far this year has already overtaken that seen during the pandemic in 2020, according to Bloomberg data. Oil prices were up today and gold was down after the United States and China agreed to reduce tariffs for three months, easing trade tensions. McGlone expects the trend, which he says existed before the Trump's election and tariffs, to deepen, predicting that oil will fall near US$40 a barrel and gold will rise to US$4,000. 'A lower U.S. stock market may be a top force to get there,' he said. He's not alone in his prediction. In recent weeks Goldman Sachs, JPMorgan and Bank of America have all raised their gold forecasts to near or at US$4,000. Gold has a low correlation to equities, bonds and commodities making it an effective hedge, particularly when these traditional assets are falling together as they have been recently. Central banks have increased their gold purchases about fivefold since 2022, and over the past six months, bullion held by the People's Bank of China rose by close to 1 million ounces or about 30 tons, reports Bloomberg. Investors are also piling in. A recent Gallup poll showed gold has overtaken stocks as the second most popular long-term investment among Americans. Real estate is the top choice, but the public preference for gold rose five percentage points to 23 per cent, overtaking equities which fell six points to 16 per cent. Gold has gone from being just a safe haven to a strategic asset in investors' portfolios, say analysts at FTSE Russell, who recommend investors hold 60 per cent equities, 20 per cent bonds and 20 per cent gold. Since 2020, the 60/20/20 portfolio has outperformed the traditional 60/40 holding, they said. 'It is no longer merely a defensive store of value, but a dynamic, strategic tool for navigating complexity in the multi-asset space,' said FTSE Russell analysts Sayad Reteos Baronyan and Alex Nae. to get Posthaste delivered straight to your unemployment rate rose in April to 6.9 per cent, a level last seen in November and this highest since January 2017 outside of the pandemic. This is the third month in a row where jobs have either flatlined or fallen, putting the average pace of job gains at -8,000 over the past three months. April's data points the blame at trade tensions. The largest drop in employment was manufacturing which lost 31,000 jobs and wholesale and retail trade, down 27,000. 'Overall, we are seeing a job market that was weak heading into the trade war, now looking like it could soon buckle,' said Ali Jaffery, an economist with CIBC Capital Markets. Earnings: Hudbay Minerals Inc., Finning International Inc., Denison Mines Corp., Constellation Software Inc. Canada's largest natural gas producer just keeps getting larger When not to trust your mortgage lender How can I ensure a neighbour with a $10 million estate is not taken advantage of? Over-contributing to an RRSP or TFSA can cost you and the longer the money remains in your account the more you pay. Tax expert Jamie Golombek highlights the case of a taxpayer who ultimately removed her TFSA over-contribution, but apparently not fast enough for the CRA. Read on. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@ with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course). Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily. Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more. Today's Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@ Just when you thought Toronto's condo market couldn't get any worse … High down payments keep Canadians out of homeownership Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Cision Canada
08-05-2025
- Business
- Cision Canada
Fresh Cash, Scalable Projects, and New Discoveries: What the Smart Money Is Watching in Gold
Issued on behalf of Lake Victoria Gold Ltd. VANCOUVER, BC, May 8, 2025 /CNW/ -- Equity Insider News Commentary – So far in 2025, gold has twice touched the remarkable $3,400 per ounce mark— first in April and again this week —raising the question of just how far this rally could go. Bloomberg Intelligence's Senior Commodity Strategist Mike McGlone suggests the widening gap between oil and gold prices signals not only recessionary pressure, but also a potential surge to $4,000 gold. Meanwhile, industry veteran Rob McEwen believes investor momentum could carry gold even higher, forecasting a rush back into mining equities and a possible run to $5,000 per ounce. Against this backdrop, several gold companies have issued timely updates, including Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF), Kinross Gold Corporation (NYSE: KGC) (TSX: K), SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM), Dundee Precious Metals Inc. (TSX: DPM) (OTCPK: DPMLF), and New Found Gold Corp. (NYSE-American: NFGC) (TSXV: NFG). Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF), a junior gold developer focused on East Africa, continues to advance its near-term development strategy in Tanzania. A third-party commissioning auditor, Nesch Mintech Tanzania, has been formally retained and will participate in the commissioning process at Nyati Resources' gold processing plant expected in June. This follows the signing of a non-binding Letter of Intent between LVG and Nyati for a potential small-scale development partnership. Nesch has been engaged to assess plant readiness, recovery rates, and potential optimization opportunities as Nyati prepares to bring a second processing unit online. "Engaging Nesch Mintech at this stage ensures we bring third-party rigour and transparency to the commissioning process, which is fundamental to assessing the Nyati opportunity," said Marc Cernovitch, President and CEO of Lake Victoria Gold. "We are excited by the potential to leverage existing processing infrastructure and local ore sources to create a scalable gold production platform in Tanzania." Combined with the existing 120 tpd facility, the expansion is expected to deliver a total capacity of 620 tpd—laying the groundwork for a centralized gold processing hub under the proposed joint venture with LVG and MIPCCL. "This audit is an important milestone as we advance this most compelling near-term gold development opportunity," said Simon Benstead, Executive Director of Lake Victoria Gold. "By combining strategic processing infrastructure with high-potential development targets, the proposed joint venture has the potential to unlock meaningful value for all stakeholders. We look forward to working closely with Nesch Mintech to validate the plant's performance and move confidently toward execution." Under the proposed partnership plan, mineralized material from LVG's 100%-owned Mining Licences would be processed through Nyati's 120 tpd facility and a second 500 tpd expansion plant currently being finalized—creating a centralized processing hub. The audit by Nesch Mintech is a critical next step in validating that vision. The company notes that it is not underpinned by a current mineral resource estimate or Feasibility Study and remains subject to meaningful technical and economic risks. This collaboration offers LVG a chance to test key assumptions in the field and potentially self-fund continued exploration. The Nyati LOI builds on LVG's earlier disclosure that it was exploring small-scale development opportunities at its Tembo Project, within the company's four Mining Licences. Located adjacent to Barrick's Bulyanhulu Mine, Tembo has already seen more than US$28 million in historical exploration, including over 50,000 metres of drilling. Targets like Ngula 1, Nyakagwe Village, and Nyakagwe East remain open at depth and along strike—underscoring the project's long-term discovery potential. "Tembo has always stood out as a project with the potential to deliver both near-term value and long-term discovery upside," said Benstead. "Evaluating this small-scale development opportunity allows us to test the system, generate operational insights, and potentially self-fund ongoing exploration. We believe this approach aligns well with our disciplined strategy and our commitment to responsible, phased development in Tanzania." While Tembo provides strategic upside, LVG's Imwelo Project (acquired earlier this year) remains more advanced of the company's asset portfolio. Fully permitted and supported by a 2021 pre-feasibility study, Imwelo is positioned for streamlined development near AngloGold Ashanti's Geita Mine. The company continues to align capital and partnerships to advance toward construction. To that end, LVG secured a non-binding gold prepay term sheet with Monetary Metals in late 2024. The arrangement provides upfront capital now, in exchange for delivering a portion of future gold production at a modest discount. This non-dilutive structure aligns repayment with LVG's production timeline and outlines access to the value of up to 7,000 ounces of gold—helping fund construction and development at the Imwelo Project. In February 2025, the company also completed a C$3.52 million investment tranche with Taifa Group at C$0.22 per share as part of a greater three-tranche C$11.52 million financing. Along with the deal, it brough in former Taifa CEO Richard Reynolds onto LVG's board. Further upside remains through a 2021 agreement with Barrick, which outlines up to US$45 million in milestone-based payments tied to success at Tembo. With commissioning audits scheduled, a potential joint venture moving through due diligence, and potential funding agreements in place, Lake Victoria Gold continues to build momentum as one of East Africa's most dynamic emerging gold developers. In other industry developments and happenings in the market include: Kinross Gold Corporation (NYSE: KGC) (TSX: K) kicked off 2025 with strong results, more than doubling its free cash flow year-over-year to $370.8 million and boosting margins by 67% to $1,814 per ounce sold. The company reaffirmed full-year guidance and ramped up shareholder returns, targeting $650 million in buybacks and dividends. With $2.3 billion in total liquidity, Kinross is advancing key projects like Great Bear and Round Mountain Phase X while maintaining a strong balance sheet. "Our culture of technical excellence and financial discipline, complemented by our consistent operating performance, continues to drive strong margins and cash flow, all of which underpin our capital allocation strategy," said J. Paul Rollinson, CEO of Kinross. "We continue to advance our pipeline of high-quality development projects and exploration opportunities across our broader portfolio with a focus on driving value for our shareholders through this decade and beyond." SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) recently delivered first-quarter 2025 production of 103,805 gold equivalent ounces and generated $84.8 million in operating cash flow, with adjusted net income reaching $61.6 million or $0.29 per share. The company officially added Cripple Creek & Victor (CC&V) to its portfolio in late February, contributing to a seamless quarter despite Çöpler remaining offline. "We are well on track for full-year consolidated production and cost guidance, and are positioned to generate strong free cash flows through the remainder of the year," said Rod Antal, Executive Chairman of SSR Mining. "In Türkiye, initial development activities continued at Hod Maden in the quarter, while efforts at Çöpler remain focused on advancing the operation towards a potential restart." SSR ended the quarter with $319.6 million in cash and $819.6 million in total liquidity. Dundee Precious Metals Inc. (TSX: DPM) (OTCPK: DPMLF) generated $79.1 million in free cash flow in Q1 2025 and returned a record $90.4 million to shareholders through dividends and share repurchases. The company produced nearly 50,000 ounces of gold and 5.9 million pounds of copper, reaffirming guidance for the year. With $763 million in cash and no debt, Dundee is advancing feasibility work on Čoka Rakita in Serbia and Loma Larga in Ecuador. "Our 55,000-metre drilling program focused on testing high priority targets proximal to our Čoka Rakita project is advancing well, with 14 drill rigs currently in operation," said David Rae, President and CEO of Dundee. "The drilling program continues to expand the copper-gold Dumitru Potok discovery, and we have yet to define its limits as it remains open in multiple directions and at depth." New Found Gold Corp. (NYSE-American: NFGC) (TSXV: NFG) continues to demonstrate the depth potential of its Queensway Gold Project, with standout intercepts including 38.7 g/t Au over 6.55 m at Dome and 10.3 g/t Au over 8.20 m at Keats South Deep. These new results lie outside the project's initial mineral resource estimate and show growing scale at depth, with visible gold present in multiple deep holes. "At Dome we are finding new high-grade gold mineralization within 250 m of surface," said Melissa Render, President of New Found Gold. "The Phase I deep drilling at KSD and Keats-AFZ Deep, located well below the initial mineral resource, has begun to define new zones more than a kilometre below surface, pointing to the depth potential at Queensway." With Phase I deep drilling now complete, New Found Gold is planning its 2025 program focused on near-surface resource conversion and expansion around recent discoveries. CONTACT: Equity Insider [email protected] (604) 265-2873 DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Equity Insider is a wholly-owned subsidiary of Market IQ Media Group, Inc. ("MIQ"). This article is being distributed for media corp, who has been paid a fee for an advertising from a shareholder of the Company (333,333 unrestricted shares). MIQ has not been paid a fee for Lake Victoria Gold Ltd. advertising or digital media, but the owner/operators of MIQ also co-owns Media Corp. ("BAY") There may also be 3rd parties who may have shares of Lake Victoria Gold Ltd. and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ/BAY own shares of Lake Victoria Gold Ltd and reserve the right to buy and sell, and will buy and sell shares of Lake Victoria Gold Ltd. at any time without any further notice commencing immediately and ongoing. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material, including this article, which is disseminated by MIQ on behalf of BAY has been approved by Lake Victoria Gold Ltd. Technical information relating to Lake Victoria Gold Ltd. has been reviewed and approved by David Scott, Pr. Sci. Nat., a Qualified Person as defined by National Instrument 43-101. Mr. Scott is a registered member of the South African Council for Natural Scientific Professions (SACNASP) and is a Director of Lake Victoria Gold Ltd., and therefore is not independent of the Company; this is a paid advertisement, we currently own shares of Lake Victoria Gold Ltd. and will buy and sell shares of the company in the open market, or through private placements, and/or other investment vehicles. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
Bloomberg
22-04-2025
- Business
- Bloomberg
We Are In a Very Scary Area For Gold: Mike McGlone
Bitcoin has rallied almost 20% from an April 7 low and is trading more like gold, decoupling from US tech stocks. The decoupling is driven in part by a slumping dollar and offers relief for crypto bulls after a disappointing start to Trump's presidency. If Bitcoin continues to trade like gold, the decoupling narrative will gather momentum, with some analysts predicting further gains to the $92,000-$94,000 range. Bloomberg Mike McGlone reports. (Source: Bloomberg)
Bloomberg
03-04-2025
- Business
- Bloomberg
Commodities Battered as Trump's Tariffs Threaten Global Economy
Oil and other commodities such as industrial metals and grains fell due to President Donald Trump's tariff increases, which threaten to hurt the global economy and demand for raw materials. The tariffs, which exempted some commodities like oil and certain metals, sparked concerns about a broader hit to consumption, with major trading partners China and the European Union vowing countermeasures. The trade war poses a risk to various industries, including the US liquefied natural gas export industry, and could impact demand for commodities like soybeans and cotton, which are heavily reliant on Chinese markets. Bloomberg's Mike McGlone reports. (Source: Bloomberg)
