Why Uncertain Times are Fueling Demand for Precious Metals as Safe-Haven Investments

Rhea-AI Summary

The global financial arena is experiencing economic uncertainty, which is driving the recovery of the precious metal market. Gold, silver, platinum, and palladium, considered safe-haven investments, have increased in value due to current market conditions.

FinancialNewsMedia.com News Commentary

PALM BEACH, Fla., Nov. 2, 2023 /PRNewswire/ -- Economic uncertainty, a major driver of the present precious metal market recovery, looms big, in the global financial arena. Precious metals such as gold, silver, platinum, and palladium have traditionally been considered safe-haven investments, but current market conditions have increased the value of these assets. In an era of economic turbulence and uncertainty, precious metals shine as a beacon of financial security.  Concerns about the purchasing power of money have increased the appeal of gold, silver, platinum, and palladium. The low-interest-rate environment, which central banks have maintained to spur economic recovery, has made traditional interest-bearing investments less appealing. Investors have also become more concerned about stock market volatility and the ever-present risk of a market correction or disaster. Economic instability has created a desire for diversity, pushing investors to add precious metals to their portfolios to limit risks and hedge against the chance of a quick market recession.  A report from Fact.MR projects that the global precious metals market is projected to reach a valuation of US$ 445.76 billion by 2033. It said the gold segment has witnessed a surge in demand over the past few years and accounted for a market share of around 81.5% in 2022 and the silver segment is forecasted to expand at a CAGR of 2.5% over the next 10 years.  Active mining companies in markets include:  Regency Silver Corp. (OTCQB: RSMXF) (TSX-V: RSMX), Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM), Hercules Silver Corp. (OTCQB: BADEF) (TSX-V: BIG), Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS), Filo Corp. (OTCQX: FLMMF) (TSX: FIL).

The Fact.MR report said: "The comeback of safe-haven investments is one of the most noticeable trends in the precious metal market. Investors are seeking the enduring value and stability that precious metals provide as economic instability and uncertainty continue to roil the global financial landscape. Precious metals have historically shown their usefulness as assets that preserve their value through times of crisis, such as economic downturns or geopolitical turmoil, making them a popular choice for risk-averse investors.  Institutions such as central banks and huge investment funds are progressively diversifying their portfolios, with precious metals driving market growth. This move not only demonstrates their rising confidence in the long-term value of certain metals but also fuels the demand for precious metals.  The precious metal market is experiencing a renaissance, fueled by the storm of economic uncertainty, supply chain problems, technology breakthroughs, and increased institutional interest. These factors have conspired to make precious metals more appealing as safe-haven assets. As long as global economic uncertainty persists, the precious metal market is projected to remain a beacon of safety and value for investors seeking refuge during difficult times."

Regency Silver Corp. (OTCQB: RSMXF) (TSX-V: RSMX):  Regency Silver intercepts 5.34 g/t gold over 54.65m including 7.36 g/t gold over 38m at its Dios Padre Project in Sonora, Mexico - Drilling Continues to Intercept Wide Intervals of High-Grade Gold Extending Mineralization Along Strike from Discovery Hole – Regency Silver Corp. ("Regency Silver" or the "Company") is pleased to announce that hole REG-23-21 intersects 54.65m of 5.34 g/t gold including 7.36 g/t over 38m in a ~65 m step-out along strike to the southeast from the discovery hole REG-22-01 which returned (35.8m of 6.84 g/t gold, 0.88% copper and 21.82 g/t silver) and ~75m step-out from REG-23-14 (35.9m of 5.51 g/t Au including 29.4m of 6.32 g/t Au.

The Company will host a virtual investor webcast to discuss these drill results and to provide a corporate update to the investment community later today at 06:00 PDT / 09:00 EDT. Details are provided below.

The 2023 drill campaign consisted of 6105.25m in 10 holes.  8 of the 9 holes targeting the lower Dios Padre breccia zone intersected mineralized pyrite-specularite breccia and confirm the mineralized breccia zone has a strike of at least 180m and depth extent of at least 150m while the breccia remains open both along strike, up-dip towards the old silver mine, and at depth.

Select Drilling Highlights:

• REG-23-21 intersects 54.65m of 5.34 g/t Au including 7.36 g/t over 38m and 8.7 g/t over 28.90m from 450.8m downhole in ~65 m step-out along strike to the southeast from hole REG-22-01.
• REG-23-19 intersects 44.75m of 1.61 g/t including 13.3m of 2.23 g/t Au from 492.7m downhole ~40 m down- dip from REG-23-20.
• REG-23-20 intersects 96.3m of 0.65 g/t Au including 9.95m of 1.6 g/t Au from 477.6m downhole ~45m down-dip from REG-23-19 and ~85m down-dip from REG-23-21.
• REG-23-16 intersects 7.15m of 2.76 g/t Au from 393.3m downhole ~75m along strike to the NW from REG-23-14.

Michael Tucker, lead geologist and director states, "The continued ability of the lower breccia zone to produce highly elevated gold grades over significant widths is very compelling. The system has proven the ability to generate spectacular grades and thicknesses. The indications of a large magmatic-hydrothermal system are present, and we are excited to continue expanding on these exceptional results as they clearly demonstrate there is a big system to be explored."   CONTINUED… Read the full Press Release for Regency Silver Corp. at:  https://www.financialnewsmedia.com/news-rsmx/

Other active mining companies in the markets this week include: 

Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) recently reported financial and operating results for the third quarter of 2023.  "Agnico Eagle had another solid quarter with production and costs coming in as expected. The Canadian Malartic and Meadowbank complexes delivered strong results in the quarter, offsetting unscheduled mill downtime at Detour Lake and highlighting the benefit of our diverse portfolio of mines," said Ammar Al-Joundi, Agnico Eagle's President and Chief Executive Officer. "We are expecting a strong finish to the year and based on our year-to-date performance, we are well positioned to achieve our cost guidance and expect gold production to come in above the mid-point of our annual production guidance," added Mr. Al-Joundi.

Third quarter 2023 highlights were: Quarterly gold production and cost performance remain solid – Payable gold production in the third quarter of 2023 was 850,429 ounces at production costs per ounce of $893, total cash costs per ounce of $898 and all-in sustaining costs ("AISC") per ounce3 of $1,210; Strong quarterly financial results – The Company reported quarterly net income of $0.36 per share in the third quarter of 2023 and adjusted net income of $0.44per share. Cash provided by operating activities was $1.01 per share ($1.35 per share before working capital adjustments); and Gold production, cost and capital expenditure guidance reiterated for 2023 – Based on operating performance in the first nine months of 2023, the Company is on-track to be above the mid-point of its production guidance for 2023. Expected payable gold production in 2023 remains unchanged at approximately 3.24 to 3.44 million ounces with total cash costs per ounce expected to be between $840 and $890 and AISC per ounce expected to be between $1,140and $1,190. Estimated total capital expenditures (excluding capitalized exploration) for 2023 remain at approximately $1.42 billion.

Hercules Silver Corp. (OTCQB: BADEF) (TSX-V: BIG) recently said that it continues to wait on assays for the next deep drill hole (HER-23-08), and in the interim, is pleased to report silver-lead-zinc results from the next two shallow drill holes in sequence, HER-23-06 and HER-23-07, which were drilled above the recently-announced porphyry copper discovery at its Hercules Silver Property located in western Idaho ("Hercules" or the "Property"). These results continue to showcase strong silver mineralization, bolstered by critical metals credits in the near surface, which overlie the blind porphyry copper system at depth.

Accounting for the lower-grade silver (3-30 g/t Ag) that surrounds the headline intercepts, drill hole HER-23-06 returned 96.3 g/t Ag, 0.26 % Zn and 3.9% Mn, occurring as carbonate, over the entire 58.83 m length of the hole, and HER-23-07 returned 80.8 g/t Ag, 0.30% Zn, and 1.9% Mn over the entire 105.46 m length of the hole.

Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) recently announced that it will commence restarting operations at its La Colorada mine in Mexico on October 16, 2023, following a shift change and the transition from care and maintenance activities. On October 5, 2023, Pan American announced the temporary suspension of operating activities due to security concerns at the mine site and the surrounding area following an armed robbery of two trailers of concentrate from the operation. There were no physical injuries to our personnel in connection with that incident.

Pan American acknowledges and appreciates the rapid response and efforts of the Zacatecas state government and federal authorities in Mexico to improve security in the vicinity of the La Colorada mine and to provide an environment that allows for mine operations to resume. The Mexican authorities have taken steps to facilitate the safe transit to and from the mine site for all the employees, contractors and people from the nearby communities. Pan American and the Mexican authorities will maintain direct communications during the period leading up to the resumption of operations.

Filo Corp. (OTCQX: FLMMF) (TSX: FIL) recently announced assay results from holes FSDH088, FSDH090 and FSDH091 from the Filo del Sol Project in San Juan, Argentina. Highlights and detailed results are shown below along with accompanying figures: View PDF Version

Commenting on the release, Jamie Beck, President, and CEO stated, "Hole 91 intersected a new high-grade zone near Bonita, and it is the first instance of consistent grades greater than 1% CuEq outside of Aurora. At over 1km to the north of the Aurora Zone, this opens up an entirely new area to explore for high-grade. Given that the closest holes to 91 are hole 60, 330m to the north, and 87, 550m to the south, we have a tremendous amount of room to grow this zone as we continue to explore. Hole 88, drilled 2.5km to the south of hole 91, on the other side of the Aurora Zone, provides a reminder of how big this deposit is."

DISCLAIMER:  FN Media Group LLC (FNM), which owns and operates Financialnewsmedia.com and MarketNewsUpdates.com, is a third- party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels.  FNM is NOT affiliated in any manner with any company mentioned herein.  FNM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security.  FNM's market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities.  The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material.  All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks.  All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release.  FNM is not liable for any investment decisions by its readers or subscribers.  Investors are cautioned that they may lose all or a portion of their investment when investing in stocks.  For current services performed FNM was compensated forty six hundred dollars for news coverage of current press release issued by Regency Silver Corp. by a non-affiliated third party.   FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

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FAQ

Why are precious metals considered safe-haven investments?

Precious metals are considered safe-haven investments because they tend to retain their value or increase in times of economic uncertainty.

What is driving the recovery of the precious metal market?

The recovery of the precious metal market is being driven by economic uncertainty in the global financial arena.

Which precious metals have increased in value?

Gold, silver, platinum, and palladium have all increased in value due to current market conditions.

What are the benefits of investing in precious metals?

Investing in precious metals can provide financial security and act as a hedge against inflation and economic downturns.

Are there any risks associated with investing in precious metals?

Yes, investing in precious metals carries risks such as price volatility and market fluctuations.

How can I invest in precious metals?

Investors can invest in precious metals through various means, including purchasing physical bullion, investing in exchange-traded funds (ETFs), or buying shares of mining companies.

Is now a good time to invest in precious metals?

The decision to invest in precious metals should be based on individual financial goals and market analysis. It is advisable to consult with a financial advisor before making any investment decisions.