November 11th, 2021 | 13:42 CET
MAS Gold, Deutsche Bank, Commerzbank - Gold, Silver, Inflation - The explosive mixture!
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"[...] Internally we expect the resource to significantly grow the deeper we mine. [...]" Dennis Karp, Executive Chairman, Manuka Resources
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Plus 6.2% - This inflation figure has hit home!
Yesterday afternoon, there was a big surprise on the inflation front. After 4.9%, the current monthly rate rose to a plus of 6.2%. As a result, policymakers remain under considerable pressure. For the first time, US Treasury Secretary Janet Yellen and FED Chairman Jerome Powell had to admit that inflation is more persistent than initially suspected. Nevertheless, both give the all-clear for the time being, as the US news channel "CNBC" reports: The extreme inflation rates are due to the pandemic and therefore only of a temporary nature. However, since the beginning of the pandemic, public budgets have been burning off a veritable fireworks display of debt. For investors, inflation is now noticeable, and this is the suitable breeding ground for a value-preserving precious metal investment.
An initial upward movement in gold and silver
In yesterday's news mix, there was no stopping gold and silver on the spot markets. On the one hand, important resistances fell, and on the other, the market for explorers and mine operators has dried up significantly in recent months. The willingness to sell in the precious metal markets had a particularly negative impact on the world's largest gold ETF SPDR Gold Shares. The amount of gold held has decreased from 1,171 to 975 tons since the turn of the year. And this week, the precious metals were again on the sell list. Until yesterday. From a medium-term perspective, it makes sense to consider assets in the precious metals sector that are not primarily linked to the spot price but imply a possible long-term target value.
MAS Gold - Gold exploration in Saskatchewan
We find a small property in Saskatchewan, Canada. This province has been shining for years with good legal conditions for commodity companies. In an international evaluation for more than 80 states, the Canadian province landed in first place.
The MAS Gold company has agreed with the Saskatchewan government to acquire a 100% interest in the approximately 463-hectare Contact Lake property, including the former producing gold mine operated by Cameco Corp. in the La Ronge greenstone belt from 1994 to 1997. The Contact Lake mine site is located only 10 km from MAS Gold's North Lake deposit and is an important new addition to the hub-and-spoke mining concept. In this belt, MAS Gold operates five different gold projects which have already shown mineralization through test drilling. The geology is similar to high-grade regions in West Africa, so the starting position is excellent.
The highly experienced team around mining veteran Jim Engdahl can be expected to do a lot in the future. He has already been able to bring gold legend Eric Sprott on board and maintains a first-class relationship with the existing shareholders. Recently, CAD 2.6 million was raised through an early warrant exercise. The funds are earmarked for upcoming drilling projects and further environmental studies and are expected to cover working capital requirements until mid-2022. The current 126 million shares result in a valuation of CAD 13.3 million. With these parameters, MAS Gold is an attractive addition to the mining portfolio.
Deutsche Bank - Inflation is not a temporary problem, according to CEO Sewing
Deutsche Bank CEO Christian Sewing has expressed concern about the current rise in inflation. "For me, the current rise in inflation rates is not just a temporary phenomenon," Sewing said in an interview with the Frankfurter Allgemeine Sonntagszeitung. One has to be careful what happens with inflation, he warned. "You have to think of it as a multi-story house: we have now reached a higher floor, and that is where we are going to stay for now." He said it is up to central banks to make sure things do not get out of hand. "They have to find the way out of their very loose monetary policy," Sewing said. "And better sooner than later." In his view, the economic situation is robust despite the current supply bottlenecks. "We will also see solid economic growth in 2022," the Deutsche Bank chief believes. From his lips to God's ears and a good dig at the central banks' far too expansionary monetary policy.
The institution he heads reported mixed figures for the third quarter. The bottom line was that Deutsche Bank achieved a pre-tax profit of EUR 554 million, an increase of 15% YOY. Total revenues for the period were EUR 6 billion, which is only a 2% increase. The market initially traded the share 5% higher, but the price fell back to the EUR 11 mark. Technically, things will only get interesting once the EUR 12.5 mark is overcome. However, this is still a full 15% away. Watch!
Commerzbank - Back in the black for the first time in a long time
Commerzbank is returning to profitability amid the restructuring and now also holds out the prospect of black figures for the full year 2021. Lower overall costs and significantly fewer burdens from bad loans ensured that the Frankfurt-based financial institution was able to earn EUR 403 million in Q3, compared with a loss of EUR 60 million a year ago.
Before the publication of figures, analysts had expected a net loss of more than EUR 100 million. The improved outlook was very well received on the stock market, with the share price climbing 8% at times to EUR 6.98 - which is now the new high for the year. If the resistance here can be overcome significantly, further gains in the share, which has been battered for years, are likely. Keep the value close on the watch list, but await the technical breakout above EUR 7 for a medium-term entry.
The spectre of "inflation" is making the rounds. The precious metals markets are jubilant, and interest rates are making a slight move upwards. Bank stocks should benefit from a higher interest margin. Gold and mining stocks hang on to medium-term bullion prices. More medium-term opportunities for precious metal finds lie dormant in MAS Gold shares.
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