Welcome back to our weekly update. I'm Charlotte Mloud with investingnews.com and we're going to run through a few of this week's biggest stories in the mining industry. If you enjoy this video, don't forget to hit the like button, subscribe to our channel, and of course, leave us a comment below. Let's get into it. [Music] The gold price continued to move this week, approaching the 3,900 per ounce level and setting a fresh all-time high on the back of a US government shutdown.
The closure came after Congress failed to reach an agreement on a spending bill ahead of the new fiscal year which began on October 1st. Democrats and Republicans are at odds as Democrats push for changes to the bill, including an extension to billions of dollars in Obamacare subsidies. Meanwhile, President Donald Trump has threatened thousands of permanent layoffs, not just temporary furlows. This shutdown is the 15th since 1981, and according to the Senate Majority Leader, it could continue on until next week as the two
sides negotiate. The longest government shutdown happened between 2018 and 2019 and lasted for 35 days. Part of the reason market watchers see this shutdown as significant is that it will delay the release of the latest non-form payrolls report, which was set to come out on October 3rd. Depending on how long the shutdown lasts, September consumer price index data scheduled for publication on October 15th may also not be on time. The US Federal Reserve is due to meet later this month and normally would use
this and other data to help make its decision on interest rates. The central bank cut rates by 25 basis points at its September meeting and CME Group's Fedatch tool currently shows strong expectations for another 25 basis point reduction at the next gathering. Although gold took a breather after nearing 3,900, it remains historically high with many market watchers suggesting 4,000 is in the cards in the near term. In the longer term, some experts think even higher levels are possible. I heard this week from Adam
Rosenwag of Garing and Rosenwag who said he sees a path to a 5 figure gold price. Here's how he explained it. >> Uh and so it's not going to happen under normal circumstances. It's not going to happen, you know, when everything's going great, but by the end of this cycle, will we get there? I I think we probably will. Uh, and another way to look at it is Pierre Lasand, I heard him speak yesterday here in New York at the Grants Conference, and he was out with a chart that looks at the gold to Dow
ratio. And um you know what it shows is that the Dow and the price of gold every 50 years or so hits one or near one. It hit two at one point. Yeah. But you know to to put that in mind with the Dow at 46,000 even if it's 2 to1 that's that's okay. Um and and and again the most recent time it happened was the first time was at the bottom of the depression in 1932 and I think the Dow hit maybe 60 and gold was 35 and then the second time uh was in 1980 when they actually did cross uh at 800 and so today the Dow's at
46,000 or so and um gold is you know high three handle uh on and and so if you get 2 to1 I mean presumably that happens with the Dow falling a lot but even if the Dow fell you know great depression styles which I don't think it it would uh you would have you know you would have room to go from here so yeah I think you definitely by the end of this cycle with all the fireworks being done um I think five figures on gold is not only possible but likely >> it's also worth touching on silver which
pushed past the 47 per ounce mark this week unlike gold. Silver has not yet broken its all-time high during this bull run. It's pushing up against uncharted territory, raising questions about how high it can go this time. On that note, David Morgan of the Morgan Report shared with me several factors that would tell him the market is reaching a top. Here's what he said. >> So, you want to look at the ETF blows like the GDX, GDXJ, SIL, and SJ. At the same time, more important than almost anything is trading volume at the
stock level. When mid-tier and smaller producers suddenly trade three, four, five times their normal daily volume and prices are rising, that isn't random. That's retail money coming back into the market and fund buying and probably institutions. One more layer of confirmation is relative to for performance. When the mining sector starts to outperform the S&P 500, it has, the NASDAQ, which it has, it's a telltale sign that the generalist money, not just the hard money crowd, is beginning to rotate in.
>> I'll leave the links to the full interviews with Adam and David below. Definitely check them out for more on the current environment for gold and silver, as well as what could be next. Bareric Mining and Pneumont both announced major leadership changes this week with the CEOs of both companies departing. Barracks Mark Bristo unexpectedly stepped down from his position on September 29th after nearly 7 years at the helm of the company. His exit, which was effective immediately, comes after big changes at the firm,
including a shift toward copper and an asset divestment program designed to hone the company's focus on tier 1 assets. It also follows persistent issues in Mali where Bareric lost control of its gold mining complex and had three metric tons of the yellow metal seized by the government. According to Reuters, Bristo's handling of that ongoing situation was the final straw that prompted the company's board to push for a change in leadership. Pneumont announced the retirement of Tom Palmer the same day. He had held the
position since 2019 and will be succeeded by the company's president and COO. Analysts note that Pneumont had been signaling that a succession plan was in the works. Similar to Bareric, the company has been in the midst of an extensive program geared at streamlining its portfolio. Pneumont acquired New Crest Mining in 2023 and in February 2024 announced a program to sell non-core assets. It completed the program in April of this year, but has continued to make portfolio adjustments and to pursue other cost-saving
measures. Market Watchers note that despite efforts to boost efficiency, Bareric and Pneumont have both failed to match the performance of their peers during today's bull market. With gold mining companies as a whole conscious of not repeating missteps made during the precious metals last runup, investors will no doubt be keen to see how they perform under new management. Thank you for watching. If you like this video, make sure you hit the like button and subscribe to our channel. We'd also
love to hear your thoughts, so leave us a comment below. [Music]
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