How The C-Factor Could Decimate 2020 Global Gold And Silver Production

Item: March 16, 2020. A huge poly-metallic (gold, silver, copper) mining operation in Mongolia "has suspended operations" after authorities "restricted the movement of goods and people within the country."

Item: March 17. In Peru, one of the world's largest primary silver-gold producers has its 4 mines "temporarily suspended" following the Government's Declared State of Emergency.

Item: March 18. A Canadian mining major suspends construction of a $4.7b copper mine upgrade in Chile affecting 15,000 workers.

Item: March 20. Argentina declares a state of emergency and imposes "a nationwide mandatory quarantine starting today." Silver and gold mines across the country move to halt operations, except for "a reduced workforce to ensure appropriate safety, security and environmental systems are maintained."

Item: March 30. Peruvian authorities extend their halt of transportation until at least April 13.

This list could be much longer, but you get the idea. Miners and explorers around the world are being told to stop production, move to "care and maintenance" or "disperse the workforce" – all due to the C-Factor. Which of course refers to the rapidly – spreading global pandemic known as novel coronavirus, or COVID-19.

Being a new strain that has not been previously identified in humans, earns this virus the moniker of "novel." Enough is still unknown about how it spreads and what it takes to halt the contagion, that even the experts still search for answers.

These unknowns – along with the government and public response to it – means this is slated to become the most costly financial crisis in modern history. Asset classes crater across the board, with mining shares diving alongside S&P 500 stalwarts.

What's surprising to those who do not remember 2008 is initially both silver and gold tanked. In part it's because when funds – some of whom are leveraged 30:1 – get a margin call, they sell what they can. That includes precious metals, further depressing the price.

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Linda Willis 7 months ago Member's comment

You don't see bullion dealers selling as leaving?