Asia Opens To $2,147, Then Sacrifices Gains
Gold, that is.
Please see below: A Bold Prediction | EarthLabs |
Platinum | Nuclear Fuels | Banyan Gold | Alamos Gold
My go-to analysis comes from longtime Seabridge Gold SA founder and CEO Rudi Fronk and team, whom I have known for a decade. They run THE CASE FOR GOLD (separately, this also is a book by Louis Lehrman and former U.S. Rep. Ron Paul) on the Seabridge company web portal:
“Gold broke to all-time highs at $2,147 (Monday in Asia). Volatility is high. We expect a brief retracement Monday in North America to the breakout area around $2,050 to $2,080 an ounce, and then another move higher — which is the one that will bring an explosive move in gold stocks.”
These referenced above are the active futures contract prices. The spot price right now, an hour before markets close in North America, is $2,031. [Try getting a one-ounce coin, or a 10-ounce bar, for less than $2,100 an ounce; I have; no-go.]
Predicting: I will violate my long-standing professional mistake of forecasting anything, even the weather, and state for the broken record, that bullion (gold and silver), plus platinum, will rebound to new highs either in Asia at 6 p.m. ET today or tomorrow-Tuesday in North America. [Update: thus far Tuesday, I am as they say, early (and wrong); gold slipping to $2,040; platinum rumbled — see PLAT contract.]
London and the so-called gold fix are irrelevant these days.
Active futures contract here please.
“Never seen this many GOLD -0.62%↓ tweets this fast in my timeline – from people I’ve never heard of. Disturbing.”
That was Canadian newsletter writer Eric Coffin, who has been around the bullion block four or five times.Tax-loss selling in mining shares pounded exploration, developer and even producers’ stock prices this autumn 2023.
“This will help clean out the last of the tax loss sellers and position us for a strong run into year end,” Luke Alexander of Ghana gold project developer Newcore Gold NCAU NCAUF says.
Perspective from Florian Grummes, European strategist at Midas-Touch Constulting, notes, “A similar situation was last observed around 14 years ago. After the gold price had been approaching the USD $1,000 mark for months, the first monthly closing price above (September 2009) caused a huge liberation. In the following three months, the price of gold exploded and rose by around 25% to USD 1,225 without any significant setbacks.”
I am adding right now in the interlude Monday to shares of Ivanhoe Mines (copper, nickel, gold, platinum, etc.) IVN IVPAF.
Far riskier: I am researching a few new-cos, new to The Calandra Report/TCR; they include Earth:abs (formerly Goldspot) SPOT SPOFF. The tiny company, a predictive modeler and royalty holder, now has a media arm after a purchase of Northern Miner, the publication, and via previous ownership of CEO.ca.
Two discoveries that involved Goldspot/EarthLabs execs, geos, principals, New Found Gold and Nevada King, are approx. 10x profitable for EarthLabs. Still, no respect; SPOT SPOFF shares are a $22 million USD market value, which is less than half the company’s net asset value.
I have yet to purchase SPOT shares.
On the still buying more list ahead of what could be a fresh fury for bullion prices: Osino Resources (OSI OSIIF), a Namibia developer; Banyan Gold BYN BYAGF.
Alamos Gold as well, which I see as the next Tier One (a million ounces in two or three more years) gold producer for Canada (and Mexico): AGI.
John McCluskey and team get credit for running a multiple-mine, cash-flowing, profitable and ever dividending producer.Now, let’s see Alamos and its meaningful percentage equity stakes in explorers Orford Mining ORM ORMFF (which I own), and Aztec Minerals AZT AZTMF (which I track), become meaningful money stakes.
The other producer, an emerging one, that is pacing November miner gains is Victoria Gold VGCX VITFF. John McConnell and team have the Yukon Eagle Gold Mine looking to reach 200,000 gold ounces a year. I own Victoria Gold shares, which, like Alamos Gold shares, have risen about 30% in 2 weeks or so.
Western Copper & Gold WRN: I used to own WRN after seeing the Casino property perhaps 6 years ago with CEO Paul West-Sells and team. I own it again as of today at $1.22 USD.
Active developers of projects (Namibia’s Osino Resources OSI OSIIF a good example) are the stars this week, I believe, along with actual and emerging metals producers. We’ll see if that carries on from last week.
WRN at its Casino copper gold project in Yukon notches into that column.Don’t think I ever have seen WRN shares this cheap. Even after Rio Tinto came up with more cash and people/intel for Paul’s team. That is, Rio Tinto, a 10% WRN owner, is “in the camp tent.”
“The agreement that we signed is similar to that that we had with Rio previously – the big difference is the scope of work,” Paul says. “The new scope of work will focus on developing a green energy solution (already under way with the Yukon-BC connection), securing port access (also already under way), and identifying permitting optimizations. Also, Rio has committed to assisting in all of this work, so moving to a more collaborative relationship, which should benefit everyone.”
Other purchases: as stated, more Ivanhoe Mines IVN IVPAF — the platinum-nickel-gold developer and accelerating copper (and zinc) producer at two Africa projects is enjoying further rich COPPER discoveries in DRC CONGO; full steam ahead calendar for Platreef in South Africa and active outreach to Angola exploration; IVN shares are outpacing the pack this week — our largest and (since 2003) longest-held nat-resources stake; followed by Ghana’s Xtra-Gold Resources XTG XTGRF, since 2009.
Others: added more DHT Marine Holdings DHT, the very large crude carrier oil shipper in Europe. Investor, ag-equipment seller and shipping aficionado Avraam Gabrielidis in Greece tells me today-Thursday, “I have bought more DHT yesterday at 9.84. Spot rates are down from around $80,000-83,000 last week to $56,000-60,000 this week, but still higher than 12 months ago and much above $40,000 at the beginning of November. Winter period had already started; if we do not see cuts in the supply of oil, better rates should be the case.”
Added more NuclearFuels NF NFUNF — see previous reporting, updates please — for paying subscribers. That is uranium at Powder River Basin, Wyoming. I just heard a radio report that proclaimed uranium as the clean fuel of the next 25 years. What a turnaround from Chernobyl, right? [Also own CanAlaskaUranium CVV CVVUF and Laramide Resources LAM and looking at Skyharbour Resources; one other.]
— Thom Calandra
Thom Calandra is a writer and an investor. Research and material are meant as editorial opinion. He is not a professional investment adviser. Please do not consider his reporting as a recommendation to buy or sell securities.