Gold Jumps Over The Magic Number
Brought to you by:
Advance Gold (AAX.V) - Sirios Resources (SOI.V)
Walker River Resources (WRR.V)
Since 2013, gold has made a bunch of runs at $1350, and failed, rolling over each time. But, and this but I really like, this time it is different. Instead of rolling over, it broke through the roof and traded strongly above it.
What got the market worked up is the realization among gold investors, and currency traders, that the Fed is not coming to the rescue of the overvalued USD with higher interest rates. More importantly, it is becoming clearer to many that the next move will be to lower interest rates.
This realization of where interest rates are going hasn't been priced into the USD. It is still trading near its multiple year highs. That party is over. I expect to see a very nice trend develop over the coming months that could easily take gold to $1500. When that happens, I expect a tsunami of investors piling into the sector.
The best way to take advantage of the bullish shift in gold as it jumped over the magic number of $1350 is with underloved juniors. Many of them are headed for much higher valuations.
There is a select group of gold stocks that I follow and I will do a little blurb on the ones I think are best positioned for a short term pop.
Equinox Gold Mines (EQX.V) has been a pick since they were just under a buck late in 2018 and I picked them several times since then. Today they closed at $1.35 and have done what we expected them to do. They are a junior mining company that is on the ground floor that will grow into a multiple billion dollar valuation company. Currently they are well under 1 billion valuation. It is Ross Beaty's swansong in the mining business and will become a massive winner in the coming bull market for gold.
On the junior exploration side of things, Walker River Resources (WRR.V), I'm a shareholder and they are a sponsor of my website, has been drilling their Nevada project for a bit now, and have pending results. I'm excited about their potential to deliver results that can move their valuation up significantly. I have looked over the structures, past mining, and drilling, they have all the key elements for this to be a big Nevada discovery that receives the Nevada Premium. The stock has been trending up while many juniors have been doing the opposite over the past couple months. It looks like it has a great chance for a strong rally and a key catalyst of assays pending. I have my ticket for the ride, if you don't already you might want to hurry up.
Another of my sponsors that is primed for a rerating on their valuation is Sirios Resources (SOI.V), with a lot of news coming ahead. They have two key catalysts for a rerating, one is they have a large resource at their Cheechoo project that could be multiple million gold ounces that is at surface. The other catalyst is the high-grade gold discovery they made right beside the large tonnage resource. This is a heck of a combination, plus, they are in Quebec which is one of the top mining jurisdictions in the world.
Amex Exploration (AMX.V) is another junior explorer drilling a high-grade gold discovery and have drill results pending. The project is great, they are cashed up, they have the potential to find more on their ground, and they have a tight share structure. Over the past few months, their stock has been bucking the trend of most juniors. They could drop blockbuster news on us at any time, and that will be the case for the rest of the year. They are aggresively drilling and will continue until the end of the year and beyond. Their timing is very good to have a new high-grade gold project, in Quebec, as gold is starting to get a lot more bullish.
I wanted to get a report out now that gold passed an important milestone. There are plenty more to come. The best way to profit from it is to hold high-quality plays at cheap to reasonable valuations.
All the best,
Allan Barry Laboucan
Allan Barry Reports
Advance Gold (AAX.V)
P.S. my reports are for information purposes only, before making any investment decisions it is important to do your homework and speak with your financial advisers.