In A Yield Starved World...Gold Will Be King
It is time for investors to get really serious about gold, poor man’s gold which is silver and especially top quality gold stocks.
Just today the ECB announced they are going further into negative interest rates and cranking up their quantitative easing. Globally, there is over $15 trillion of negatively yielding debt. This is driving down yields in America, which is seeing yields dropping across the board and into a negative yield curve.
The old recommendation by portfolio managers for 10% allocation in gold related investments will prove to be much too conservative. In this environment of a yield starved world, gold will be King and it is time for investors to crank up their allocation of gold related investments.
Top Gold Stock Picks
Pretium Resources (PVG.T) is a relatively new miner that has been a pick since they were a much smaller exploration company. They have a high-grade, low cost, gold mine that produces a lot of gold. With all the profit they will generate, I can easily see them moving up into the middle tier and use their cash machine to buy future production. I can easily see them grow into a major gold producer of the future.
Equinox Gold (EQX.V) is an exciting pick, they are about to list on the NYSE and probably main board of TSX. This should bring them a ton of institutional buying in the gold bull market we are in as there aren’t a lot of gold producers with exciting growth profiles.. This is a Ross Beatty company with an outstanding future ahead. They are another that can move into the middle tier and bigger.
Premier Gold (PG.T) has been a long term pick I've had in the Allan Barry Reports for several years, since they came public as an exploration company that has morphed into a gold miner. They are very well run, their top guy Ewan Downie is a serious exploration guy surrounded by top notch mining guys. They are gold focused in North America, they buy assets well and enhance them with the drill rig.
Sirios Resources (SOI.V) is a sponsor of my Allan Barry Reports, and has some exciting stuff. They have a big tonnage open pit target they are doing a resource estimate on. Plus, they have a new high-grade gold discovery. They are focused on Quebec, which is one of the top mining jurisdictions for mining and exploration. I like their two punch combination of an open pit project and a new high-grade gold discovery right beside it.
Amex Exploration (AMX.V) has a high-grade gold discovery, in Quebec, that keeps on delivering with drilling. In the past year that I have been following them as a pick in the reports, they have found three zones with high-grade gold. My guess is those three zones come together at depth. If that is the case, they can easily be looking at a multiple million ounce gold project. They also have a big structure to look for more high-grade gold zones. I love high-grade gold, especially in a great jurisdiction like Quebec.
Advance Gold (AAX.V) is where I'm CEO, it is a pure exploration company, with a small share structure that is tightly held. Most importantly we have a big gold and silver target emerging on our Tabasquena project in Mexico. Our near surface drilling has discovered widespread gold and silver mineralization in veins, and our recent geophysical has revealed a big geophysical anomaly right below the veins that has yet to be drilled. This combination of tiny valuation with a big target is hard to find in juniors, we are well positioned to grow into a much larger company in the near term.
The gold bull market is gaining strength, investors can’t find yield which will drive interest rates and currencies down, and gold much higher. Timing is still in investors favour for gold related investments, but soon you will have to chase the fear of missing out trade.
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.