As the #coronavirus hits global #stockmarkets investors look to #gold and the highest quality #goldminers showing great relative strength on a cloudy day!
Files crossing my desk showing flight of quality capital into some gold miners (NYSEARCA:GDX)we follow including $FNV $LUG $TGZ $GCM $BTO $YRI $KNT $GTT…all these companies are larger cap situations and not many juniors are participating with the gain in safe haven gold(NYSEARCA:GLD) and US treasury bonds.
Investors are obviously looking for liquidity is cash and gold today due to the outbreak of the Corona Virus, bombings at the US Embassy in Iraq and the major push of the Democratic party to impeach Trump before next election.
I did notice recent insider buying some juniors like $BRC $RDS and insider selling in $TSG. Insider buying could be a good signal of positive things to come!
The rally in gold is just getting started after a four month bull market consolidation. Some of the traders I speak to think we could be near $1800 USD by PDAC. Notice the recent decline in equities from the coronavirus scare. Any little Black Swan could send equities from these lofty levels and reverse the algorithms to hit sell button. That is what happened once during a flash crash. The downtrend of gold stocks versus the Dow (NYSEARCA:DIA)stocks could be ending.
Look at some recent financings by smart investors like Rob McEwen, Ross Beatty and Eric Sprott. These are not young men but they are taking big risks according to the mainstream who are just encouraging equities and fixed income.
1)These are the gentleman with deep pockets that can resurrect companies from the dust. Notice Rob McEwen just made major strategic investment in one that I have followed all year. Listen to me speak to this great Quebec team where insiders are buying. Its the highest grade undeveloped gold project along the #cadillacbreak in #quebec. I think they are onto an area of the mine that could produce blockbuster results in 2020. They are in the midst of the biggest drilling campaign ever on the project.
2)Another area which I’ve highlighted for months palladium has attracted the interest of billionaire Eric Sprott. He recently invested in a junior I featured for months in Ontario which recently came out with a PEA with a Value of close to $900 million at $1,275 an ounce Palladium. Palladium is trading over $2k recently and could go past $3k.
3)Coeur Mining has now come into 3 juniors after I have featured them to my readers. Coeur is a NYSE producer and has one of the smartest mine development teams especially when it comes to gold and silver. They recently came into this micro cap juniors project which could be another mine right down the road from their Silvertip Project which Coeur bought 2 years ago for around $200 million. Its trading around 5 cents now!
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