For the first time in many years we are witnessing investors moving out of stocks into gold. This could be accelerated by global emergency liquidity efforts following the coronavirus panic which may have been the pin that bust the record bull market.
For the first ten years of the decade gold was the favored asset over stocks. That ended when gold hit an interim top in 2011 at $1900. Since then capital has flowed into stocks for almost ten years until most recently when the stock markets crashed historically last week. Take a look at my video chart analysis below...
Now for the first time in many years I am getting notes from top traders that they are buying industry bellwethers Barrick $ABX and Newmont $NEM as they have reduced debt, sold off marginal assets and are starting to increase free cash flow especially with higher gold prices.
Kibali Breaks Records Across Board For Barrick Gold Corporation $ABX Huge success story that is just starting to get recognized by the World. There could be more Kibali mines to be discovered. Fekola has been a great performer for B2 Gold $BTO.TO. I believe these miners are selling off marginal assets and going to invest in new discoveries near these successful mines. Make sure to stay tuned for updates on drill programs.
You got to look for insider buying in these juniors. There is lots of insider accumulation in this high grade gold story backed by industry giants Rob McEwen and Michael Gentile right when drilling gets expanded from 20k meters to 60k meters. Investors were able to see the drill core at PDAC where there is visible gold.
There is also a lot of insider buying after Eric Sprott invested in this palladium asset in Ontario which just published a really impressive PEA which has attracted the attention of the smartest players in our industry.
Outside of gold...its pretty cool to have recently raised $16 mil in the bank and have established partnerships with the giants of the electric vehicle industry. You know battery technology is the focus for the end users and for many investors who believe that the electrification of transportation is inevitable. For months I have been waiting for a rebound in this area. This battery company could have great upside as they have answers in building better batteries. The automakers are desperately looking for batteries that could go a million miles and possible be cobalt free. Lots of capital is flowing into this sector as mutual funds such as Blackrock are looking for companies such as these that could provide some solutions for battery manufacturers.
Disclosure: Author (Jeb Handwerger) owns shares and that I want to sell them for a profit. I may have received or intend to receive compensation for digital marketing services from these companies. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.