Venture: Gold Exploration
Issue 41;
In a recent piece, I made the case for why the junior gold mining and exploration stocks would run as the price of gold kept on rising. It takes a lot to get a gold bull market started, but once it’s off, it can keep on going for years. The miners get dragged along until, eventually, investors catch on. As you’ll soon see, there’s no fever like gold fever.
This is the sixth gold miner I have added to Venture since last year. Centamin (CEY) was recently bid for, capturing an 84% profit, with the others still running. The shift has moved from production companies to exploration because that is where the most value can be realised.
However, while conditions for gold fever are ripe, it hasn’t started yet. The smart money is in, but most investors remain on the sidelines. The flows into the gold ETFs have been negative since mid-2020 and have only just started to rise. The gold miners and junior gold miners have seen outflows this year despite the surge in the gold price. Investors couldn’t be less interested in this once-in-a-decade opportunity.
Flows into Gold and Gold Miners
Yet, 93% of gold stocks are in uptrends, and 82% for the juniors. ByteTree Venture has them on the radar, and with strong gold, low energy costs, a weak dollar, high-spending governments, an unstable world, and complacency on inflation, the gods are on gold’s side.
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