Good afternoon
that is a fast & furious reaction of the gold price indeed, to the discovery of vaccines, and the possibility, that the large stimulus program in the US is not going to happen! Gold stocks are already trading slightly lower to the level they were trading at the last time gold hit 1800 US$! So I think we might have a nice buying opportunity in the moment - but I would not invest all my spare $ right now! The risk to the gold price among other things is, that Bitcoin could take it´s place …the huge run it´s having is sucking more money - and the weakness of gold is sucking the short-momentum players! The 200-day moving average is running at around 1800 US$ - that is getting very very close, and a break could trigger another round of gold selling! However - I strongly believe, that gold still has it´s place - as we have seen recently - as a bad-news investment, and possibly, as an inflation hedge. But we have not seen any meaningful inflation for a very long time - so it´s a bit difficult to be sure, that gold can continue to be seen as a hedge here!
The PMI for the US had a massive increase yesterday, and helped the current goldi.locks feeling.The housing market in the States is also strong -
IFO business confidence in Germany is better than expected…
Biden seems to choose Yellen as Treasurer - she is known as an advocat of large fiscal spending…again, probably good for cyclicals and good for gold as well?!"
Cyclical stocks are booming - everybody talking about it, but not too many funds have moved as yet, and certainly not sufficiently! Nobody will want to miss the opportunity…which means, that we will have much further to go, and probably quickly. So don´t miss the boat! The BHP´s of this world are probably the first ones to outperform - our small stuff will move only later! That´s the Forans´, Panoramics´ of this world, which one should accumulate - but I think the large caps should be bought immediately and agressively, to not miss the boat! While it´s hard for many to say farewell to the things which have made them huge amounts of money for a long long time ( that´s the FANG´s! ), market participants tend to be much faster these days than 10 years ago in anticipating new trends.
Equity markets continue to boom today…as are base metals, following a quick & dirty, little correction yesterday. In the above scebario, very difficult to see them going down! Copper at 6-year high!
Oil is breaking out to the topside…
And last but not least! Trump is giving in!!!! He will go down as the biggest lunatic ever running the US!
Chesser Resources - could not have picked a worse day to announce exciting drilling results, which extend also zones of previous drilling in multiple directions: 44m with 4,37g gold/ 49m with 3,64g / 38m with 4,36g and others all from close to surface - also some good nteresections from deeper drilling in sulphide ore. Certainly a very succesfull start from a 27 hole drilling program after the wet season - results of 16 holes still outstanding. I currently do not own any Chesser, and I am glad for just about every gold stock I do not hold right now - but igf gold holds at 1800 US$/oz, certainly worh a very good look!
Malachite - this potential producer of nickel ore to China, announced a potential resource of betwen 5- and 6 millt from their second property Jejevo in the Solomon Islands, at a grade of 1.4%-1.6% nickel.- This target is derived of previous frilling by Sumitomo Metals, which will be validated from next week with a 64 hole drilling program. Nickel ore is somewhat boring compared to nickel production from sulphides, to produce battery-nickel eventually - nevertheless, capex for their two projects is relatively small, and cash flow could be derived very quickly. So I would not disregard this little stock - although only for the personal account, due to its very small size!
Have a nice evening!
WS