Will The Newmont / Goldcorp Combination Help The Gold Sector?
As optimistic as the gold bugs want to get regarding the consolidation of Newmont and Goldcorp there is still a lot that needs to be proven now by the largest gold miner. These deals can help an overall sector but for a sector that has been this ignored and unloved the now Newmont Goldcorp is going to prove it from the operational standpoint. John Rubino, Founder of DollarCollapse.com shares his thoughts on what this deal means for the gold market and in terms of possibly bringing other investors in.
I’m afraid I sort of agree with JR in the sense I can’t feel any excitement building about the gold stocks, seems like they will just tred water a while longer. Which is a shame because I do hold quite a few gold stocks in my portfolio.
In addition to the Barrick / Randgold MegaMerger, there was also the Pan American / Tahoe Resources MegaMerger in the Silver space.
These have been 3 massive mergers with some of the larger companies in the PM sector over the last 6 months.
The M&A activity is only going to increase as companies go shopping and partner up before their competitors do.
The consolidation in the space it good for this sector.
Ever Upward!
Who’s going to be next?
Agnico Eagle / AngloGold Ashanti ?
Goldfields / Kinross ?
Sibanye Gold / Harmony ?
Newcrest / Yamana ?
SSR Mining / Fresnillo ?
😮
Maybe in the streamers we can see Franco Nevada buyout Royal Gold or Wheaton Precious Metals can acquire Sandstorm Gold…..
Personally I hold about a dozen much smaller JR companies that look like good takeover prospects and look forward to more M&A in the sector.
As far agnico goes…….they eventually take out abitibi
+1
Newmont to Buy Goldcorp in $10 Billion Mega Gold-Mining Deal
Thomas Biesheuvel and Elena Mazneva 15 hrs ago
“Newmont Mining Corp. will buy rival Goldcorp Inc. in a deal valued at $10 billion, creating the world’s largest gold miner and cementing a return of M&A to the industry.”
“The transaction comes just three months after Barrick Gold Corp.’s move to buy Randgold Resources Ltd. in a $5.4 billion transaction, which instantly spurred speculation that rivals would have to respond.”
THIS IS POLITICAL……….BUT………GOVT WASTE…and Shut Down…….saves gold…..
https://www.zerohedge.com/news/2019-01-15/senior-trump-official-i-hope-long-shutdown-smokes-out-resistance
GDXJ is sitting on its double bottom neckline and the 200 day MA…
https://stockcharts.com/h-sc/ui?s=GDXJ&p=D&yr=1&mn=2&dy=9&id=p7439800107c&a=579427511&listNum=6
The HUI does not have much further to fall to fill the post-Fed gap…
https://stockcharts.com/h-sc/ui?s=$HUI&p=D&yr=1&mn=5&dy=0&id=p5442261187c&a=609092018&listNum=6
On the pot front Ex. The only one I like and own that I didn’t have in this years stockpicker contest naturally is the one moving the most….planet 13…… I’m big on branding being the way to play it. They are my Nevada pick and origin house is my California pick. Canntrust for medical/ Canadian play.
Thanks Wolfster. I’ve heard of them and have seen others recommend Planet 13, and will take a closer look. Much appreciated.
GDX is about to fill a 9 cent weekly chart gap…
https://stockcharts.com/h-sc/ui?s=GDX&p=W&yr=3&mn=3&dy=0&id=p4863182374c&a=639932175&listNum=6
Looks to me like they are getting together for survival and hoping for deliverance from the metal price manipulation that may or may not come.
To the banks and governments the loss of the gold and silver mining industry is shrug able. Companies come and go all the time.