Gold Sector Commentary – Major bouncing back and M&A in the sector
Dave Erfle, Founder of The Junior Miner Junky joins me for a look into the gold stocks, both majors and juniors. We also discuss the recent M&A in the sector. Is this the type of M&A that draws new money in the stocks?
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Steve Saville is another who has changed his tune. He always said that hyperinflation was impossible but now he thinks it IS possible.
These guys should have figured out a long time ago that deflation was never a threat and that the owners of the system can always find ways to destroy the value of THEIR currency/debt.
Stoefele, Saville & Rick Ackerman would make it a hat Rick. Lol
+3
Newmont is as well the largest silver producer
Good thoughts from Dave E. as per usual, and it is nice to have seen a bounce in the senior producers the last few weeks. It remains to be seen if the bounce in Gold off that $1680 support (it did briefly dip down to $1673) a few weeks back will hold, and if the move higher since then is the worm turning, or if this is just a relief rally in a continued bear trend. Many technicians are still expecting lower prices in yellow metal in the low to mid $1600’s over the next 2 months, so investors should have their watchlists prepared, and be ready to pounce on any further weakness that presents itself.
As for the Merger and Acquisitions, I’d agree with Dave that that they have not been big enough to attract generalist investor interest; however, it is significant that we’ve seen a flurry of smaller acquisitions in the last few weeks, as the big boys are definitely buying the dip. We’ll likely see a continuation of this trend while prices are lower, and when valuations are still attractive to grab the low-lying fruit.
Just in the last few weeks in the M&A front we’ve seen:
1) Newmont Mining acquired gold developer GT Gold in the Golden Triangle
2) Evolutions Mining expanded their footprint in Red Lake by acquiring Battle North (the old Rubicon assets)
3) First Majestic increased their gold exposure by acquiring the Jerritt Canyon mine from Eric Sprott’s private company
4) Galane Gold expanded out of Africa picking up the Summit Mine in New Mexico from Waterton
5) Gran Colombia finally got their merger going with Gold X Mining
In addition, we saw Metalla Royalty scoop up 2 more royalties from Jaguar Mining and Sailfish Royalties, taking them up to 64 royalties & streams.
>> So… Which companies will be next to get nabbed?
Mr T still believes it is too soon to load up on gold mining stocks though…
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Not Yet Time to Load Up on Gold Stocks says Analyst Chris Temple
Mining Stock Education – Mar 17, 2021
“In this interview analyst Chris Temple shares that the gold price could still see a significant drop and therefore it is not time yet to load up on gold stocks. He discusses the two possible scenarios that will cause a gold bottom and talks about why he is bullish on the U.S. dollar right now. Chris also offers commentary on the positive role the new U.S. secretary of energy Jennifer Granholm can play in the U.S. mining industry but also warns of how the Biden administration has already hindered the U.S. mining industry. Furthermore, he shares what to look for and what to look out for regarding junior mining IPOs.”
New Partnership To Drive Platinum Group Metal Green Energy Technology
Neils Christensen – Friday March 19, 2021
“Friday, Johnson Matthey (LSE: JMAT), the world’s largest fabricator and recycler of PGMs and Sibanye-Stillwater (NYSE: SBSW), a leading international precious metals mining group, announced a strategic partnership to identify and develop solutions to drive decarbonization and more efficient use of critical metals such as PGMs and metals used in battery technology.”
Gold Hanging Tough As Bond Vigilantes Test The Fed’s Resolve
David Erfle – Friday March 19, 2021
Ron Stoufele just interviewed Russell Napier. Napier, for the 1st time in 20+ years has reversed his deflationary stance to inflationary. Russell is possibly the most respected economic historian in the Western Hemisphere.