What a Day! Gold Chasing US$2,600
Yesterday, gold prices broke out. Michael Ballanger of GGM Advisory Inc. shares his thoughts on this and recommends two stocks.
Yesterday's big news was the incredible breakout in gold prices, with the December contract going out on session highs at US$2,587.60, with the high tick a mere dime higher at US$2,587.70.
SPDR Gold Shares ETF (GLD:NYSE) followed suit with a 1.76% advance.
Silver outperformed gold, which is great and required if this next leg of the bull market is going to kick retail investors off the sidelines and into the juniors like Getchell Gold Corp. (GTCH:CSE; GGLDF:OTCQB), which closed at its highest in months at CA$0.15.
I am absolutely convinced that most subscribers roll their eyes when I constantly predict higher prices for GTCH/GGLDF (with total and complete justification), but surely to Heaven, a US$2,600 per ounce gold price will bring out the animal spirits in the younger generation of investors that control the capital flows these days.
The breakout in gold is also good news for Fitzroy Minerals Inc. (FTZ:TSX.V; FTZFF:OTCQB) whose news release today on Polimet and subsequent follow-up from CEO Merlin Marr-Johnson in a private email to me really emphasized the gold-centric aspects of the project.
That is why I have so much of my investible capital into gold or copper-gold exploration and/or development stories. That is why I shifted away from lithium and uranium and went with the two most promising metals for 2024 and beyond, and while copper has been battling the "China slowing" narrative since the springtime, gold has taken up the slack and risen to its rightful seat on the throne of all commodities.
With the CA$0.15 unit hanging over the FTZ/FTZFF market right now, it is obvious that there are participants looking to swap their free-trading paper for the unit to secure the free half-warrant so as soon as the deal closes (next week is my guess), I see the market moving quickly into the CA$0.20's as preparations for drilling at Buen Retiro get underway.
Speaking of Buen Retiro, I have had a number of questions posed that involve uncertainty over the TSX approval of the deal. There is concern that the deal will get nuked by some 30-something Millennial looking to make a name for him/herself by playing "hardass" on the approval.
Well, that might happen, but the odds are long and thin, given that the registered owners of the Buen Retiro project are 1,000% in favor of the Fitzroy proposal. The way I see it, Ptolemy Mining (which owns Buen Retiro) has one project and has no way of raising money to advance things, while Fitzroy has two barnburner Chilean copper-gold projects (with Polimet now moving into the frontrunner position thanks to the geochemical survey results) and a highly prospective Argentinian gold prospect called Taquetren AND they have a proven ability to raise money through the publicly-traded vehicle.
We know that "1+3 should equal 4" but with the immense calibre of the Buen Retiro project, the sum total of these projects is close to 8 than 4. Make no mistake: Buen Retiro is that good. It is a company-maker. I have only seen this perhaps five other times in my 45-year career, and each time, the project enriched shareholders in a material manner.
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Important Disclosures:
As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Getchell Gold Corp. and Fitzroy Minerals Inc. Michael Ballanger: I, or members of my immediate household or family, own securities of: All. My company has a financial relationship with Fitzroy Minerals Inc. I determined which companies would be included in this article based on my research and understanding of the sector.Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.
Michael Ballanger Disclosures
This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.