My 10x Gold Bet
The mine is already economic. Someone else is paying the bills. And it may be just the first discovery in a much bigger gold district. Summer of Gold Part 3
A couple of things before we begin … the paperback version of The Secret History of Gold: Money, Myth, Politics and Power has just come out in the UK. You can get yours at all good bookshops.
I have had a couple of emails to say that the interviews I’ve been publishing are too long. Think of the email as a notification that a new interview is available. Then dip in when you have the time, or when the guest or subject interests you. The longer format is deliberate.
So to today’s business …
Gold gave us a little zing this week on the back of coordinated interventions between the US and Japan in the currency markets to defend the crashing yen.
A weaker-than-expected US jobs report also helped, in that it lowered the likelihood of interest rate hikes at the Federal Reserve.
There has also been yet more central-bank buying, from, among others, the People’s Bank of China and the National Bank of Poland.
The floor at around $4,000 has held, as we hoped it would. I think there is a very high probability that was the low, with $55 playing a similar role in silver.
It’ll be some time yet before we reach the giddy heights of January, but the ongoing thesis that “gold goes nowhere for year as the big move consolidates and digests” looks like it was a good one.
I have taken advantage of the summer weakness to do some buying. As far as my mining portfolio is concerned, (which I run separately), I am now pretty much fully invested. I haven’t been in that position for a long time. That means if I want to buy another mining company, I have to sell something else first. I quite like that. It forces me to choose.
One of the conclusions I came to on my recent walk is that I have been holding onto certain companies too long, so there may be something of a portfolio purge over the coming months. But don’t worry I will keep you updated on any major portfolio reallocations I make.
But today I’m going to tell you about a company I bought earlier int he week. It’s high risk, but I think it has 10x potential over five years, while much of the dilution risk that normally comes with junior mining has been stripped out.
Spoiler: it’s one of the mines I visited in BC last month.
And that’s just what I am going to do today as we continue our summer of gold series.
