The Bretton Woods 75th anniversary is just around the corner…
Russia is buying gold on the cheap…
Probably one of the best copper-gold deposits is opening up in Alaska right now…and if it wasn’t for an Aussie company, we might have never heard about it.
Oh, and 1,400 is the new 1,200…
These are just a few of the topics I covered this morning.
There I was. Bleary-eyed, talking to an expert geologist on the other side of the world.
And after an hour of chatting to him, I’ve never been more excited about what’s in store for gold miners.
Yep. It’s been one hell of a Friday morning.
Seven down…and two new names added to the list
In six weeks, I will be launching a brand-new service. I can’t give away too many details at this stage, but here’s what I can tell you.
This brand-new service we are launching is about all things precious metals — but with a twist. Instead of just providing recommendations, I will be interviewing industry specialists from around the world.
The sort of insider gurus who normally charge tens of thousands of dollars to speak at events.
Trust me, I’m hunting a big game here. I’ve already bagged seven interviews. Plus, I have a list that’s 27 people deep and growing.
The point is, this new service isn’t just about finding a great stock idea and telling you about it. It’s about giving you access to knowledge that is out of reach for most investors. Big industry names you read about in the news…
I’m fresh off a terrifyingly early call with Byron King, a US-based geologist, investment writer and former Navy man.
In turn, he was fresh off the plane from checking out a new exploration site in Alaska.
Somehow, between the two of us, we managed to push the exhaustion aside. What resulted was an incredibly positive — and fun! — interview.
The only problem is that the more we spoke, the more questions I had. But I guess that’s what happens when you talk to someone who’s spent 45 years in the industry.
Afterwards, I walked away with two big takeaways: Technology is changing mineral exploration for the better, and gold is a representation of energy.
I told Byron we’ll have to deep dive into those insights when we meet up in Vancouver two weeks from now.
Come August, I’ll be able to reveal everything I’ve been working on.
This could be your ticket to hearing firsthand what the industry experts have to say.
Gold sets a new floor
Since 2013, when the price of gold began sliding, US$1,200 has proved either to be a ‘resistance’ level or a ‘support’ level.
That is, the price point that has either stopped gold from moving higher…or stopped it from falling further.
In fact, the price movement around US$1,200 is very similar to what happened in 2004.
During this time, the US dollar price of gold found that US$400 per ounce acted as support for or resistance to the gold price. Because of this, US$400 per ounce was once treated as a key psychological level.
Well, a decade later, US$1,200 has emerged as the new psychological level.
US dollar gold price weekly chart (2006-2019)
Source: Trading View
Taking a look at the blue horizontal line on the chart, you can see that every gold price rally and subsequent selloff came back to US$1,200.
Well, according to Byron, the days of trading around U$1,200 are done.
So much so that when our call kicked off this morning, the very first thing he said was, ‘Well, 1,400 is the new 1,200.’ Meaning, US$1,400 is going to become the next key psychological point for the gold market.
What does that mean for you?
Make no mistake: The volatility around the gold price isn’t going away. So I’d get used to watching $20 per ounce swings daily.
But more importantly, the consistent price of US$1,400 means bigger profits for gold mining companies…
New tech and more cash is a win-win for investors
For the last few years, gold miners had been forced to get costs under the spot gold price.
As a result, many now run efficient operations based on a US$1,200 gold price.
This means miners will now have an extra $200 per ounce flowing into the coffers.
And that presents an opportunity.
What would miners do with the extra revenue? Pay out larger dividends? Spend more on explorations? Buy up smaller junior miners?
Higher prices are likely to lead to more activity in the gold space.
Not only that, as Byron ended our chat, he pointed that while the world has been ‘well prospected’, it has ‘never been explored with modern techniques’.
In other words, while all the ‘easy’ gold has been found, higher gold prices and changes in technology mean there’s good things ahead for yellow metal hunters and miners.
I’ll bet you haven’t read that take in the mainstream, have you?
You see, that’s why I’m doing this.
Talking to as many industry insiders as I can. It sure beats listening to the same old papers churn out the same old information…
Because as it turns out, who you know can make a difference.
Until next time,
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