Markets still seem to be in denial as far as I can see, perhaps this is due to all the Robin-hood platform sign-ups and newbie traders not sure but I know where I’m positioning and at the end of the day you need to be comfortable with your exposure.
So Gold had another good day and not surprising for me, of course there will come a point where the market switches its risk perspective but for me thats a long way off. To the flip-side some are saying with low rates and low bond yields where do you find returns – well naturally stocks but thats gonna have to be a case of being very very selective
So there could be a case for equities if you pick right but at the same time positioning in gold perhaps?
So I’ve today started broadening my gold exposure as I said I would in my previous blog.
Don’t get me wrong I’m still holding other quality resource plays like ACP and HZM and my Pharma pick FAB but I’m staying lean and adding some gold exposure.
I increased my position today in Goldstone (GRL) @ 4.3p as mentioned in my recent blog simply because I cannot see a better value play given production starting 2020 and the huge upside that could be on offer. My research note will be fully published mid-week but my followers can see it now in the research area
Also look out for a SpongeCast soon with CEO Emma Priestley!
Today Goldstone confirmed that they have finalised the finance for the phase 1 Homase production with first gold pour Q4 2020, but that really is only the beginning! You’ll need to read the note to find out more!
I also took an initial position in Pure Gold Mining (PUR). Their grades are huge, the numbers amazing and if you look at the market cap (around £250m), you can see, imo the upside as they further expand the high grade resource. They like Goldstone start production Q4 2020 average grade 8g/t – Sprott have been buying too, no surprise there!
And lets not forget the likes of Chinese Shandong who are acquiring Canadian and Ghanian near term producers so any of these plays could be subject to M&A!
I’ve got a few other gold plays in the pipe too so keep up to date and follow my blog if this area interests you !
