Gold loves FED in the election cycle. "Growth solves a lot of problems", according to Larry Kudlow, but what to do when there is no growth anymore? Statutory limitations are making the question to be or not to be elected rhetorical and the only unknown now is what will be the price for the world to pay for the privilege. Among not so many options, throwing US Dollar under the bus seems to be the least unpatriotic compared to many bad choices tried last time. At least it is not a new war.
The majority of voters are not flying to St. Barts for the weekend and they will hardly notice any changes in FED's "Strong Dollar Policy from 1913". They will not be hit with afterparty checks presented in euro. The young libertarians will continue to study Austrian economics on Twitter and play "revolution" with the myriad of sh$tcoins, so weaker dollar will not propel Gold to $10,000 any time soon, which can become uncomfortably disturbing for the lost MMT academics.
And, what is the most important, this is all not a theory anymore and the same Larry Kudlow is calling now for FED to cut 50 basis points. Nobody knows the future, but the weaker dollar and negative real rates, like they are already in Europe, will normally move Gold price higher. Central banks are buying Gold at the highest rate since Nixon closed the Gold window and frontrunning all brave libertarians who are still experimenting with their money being tortured by elliptic-curve cryptography, decentralised, distributed from them and centralised again by the super smart shadow characters on the WEB.
In this perfect picture for the next few years: when we will be promised to see the uninterrupted bull markets supported by the strongest economy, which will be pumped by the fearless FED - we have only one missing piece, according to naughty McKinsey. They have managed to find The Gold Mining Reserve Crisis.
Even sh$tcoins prophets know that supply and demand still matter and only happy hodlers can help them to distribute all hard earned founder coins to the freedom-hungry public who is still hiding on facebook from the Big Brother. Gold market manipulation will work only to a certain extent, rising demand for Gold will require more supply in order to make the increase in Gold price manageable for all organised interested parties involved.
Even sh$tcoins prophets know that supply and demand still matter and only happy hodlers can help them to distribute all hard earned founder coins to the freedom-hungry public who is still hiding on facebook from the Big Brother. Gold market manipulation will work only to a certain extent, rising demand for Gold will require more supply in order to make the increase in Gold price manageable for all organised interested parties involved.
And here we have a problem now, according to McKinsey: "Reserves by major Gold companies have declined 26% from 2012 and now below 2007 levels." M&A will be only part of the solution for some companies as it only redistributes the same Gold reserves, we need new discoveries and new elephant projects coming online just to address the gap between growing demand and available supply.
These two major trends are colliding and pushing the gold price to resume its bullish ascend: weaker dollar which is desired now in order to keep growth intact and keep debt crisis manageable; and available Gold reserves just to keep annual production enough for feeding the increased demand without Gold hitting the headlines every week.
Barrick Gold is developing together with NovaGold 40MOZ giant Donlin Gold in Alaska - "arguably the most important Gold project in the world." So where will you be looking for the new elephants? Maybe in the Alaskan Elephant Country. Barrick Gold received crucial permits to advance Donlin Gold now and this new developing mining district in the US can make the promise of "Gold In the USA" providing stable supply feasible again and it can become that solution to "The Gold Mining Reserve Crisis" McKinsey is talking about:
Barrick Gold is developing together with NovaGold 40MOZ giant Donlin Gold in Alaska - "arguably the most important Gold project in the world." So where will you be looking for the new elephants? Maybe in the Alaskan Elephant Country. Barrick Gold received crucial permits to advance Donlin Gold now and this new developing mining district in the US can make the promise of "Gold In the USA" providing stable supply feasible again and it can become that solution to "The Gold Mining Reserve Crisis" McKinsey is talking about:
"The Company's strategy with the Shotgun Gold Project is to attract a partnership with one of the major gold mining companies. TNR Gold ("TNR")is actively introducing the project to interested parties," commented Kirill Klip, Executive Chairman of TNR. "We may be at the beginning of a great discovery. There is a clear path on how to move this project forward using the geological and geophysical research currently available to target drilling to expand the resource and form the basis of a preliminary economic analysis. The next step is to acquire a partner that shares our vision and recognizes the growth potential and value to be added to the Shotgun project over time."
Why More Gold M&A Is Coming: GEM Royalty TNR Gold Presentation - Gold In Alaskan Elephant Country.
Barrick Gold is developing together with NovaGold 40MOZ giant Donlin Gold in Alaska - "arguably the most important Gold project in the world." So where will you be looking for the elephants? Maybe in the Alaskan Elephant Country. Barrick Gold received crucial permits to advance Donlin Gold last week and now this story will be getting more and more interesting.
LEGAL DISCLAIMER
Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.
PDAC 2019: TNR Gold Invites Expressions Of Interest For Shotgun Gold Project, Alaska.
"The Company's strategy with the Shotgun Gold Project is to attract a partnership with one of the major gold mining companies. TNR is actively introducing the project to interested parties," commented Kirill Klip, Executive Chairman of TNR. "We may be at the beginning of a great discovery. There is a clear path on how to move this project forward using the geological and geophysical research currently available to target drilling to expand the resource and form the basis of a preliminary economic analysis. The next step is to acquire a partner that shares our vision and recognizes the growth potential and value to be added to the Shotgun project over time."
LEGAL DISCLAIMER
Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.
McKinsey and Company:
Can The Gold Industry Return To The Golden Age?
"The gold industry today finds itself at an inflection point between the recent era of cost-out initiatives and balance sheet deleveraging, and an increasing need to focus on growth and the replenishment of depleting gold reserves. However, after a period of impairments, write-downs, and value destruction following the M&A frenzy of the last gold price boom, shareholders in search of improved returns and greater management accountability are unlikely to support significant M&A programs which have been the traditional mainstay of production growth and gold reserve expansion for major gold companies. The future strategic options to drive growth will differ across industry players, but all will need to consider a mix of organic and inorganic approaches if they want to return to growth in an economic and sustainable way."
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