Gold is surging higher breaking $1,850 today after a Silver breakout to $23 dollars mark. The Perfect Storm is here and QE tsunami is reaching Gold and Silver markets. Even Dr Copper is driving in his new Tesla in ludicrous mode up the hill as well now. Eric Sprott is talking in his podcasts about the enormous leverage provided by the higher Gold prices for Gold Miners and how he is applying valuations per ounce of Gold resource in the ground at this stage of the market.
His latest podcast deserves your careful attention, particularly his brilliant explanation of the investment dynamic driving the new Gold M&A wave. Mr Market is valuing much higher every Au Oz which is produced by majors like Barrick Gold than when it is produced by any other miners.
Basically, any acquisition by giants like Barrick Gold gives them immediate market value boost by just applying this new much higher valuation to the same amount of Au Oz as before but which is produced now under Barrick Gold brand. This process will be driving all Gold M&A valuations much higher.
Eric Sprott: "The market is buying into the higher sustained Gold prices. What do you think that price per ounce in the ground is doing? Its valuation is rising exponentially. I am using mentally USD $100 per Au Oz of resource in the ground now."
All projects are different and resources in the ground as well, but the most important for all junior miners valuation benchmark is moving up and it is moving fast. Now other major players will be listening to Eric Sprott as well in order to stay on the top of the game. We are facing Peak Gold Production.
This QE tide is finally reaching all junior miners and below you can find for your own research more information on TNR Gold and our Shotgun Gold project in the Alaskan Elephant Country.
All our devoted followers had a great chance to meditate on the Story and make their own research. The bravest ones could even spot the generational opportunity and Mr Market Time Machine in action:
"It is very important at this stage to articulate our vision and get us in the company with the right people. We are getting there. In every investment, the entry point will define the ultimate outcome. This young Gold Bull market and our assets can represent this unique entry point. Sometimes the perceived risk can reduce the valuation to the point when upside can be generated just by the very small amount of liquidity coming in and replacing the last forced motivated sellers. What can happen on another side - when liquidity is driving assets prices and upward momentum mascarade the increasing risk - we have all already learned by now again."
With Gold rising above $1,800 on its way to the new all-time highs in US Dollars this time, fireworks can continue even after the 4th of July this year. Eric Sprott is talking in his latest podcast about the majority of investors "who are waking up only now to the fact that Gold is UP" and that he is calculating now "USD $50 per Au Oz in the ground of resources". Buckle up, do your own research, and enjoy the ride. We are getting there.
Gold In The USA, Alaskan Elephant Country. Eric Sprott: "The Market Is Buying Into The Higher Sustained Gold Prices. What Do You Think That Price Per Ounce In The Ground Is Doing?"
Chart by @Schuldensuehner
Gold kicked off $1,800 door wide open this week on its way to the new all-time high in US Dollars this time. More investors are waking up and gold miners are enjoying the rising tide of liquidity. The tsunami is coming. Gold is the ultimate hedge and provides solid values during uncertain times in this Perfect Storm.
Eric Sprott in one of his latest podcasts is talking about his two very important personal observations for us here. He thinks that "The market is buying into the higher sustained Gold prices". Basically, the majority of investors are waking up to the fact that the Gold is up only now. And the valuations for the ounce of Gold resources in the ground are rising exponentially: "Now people pay for that resource... We've put $500 dollars on Gold price since we've used $50 per Au Oz in the ground (of resource)."
It seems now that Eric has invested in every junior miner he can find with a more or less interesting story and his opinion will matter for all other investors looking for the Next Big Thing Eric Sprott may buy one day.
This week Eric Sprott is talking more about the value of metals in the ground, the expanding margins for Gold miners, and his love for "large lower grade ore bodies". He explains the Gold mining economics 101 and how large bulk tonnage systems with relatively lower grades can provide the most leverage with the rising Gold prices.
"The difference in the value of Au Oz in the ground today is very, very dramatic. Because Gold pice is at $1,810 now and added an extra $560 from the level of $1,250. The market has not adapted to it yet."
We are ready at TNR Gold for this Mr Market Gold price and projects discovery process to unfold with our Shotgun Gold Project in Alaska and on the links below you can find a lot of information for your own research:
With Gold rising above $1,800 on its way to the new all-time highs in US Dollars this time, fireworks can continue even after the 4th of July this year. Eric Sprott is talking in his latest podcast about the majority of investors "who are waking up only now to the fact that Gold is UP" and that he is calculating now "USD $50 per Au Oz in the ground of resources". Buckle up, do your own research, and enjoy the ride. We are getting there.
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