Thursday, 13 June 2019

Trade Wars, Gold And Billionaires: Gold Price Going To $1,700 Soon Says Billionaire Paul Tudor Jones - Bloomberg.

Gold is banging on the $1350 door and the breakout above this resistance area can bring the fireworks before 4th of July this year. With all market observations of the extreme valuations, it is important that people who can move the real money in order to address these dislocations of capital will join our happy early investors' crowd. We are in a very good company now with our observations about the all-time low valuation for gold adjusted for 1980 consumer purchasing inflation formula.

It is interesting to note that among gold bulls and other fellow billionaires Thomas Kaplan is sighted as well:

"Jones comments also follow recent bullish sentiment from other billionaires. Last month, Thomas Kaplan, chairman and chief investment officer of Electrum Group, said in an interview with David Rubenstein on Bloomberg Television that he could see gold prices rally as high as $3,000 to $5,000 within a decade."

Electrum Group is the major shareholder of Nova Gold which is developing the Donlin Gold project with Barrick Gold in the great state of Alaska.

"Since investing roughly US$70 million to acquire a 28 percent stake in Novagold Resources Inc. in 2009, American billionaire Thomas Kaplan and his Electrum Group of companies have taken a keen interest in some of the more intriguing mineral exploration companies and projects in Alaska and across Canada's North. 
Kaplan, an Oxford-educated historian that began investing in natural resources in the 1980s, knows that gold has served as a currency throughout mankind's written history and believes the precious metal continues this role in society today. 
"Gold is not a commodity, it is a currency with the longest known provenance we have – actually gold and silver," he asserted in 2011. "And, that is extremely important because when you start looking at something no longer as a commodity but as a currency, you have to really assess; what is that market, is it deep enough to give people the opportunity to play?" 
Kaplan believes the gold market is not deep enough, which is one of the reasons he invested in Novagold, a Vancouver, B. C.-based junior that owns 50 percent of the 39-million-ounce Donlin Gold project in Alaska. 
"To us, Novagold is the right story at the right time," Kaplan, Novagold's chairman, penned in the company's 2018 annual report. "It represents a once-in-a-lifetime opportunity to make the very lowest risk/highest reward trade in gold." 
While Kaplan is an outspoken advocate for gold, investments made by private equity funds managed by Electrum go beyond the precious metal to include junior mining companies exploring for nickel and platinum group metals in the Yukon; zinc and copper in Alaska and diamonds in Nunavut. "Electrum Group funds strategic exploration." North of 60 Mining News"

We have discussed in depth the McKinsey's Gold Reserves crisis and you can find this analysis on my blog. 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.

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."

Gold In The USA: Kirill Klip GEM Royalty TNR Gold Presentation May 2019 - Gold In The Alaskan Elephant Country.


Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.

Gold In The Alaskan Elephant Country: TNR Gold Shotgun Gold Presentation April 2019.


Gold Price Going To $1,700 Soon Says Billionaire Paul Tudor Jones - Bloomberg

"(Kitco News) - Another billionaire investor is sounding the alarm for the U.S. and global economies and is looking at gold as the safe-haven play.

In an interview with Bloomberg News, Paul Tudor Jones, fund manager and create of Tudor Investment Corp., said that his favorite trade in the next 12 to 24 months is gold. He added that if the price can break through $1,400 it will push to $1,700 an ounce "rather quickly."
“[Gold] has everything going for it,” he said.
During the interview Jones said that the global economy, which has been built on global trade, is on the verge of breaking down as global trade tensions continue to escalate. He said that President Donald Trump’s recent threat of further tariffs on $300 billion of imported Chinese goods could be the “material event,” that could push the U.S. economy into a recession.
“We’ve had 75 years of expanding globalization and trade… and now all of a sudden it’s stopped,” he said. “That would make one think that it’s possible we go into a recession; it would make one think that rates in the United States go back down to the zero bound level; gold in that situation is going to scream. [Gold] will be the antidote for people with equity portfolios.”
Jones’ comments come as gold prices hold on to recent gains and is seeing its best weekly performance in a year. August gold futures last traded at $1,337.30 an ounce, up 0.45% on the day. Gold prices have pushed higher as markets have aggressively priced in interest rate cuts from the Federal Reserve.
According to the CME FedWatch Tool, markets see a more than 80% chance of a rate cut by July. Markets are pricing in at least three rate cuts by the end of the year.
Jones comments also follow recent bullish sentiment from other billionaires. Last month, Thomas Kaplan, chairman and chief investment officer of Electrum Group, said in an interview with David Rubenstein on Bloomberg Television that he could see gold prices rally as high as $3,000 to $5,000 within a decade.
“You could easily see gold prices $100 lower before it catches a wave and rallies a few thousand dollars,” he said.
Earlier in May David Einhorn, founder of Greenlight Capital, also reiterated his positive sentiment for gold in a conversation with Kitco News during the Sohn Investment Conference.
“I hold gold, and I am never going to get rid of it. I hope that I never have to use it,” he said.
Jeffrey Gundlach, founder of DoubleLine Capital, also expressed a long-term affinity for the yellow metal during the conference. “I love gold. I have owned gold since it was trading at $300,” he said.

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