Saturday, 7 December 2019

Gold In The Alaskan Elephant Country: Central Banks Gold Buying Set For New High In 2019.



A lot of investors are being caught in the market manipulation of the historic proportions with trade wars coming on and off literally a few times daily. It is very easy to miss the big picture waiting every day for "the greatest deal ever with China". 




Here is where our conversation can help maybe to some of you. Bloomberg reports about the new record high for Central Bank Gold buying being set already in 2019. QE4 has pushed all markets to the new all-time highs and now we can visually track the record expansion of the central banks' balance sheets which are pushing markets climbing like balloons after being pumped with hot air. 




Only this time the same Central Banks are buying gold like there is no tomorrow. They know too well how it all going to end. Reuters reported that there is a growing concern about European banks being adequately capitalised and able to meet the requirements of the real stress test. 




The same banks in Europe are charging their wealthy clients for depositing their cash already, pushing more of them to seek increased allocations to Gold. Gold has been mocked for years for the lack of yield, but not anymore. Needless to say, that Deutsche Bank going "Lehman" can put the sobering warning from Dutch Central Bank in the totally new light: "World will need Gold if the entire system collapses": 

"A statement from the bank’s website describes gold as “the trust anchor for the financial system.”  
“If the entire system collapses, the gold stock provides a collateral to start over. Gold gives confidence in the power of the central bank's balance sheet. That gives a safe feeling,”

Other Central Banks are following this advice, as we can see today. Repatriation of gold is going globally and very soon we will see whether bullion banks can create gold from the thin air as well as they are printing their worthless paper to meet their "paper gold" obligations. The game of musical chairs has begun in the Gold rehypothecation market. 




The whole game is spiced by the overextended business cycle stretched in the election season, there is no doping control anymore. FED is announced to be "the enemy of the state" for not allowing negative rates in the USA "as they have in Europe already". 




How long FED can resist the Commander-in-chief? After the election, this questing will become purely rhetorical. All these factors will drive the demand for Gold further, as we are discussing here in-depth





Investors seeking to increase their record low allocations to Gold will be competing with Central Banks buying Gold and declining production from Gold miners. It will create new opportunities, as a wave of Gold M&A is showing the last few weeks. 





McKinsey calls it "The Gold Mining Reserve Crisis". Combination of these historical tectonic shifts in the demand and available supply can easily take out any question marks left about the new secular Gold Bull market as early as in the next few months. 




Nobody knows the future and you all will have to do your own research and pick up the winners. We at TNR Gold are very encouraged with all these recent developments in macroeconomy supporting the very healthy Gold Bull market for years to come and our position with Shotgun Gold project development in the great state of Alaska. All brave scientific observations must be confirmed by people who can put some money on the table to prove it in real life. I am personally following very closely billionaires who are not only buying Gold now but are coming to our Alaskan elephant country in a quest for the next Donlin Gold. You can find this story on the links below.




Gold In The Alaskan Elephant Country: Kirill Klip GEM Royalty TNR Gold Presentation November 2019.




"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."








Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions. Do Your Own Research.





"Gold Exploration Vital For Future Supply": Gold In The USA - Alaskan Elephant Country.






Wood Mackenzie brings attention to the unfolding "Gold Reserves Crisis" as McKinsey calls it. The growing demand for gold from Central Banks, institutional investors and retail is facing the peak gold production and collapsing gold reserves of the major mining companies. Everything is being set for "The Perfect Storm" in the gold market:

"Exploration budgets were slashed following the fall in the gold price from the highs that were reached in 2011/2012 and they have since failed to recover. The slight rebound in exploration spend we have seen over the past couple of years has largely been focused on brownfield projects and near-mine development. This has not been sufficient to replenish mined ounces and as such peak gold supply is now a very real possibility. Wood Mackenzie."



M&A activity will only redistribute the well known and already developed reserves. The industry needs new major discoveries which are very few and far between. Years of the Gold Bear market have not only burnt alive the whole generation of investors but made mining companies extremely cautious with any exploration and investment activities. All exploration budgets were cut to the bone. The industry suffered not only dramatically reduced exploration budgets, but the return on the money invested in exploration produced very few major discoveries.




After the recent wave of M&A activities among the major gold miners, mining companies are increasingly entering into the JVs with junior miners in order to develop the new resource base:

"To secure their longevity as pillars of the gold industry, we have seen heightened M&A activity and miners focusing on their core assets. Whilst this may help to bolster balance sheets through improved operational performance and realised “synergies”, it seemingly does little to address the problem the industry is facing with regards to how to sustain current production levels. We have, as of late, noticed an uptick in some majors opting to increase their footholds in a select few juniors with promising exploration opportunities.
Agnico Eagle, AngloGold Ashanti, Kinross and Newcrest are actively investing in, or entering into joint-ventures with junior gold companies to create long-term value. Wood Mackenzie"



News about Electrum Group partnering in the new venture with gold mining legends Rob McEwen and Eric Sprott for exploration in Alaska will ignite the new wave of interest to the juniors operating in Alaska. Alaska jumped to the 5th place among safe mining jurisdictions and giant 39 Moz Donlin Gold project is getting more and more attention. Electrum Group is the major shareholder of Nova Gold which is developing Donlin Gold in JV with Barrick Gold.




With gold prices reaching new highs this year some mining analysts are starting to apply the old metrics to value "gold in the ground" when comparing juniors and their projects. Nova Gold was trading as high as $2.4B reflecting its 50% stake in Donlin Gold. It gives more than $120 valuation per oz in the ground. All projects are different, but previous Gold Bull market valuations started at $20 per oz of the inferred resources - the very initial level of resources. New mining deals will give us a better sense of the valuations. Eric Sprott and Rob McEwen will make sure that Alaska is shining bright on the radars of investors now. Increased gold prices are making the great state of Alaska as one of the most attractive in the industry: "leverage in the place where you can keep the rewards". And their own gold price projections can bring real fireworks to the exploration opportunities. As always do your own research and you will have to pick up the winners.





TNR Gold is developing the Shotgun Gold project in the Alaskan elephant country near Donlin Gold mining district. On the links below you can find more information. Barrick Gold received crucial permits to advance Donlin Gold 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."




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