Saturday, 4 April 2020

Gold Is The Ultimate Hedge In The Uncertain Times: The Best Gold Stocks Are Set To Be Wealth Generators.

Gold was skipping rope last week at the $1,600 psychological mark. We had another "Operation Sledgehammer" to knock Gold down and to close the horrible for general equities Q1 2020 with lower Gold prices recorded in the books. But you cannot fool all the people all the time. 

Those who need to sell will sell, others are stepping in and buying Gold now. "Gold paper" market is broken. Jeffrey Gundlach is warning about "paper gold ETF", there is no Gold - only paper. 

Chart by @highlevelTrader

Gold finished the week above $1,621.8 and Adrian is illustrating brilliantly a very interesting set up for Gold which is ready to go much higher. We have similar patterns now among Gold majors as well.  

It is important to note here, that Gold is trading over $1,600 at a time when Major Gold Market is shut down in China. I guess that if we all requested physical delivery and Gold miners stopped selling Gold to COMEX and LBMA, we can sit back and enjoy the real fireworks just waiting for Chinese to come back into the market. 

The market for small Gold bars and coins is totally disconnected now from the "official Gold fixing price". We can make a brave scientific experiment in order to allow the real price discovery based on Supply and Demand and prevent Crimex from rehypothecation of Gold into the FIAT trading system. 

I would love to see a very interesting industry movement that can be organised when all Gold miners will start selling Gold directly to customers at the source.  The trading can be facilitated via non-banking central clearinghouse with the blockchain technology confirming the origin of the Gold bars and preventing any fakes and leverage in the system. At this time I can share with you only a few anecdotes from the industry insiders. 

There is no physical Gold in the system available for retail investors in any meaningful quantity at the "Gold fixing price". Gold refineries are shut down in Switzerland. LBMA and COMEX have reassured the public twice last week that there is plenty of Gold in their vaults available for physical delivery. We will monitor all together now whether we have our very own "Lehman moment" for the Paper Gold FIAT Trading System which is finally falling apart. Gold is the ultimate hedge. 

Chart by Northstar

As very smart people are telling us now, investors are buying the best gold mining shares, which become the wealth generators in the uncertain times. Our Shotgun Project in the Alaskan Elephant Country is positioned very well for all this fundamental set up. I can share with you that I can see very encouraging signs and people whom I was trying to talk to about our Company and Gold for a number of years are coming back themselves to learn more about Our Story.

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.

Our puzzle is coming together, we have all the pieces and now I am putting them back together with our very talented GEM Royalty Team to make the clear picture: The Green Energy Metals Royalty and Gold Company. Nicholas Winton has provided another brilliant illustration of our recent developments and our aspirations for our TNR Gold boardroom morning motivations.

My friend from Jianxi Copper near Beijing is telling me "that virus is controlled in China" and they are watching the Copper market developments very closely now. Maybe, my dreams about the unique value building network around giant Los Azules Copper project are not so far stretched after all. We will see it very soon. 

"Coming back to Rob McEwen and his Midas Touch. In our brave dream about Copper coming back to $3/lb to feed Tesla Energy rEVolution, anybody buying giant Copper projects like Los Azules now will be forming their own Copper Genius Club. Project is ready to go further into PEA stage benefitting from the support of both Argentina and Chile."

"Some people have more capital and know how to work in Argentina better than others. JV on Los Azules will be the major catalyst for McEwen Mining and TNR Gold NSR Royalty Holding on the entire deposit. Rob is ready now for a very interesting deal: $100 million upfront payment and 25% carry into production. We have discussed Barrick Gold's ambitions in their search for Strategic Copper and even established the strategic partnership with a Chinese company to develop Gold and Copper in Argentina including Pascua Lama." Read more.

As we can see now that my lithium-induced dreams are one more extremely important step closer to becoming reality. Our first Royalty on Mariana Lithium is moving closer to production under the management of the Operator - the giant from China Ganfeng Lithium

"The supersonic boom has brought to us the great public news from China to brighten the universal gloom. Ganfeng Lithium has released publicly its Annual Report 2019 and we can finally find more public information on the development of Mariana Lithium."

"We have the catalyst in place for TNR Gold NSR Royalty Holding on Mariana Lithium project under the operation by the giant from China Ganfeng Lithium.
"Kirill Klip, Executive Chairman of the Company commented, “We are very pleased to see this more than 250% increase in measured and indicated resources from the 2017 resource estimate at Mariana and that Ganfeng Lithium is advancing this project in Argentina towards further updated PEA and pre-feasibility studies. The Mariana Project preliminary economic assessment (“PEA”), as announced in our news release of January 28, 2019, was the first PEA on the project that provided a potential value for the total NSR Royalty from Mariana’s life of mine cashflow. TNR Gold does not have to contribute any capital for development of Mariana and our NSR Royalty does not depend on the size of ILC’s potentially diluted ownership in the Mariana Project. The 1.8% Mariana NSR Royalty is an important part of TNR Gold’s portfolio. The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders.”

"The feasibility study of Mariana Project in Argentina was completed in 2019 smoothly, and environmental assessments and construction of the project were planned to be conducted gradually." Ganfeng Lithium Annual Report 2019.

"The feasibility study of Mariana Project in Argentina was completed in 2019 smoothly, and environmental assessments and construction of the project are planned to be conducted gradually." Ganfeng Lithium Annual Report 2019.

We have our first catalyst in place for TNR Gold.  As usual, do your own research, you have to make your own journey. On the links below you can see our theories about the building the wealth during this generational opportunity. 

How To Navigate The Crash in The Age Of Algos, ETFs And Digital Copycats: Gold Is The Ultimate Hedge - The Best Gold Companies Are The Wealth Generators.

After this very tough week, it is more important than ever to have the Big Picture in front of you and separate the main messages from the Panic Market Noise. We are on the same level as before. We are all set. There is NO margin. "The market is NOT going to ZERO." Trillions of dollars are being printed. POTUS is printing money and buying Oil to create inflation and support the shale oil industry. Very important - interest payments on student loans are waved. "Free CoronaVirus tests, and paid leave for our impacted American workers", and expand of food stamps program are being agreed by POTUS and House Speaker in the US in the major "The Families First Coronavirus Response Act." 

The virus, as we discussed in January, is the major external shock. Millions of investors were brutally educated by the ruthless Mr Market again. The Risk Is Real. And now as per our notes, finally, we have all bazookas blasting at the same time: Coordinated Rates Cuts with more to come next week, Liquidity Injections by Trillions, Fiscal Stimulus and direct help (the most important now) to households. Now let's dive - not into the market, but into our charts. Read more.

Smart money knows what real investment means. It means owning the business by owning the shares of the Company. Invest like Warren Buffett, who is proven to be right and sober again with his huge cash position. Nobody knows the future. I can only share with you what I am doing. 

I am going "Warren Buffett" in Gold. Buying a business and building it. No Margin. I will be back monitoring The Big Picture For Gold and TNR Gold place in this generational opportunity. Join us. Follow TNR Gold.

Thank you. We are building GEM Royalty for you - our Shareholders. Contact us and request your Skype Video update. Stay safe.

"...The upside is clear. Indeed, Novagold sees it well enough, since it retains a significant stake in TNR, and former Novagold director Greg Johnson now sits on the TNR board. How long it will take the rest of the market to wake up remains to be seen. 
Nonetheless Klip is confident that this is a company that’s going places. 
“We are not dreamers,” he says. “We did it with the copper. We did it with the lithium. I would like to make it even bigger with the gold. I would like to do better, to keep a 25% stake.” 
It’s a vision for growth that makes a lot of sense. In tough markets, where capital is scarce, this kind of approach may well end up being a model that others choose to follow too."

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.

No comments:

Post a comment