Categories: Precious Metals
Topics: Gold Stocks

Gold’s Good Fortune is Your Good Fortune

Gold is having a good time. 

That’s been the narrative so far this year as the yellow metal has rebounded from recent lows.

As recently as October 2022, gold’s price was in the low $1,600 range. In recent months, it saw its value surge as high as the mid $1,900s. 

There are a lot of different factors behind gold’s recent good fortune, but it all means that more people are paying attention to it. 

Investors have long known it to be a store of value, especially in turbulent markets like we’re experiencing now. With indexes reeling and long-time, big-name companies proving to not be the reliable investments they’ve been known for, investors are seeking any safe haven they can find. 

So they’re coming back to gold, hoping that it can do what it’s done in the past and protect their wealth while other parts of the market are eroding it. 

With the trends looking to be in gold’s favor, those investors may be onto something. M&A activity has been picking up lately. Big-name gold miners are scooping up smaller companies sitting on promising resources to add to their portfolios. 

The latest example of this happened just last week, with Newmont Corp offering to buy Newcrest Mining. Newmont is one of the largest gold miners in the world, while Newcrest is one of the largest in Australia. The offer was for $17 billion and, if it goes through, will allow Newmont to strengthen its position in Canada, where Newcrest has deposits. 

This increased pace of M&A activity in the sector has been picking up after slowing down during the pandemic. Besides the deal above, we’ve also seen:

• Blue Thunder Mining merge with Analog Gold
• Triple Flag Precious Metals acquiring Maverix Metals
• Cornerstone Capital Resources merging with SolGold
• Abcourt Mines Inc. merging with Pershimex Resources Corporation

And these have all happened within just the last few months. 

Smaller mining companies used the pandemic slowdown to get bigger. Now that things are turning around and gold’s value is rising, those small companies are being taken out by bigger names. The industry consolidates and investors’ pockets are being lined. It’s a gold rush of a different kind. 

This, and continued market turmoil means that gold has a tailwind that’s likely going to push it well ahead of many other sectors over the next few quarters. 

With the Federal Reserve committed to continuing to raise interest rates, investors find themselves with fewer options for making money. 

The fact that gold is being seen as a safe haven again is gaining traction. Still, it’s not quite in full-on bull market territory yet. That makes now the perfect time to get in and take up a position before more people start to notice. 

You can do that by buying bullion, but the smarter play would be to buy shares of a mining company that has a resource unlike any other out there. 

Such a resource exists here in the US. 

It sits on a deposit that has around 4 million ounces in the group, and it’s in a stable jurisdiction. It has the permits and it has the capital to advance its project. 

The fact that not many people know about it makes it one of the best investment stories of the year. Recent drill results, along with this strengthening gold market, mean that this company won’t be going unnoticed for much longer. 

So you’ll want to stake your claim before it gets taken out by a bigger name. 

Once it does, anyone who owns shares in the company will see the kind of gains in their portfolio most investors can only dream of.