Mike Fagan,
Editor
Dec. 28, 2022
Gold is holding strong above $1,800 an ounce as a trusted store of value as the broader indices limp into the new year.
Blue chips are continuing to get crushed as COVID concerns, supply chain disruptions, and recessionary fears, globally, continue to keep investors on edge.
Those who purchased a shiny new Tesla earlier this year with some TSLA shares to go along with it are probably wondering what the heck happened to their investment and why they ever made the decision to park their hard-earned cash with the twitter-obsessed genius.
Tesla has now lost over half a TRILLION in market value this year alone!
Similarly, Amazon is down from $172 to $82. Meta is down from $352 to $88. Ford is down from $26 to $11.
And the list goes on and on with plenty of pain ahead as we turn the page on a very tumultuous 2022.
Cryptocurrencies have been an even bigger disaster — led by the collapse of Terra/LUNA and FTX. Bitcoin, which is heralded as the most “stable” of the cryptocurrencies, is down to $16,750 from a 52-week high of $50,679.
Against what can only be described as a historically broad negative backdrop, gold is showing precisely why it remains the world’s only true safe haven commodity.
Bucking the overall market trend, gold has been in rally mode for much of Q4… surging from around $1,625 an ounce in early-November to currently above $1,825 as investors turn to the safety of the yellow metal.
With the US economy teetering on the brink of recession — and with consumers still dealing with exorbitantly high inflation — gold looks poised for a breakout year in 2023 that could deliver all-time highs well above $2,000 an ounce.
Of course, that’s not to say… put ALL of your investment capital into gold and gold stocks.
Rather, the idea is to simply spread out your risk profile by allocating at least a portion of your wealth into physical gold and gold equities.
The major gold producers are beginning to rally on gold’s strength, including stalwarts like Newmont (NYSE: NEM), Barrick (NYSE: GOLD), and Franco-Nevada (NYSE: FNV).
Those stocks have market caps in the tens of billions of dollars and have the potential to return perhaps a double or slightly more over the next 12 to 24 months if gold continues on its current upward trajectory.
For those with a slightly higher risk profile, we look to the junior explorers. These are the tiny small-cap exploration stocks whose value can increase by several-fold on news of even a single spectacular drill result.
Of course, the exact opposite can happen when treasuries are depleted on empty drill holes, which explains why these “pure explorers” carry a significantly higher risk factor.
Successfully navigating the junior gold sector is far from easy.
It requires a lot of specialty knowledge and experience that allows one to differentiate between the hundreds of pretenders and the select few that are truly on track to deliver for shareholders via the drill bit.
I’ve been around mining my whole life and I can confidently say that my esteemed colleague Nick Hodge of Foundational Profits has the boots-on-the-ground knowledge and experience to do just that.
He recently returned from a site visit to a junior gold firm that’s advancing a high-potential project in Idaho with 4 million-plus gold ounces discovered to-date on its flagship project.
The company is finding even more of the yellow metal through deeper drilling and recently expanded its land package with the acquisition of a number of key mineral claims that offer excellent potential for near-term resource expansion.
So if you want to find out what it’s like to have your own boots-on-the-ground at a gold mining project that’s gaining upward momentum via the drill… you can check out Nick’s exclusive video presentation here.
Nick literally brings you along for the ride as he tours the mine and meets with the company’s upper management and geologists.
Best of all, the company’s shares are currently trading relatively undiscovered below US$0.50 with plenty of upside potential still to go.
As we bid farewell to ‘22 and head optimistically into the new year… why not hop on board with Nick for an inside look at an exceptionally well-run junior gold miner that has its sights set on big things in 2023. Enjoy!
Mike Fagan
Editor, Daily Profit Cycle