Home Commodities The Gold Rush Flying Under Wall Street’s Radar

The Gold Rush Flying Under Wall Street’s Radar

ca. 1897, Yukon Trail, Dyea Valley, Alaska Territory, USA --- Prospectors Lunching --- Image by © CORBIS


The Dutch Central Bank recently argued in an article that if there were to be a major monetary reset, “gold stock can serve as a basis” to rebuild the global monetary system.

Investor Ray Dalio recently cautioned attendees at the Institute for International Finance conference when he mentioned the possibility of a flight to gold because of his concerns about America’s fiscal position.

So, hope for the best, while preparing for the worst, start now,

The Big Q: What is the best way to hedge against a potential global recession?

The Big A: Gold.   

Investors are piling into gold in a big way. The market is hot. Some are even saying that $2,000/oz gold may be on the horizon. 

The smart money knows that when gold goes up…so do the companies that mine it

In Y 2016, gold prices jumped 26% in 6 months, gold miners exploded. 

African Gold Group (TSX:AGG.V, OTCMKTS:AGGFF) CEO Stan Bharti notes, “Gold has always been and will always be investors’ favorite safe haven…and that’s good news for miners”

Mid-cap miner Endeavour Mining Corp gained 196% in 6 months, while its Ontario based competitor IAMGold gained 256% in that same frame, but the real winners were small-cap miners. 

Argonaut Gold’s share price jumped 298% in 6 months, and its peer Great Panther Mining saw its share price even jump by a whopping 340% in 4 months. 

And now, the same thing looks to be happening again. 

But catching the wave is not easy. From under-the-radar mines to old school producers stepping up their game, knowing where to look is the surest way to see big returns. 

When smart money is looking for a gold company with major Northside, they are looking for small companies with proven resources in the ground, and not gobbled up by the mega-miners.

Here is a conservative idea…

Toronto-based African Gold Group (TSX:AGG.V, OTCMKTS:AGGFF) checks every box.

It’s sitting on an estimated 2.2-M oz of mineral resources in the Kobada mine in Mali, a country that is currently experiencing its own gold rush. 

HeffX-LTN’s overall outlook for AGGFF is Neutral to Bullish with a Very Bullish bias in here. Do your homework.

Have a terrific Holiday week.

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S. Jack Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.