The New Gold Boom Why the Yellow Metal Could Fly in 2021
FN Media Group Presents Oilprice.com Market Commentary
LONDON, April 9, 2021 /PRNewswire/ -- Gold mania used to just live on Wall Street. Now it lives on Main Street, and a Biden Administration promises to add multiple fast lanes, paving the way for the next stunning discovery stock to soar. Mentioned in today's commentary includes: Barrick Gold Corporation (NYSE: GOLD), Newmont Corporation (NYSE: NEM), Yamana Gold Inc. (NYSE: AUY), Kinross Gold Corporation (NYSE: KGC), Kirkland Lake Gold Ltd. (NYSE: KL).
In August, in the summer of the pandemic, gold broke above the magical $2,000 per ounce zenith and although they backed down a bit, continued to unleash a torrent of forces conspiring to fuel a furious rally. Gold mining stocks performed even better, outpacing physical gold by a significant margin.
Both the VanEck Vectors Gold Miners ETF and VanEck Vectors Junior Gold Miners ETF surged over 50%, more than 1.5x the gain by gold bullion. But the really big gains were found in the explosive junior explorers …
Canadian junior Amex Exploration is up a juicy 128% over the past 12 months and a staggering 800% over the past five years. Even smaller Starr Peak Mining (STE; STRPF) is aiming for the next big discovery and it may have even more upside than Amex, with the stock skyrocketing 300% in 12 months.
As of the U.S. presidential inauguration, gold's outlook has improved even more dramatically. Biden is about to unleash another massive stimulus package on the market--to the delight of gold bulls.
AMEX hit very high-grade gold in three distinct zones including its iconic 100% owned Perron Gold Project located in the mining-friendly jurisdiction of Quebec. But if you missed out on the mad Amex rally, don't worry…
Starr Peak could be positioned for an Amex encore. It's sitting adjacent and adjoining Amex's monster discovery. To add to this flare, a few Amex directors became early investors in Starr Peak as well.
Another massive stimulus package
In the second half of 2020, gold was beginning to lose some steam, with prices pulling back 10% from the August all-time high as a barrage of potential Covid-19 vaccine candidates gave the world hope that the worst could finally be in the rearview mirror. But that was long before Joe Biden ascended into the Oval office.