Ebullient Gold Shrugs off Rising Risk Appetite

Source: Reuters (4/21/11)

"Investors should be wary of calling a top to gold's price rally: It seems like all news is good news for gold."

Investors should be wary of calling a top to gold's price rally, as the ease with which it has scaled fresh peaks even in the face of recovering risk appetite shows the breadth of underlying support for the metal.

Gold's latest bull run, which has seen prices double since mid-2007, has been dismissed by some commentators as the ultimate bubble, a knee-jerk reaction to the panic that gripped financial markets after the collapse of Lehman Brothers in 2008.

Prices will come down again at some point, analysts say, most likely once the Federal Reserve makes serious moves to tighten monetary policy. But for now it seems like all news is good news for gold.

"Even though equity markets are looking very perky, for gold you still have those big macro-financial issues that the markets are grappling with," said Credit Suisse analyst Tom Kendall.

"In the Far East, particularly in China, inflation is still at the forefront of investor concerns. The U.S. dollar is there, particularly for North American investors. And in Europe, this issue of Greek debt is still playing into investors' behavior."

The extreme risk aversion that battered cyclical assets in the wake of the credit crunch has since abated, allowing world stocks to recover. Yet gold continues to climb.

Long-term inflation and further dollar weakness are both on the cards.

The dollar has struggled to benefit from the fledgling U.S. economic recovery that has lifted stocks and cyclical commodities this year. These assets are helped by doubts that major tightening in U.S. monetary policy is imminent.

"The equity and commodity markets are still very much convinced that. . .the Fed will be there to support growth going forward, and that support is likely to come from ultra accommodative monetary policy," said Deutsche Bank Analyst Daniel Brebner.

Gold Explorer Highlights 2020 Achievements and Outlook
Source: Streetwise Reports (01/29/2021)

Magna Gold Corp.'s CEO Arturo Bonillas issued a letter to shareholders outlining the firm's business and financial accomplishments in 2020 and its strategy and outlook for 2021.

Cabral Gold's channel samples at the JM target provide "further evidence that numerous high-grade veins occur within the Cuiú Cuiú district."

Explorer Completes Phase 2 Metallurgical Work for Palladium-Copper Project
Source: Streetwise Reports (01/28/2021)

Generation Mining intends to wrap up the feasibility study on Marathon this quarter.

Silver Firm Reports Q4/20 Processing, Production Numbers from Mexico Project
Source: Streetwise Reports (01/28/2021)

MAG Silver's joint venture project Juanicipio produced 230,000 ounces of silver during the quarter ended Dec. 31, 2020.

Explorer Reports High-Grade Gold-Silver Intercepts at BC Golden Triangle Property
Source: Streetwise Reports (01/27/2021)

Scottie Resources Corp. advises that the target remains open in most directions.

Golden Arrow Resources Out Exploring Again After COVID-19; Hits High-Grade Gold at Tierra Dorada in Paraguay
Source: The Critical Investor for Streetwise Reports (01/27/2021)

The Critical Investor explains why he believes "investors have an interesting opportunity to invest in a pretty derisked, undervalued and experienced explorer with three chances for success."

Junior Mining Sector 'the Best Value in the Space'
Source: Streetwise Reports (01/27/2021)

The StreetSmart Live! Broadcast on Jan. 26, 2021, focused on metals and why now is a good time for investors to be looking at them and the mining space. John Newell, independent analyst and portfolio manager, and John Feneck, mining sector expert and president of Feneck Consulting, addressed the status of the current metals market. CEOs of the three metals-focused companies comprising the Metallic Group of Companies—Group Ten Metals, Metallic Minerals and Granite Creek Copper—discussed their projects.

Shenanigans Abound: Gold, Silver and Cryptocurrency
Source: Michael Ballanger for Streetwise Reports (01/26/2021)

Sector expert Michael Ballanger explores the generational trends currently shaping investment markets, including the precious metals.

MMT Survey Helps Explorer Identify New Large Target at Ecuador Property
Source: Streetwise Reports (01/26/2021)

Aurania Resources reported that data from an ongoing Mobile MT Survey identified an extensive target at Tsenken at its Lost Cities - Cutucu Project in southeastern Ecuador.