If analysts are to be believed, 2024 may be a golden year for investors. A number of factors, including conflict in the Middle East, uncertainty regarding the U.S. Federal Reserve and the value of the American dollar, and even cryptocurrency, are driving the price of gold back up toward the record prices we saw as a result of the pandemic.
Analyst Mark Jeftovic reported on December 4, 2023, that a weakening dollar is pushing gold back up toward record prices. As Jeftovic pointed out, the dollar is becoming less universal in the global economy, in part due to the negative effects of the pandemic and in part due to the changing political landscape, where adversarial nations are looking to cut ties with the U.S. economy.
Jeftovic commented, "The BRICs are already planning an alternative system, and we're seeing more transactions that were previously settled exclusively in USD being settled in alternative currencies — including gold."
Gary Wagner of Kitco also cited a weakening dollar in the case for gold stocks. According to Wagner, the value of the dollar has decreased by 0.44% in the last three days, and the index has fallen by over four points to 102.65 since November 1, 2023.
On the same day, December 4, Josh Chiat with Stockhead reported that the gold market had reached US$2046.95 per ounce and AU$3100 per ounce on the Australian market. Chiat cited several other factors pushing gold over the top, including the conflict between Israel and Hamas, which has created global uncertainty and driven investors towards "safe haven" commodities, and the anticipation that the US Federal Reserve will cut rates in 2024.
Chiat stated, "The end of a brief ceasefire and continued hopes for Fed rate cuts next year subsequently sent gold futures to US$2071 per ounce on Friday, with the London Bullion Market Association's prices to be closely watched on Monday."
McAlinden Research had a slightly more unorthodox case for gold, which argued that the commodity may be developing a relationship with Bitcoin, describing them as "complimentary assets." McAlinden stated that the two assets share many characteristics, given that they both carry value across international lines, and investors tend to pick them up when the economy seems unstable.
According to analyst Stewart Thomson at 321 Gold, we may be looking at a "golden new year" moving into 2024. Thomson commented on trends in the market, saying, "A drop to the lower trendline would put gold at the big US$2010-US$1985 support area. It's a 'must buy' zone for most gold stock enthusiasts. I call it a golden stocking stuffer. . . for Christmas 2023!" T
Thomson went on to call this upward trend in gold the sign of a "golden new year" for 2024. There are a few companies that may benefit from this.
McFarlane Lake Mining Ltd.
This month, McFarlane Lake Mining Ltd. (MLM:NEO; MLMLF:OTCQB) announced it would be resuming exploration drilling at its High Lake Property with the goal of expanding its existing gold resource int he Purdex Zone.
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The technical analyst Clive Maund reviewed McFarlane on June 12, 2023, and rated the company as a "Strong Speculative Buy." Maund examined the company's stock patterns and commented, "Within the Handle part of the Cup & Handle base, we can see that the price is being steadily shepherded higher by the Saucer boundary towards a breakout, which will occur when the price breaks above the resistance at the upper boundary of the entire pattern.
McFarlane Lake Mining has a number of catalysts to report, according to its investor presentation, including filing a permitting application for the High Lake Property.
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 25.22% of the company. According to Reuters, President and CEO Mark Trevisiol owns 15.32% of the company with 12.36 million shares, Director Perry Nicholas Dellelce owns 6.32% of the company with 11.47 million shares, COO Roger John Emdin owns 1.75% of the company with 3.17 million shares, Director Dario Zulich owns 1.54% of the company with 2.80 million shares, Director Fergus P. Kerr owns 0.28% of the company with 0.5 million shares, and CFO Charles James Lilly owns 0.01% of the company with 0.01 million shares.
Reuters reports that institutions own 18.13% of the company, as Evanachan, Ltd. owns 11.01% of the company with 20.00 million shares and Canadian Star Minerals Ltd. owns 7.12% of the company with 12.93 million shares.
According to Reuters, there are 181.63 million shares outstanding with 118.39 million free float traded shares, while the company has a market cap of CA$13.36 million and begins trades in the 52-week period at CA$0.03.
Fabled Silver Gold Corp.
Fabled Silver Gold Corp. (FCO:TSX.V; FBSGF:OTCQB; 7NQ:FSE) recently announced that it had recently announced that it had purchased the Mecatona property, located in Chihuahua, Mexico, from Kootenay Silver Inc.
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Clive Maund included the company in a list of "Immediate Buys" for potential investors. According to Maund, who reviewed the company in August of 2023, the company may represent some risk, but "it has been basing for nine months now. The duration of this base pattern to date has allowed time for the 200-day moving average to drop down close to the price so that we now have a potent tight bunching of price and moving averages."
Fabled has a number of catalysts to report, according to its investor presentation, including an exploration program planned for its Mecatona property, a maiden NI 43-101 report planned, exploration results from drilling in 2022 to 2023 set to be released soon, and a property-wide exploration program planned.
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 5.37% of the company. According to Reuters, President and CEO Peter J. Hawley owns 2.60% of the company with 1.12 million shares, and Director Luc Pelchat owns 0.14% of the company with 0.06 million shares.
Reuters reports that institutions, in the form of Palos Management Inc., owns 3.48% of the company with 1.50 million shares.
According to Reuters, there are 43.09 million shares outstanding with 40.77 million free float traded shares, while the company has a market cap of CA$2.22 million and trades in the 52-week period between CA$0.07 and CA$0.18.
Omineca Mining and Metals Ltd.
Omineca Mining and Metals Ltd. (OMM:TSX.V; OMMSF:OTCMKTS) announced on September 25, 2023, that it had finished a field program in the Cariboo Mining District as it sought out data on gold mineralization.
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When Maund examined Omineca's stock pattern, he observed that the company had been through a rough period during 2020 but that "price/volume action over the past two months looks positive and suggests that it isn't going lower and should instead start higher soon."
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own 5.7% of the company.
According to Reuters, CEO and President Thomas M. MacNeill owns 3.78% of the company with 6.72 million shares, and CFO Andrew K. Davidson owns 1.92% of the company with 3.41 million shares.
Reuters reports that institutions in the form of Sprott Asset Management LP own 5.11% of the company with 9.09 million shares.
According to Reuters, there are 178.03 million shares outstanding with 167.9 million free float traded shares, while the company has a market cap of CA$7.86 million and trades in the 52-week period between CA$0.05 and CA$0.20.
- Fabled Silver Gold Corp., McFarlane Lake Mining Ltd, and Omineca Mining and Metals Ltd. are billboard sponsors of Streetwise Reports and pay SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Fabled Silver Gold Corp., McFarlane Lake Mining Ltd, and Omineca Mining and Metals Ltd.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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