AGORACOM Small-cap Investor Relations Blog

Sponsor: Loncor, a Canadian gold explorer controlling over 2,400,000 high grade ounces outside of a Barrick JV. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 800,000 ounces of gold in 2018. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting their Tier One investment criteria. Newmont $NGT $NEM owns 7.8%, Resolute $RSG owns 27% Click Here for More Info

Ronald Peter Stöferle’s keynote speech at this year’s virtual World Gold Forum 2020.

Unlimited quantitative easing and fiscal stimulation. Central banks and governments are on the test bench. Learn why this is the perfect breeding ground for gold, commodities and mining stocks.

A golden future lies ahead!

Topics: Black Swan or Grey Rhino?

In recent weeks, the news filled with Corona, experts and governments have been throwing around the term Black Swan. The Black Swan is a metaphor that describes an unpredictable, rare event that causes great harm. Ronald Stöferle, on the other hand, is of the opinion that the corona virus is more like a grey rhinoceros. A rare but highly probable but neglected event.

Central banks and governments under scrutiny We are in the process of making history. Never before has there been a crisis in which so many monetary and fiscal interventions by central banks and governments have been made in such a short time. Ronald postulates that the central banks, as they have already announced, will do everything possible to prevent deflation. The markets and the population should therefore be prepared for anything. From unlimited quantitative easing, to ideas like the universal basic income.

Gold on the rise again. There is a general change on the markets. Gold has reappeared on the scene. Ronald shows how gold has done exactly what it is supposed to do. Stabilize your portfolio and protect your assets from a drastic decline in stock values. He also postulates that the gold price has already reached its lowest point. Inflation or Stagflation Even if it was in fashion to declare inflation dead, it seems to be returning. Ronald explains that our in-house inflation indicator shows that inflation could be about to make a comeback. The markets are unlikely to feel this until the curfew is lifted and there is suddenly much more money in the system.

Gold stocks back in the bull market The comparison between the Great Depression and now does not seem to limp. Ronald postulates a good environment for gold mining stocks, as was the case during the Great Depression. The Golden Future Gold has returned to the public eye. We are currently in the public participation phase.

As Ronald explains that current climate, both by the massive interventions and the general crisis, are the perfect breeding ground for gold and commodities in general.

Time stamp: 2:40

Agenda 3:30

The black swan, which is none 8:54

(When) Will confidence in central banks begin to erode 15:26

Gold: What the 7th sense of the financial market has to tell us 20:55

Inflation and Stagflation – The Ultimate Craft of Pain 27:08

Gold mining shares 29:31

The golden future 36:45

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Sponsor: Loncor, a Canadian gold explorer controlling over 2,400,000 high grade ounces outside of a Barrick JV. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 800,000 ounces of gold in 2018. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting their Tier One investment criteria. Newmont $NGT $NEM owns 7.8%, Resolute $RSG owns 27% Click Here for More Info

• The analysts noted that the Federal Reserve: “Can’t print gold.”

(Kitco News) – Bank of America commodity analysts just keep getting more bullish on gold as the weeks go by.

The bank said in a report last week that gold ’s technical momentum could drive prices to an all-time high this year; in a new report published Tuesday, analysts have officially increased their bullish outlook, saying that gold prices could hit $3,000 within 18 months, a 50% increase from its previous forecast

Along with increasing its 18-month target, the bank said that it sees gold prices averaging $2,063 an ounce in 2021.

“As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure. And investors will aim for gold,” the analysts said.

Although a strong U.S. dollar and weak physical jewelry demand in Asia could be headwinds for the gold market, the analysts said that the Federal Reserve has provided enough momentum to propel investment demand and prices higher.

Economists at Bank of America have warned that the Federal Reserve’s balance sheet as a percentage of GDP could rise 20% to 40% this year. According to reports last week, the Federal Reserve’s balance sheet hit a record high of $6.42 trillion, up more than 50% from levels reported during the first week of March.

The analysts noted that the Federal Reserve: “Can’t print gold.”

“Beyond traditional gold supply and demand fundamentals, financial repression is back on an extraordinary scale. Rates in the US and most G-10 economies will likely be at or below zero for a very long period of time as central banks attempt to push inflation back above their targets,” the analysts said.

Although investor sentiment has improved slightly during the last few weeks, the bank’s analysts said that there is still more bad news ahead. They noted that economists are forecasting a 30% decline in the U.S. GDP in the second quarter as the economy was grounded after all non-essential businesses were closed and citizens were requested to stay at home.

“As central banks rush to expand their balance sheets and backstop the economy, a lot of risks could effectively be socialized, boosting the appeal of gold,” the analysts said.

Weak economic growth does not bode well for equity markets, the analysts said, adding that this will be another factor supporting higher gold prices.

“The positive equity/gold correlations are a possible sign that equity markets may not have fully bottomed and that the gold market has further room to run, in our view. The trigger here could be an extension of lockdown restrictions over the next few weeks,” the analysts said.

Despite the strong bullish sentiment, Bank of America does see some risks in the marketplace. Along with weak physical demand, the analysts said that central bank gold purchases are expected to slow this year.

They also noted that lower market volatility could also weigh on gold prices.

Source:https://www.kitco.com/news/2020-04-21/Bank-of-America-calling-for-3-000-gold-in-18-months.html