ARRA News Service
ARRA News Service facebook page  
News for social, fiscal & national security conservatives who believe in God, family & the USA. Upholding the rights granted by God & guaranteed by the U.S. Constitution, traditional family values, "republican" principles / ideals, transparent & limited "smaller" government, free markets, lower taxes, due process of law, liberty & individual freedom. All content approval rests with the ARRA News Service Editor. Opinions are those of the authors. While varied positions are reported, beliefs & principles remain fixed. No revenue is generated for this site - no paid ads accepted - no payments for articles. Fair Use doctrine is posted & used.
Editor/Founder: Bill Smith, Ph.D. [aka: OzarkGuru & 2010 AFP National Blogger of the Year]
Contact: editor@arranewsservice.com (Pub. Since July, 2006)
    Home Page

One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors. -- Plato (429-347 BC)

Friday, June 10, 2016

Billionaire Investors Back A Gold Price Rally In 2016

by James Stafford, Contributing Author: It wasn't so long ago that some of the more famous investor gurus were shrugging off gold as nothing more than shiny trinkets with no investment value. They were wrong. This safe haven is back, the recovery is clear, and there have been some very big changes of heart.

The biggest gold producers in the world have seen their share prices double this year. Not only are gold prices soaring, but producers are cutting costs and slimming down debt as they pave the way for gold to return to the top of the favored commodities list.

Even though gold dropped earlier in May, Thompson Reuters noted that shares outstanding for two major ETFs tracking gold rose 11 percent, and precious metals ETFs enjoyed four straight weeks of inflows in May. A ton of money is moving around here.

And thanks to an overvalued U.S. dollar, gold may have nowhere to go but up.

Gold has no upper limit on its price, and according to Harvard economist Kenneth Rogoff, speaking to the Financial Times recently, emerging economies might do well to shift all their U.S. dollar reserves to gold. Gold, he says, could be viewed as “an extremely low-risk asset” with average real returns comparable to very short-term debt.

Russia, it seems, would agree. Moscow hates the U.S. dollar and craves gold, tripling its gold holdings between 2005 and 2015.

Weak prices, stock market vulnerabilities, and a weakening currency in 2015 also led Chinese investors to buy almost 1,000 metric tons of gold as a safe haven asset.

Major Money, Massive Returns

Billionaires have certainly taken notice. They are dumping massive amounts of money into gold right now and seeing huge returns. They are now ahead of a game that has seen prices rise almost 14 percent this year—even with the recent correction.

Take George Soros, for instance, who recently invested $475 million into Barrick Gold, which has since doubled in value.

Well-known Canadian mining philanthropist-investor Frank Giustra also appears to be excited about the recovery of gold, buying close to 13 percent of a high-potential junior miner, Sandspring Resources, which is advancing a major gold prospect in Guyana.

Marc Faber, the author of the Gloom, Boom and Doom report—known to offer dreary outlooks on stocks and investments—told CNBC last week that he believes gold, oil and gas shares have “significant upside potential in 2016” as investors hope to use them as long-term stores of value.

Part of the upside potential is based on the fact that gold has gotten much smarter. Commodities downturns encourage innovation. Gold is surging in part because its miners have become much more efficient, according to Bloomberg. It's not just about more attractive exchange rates for miners outside of the U.S.

The amount companies are spending to produce an ounce of gold today has fallen by around 34 percent since 2012, the news agency says. This is what long-term billionaire investors want to see, and it's why they are comfortable putting big cash into gold right now.

In response to particularly weak U.S. job growth rate in May, the price of gold jumped by nearly 3 percent last week, and it's still maintaining this bullish attitude.

Bullion may have suffered a price dip earlier in May, but the per-ounce rate remains almost 15 percent stronger than the beginning of the year.

The first few days of June have also seen gold prices spike upward, signaling a swift recovery from mellow May and a continuation of 2016's legacy as a golden year for the namesake commodity.

While all major gold stocks have had an amazing year so far, the top three, according to ProfitConfidential, are Barrick Gold, up more than 160 percent year-to-date, Goldcorp, up more than 40 percent, and Newmont Mining, up 75 percent.

Fundamentally, Gold is Now a Great Junior Game

The first quarter of this year has made it brilliantly clear that junior miners are a good bet. Their fundamentals are stronger than ever—and this is, after all, where all the initial exploration work is done.

It's not just the major miners who are getting smarter and more efficient. The juniors have been producing at all-in sustaining costs coming in hundreds of dollars lower than the per ounce price. Operating margins have never looked better.

But the best part for the savvy investor is that everyone catches on first to the major miners, while the juniors stay off the radar, which means that while gold prices surge, there is a short window of opportunity when the juniors are selling cheap. Even so, many of them have seen their stocks double since early this year.

Sandspring Resources, for one, is focused on advancing its 100 percent owned, 6.9-million-ounce Toroparu Gold Project in Guyana. It also continues to explore its over 98,000-hectare highly prospective concession.

Toroparu is the fourth-largest gold deposit in South America held by a junior instead of a major, offering great upside with a rising gold price and as a potential acquisition target.

Other juniors could also benefit from the recovery of gold while their shares remain cheap enough to lure in new investors, including GoGold Resources, with its flagship project in Mexico; Pilot Gold, in Turkey, Utah and Nevada; or Lydian International focused on Armenia and Georgia.

What happens with juniors is that they do all the heavy lifting, and then the majors swoop in with the big money once a new discovery is ready to be mined.

While the major miners are already enjoying a stunning revival and the billionaire investors are already raking in the revenues, the juniors are the next spot on this high-speed commodities train, because this is where the real reward will be—and it just got a lot less risky.
-----------------
James Stafford is Editor, OilPrice.com contributed this article to the ARRA News ServiceOilPrice.com, the leading online energy news site.

Tags: Billionaire Investors, Back A Gold Price Rally, 2016, James Stafford, Oilprice.com To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
Posted by Bill Smith at 9:00 AM - Post Link

0 Comments:

Post a Comment

<< Home



national debt
Don't miss anything!
Subscribe to the
ARRA News Service
It's FREE & No Ads!

You Receive One Email Each Morning
With Prior Days Articles / Toons / More


Also, Join us at:
Facebook.com/ARRANewsService


Recent Posts:
Personal Tweets by the editor:
Dr. Bill - OzarkGuru
Married 48yr #Conservative #Constitution #NRALife #GunRights #USAF 22yr #military #veteran #Christian #CCOT #ProLife #TEAParty #GOP #TCOT #SGP #schoolchoice



Action Links!
Arkansas State Senators
AR State Representatives
Arkansas Governor Office
Arkansas Attorney General
Bankrupting America
US House of Representatives
US Senators
Family Research Council
GrassFire
NumbersUSA
Ballotpedia
Judgepedia
Sunshine Review


Facebook Accts - Dr. Bill Smith
Pages:
ARRA News Service
Arkansans Against Big Government
Alley-White Am. Legion #52
Baxter County Republicans, AR
Catholics & Protestants United Against Discrimination
End Taxpayer Funding of NPR
Overturn Roe V. Wade
Prolife Soldiers
Project Wildfire
Republican Liberty Caucus of Arkansas
The Gold Standard
Twin Lakes Republican Women
US Atty Gen Loretta Lynch, aka Eric Holder, Must Go
Veterans for Sarah Palin
Why Vote for Hillary (Satire)
FB Groups:
Arkansas For Sarah Palin
Arkansas Conservative Caucus
Arkansas County Tea Party
Arkansans' Discussion Group on National Issues
Blogs for Borders
Conservative Solutions
Conservative Voices
Defend Marriage -- Arkansas
FairTax
FairTax Nation
Arkansas for FairTax
Friends of the TEA Party in Arkansas
Freedom Roundtable
Let's Mine AR Lignite NOW!
Personhood Initiative
Pro-Life Rocks - Arkansas
Republican Network
Republican Liberty Caucus of AR
Reject the U.N.

Patriots
Exchange
Links

Links to ARRA News
A Patriotic Nurse
Agora Associates
a12iggymom's Blog
America, You Asked For It!
Americans for a Free Republic
America's Best Choice
America's Whatchtower
An Ol’ Broad’s Ramblings
AR Republican Assembly
ARRA Twitter
As A Matter of Fact
As The Crackerhead Crumbles
Baaad Media!
Baxter Co. GOP Assembly
Baxter County Republicans
Benton Co. GOP Assembly
Black & Right
Blogs For Borders
Blogs for Palin
Blow the Trumpet Ministry
Boot Berryism
Cap'n Bob & the Damsel
Chicago Ray Report
Chuck Baldwin - links
Citizen Pamphleteer
Common Cents
Conservative Hideout
Conservative Observer AZ
Conservative Voices
Conway Real Deal
Defeat Obama's Agenda
Diana's Corner
eGOP News
Florida Pundit
Franklin Online Outreach
Free Zone Media Center
For God and Liberty
Garland County Republicans
Greater Fitchburg For Life
Guns and Religion
Lasting Liberty Blog
Liberal Isn't Amy
Liberty's Lifeline
Maggie's Notebook
Marathon Pundit
Monkey in the Middle
NASA Satellites
No Runny Eggs
Okie Campaigns
Our Voices Arkansas
Patriot's Corner
ProLifeBlogs
Publius Forum
Randy's Roundtable
Real Debate Wisconsin
Religion and Morality
Right on Issues that Matter
Right Reason
Rocking on the Right Side
Saber Point
Saline Watchdog
Secure Arkansas
Sentry Journal
Teresamerica
Stop Obama Satire & Cartoons
The Arkansas Patriot
The Audacity of Logic
The Blue Eye View
The Bobo Files
The Born Again Americans
TEA Party Cartoons
The Conservative Citizen
The Foxhole | Unapologetic Patriot
The Liberty Republican
The Lid
The Looking Spoon
The Maritime Sentry
The O Word
The Path to Tyranny Blog
The Real Polichick
TOTUS
Truth About Obamacare
Twitter @ARRA
Warning Signs
Women's Prayer & Action
WyBlog

Editor's Managed Twitter Accounts
Twitter Dr. Bill Smith @arra
Twitter Arkansas @GOPNetwork
Twitter @BootBerryism
Twitter @SovereignAllies
Twitter @FairTaxNation


Editor's Recommended Orgs
American Committment
American Enterprise Institute
American Family Business Institute
Americans for Limited Government
Americans for Prosperity
Americans for Tax Reform
American Security Council Fdn
AR Faith & Ethics Council
Arkansas Policy Foundation
Ayn Rand Institute
Bill of Rights Institute
Campaign for Working Families
Center for Individual Freedom
Center for Immigration Studies
Center for Just Society
Center for Freedom & Prosperity
Citizens Against Gov't Waste
Citizens in Charge Foundstion
Coalition for the Future American Worker
Competitive Enterprise Institute
Concerned Veterans for America
Concerned Women for America
Curtis Coleman Institute for Constitutional Policy
Declaration of Am. Renewal
Eagle Forum
FairTax
Family Research Council
Family Security Matters
Franklin Center for Gov't & Public Integrity
Gingrich Productions
Global Incident Map
Great Americans
Gold Standard 2012 Project
Gun Owners of America (GOA)
David Horowitz Freedom Center
Institute For Justice
Institute for Truth in Accounting
Judicial Watch
Less Government
Media Reseach Center
National Center for Policy Analysis
National Right To Work Foundation
National Rifle Association (NRA)
National Rifle Association (NRA-ILA)
News Busters
O'Bluejacket's Patriotic Flicks
Open Secrets
Presidential Prayer Team
Religious Freedom Coalition
Renew America
Ron Paul Institute
State Policy Network
Tax Foundation
Tax Policy Center
The Club for Growth
The Federalist Today
The Gold Standard Now
The Heritage Foundation
The Leadership Institute
Union Facts



Blogs For Borders

Reject the United Nations

Adopt Our Troops in Prayer


Thousands of Deadly Islamic Terror Attacks Since 9/11

FairTax Nation on FaceBook
Friends of Israel
Blog Feeds
Syndicated - Get the ARRA News Service feed Syndicated!
ARRA Blog Feed

Add to Google Reader or Homepage

Add to netvibes

Add to Bitty Brouser

Add to The Free Dictionary

Powered by Blogger

Politics Blogs
Politics blog


  • How To Exchange Links!
  • Comments by contributing authors or other sources do not necessarily reflect the position the editor, other contributing authors, sources, readers, or commenters. No contributors, or editors are paid for articles, images, cartoons, etc. While having reported on and promoting the beliefs associated with the ARRA, this blog/site is not controlled by nor funded by the ARRA. This site/blog does not advertise for money or services nor does it solicit funding for its support.
  • Fair Use: This site/blog may contain copyrighted material the use of which has not been specifically authorized by the copyright owner. Such material is made available to advance understanding of political, human rights, economic, democracy, and social justice issues, etc. This constitutes a 'fair use' of such copyrighted material as provided for in section Title 17 U.S.C. Section 107 of the US Copyright Law. Per said section, the material on this site/blog is distributed without profit to readers to view for the expressed purpose of viewing the included information for research, educational, or satirical purposes. Any person/entity seeking to use copyrighted material shared on this site/blog for purposes that go beyond "fair use," must obtain permission from the copyright owner.
  • © 2006 - 2016 ARRA News Service
Creative Commons License
Creative Commons Attribution Noncommercial Share Alike 3.0 Unported License.