Gold Digger: Gold bull runs last for ~8 years. This one is only 18 months old
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It’s been a chaotic week for gold prices, book-ended by the US election and promising vaccine news. The latter caused gold prices to fall sharply as investors piled back into value stocks.
It has since recovered to ~$US1,880/oz.
“I think it will move back towards $US2,000 per ounce relatively quickly,” says Guy Le Page.
“We’re running out of time [but] I’m still standing by $US2,300 per ounce by early next year.”
And remember — this bull run is still young.
“If you’re a student of history, what you’ll see over the last 50/60 years is that real gold bull markets are of substantial duration,” legendary gold investor Rick Rule told Stockhead earlier this week.
“They typically last upwards of eight years, and by my reckoning we’re into this one for around 18 months.”
Structural bull markets like this one act as ‘a rising tide which lift all boats’ where gold-linked equity indexes — not just the best stocks — “still rise by “500-600 per cent” over the long term.
ASX gold stocks actually did okay this week, despite the tumult. 104 went up, 77 went down, and 36 didn’t move.
Here’s how ASX-listed gold stocks performed November 09 – November 13 [intraday].
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:
Minnow Crater Gold Mining (ASX:CGN) spiked hard Thursday on no news before paring some of those gains the following day.
In a response to the query from the ASX, Crater says other than a recent announcement regarding high indium assays in drill core “the company is no aware of any other explanation…” and so on.
That hoary old chestnut.
Last Friday Anax Metals (ASX:ANX) — formerly known as Aurora Minerals — re-listed on the ASX and promptly surged higher. That run continued into the new week.
The company has joined the ASX boards with new plan to acquire up to 80 per cent of the Whim Creek Copper-Zinc Project from VentureX Resources (ASX:VXR).
It’s also on the hunt for gold in exploration ground next door to De Grey’s (ASX:DEG) Mallina project.
The stock put on up to 40 per cent in Friday’s morning session, after gaining 30 per cent on Thursday.
Indium again. What’s going on with indium this week?