Gold Digger: Investors take note — gold prices always bounce hard in January

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For goldies, 2020 was a year when good news was rewarded, and great news celebrated.

The precious metal has gained about 22 per cent year-to-date despite treading water since mid-August.

And there’s a strong chance 2021 will start off with a bang.

No one really knows why, but the gold price has increased every January for the last nine years running.

That’s good to know. But there are actually far better reasons to buy and hold gold than betting on whether the metal will make it 10 out of 10 in January 2021, says Bullionvault research director Adrian Ash.

“It won’t matter much if gold doesn’t rise in dollar terms next month (there’s no relation between gold’s January performance and the rest of the year, and not for silver either, nor platinum,” he says.

“With government deficits surging worldwide as central banks squash interest down to and below zero, the case for owning a little indestructible rarity could hardly be clearer.”

Merry Christmas and a Happy New Year.

Winners & Losers

Here’s how ASX-listed gold stocks performed December 21 – December 24 [intraday].

Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:

Small cap highlights

Middle Island Resources (ASX: MDI) (+37%) has picked up rocks containing high grade copper at its 3,253sqkm Barkly copper-gold “super-project” in the Northern Territory.

‘Super project’ is hyperbole, as is calling this a “breakthrough maiden copper discovery”.  The company probably needs to punch in some actual drill holes before investors get too excited.

These rocks on the surface at the Crosswinds prospect graded up to 76.2 per cent copper, with mineralisation exposed over an interval of 130m, the company says.

Mithril Resources (ASX:MTH) (+29%) has projects in Mexico’s Copalquin gold-silver district.

This week, it announced high grade results like 2.22m at 34.6 g/t AuEq (32.35 g/t gold and 184.8 g/t silver) from 91.55m in first drill holes into the ‘Los Reyes’ target.

“It is very pleasing to have achieved the high-grade intercepts with the first scout holes at the Los Reyes target confirming the existence of high-grade gold-silver domains within this extensive, near-surface structure that runs 1.5km from El Cometa to Los Reyes, further building the potential for a bulk tonnage resource in this part of the district,” Mithril boss John Skeet says.

SI6 Metals (ASX:SI6) (+21%) has been trading on massive volumes over the past month or so.

This week it told investors that it had 9km of anomalous gold mineralisation on surface at the Monument project in WA.

By itself this may not mean much – surface gold can travel quite a distance — but taken with other early stage exploration methods can help explorers dial in on the original source.

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