Gold Digger: Rumours about gold’s demise may be exaggerated
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It is official, the gold boom is over and it is all because of the attention that has been heaped on cryptocurrencies, particularly bitcoin.
After all, that is the conclusion reached by strategists from JP Morgan, the largest bank in the US, and they can’t be wrong right?
According to Kitco News, JP Morgan said in a note to clients this week that gold could suffer in the long-term as bitcoin is adopted more widely.
It pointed out that the Grayscale Bitcoin Trust had almost $US2bn of inflows since October while gold-backed exchange-traded funds saw $7bn of outflows during the same period.
But we might be getting a little ahead of ourselves as bitcoin currently represents just 0.18 per cent of assets while gold represents a substantially larger 3.3 per cent.
Other analysts still believe that macroeconomic conditions will continue to favour gold and its stablemate silver in 2021.
Here’s how ASX-listed gold stocks performed December 4 – December 11 [intraday].
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:
SI6 METALS (ASX:Si6) +147%
Market Cap: ~$47.7m
SI6 has taken the lead again this week. It had reported mid-week that the program of work for its Monument gold project had been approved by the Western Australian government.
This paves the way for the company to kick off drilling in March 2021 quarter.
GTI RESOURCES (ASX:GTR) +33%
Market Cap: ~$15.4m
Drilling is now underway at the highly prospective Niagara gold project where 16 new holes will be guided by multiple minerals clues.
Previous shallow aircore drilling had returned assays of up to 2.78 grams per tonne (g/t) gold.
XANTIPPE RESOURCES (ASX:XTC) +25%
Market Cap: ~$10.2m
Xantippe has elected to exercise its right to acquire the package of gold tenements in Western Australia’s Southern Cross region.
It noted that previous drilling had focused on near surface mineralisation, which indicates that a large component had not effectively tested the Greenstone Belt or adjoining prospective stratigraphy.
ANDROMEDA METALS (ASX:ADN) +25%
Market Cap: ~$604m
Andromeda Metals has intercepted high-grade gold at its Wudinna project with a top hit of 15m at 5.35g/t gold from a depth of 83m within a broader zone of 31m grading 3.06g/t gold from 69m.
This is north of mineralisation previously intersected at the Clarke prospect and represents a high-priority target for future joint venture drilling.