After gold nearly reached $1,300/oz in early May, it has been trading lower, but Gwen Preston of Resource Maven is not worried. She sees this as the correction after the big gain and believes the new bull market is intact. In this article for The Gold Report, Preston discusses three companies that offer good opportunities in today’s market.
No one knows what action the Federal Reserve is going to take with interest rates later this month. Amidst that uncertainty, interest in gold continues to build. Vancouver brokers are telling me they are getting million-dollar checks from clients who have put barely a dollar into resources for years. Mining superstars like Ross Beatty and Lukas Lundin are laying down big bets. And billionaire investors George Soros and Stan Druckenmiller are emphasizing their conviction in gold with words and dollars.
Gold momentum feeds itself. There are enough investors who believe we are at the beginning of a proper gold bull market that a pullback in the gold price works primarily to create buying opportunities in good gold equities. I want to focus on three companies that offer opportunities in this market, one in the Yukon, one in Nevada and one in Africa.
Goldcorp Inc.’s (G:TSX; GG:NYSE) bid to acquire Kaminak Gold Corp. (KAM:TSX.V) is a boon to the Yukon, an area with fantastic geology. Yukon has struggled in recent years after discoveries in the last cycle, in particular Underworld Resources’ discovery of the Golden Saddle deposit now owned by Kinross Gold, sparked an intense area play that just didn’t produce the results people wanted.
It wasn’t the rocks’ fault. Between a heady gold price and an area play, explorers got way too excited and poured money into drilling targets that were nowhere near ready to be drilled.
“Victoria Gold Corp.’s …read more