Why people are flocking to gold in 2019
Everyone in the investment world is buzzing about gold right now. One of the main reasons for this is the current instability of global financial markets. In 5 of the last 6 downturns the price of gold has gone up as markets have gone down. This close relationship had lead many investors to begin to hedge their bets against the current 11 year bull run.
Visual Capitalist breaks down why billionaires are buying gold right now:
Also, according to Bloomberg, first-quarter gold purchases by central banks, led by Russia and China, were the highest in six years as countries diversify their assets away from the U.S. dollar.
The major source of financial risk in the financial markets today is currency risk. So the reason that gold is so unique as a hedge is it hedges this currency risk and acts as a currency against which all the other currencies are compared. So it is considered to be the most sustainable currency. Paradoxically, the largest holders of gold today are central banks themselves, as a group.
As well as regular buyers such as Kazakhstan and Turkey, the first quarter also saw Ecuador adding to its reserves for the first time since 2014, plus sizable purchases by Qatar and Colombia, the council said. The buyers are dominated by countries looking to reduce their dollar dependency, and are typically nations with a lower share of reserves in gold than Western European countries.
Central bank purchases have been a key support for gold, helping to offset lower demand from bar and coin investors as well as from industrial users of the metal.
BC’s Golden Triangle is heating up
The most exciting area to look at for gold speculators and investors in non other than British Columbia’s Golden Triangle. The region has a long and colourful history with regards to gold discoveries. There have been a number of companies in the region who have recently like Sun Metals, GT Gold and Brixton Gold.
During the 19th century, the Golden Triangle experienced three gold rushes, one in each of its points, beginning with the Stikine Gold Rush of 1861. Nearly a thousand prospectors began flocking to the area after Buck Choquette’s discovery of placer gold where the Stikine and Anuk Rivers meet. The Cassiar and Atlin gold rushes would soon follow.
The first official mine, aptly named Premier Gold, began operating in 1918, but it wasn’t until the heyday of the Eskay Creek and Snip mines in the 1990s that the area earned its current moniker. First discovered in 1964 by Cominco, between 1991 and 1999 the Snip deposit produced 1.1 million ounces grading an average of 27.5 g/t gold.
The Eskay Creek mine was discovered in 1988 by junior companies Stikine Resources and Calpine Resources, and would go on to become Canada’s highest-grade gold mine (49 g/t) and the fifth largest global silver producer, with a total lifetime production of more than 3 million ounces of gold and 160 million ounces of silver.
British Columbia hasn’t seen the last of the gold rush era. Higher gold prices, new infrastructure, and maturing production alongside new discoveries in the area are all combining to strongly support a new age of opportunity in British Columbia’s Golden Triangle mining district.
Today, a new exploration rush is on in the Golden Triangle. In 2017, according to a recent Association for Mineral Exploration-BC report, 40 percent of total exploration expenditure in British Columbia was spent in the province’s Northwest region, with a significant increase in drilling expenditures (up 138 percent) over 2016. The majority of the CDN$9.8 million in exploration expenditures on primarily silver projects in the province for 2017 occurred in the Golden Triangle.
For gold exploration, about 80 percent of expenditures were concentrated in the South Central and Northwest regions of British Columbia, primarily in the Cariboo gold belt and the Golden Triangle.
3.Sun Metals (SUNM.V)
2.Brixton Metals (BBB.V)
Brixton is a Canadian exploration and development company focused on the advancement of its gold and silver projects toward feasibility. Brixton wholly owns four exploration projects, the Thorn copper-gold-silver and the Atlin Goldfields Projects located in NWBC, the Langis-Hudson Bay silver-cobalt project in Ontario and the Hog Heaven silver-gold-copper project in NW Montana, USA.
The Thorn property had a significant discovery recently, the project is a 996 square km claim group located in northwestern British Columbia, Canada,
approximately 90 km ENE from Juneau, AK with the southern claim boundary located 65 km to tide water.
Some highlights from the recent discovery include:
- THN19-150 returned 554.70m of 0.57 g/t Au, 0.24% Cu, 43.18 g/t Ag, 0.55% Zn, 0.28% Pb or 1.97 g/t AuEq
- Including 277.80m of 0.86 g/t Au, 0.28% Cu, 75.28 g/t Ag, 0.88 Zn, 0.48% Pb or 3.06 g/t AuEq over 277.80m
- including 135.96m of 1.35 g/t Au, 0.31% Cu, 133.62 g/t Ag, 1.61% Zn, 0.89% Pb or 5.00 g/t AuEq over 135.96m
- As well, high-grade copper dominated intervals of 6m of 3.56% Cu, 3.37 g/t Au, 257.77 g/t Ag from 155m depth
and 16m of 1.38% Cu from 414.35m depth
1. Surge Exploration (SUR.V)
Surge has not made a big move yet, despite a large growth potential. Surge’s strength is that it is a land bank, meaning it bought strategically placed land near gold discoveries at a discounted price last year when the market was cold. Now that the gold market is heating up, Surge is in 3 great locations across BC.
The company has mineral claims totalling 26,455 hectares in BC. Surge’s main focus is on exploration and production properties for gold and copper. As can seen below, Surge has properties in direct vicinity to Sun Metals and Brixton’s recent discovery locations.
Surge has completed a major claim staking program partly adjoining the Thorn Project owned by Brixton Metals Corp. located in the Sutlahine River area of northwestern British Columbia (northern tip of the “Golden Triangle”). Brixton reported a new drill hole intercept of 1.97 grams per tonne gold equivalent across 554.70 meters including 135.96M of 1.35 g/t Au, 0.31 Cu, 133.62 g/t Ag or 5.00 g/t Aueq including 6M of 3.56% Cu, 3.37 g/t Au, 257.77 g/t Ag.
The company’s staking program acquired an area of 213 sq. km within the regionally important geological and structural trend.
Surge Exploration Inc. owns 100% of this project
*the green circles indicate proximity of Surge to other discoveries.
The Company owns 100% interest in the Tapper Lake property in the diagram above. The property adjoins the Thorn Project owned by Brixton Metals Corp. Surges’ staking program acquired an area of 213 sq. km within the regionally important geological and structural trend. A large portion of the new property is adjacent to the Thorn Project with the balance covering prospective open ground containing numerous B.C. Minfile showings withCu, Ag, Au values adjoining the boundaries of the Golden Bear Mine of Chevron Resources, a 480,000 oz Au past producer.
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