Seeing some nice action in the gold price and on a few gold stocks over past few days. After spending a few months watching paint dry with gold going sideways, it is primed to go higher and in the last couple days it has firmed up. Another nice trend is I’m finding a few stocks with strong fundamentals, and thin offers and strong bids.
While this is happening, the USD has been pulling back. It is saying to me that whomever wins the election, interest rates will continue to stay near zero and well below inflation with next president. It is also indicating that debt will continue to go parabolic. More reasons to be bearish on the USD and ultra bullish on gold and silver.
Top Picks To Ride The Bullish Golden Wave
The Rocks And Stocks Index is a great shopping list for those wanting exposure to gold stocks. One of the picks today is a new pick, and two are from the index.
Freeport Resources (FRI.V) is a new pick that I bought some stock in a really cheap placement, and have been buying it recently as well. They are in Papua New Guinea which is not a place I generally look for stock picks. I watched K92 Mining go from a cheap valuation to its current $1.5 billion valuation. I say watched because I let the country keep me on the sidelines. In Freeport Resources I see the potential for the second coming of K92 Mining. I’m not going to go into a lot of details because I’m working on setting up an interview with management for this week and plan to dig deeper. A key reason that I bought recently is the offers putting pressure on the stock during the past couple months have dried up and bids are strong. The chart has bottomed and the bid and ask setup suggests this one is ready to rip to the upside.
Amex Resources (AMX.V) is another pick I have covered several times over the past couple years, starting when they were around 50 cents. They have the best high-grade gold discovery of the companies I follow. I love high-grade gold especially when the discovery has exceptional continuity of the high-grade gold like these guys have found in Quebec. In addition to a great discovery the stock still has a cheap valuation. Lately the offers have dried up while the stock has bottomed making them another one ready to go higher in the short term.
Azimut Exploration (AZM.V) is also in Quebec, one of my favourite mining jurisdictions in the world. They have an exciting new discovery. The stock topped in the past couple months after a strong runup, then corrected pretty hard, but lately the stock has bottomed and the offers are soft. I like their chances to deliver with their drilling and see the stock rally from here.