Aben write uphttps://aheadoftheherd.com/Newsletter/2019/Commodities-are-the-right-story-for-2019.htm
Gold
Gold isn’t important for electrification of transportation, but we continue to follow, and be bullish on, gold juniors, since they offer the best leverage to a rising gold price.
Since the stock market rout began in September, gold has seen a bump - gaining 9% between its 2018 low of $1,175.29 on August 14, and Tuesday’s spot price of $1,284.80.
The metal has also been helped by speculation that the US Federal Reserve will either hold off raising interest rates in 2019, or limit them to two raises. Higher interest rates push gold prices down, since investors prefer to park their money in bonds and other income-yielding instruments rather than gold, which pays no dividends.
The gold price is up, but investors are also grabbing as much paper gold as they can. According to the World Gold Council, holdings of gold exchange-traded funds (ETFs) were up 3% in 2018, with December being the third straight months of net inflows (more gold ETFs bought than sold).
It’s interesting to note that outflows from North American gold ETFs caused by a strong US dollar throughout 2018, were more than offset by inflows to European gold ETFs, due to concerns over Brexit.
Central banks are also backing up the truck and loading up on gold. Bloomberg reports that after a two-year hiatus, China is again adding to its gold reserves.
According to HSBC, fresh safe haven demand due to continuing concerns about equities, along with higher volatility and economic uncertainty, will push gold higher in 2019, proving that contrary to some opinions, gold is still a safe haven.
Out of the hundreds of junior gold stocks hoping to drill a discovery hole, we’ve chosen Aben Resources (TSX-V:ABN). The Canadian company has three separate projects on the go: Forrest Kerr in the “Golden Triangle” of northwestern BC, the Chico Gold Project in Saskatchewan, and the Justin Gold Project in the Yukon.
Last summer Aben focused on Forest Kerr, located right in the middle of the historic Snip and Eskay Creek mines. Drilling in the North Boundary Zone, discovered at the end of 2017’s drilling season, intersected multiple high-grade zones and precious metal values, near surface. The highest-grade zone assayed at a whopping 331 grams per tonne (g/t), or 9.65 ounces per tonne, over 1.0m, within a broader zone of 38.7 g/t over 10m.
Aben should have a very strong and early as possible start on Forrest Kerr this year. They have a lot of information to compile over the winter, five-year drill pad and drilling permits have been received, and money is in the till for their 2019 exploration program.
This is also expected to include drilling at Chico in Saskatchewan, and Justin in the Yukon. It’s important to note that unlike a lot of Canadian gold explorers, Aben is not only a winter play; it has turned into a year-round play with three very good projects.