Another very quiet week in the world of Tocvan, closing Friday at $0.54 on only 6,900 shares. Even more amazing, there were only 64,641 shares that traded for the entire week. Shareholders are anxiously waiting for the results of 184 rock chip samples and the start of drilling. I am still a bit perplexed that we haven't started drilling, but I am sure there is a good reason. Brodie is undertaking an intense geological survey of Gran Pilar with the collection of 541 soil samples and 184 rock samples. Analysis, interpretation, and then drilling is obviously taking time.
Soil samples have highlighted several clusters of very interesting geology with high values of gold and silver. Brodie has been a geologist for over 18 years and has openly stated in a recent interview that he has never seen such high values. For example, 21.2 g/t Au (21,200 ppb), greater than 2,000 g/t Ag, 0.62% Cu, 12.7% Pb and 2.3% Zn. This sample is within a broader zone of anomalous values that extends for over 800-meters long and 500-meters wide.
I am confident that we will soon learn more about the next steps Brodie will be undertaking to unlock the true value of Gran Pilar.
There has been a lengthy investigation by a "Major" without ever mentioning the company involved, but it does confirm to me that Gran Pilar is a special area of mineralization. There is active placer mining in the lower river basins and they continue to discover artisanal underground workings in the higher elevations.
All of these activities tell me we are in the RIGHT PLACE.
One thing I am certain of, we are at the RIGHT TIME.
I remain bullish on gold going forward into 2025 and beyond. The underlying fundamentals suggest the high price of gold is here to stay. I believe the slight correction in gold a few weeks ago is good for the next surge in price as it allows for consolidation, i.e. moving of gold from sellers taking profit - balanced by buyers who are taking a long-term approach.
The continued increase in the price of gold is driven by classic Supply and Demand economics.
The price of gold moved up steadily during the week, with gold futures closing back at $2,718 on Friday, up $45.30 US or 1.67%. Silver also pushed higher, closing the week at $31.4 US or 1.49%. The point I am stressing is this makes companies like Tocvan a very compelling investment.
The near-term prospects of bringing the previously defined area of Pilar to production, combined with the "Blue Sky" potential of Gran Pilar, makes Tocvan an excellent acquisition target.
Are we at the start of a major Bull run in gold? I am betting yes.
Here is an interesting article by Neils Christensen in Kitco from Wednesday, November 20th this week. Gold futures were pushing up more than $20 when this was published, with similar corrections throughout the week. And closing out the week with a strong surge in the price of gold and silver as I mentioned above.
Gold’s recovery from last week’s significant selloff has prompted a growing chorus of analysts to assert that the precious metal’s rally is not over yet. At the start of the week, Goldman Sachs reiterated its forecast for gold prices to hit $3,000 an ounce, and they are not the only ones anticipating record highs in 2025.
“The current drop in gold is a correction, not a reason to revise forecasts,” said Julia Khandoshko, CEO of the European brokerage Mind Money, in an exclusive comment to Kitco News.
Khandoshko said it's only a matter of time before gold pushes back to last month’s all-time high of $2,800. She added that she expects gold prices to reach $3,000 an ounce in 2025.
“Despite the current short-term fluctuations, the long-term prospects for gold remain the same. The main factors driving gold's growth, such as geopolitical tensions, the strengthening role of the East, and global inflation, remain unchanged and continue to push the price of the metal,” she said. “These trends will not be altered by the outcome of the U.S. elections. Even if short-term euphoria arises in markets like cryptocurrency, it does not change the overall trends.”
Analysts have noted that although gold saw significant gains this year, many investors stayed on the sidelines. Western investor demand only started to pick up as the Federal Reserve prepared to embark on its current easing cycle.
However, Khandoshko said that gold’s recent correction has now provided investors with an opportunity to enter the market. She added that the selloff was just a natural part of the broader cycle.
“The overall upward trend in gold’s value will continue despite temporary market fluctuations. These fluctuations should not be overreacted to,” she said.
Gold’s selloff began after Americans decisively voted for Donald Trump to be the next U.S. president. Analysts note that Trump’s proposed “America First” policies have provided new momentum for U.S. bond yields and the dollar, creating two significant headwinds for the precious metal.
Khandoshko said she is not convinced that Trump’s policies will support the dollar through 2025.
“I don't expect major changes to result from Trump’s arrival. The Fed's stance and overall inflation expectations will likely remain stable. Trump may add volatility to the market, but this won't transform the broader economic tendencies. In fact, increased volatility is not necessarily bad for gold—in conditions of uncertainty, gold will remain an attractive asset,” she said.