Headwinds=opportunity
Headwind1:
Recent BF violence. Alarming & deplorable? yes
will many would be investors paint all BF mines with the same brush? Yes many will.
Opportunity: most of the time there is an initial over reaction to news ( good or bad). There are many relatively very safe areas of BF where dozens of small to big miners operate. The area is too important in terms of quantities of gold.
Opportunity: maybe the BF Government will finally act forcefully & militarily in order to protect their tax base. They need do something in order to combat Islamic insurgence ( mainly on the fringes). Nothing moves governments faster than the possibility of no further capital investments ( or worse the pullout of active companies)
Opportunity: diversify your gold portfolio across multiple jurisdictions ( eg South America, west Africa, US, Canada, etc)
Headwind2:
Possibilty of a Phase 1 Trade deal between China & US. Supports stock prices and reduces demand for safe haven investments like gold.
Opportunity : SP are at or near all time highs, massive Government overindebtedness everywhere, corporate profits set to fall in YoY comparisons, longest bull market on record is on borrowed time. A quasi trade deal will NOT save the day. Once a watered down deal is announced the market will collapse after this blow- off top. Risk: Trump knows this and has to buy time until the election.
Headwind3
Gold still in a consolidation period. Could continue for another month or two or three. All gold boats falling in the meantime.
Opportunity: once finished there is likely to be a very quick SnapBack in all gold share prices. Good time to be accumulating gold equities. Gold WILL. make an attempt to take out old highs ($1900Usd) in 2020 or 2021. best leverage is in gold equities.
glta TGZ longs in taking advantage of these clear but mostly short term headwinds
MM