Golden Opportunities on the Other Side of the Coronavirus

Over the course of the ongoing COVID-19 global pandemic, Stockhouse has written about investment opportunities that have proven to be recession-resistant…from cannabis to toilet paper.

But historically speaking, no safe-haven asset has ever outshined gold.

Even before the novel coronavirus outbreak, investors were piling into safe-haven assets once again as on-again-off-again trade tensions between the US and China intensified. Reports of the COVID-19 outbreak negatively impacting economic growth forecasts, earnings and stock prices, and had investors piling into safe-haven assets, precious metals, and US Treasuries…despite the latter’s record-low yields.

As a result, gold has powered ahead this year, hitting a six-year high flirting with the US$1,750 an ounce mark, as covid-19, global trade tensions, slowing economic growth and investors seeking alternatives to risk assets, including equities, boost demand. Among the bulls, UBS Group AG says prices will surge to US$1,800 over the next 12 months as central-bank easing spurs flows into bullion-backed exchange-traded funds (ETFs).

Gold for June delivery on COMEX GC00, rose $24.50 or +1.4 percent, to settle at a 2020 high of USD$ $1,761.40 an ounce on April 13th. That was the highest settlement for a most-active contract since April 23rd, according to FactSet data. Meanwhile, July silver SIN20 climbed 48.5 cents, or 3.1 percent, to $16.156 an ounce, following a 0.2 percent slide in the previous session.


Can gold predict the direction of the stock market?

One little-known ratio based on the price of the yellow metal has a good track record of doing just that, and investors should be cheered by what it’s showing right now.

Gold, of course, is one of the best-performing asset classes of 2019-2020, with a gain of 17.7 percent. Its strong performance has led to a renewed focus on any number of market indicators that key off gold trends. But with a few notable exceptions, most of them do not stand up to statistical scrutiny.

The precious metal has been one of the chief beneficiaries of the turmoil in global financial markets as Washington and Beijing spar over trade. In recent days, the Trump administration threatened fresh tariffs against Chinese goods, the yuan was allowed to sink, and the US branded China as a currency manipulator. The stand-off has boosted the odds of more easing from the US Federal Reserve.

Exploration heavyweights like Great Bear Resources (TSX-V: GBR) just closed a Private Placement Offering of CDN$33 Million, Barrick Gold (TSE.ABX) has had a very solid start to 2020 for shareholders, and Kinross Gold Corporation (TSE.K) has more doubled its share price since mid-March on the heels of its recent and robust Q1 2020 report.


The ’Nuggets’ to Look For

Stockhouse Editorial recently featured three very different gold explorers, but with a common theme connecting each – intriguing drill results, a unique business model, a first-rate management team, and past-producing properties in historic, mining-friendly jurisdictions.

Turmalina Metals Corp. (TBX) (TSX-V: TBX, OTCQX: TBXXF) is a well-funded mineral resource company engaged in the business of acquiring and exploring mineral resource properties focusing on a portfolio of gold- copper-silver-molybdenum projects in South America. In a recent Stockhouse article we dug deep into the Company’s strong exploration results, solid financing, and completion of a large project-scale field program in Argentina.


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SKRR Exploration Inc. (TSX-V: SKRR, Forum) is a Canadian-based precious metal explorer with properties in Saskatchewan - one of the world's highest ranked mining jurisdictions. The primary exploration focus is on the Trans-Hudson Corridor in Saskatchewan in search of world class precious metal deposits. The Trans-Hudson Orogen - although extremely well known in geological terms has been significantly underexplored in Saskatchewan.

And as Stockhouse recently reported it’s in an aggressive acquisition mode with a number of high potential mineral claims while positioning itself to explore in its search of precious metal deposits.



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Green River Gold Corp. (CCR) (CSE.CCR, Forum) is a relatively new player in the gold exploration space, but chosen to find new gold deposits in old-time placer mining country. CCR was founded in the summer of 2017 by a group of investors who had experience in placer mining in the Cariboo Mining District of British Columbia through a private corporation. The Company’s executive team saw near term cash flow potential in the placer mining industry and also recognized the great potential for hard rock gold discoveries based on the rich mining history of the Cariboo District. The Cariboo District was the site of the original Cariboo Gold rush starting around 1860.

In an informative and entertaining podcast, Stockhouse Media's Dave Jackson was joined by the CCR’s President and CEO Perry Little to learn more about the history and present-day gold mining exploration in the Cariboo, the Company’s long-term corporate vision, and the one-of-a-kind placer mining investment opportunity it offers.

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There’s a new gold rush going on, but investors may want to buckle up for the politically bumpy and pandemic-laden road ahead.


FULL DISCLOSURE: Turmalina Metals Corp., SKRR Exploration Inc. and Green River Gold Corp. are clients of Stockhouse Publishing.