Gold – In the Shadow No Longer


The highly impressive increase in price of cryptocurrencies has loomed large over the lustrous metal of gold for the most part of 2017, leaving investors to wonder what promise 2018 might hold for this highly favoured precious commodity.

Jordan Eliseo at ABC Bullion stated in his interview with Kitco that, “gold will continue its recovery from the bear market. We see the metal appreciating towards $1,375-$1,425 in 2018”.

While relying on pundits may seem as safe a method as relying on a 2-year old not to turn their plate of spaghetti into Picasso on your kitchen floor, the winds of sentiment do seem to be blowing in favor of an increase in the price of both gold and silver in the coming year. Gold is already trading above US$1350/ounce today.

Given that investments in cannabis and blockchain have been so popular, many junior resource investors are left with a feeling of being left behind by junior resource stocks failing to share in their counterparts skyrocketing prosperity. Paradoxically, the profits investors are accumulating in the cannabis/crypto stocks could be a boon for the junior mining sector as the profits gleaned could easily role into accumulating resource stocks.

For my part, I’ve found myself amongst the investor base screaming out for a move by the junior mining sector only to be left watching as these other sectors continue to rise to unseen heights. As the calendar continues to turn into the current year, I maintain my belief that we’ll see the mining sector begin to move in the direction we all desire. While I am neither seer nor oracle handing out predictions through crystal ball and tarot, more earthly portents can be seen in the key factors and performance analysis for those who are watching.

One thing the mystical arts and predictive investing share in common, however, is unpredictability. In the case of investing, that unpredictability manifests in the stock market.

One indicator that reveals itself as a key factor to gold’s performance is the value of the US dollar. Casting our eye back to 2017, we can see that the greenback suffered a decline of nearly 10%. The reasons for this are legion, and should it continue as I believe it will in light of the current political and economic uncertainty, gold will continue to rise in line with the increased buying power found in foreign currencies which will put it in easier reach of more investors. As demand rises, so does the cost of the resource.

Speaking of demand, we need to take a look at supply, its counterpart to find another indicator. Mining technology hasn’t really advanced much in the past year, and scarcely more in the few years past. This means that gold will probably continue to come in at a predictable production cost, while demand for it upswings. High demand and diminishing supply? That’s a recipe for rising prices.

The next important element to consider is US Federal Policy – the politics of that country have an inordinate affect on the price of gold. Fiscal tightening tends to have the result of decreasing the value of gold, but this past year hasn’t shown that trend to be holding out. Three interest rate hikes over a single year and gold has continued to increase in value. Perhaps if you’d like to thank someone for these circumstances, you might feel moved to write a letter of thanks to the US Government and their Commander in Chief, Donald Trump. So long as political unrest continues in the US, this commodity is bound to continue rising in value. Add in the recent cuts to the corporate tax rate and equities and gold may both see a rise in tandem with inflation and interest rates, an occurrence rare enough to be nearly unique. Investors may be inclined to seek a place to invest their profits made in ganja and crypto stocks, and where better than the old reliable that is junior gold stocks?

Whatchoo talkin’ about Willis? You’ve already told me that gold should continue to rise! Remember the crystal ball phenomenon, predicting the timing is very difficult, though time coupled with the technical analysis reveals that the patient investor should see great rewards.

Ultimately it comes down to this. Whether you’re looking for evidence that the value of gold will rise or decline, you’ll find it if you look hard enough. Predictions exist that gold will tank, and other predictions have been made by experts that indicate it may rise to a value of $5000/ounce. In light of the key indicators mentioned above I have every reason to believe the increase should continue into 2018.

This could very well be the year for junior mining stocks to reward the patient investor. As always, do your own due diligence before making any investments – the informed investor is a wise investor.


Happy Investing!


Dr. Kal Kotecha




© 2010 Junior Gold Report and TechMoney360

Junior Gold Report and TechMoney360 Newsletter: Junior Gold Report’s and Tech Money 360’s Newsletter is published as a copyright publication of Junior Gold Report (JGR) and TechMoney360 (TM360).  No Guarantee as to Content:  Although JGR/TM360 attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. It may contain errors and you should not make any investment decisions based on what you have read on here. JGR/TM360, its associates, authors, and affiliates are not responsible for errors or omissions. By accessing the site and receiving this email, you accept and agree to be bound by and comply with the terms and conditions as set out herein. If you do not accept and agree to the terms you should not use the Junior Gold Report and TechMoney360 sites or accept this email. Consideration for Services: JGR/TM360, it’s editor, affiliates, associates, partners, family members, or contractors may have an interest or position in the featured companies, as well as sponsored companies which compensate JGR/TM360 as such our opinions are biased. We may hold potions in and trade these stocks of the companies we profile and as such our opinions are biased. JGR/TM360 and its’ owner and affiliates/associates may buy/sell and trade the featured companies from time to time. JGR/TM360 has been paid by the companies. Thus, multiple conflicts of interest exist. Therefore, information provided here within should not be construed as a financial analysis but rather as an advertisement. Conduct your own due diligence: The author’s views and opinions regarding the companies featured in report(s) are his/her own views and are based on information that he/she has researched independently and has received, which the author assumes to be reliable. You should never base any buying/selling/trading decisions off of our emails, newsletter, website, videos or any of our published materials. JGR/TM360 aims to provide information and often stock ideas but are by no means recommendations. The ideas and companies featured are highly speculative and you could lose your entire investment – consult a licensed financial advisor if you are considering investing in any of the featured companies. Subscribers/readers are encouraged to conduct their own research and due diligence. The companies mentioned are high risk and considered penny stocks that contain a high risk of volatility, therefore consult your investment advisor and do your own due diligence before purchasing. Never base any investment decision on information contained from our emails, newsletter, website, videos or any of our published materials. No Offer to Sell Securities: JGR/TM360 is not a registered broker dealer, investment advisor, financial analyst, stock picker, investment banker or other investment professional. JGR/TM360 is intended for informational, educational and research purposes only. It is not to be considered as investment advice. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the companies mentioned herein. LinksJGR/TM360 may contain links to related websites for stock quotes, charts, etc. JGR/TM360 is not responsible for the content of or the privacy practices of these sites. Information contained herein was extracted from public filings, profiled company websites, and other publicly available sources deemed reliable. Information in this report was taken on or before writing and dissemination and may not be updated. Do you own due diligence as information and events can and do change. Published reports may reference company websites or link to company websites and we disclaim and responsibility for the content and accuracy of any such information or website. Release of Liability: By reading and/or watching videos by JGR/TM360, you agree to hold JGR/TM360, its associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.


Forward Looking Statements 
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by the use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report/TechMoney360 does not take responsibility for the accuracy of forward looking statements and advises the reader to perform their own due diligence on forward looking numbers or statements.

Want the Best News?
Increase your wealth by staying informed:
Trend Alerts - Exclusive Articles - Videos
We respect your privacy.