The price of gold is moving in a narrow range during the short trading week. After yesterday’s holiday, trading in the U.S. is shortened today. Is there Black Friday gold on special offer? “Avi Gilburt has published an article this week and sees the next big rally phase coming,” says Markus Bußler. A look at the chart reveals why this is so.
Gold actually seems to be facing the end of the correction. Although a slight downward movement is still conceivable, hitting the absolute low is also associated with luck. The situation is similar for silver. In the case of mining stocks, the last few days have been dominated by large takeovers. The takeover of Detour Gold by Kirkland Lake Gold in particular is currently of particular concern to investors. “I’m not a big fan of this takeover,” says Markus Bußler. They are buying a huge gold reserve and a production of around 600,000 ounces, which will make Kirkland Lake’s production climb about 50 percent. But the status of a low-priced producer will be lost for the time being. “The next few months, perhaps years, will be marked by integration,” says Bußler. However, the outperformance of the Kirkland Lake share in recent years should be a thing of the past.
Just a few hours after the Detour takeover, the next acquisition then went through the ticker. The Australian company Evolution Mining buys the Red Lake Mine from Newmont Goldcorp: “This is a difficult project,” says Markus Bußler. Recently, there was no other bidder besides Evolution Mining. Evolution has to show how to get the mine profitable.
New company of the K92 team
A new IPO will be exciting in the coming week. The K92 team is launching a new company on the stock exchange. The areas are located in South America, but are again very high-grade. The company is named Turmalina Metals and will celebrate its stock market debut on 3 December. However, the share is still at an early exploration stage. But the first drilling results and the team indicate that a success story could develop here. You can watch the complete programme right here.