When The Gold Miners Get More Bullish On Gold The Gold Stocks Will Go Into Overdrive Instead Of Lagging Behind The Powerful Gold Bull Market
During the interview yesterday with extreme gold bull Peter Schiff, we discussed how early we are in the gold bull market. We pointed out that the lack of enthusiasm for gold stocks are a key sign of how early we are because if more investors believed in the gold bull market, then the gold stocks would be much stronger.
Peter pointed out that first we need to convince the gold bulls because if they were confident the gold stocks would be more powerful. Some of the key gold bulls are executives of the gold miners and even they don’t seem to get the strength of gold.
Recently, I watched interviews with Mark Bristow from Barrick Gold and Clive Johnson from B2 Gold. Both were asked why they don’t hold gold instead of fiat currencies. Their answers were basically that they are in the business of mining gold and selling it for cash. Pretty much throwing cold water on the value of holding gold over fiat currencies.
I don’t think they have thought through the message they are sending. What it says to me is that they prefer holding fiat currencies that are constantly destroying purchasing power over gold which is doing a fantastic job of enhancing purchasing power against every fiat currency.
If they don’t get that gold is the soundest form of money, how are generalist investors and gold bulls going to gain confidence?
When it comes to Barrick Gold I don’t think they have ever addressed the legacy of their past hedging that still affects them to this day as many have never forgotten or forgiven them for how devastating that policy was for gold. By holding onto some of their gold production, they could immediately start healing that wound.
If more gold miners held gold instead of preferring fiat currencies, they would take more supply off the market that already has tight supply for physical gold. Which would drive gold even higher and juice up their bottom lines and protect their purchasing power.
I admire SilverCrest Metals as they are one of the only gold and silver miners that believe enough in those metals to hold onto them. More gold miners should follow their lead.
I would love to have Mark Bristow from Barrick or Clive Johnson from B2 Gold come on Rocks And Stocks News to defent their positions. Or Chris Ritchie from SilverCrest Mining to promote why they have the policy to sit on gold and silver. The invitations are open.
It would send an enormously bullish message to gold bulls that gold is a much sounder currency than fiat currencies. The added benefit is it would be a catalyst to seeing strong share performance for the gold miners.
In Gold We Trust.
All the best,
Allan Barry Laboucan
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