Goud de place to be de komende tijd met de 'Beffett-indicator' boven de 100%...
S&J.
Warren Buffett did what he said he’d never do, and that is buy gold - not the physical metal, nor an ETF, but a gold mining stock. Buffett and/or his holding company's managers chose ABX, as it is known in Toronto, or GOLD, on the New York exchange. The surprising trade is highly symbolic given Buffett’s previous fervently anti-gold public statements.
To us at AOTH, it isn’t only the fact that Buffett is investing in gold (via stocks) and seemingly ditching a long-held philosophy favoring quality companies over bullion, which doesn’t generate earnings or revenue. The timing is equally if not more important.
Buffett reportedly referenced a 2001 article in ‘Fortune’ that described “probably the best single measure of where valuations stand at any given moment.”
Known as the “Buffett Indicator,” the measure takes the total market cap of all US companies and divides it by the country’s GDP. When the Buffett Indicator is at 70-80%, it’s time to invest. When it moves above 100%, investors should take their foot off the gas pedal and consider less risky assets. Like, um, gold?
We are currently way past 100%.
New Found Gold Corp sets the table for a Newfoundland exploration bonanza
In Nov 2019, as a private company, New Found Gold Corp announced one of the highest grade most significant gold intercepts ever drilled in the province. Hole 19-01 was reported with a 19.0 meter intercept of 92.86 grams per tonne gold. The hole sparked a surge of chatter in the geological community but as a private company there was no knock-on effect in the market. However, after months of structuring and positioning, that is all about to change. New Found Gold has assembled one of the highest pedigree Board of Directors, advisory boards, and institutional and influential shareholder bases possible.
Having all the details taken care of the company came public and commenced trading August 11th on the TSX Venture exchange with the trading symbol NFG. A very impressive +$31 million raise on their listing has set the stage for a 100,000 meter aggressive 2 stage drilling program to reveal the true value of the discovery that lies within NFG’s Queensway project in the Central Newfoundland Gold Belt. The discovery and the wave of news that is sure to follow has sparked a staking rush, a flood of financing to a host of other Newfoundland explorers and a bonanza of exploration programs kicking off across the mineral belts of the province.