The gold price could soar to as high as US$1500/oz this year as the US dollar falls due to America’s growing deficit, according to senior analyst Gavin Wendt.
Writing in the latest edition of the Minelife resources bulletin, Wendt says the diminishing prospect of further rate rises in the US and strong buying from central banks was also driving the price of the precious metal.
“One of the most pleasing aspects of gold’s strong recent price performance is the fact that the metal has been making both higher highs and higher lows since mid-August 2018,” Wendt says.
Copper is on a tear in 2019 but it could be sign of a bigger things to come (reports Stockhead).
The problem is, when it does take off, who’s going to be ready for it?
MineLife director Gavin Wendt said the current price action reminds him of zinc prices a couple of years ago, which soared more than 250 per cent in less than two years.
Back then, it was about a looming supply deficit, but nobody knew when the pressure would actually release.
Top Melbourne fund manager Hedley Widdup from Lion Selection Group has likened current market conditions for junior miners to the early 2000’s , but has predicted a growing flow of money into the junior resource sector over the months and years ahead.
One of the world’s leading diamond analysts has re-inforced his bullish view of Lucapa, saying the company was on track to become a “globally significant producer of large high-value diamonds”.
Panmure Gordon analyst Kieron Hodgson says he was “very pleased” with what he saw on a recent visit to Lucapa’s new Mothae mine in Lesotho and was retaining his buy recommendation and 50c price target, well up on its current price of ~19c.
“In our view, Mothae is an asset that is going to deliver significant value to Lucapa shareholders,” Hodgson said.
Analysts have filed glowing reports following a site visit to Strandline Resources’ Tanzanian mineral sands projects.
Among them was Hartleys head of research Trent Barnett, who says the stock is a buy. He has set a 22c price target, representing significant upside from the current price of ~10c.
Strandline is in the throes of finalising funding for Fungoni, which is a “starter project” with low capital and operating costs and high rates of return.