This black swan is going create parabolic gold moves, expect $5,000 – $10,000 gold.
Perfect Storm Headed At The Gold Market To Usher In Parabolic Moves
July 12 (King World News) – Eric King: “You’ve been in the business for 25 years, and I know you are aware of the discussions very recently on KWN about the looming gold production cliff. What do you see happening to the price of gold when we hit that production cliff and we start that dramatic dive in global gold production?”
Ivan Bebek: “For the first time in the history of the gold market we are going to see a move in the gold price that we’ve never seen before. We are going to reach levels that people have only dreamed about because of the looming gold production shortage, and we are going to see skyrocketing gold prices as we approach that cliff. You now have the perfect storm heading straight at the gold market.
$5,000 – $10,000 Gold A Reality?
In the past I’ve heard of others talking about a $5,000 to $10,000 gold price, but I wasn’t a believer until I saw this perfect storm headed for the gold market. Now I am a true believer that the price of gold could very well go to the $5,000 to $10,000 range. Eric, not only is there a looming production cliff because there have been no new major mines found in the last 7 years, but there will also be a dramatic rise in inflation. These two factors will be the strongest fundamental reasons why we will see parabolic gold price moves in the next 24 months.
Bidding Wars To Erupt
And, Eric, when I talk about the ‘perfect storm’ headed at the gold market, I would also add that the upcoming bidding wars which will break out for any new major gold deposits found are going to be legendary. The bidding wars that will erupt for those new discovers will be something for the history books. Meaning, shareholder returns in these bidding wars will be like nothing we have ever seen before.
What this means for investors who are looking to position themselves inside the gold space at this time is that it’s fine to have money invested in the mid-tier and major producers, but the big money, the really, really big money, where we are going to have historic bidding wars break out, that’s going to take place in the gold explorers that hit it big. Investors who position themselves inside these companies ahead of time will see once-in-a-lifetime returns on their investments.
Goldcorp May Lead Acquisition Binge
Not many people in the world really understand what’s happening right now in the gold sector. Goldcorp jumped out as an early leader by purchasing shares in the high-quality explorers. So they’ve positioned themselves with one of the best pipelines amongst the majors by getting access to some of the highest quality exploration projects in the world. But now we have seen other mid-tier and major gold producers following suit ahead of this acquisition binge that’s in front of us.
In fact, over 50% of the capital flowing into exploration in the last 2 years has come from major gold producers. This is significant because it is a record in terms of majors making strategic investments in gold exploration companies. This tells us that all of the major gold producers are extremely concerned about this looming production cliff because they all face the same issues.
MONSTER DISTRICT SCALE DISCOVERIES
But, Eric, this is an incredibly small market and there are very few world class gold exploration projects that will move the needle for their bottom lines, and we are excited because we have two of those so far in our portfolio. In a market where most explorers are looking for 3 million to 5 million ounce discoveries, which would be tremendous successes, Auryn is taking the big swings and going for the 20 – 30 million ounce gold districts. For companies making major discoveries that will be the equivalent of hitting the mother load because in a market that is running out of gold, district scale discoveries of 20 million or 30 million ounces of gold are how you take your share price from where it is today to $30, $40 or $50 a share.”
Eric King: “So many people are discouraged right now, but it’s very interesting that one year ago the gold price was $1,217, and today, even with the severe correction, the price of gold is trading above $1,247. And I don’t have to tell you what happened shortly after the price of gold bottomed near the $1,217 level.”
Ivan Bebek: “That’s right, Eric, there was a spectacular rally up to $1,360 by September, 2017. And we talked earlier about the looming gold production cliff and the lack of major discovery in the last 7 years. The last deposit found in the world that was over 5 million ounces of gold was Amaruq by Agnico Eagle, which happens to be right next to one of our major projects that we have in our portfolio.
If you look at the top 5 gold explorers globally, and I would put us into that category, and now we are sitting here with Auryn Resources that has one of the best portfolio of projects with incredible real estate, not only for the scale of what we might find, but also in the neighborhood where the last major gold deposit was found. If you look at our two flagship projects, if you look at scale, these are projects that move the needle for the really big producing companies of the world.
We had the luxury of receiving a major investment of $35 million from Goldcorp last year. I believe this was not only their largest investment into a junior explorer, but it was also the largest investment by a major into a junior in one transaction. The market is about to see exactly why Goldcorp made such a massive investment into our company. We have drills turning at one of the major projects and if we hit this summer at Committee Bay, all bets are off and investors will understand why that $35 million check from GoldCorp was written. At that point, Auryn might be discovering the next major gold district in the world, which will be just down the street from the last one that was discovered in 2011. We now have a portfolio of 7 projects, and our 4 biggest are the kind of projects that draw in that kind of investment.
Importantly, Eric, Committee Bay is huge. It’s the distance from Boston to New York. And along this 300 kilometers there is gold being found across the entire belt. We have a deposit in the middle of our property, the middle of the belt, that is running almost 8 grams per tonne, which is incredibly high grade. It’s a very rich gold deposit. We strongly believe that we could find multiple 5+ million ounce gold deposits in this belt. I mentioned earlier that the last 5+ million ounce mine was found over 7 years ago, and talking about discovering 2 or 3 of those in one major belt, that’s a huge opportunity.
I will add one final thing, the single best investment opportunity in the world from the mining sector is through discovery. And we are extremely confident Auryn Resources will make those world class discoveries because we have one of the deepest exploration teams in the business leading the charge on our 7 projects. In fact, the majority of our geologists were previously global geologists for Newmont Mining, who found tens of millions of ounces around the world in their careers. So when people invest in Auryn, they are investing in people and they are investing alongside some of the smartest money in the world, such as GoldCorp.
And remember what I said earlier, Eric, about the bidding wars that will erupt when these world class discoveries are made because of the looming production cliff and lack of new discoveries. That’s the blue sky for investors in our company.” Auryn Resources, symbol AUG in the US and Canada. To learn more about this exciting company simply CLICK HERE.
KWN has just released the powerful audio interview with Rick Rule discussing the gold, silver, crude oil, uranium and mining share markets and you can listen to it immediately by CLICKING HERE OR ON THE IMAGE BELOW.
KWN has also released the remarkable audio interview with London whistleblower and metals trader Andrew Maguire and you can listen to it immediately by CLICKING HERE.
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