Aging metals market sets the stage for major discoveries
December 11, 2007
Greetings investors.
Friends of this column know I’m bullish on Canadian gold, and optimistic that a major gold discovery will be made in the coming months. I have five reasons for this belief:
- We are now in the 3rd year of a bull market for precious metals. Every junior exploration firm in the world is cashed up and drilling. Do the math.
- Gold prices. Now at multi year highs, the price of bullion is fueling an unprecedented gold rush. Not only miners but just plain folks are turning over rocks in the unlikeliest places.
- Canada has a solid mining code and is pro mining. If someone makes a big discovery, the government might just let you hang onto it. Yes, there is a some exposure from various stakeholders in the regions of the country where gold tends to be found, the First Nations and the environmental lobby.
- Gold tends to be found in large quantities in Canada. Why not go where the gold is?
- As the bull market matures, the drive to make discoveries within a short time frame increases. In other words, everyone hurries up.
I also believe that such a discovery will be made in Canada’s Ontario province. I’ll explain why in later editions of The Daily BarkerLetter.
Be careful out there.
Kb
The BarkerLetter on December 11th 2007 in Commodity investing
