$10.776 billion left SPDR Gold Trust (GLD) in 2021 while $4.9 billion entered ARK Innovation ETF (ARKK) right at the peak of the biggest technology bubble in history due to the mainstream media promoting Cathie Wood as the next Warren Buffett, only for her to recklessly buy stocks like Coinbase (COIN) and Robinhood (HOOD) at outrageously high valuations to help her friends cash out of those stocks.
When the Fed raises rates from artificially low levels of less than 5%, the price of gold rallies big 100% of the time... because everybody incorrectly assumes the rate hikes will be negative for gold, but by the time they happen gold has already priced them in by bottoming at approximately 2.72% of M2 Money Supply Per Capita causing the price of gold to rally big on the news of rate hikes. Fed rate hikes only become negative for gold when the Fed Funds Rate surpasses the rate of U.S price inflation by at least 2-3 percentage points. During the period of the Fed Funds Rate desperately trying to catch up to price inflation, the price of gold always rises big no matter what the mainstream media narrative happens to be.
The percentage gains that North Peak Resources (TSXV: NPR) will make during the month of March 2022 can be best compared to the percentage gains that Blackrock Silver (TSXV: BRC) made in July 2020 because the company released initial maiden drill results with strong intercepts of high-grade gold in Nevada during a period of rapidly rising gold prices. We know gold will rise big in March and we are confident that NPR will have very strong initial drilling results. We expect NPR to rapidly surpass the market cap of BRC in the upcoming months because NPR's high-grade gold will be much closer to the surface and NPR's management team knows how to bring Black Horse into production on their own. NPR's management team has raised $3.5 billion for previous mines they developed.
Even if NPR is their least successful mining company in recent history, NPR will still rise to $16 per share, but we believe NPR will be the next gold company to make it to a Rupert Resources (TSXV: RUP) level of market cap.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 200,000 shares of NPR in the open market. This message is meant for informational and educational purposes only and does not provide investment advice.