International Tower Hill Mines (THM)

[alidare]

<Let's take International Tower Hill Mines (THM) as a good example. It may not be the best gold mine project in the world, because it has lower grade and higher cost to build and mine, but it has excellent *leverage* to the gold price. Right now, when the gold price is below $1,300, most investors see little value in it, because it will cost about $1,450-$1,500 per ounce to build the mine and then get its 8 to 12 million ounces of gold out of the ground. So right now the stock price is very, very cheap. But if the gold price is $1,700, suddenly those 8 to 12 million ounces become massively profitable to mine.

Now, I'm not predicting or expecting $1,700 gold in 2018. But if gold even breaks above $1,400 in 2018, for the first time since 2013, more and more investors and traders will begin to prepare for and anticipate $1,500 and $1,700 gold. The money will rush back into stocks like THM. They won't wait for the actual $1,700 gold price, if they see the momentum in that direction.

Keep in mind, I'm not always a gold bug or a gold bull. This past spring, I cautioned people to get out of most junior gold miners. The momentum was weak and the stock prices still had plenty of room to fall. Which they did from September to December. But now I see the sector bottoming, and the stock prices have come back down to bargain values again. So this is the time when I love to be a buyer again. THM is just one example>........

https://seekingalpha.com/article/4134080-gold-modern-world-2018-outlook