Silver Bull Resources Inc (SVBL)

[Pro-Life]

Gold and silver - don't fear the wall of worry
Lobo Tiggre - Tuesday October 27, 2020 15:29

https://www.kitco.com/commentaries/2020-10-27/Gold-and-silver-don-t-fear-the-wall-of-worry.html

Key Point: We don’t actually need higher gold prices to make lots of money.

Imagine what would happen if gold did “nothing,” fluctuating sideways for years…

That would mean $1,900–$2,000 gold for quarter after quarter after quarter.

Unless management of the world’s gold producers turn criminally stupid all at once, that would make gold miners a stellar market sector for long enough to attract a lot of generalist investors. That’s all the more so with Berkshire Hathaway’s purchase of Barrick Gold shares appearing to give “Buffett’s Blessing” to gold stocks. Those of us who already own the best producers would be well rewarded.

There’s been little money spent and fewer major gold and silver discoveries made for years. Larger companies will have to take over smaller ones that have made economic discoveries. That wave of takeovers has been held back by COVID-19 this year, but I think that will just make the tsunami all the bigger when it does arrive. Those of us who already own the most likely takeover targets should make a bundle.

Such a stable, relatively high gold price environment would make many marginal projects more robust. Better yet, it would turn already robust projects into prospective cash geysers. Such advanced exploration and development stories should deliver in spades for those of us who already own shares—even in a flat market.

Success in production and development companies would provide the cash needed to fund more high-quality exploration plays. Mines are, by definition, self-depleting assets. All miners know they must explore (or buy other companies that do it). It’s either that or they mine themselves out of business. Even if gold went nowhere for years, I think we’d see an explosion of exploration such as we’ve not had for years. Those of us who own the best explorers would be well rewarded in due course.