Things again turning the way of we gold bugs? Nigel Somerville writes...

From Fake Sheikhs to begging letters from Nigeria: the latest comedy from Lekoil HERE

I am almost speechless with rage at Bonkers Boris’ latest lockdown. There is a huge debate to be had, with professors, (academic) doctors, journalists and others all with an alternative view to the one peddled by Bonkers. But they will not be heard, are junked and even TalkRadio was removed from Youtube in an outrageous act of censorship and denial of free speech. There ARE hard questions which need to be answered. George Orwell wrote 1984 as a warning, not a blueprint. But amid all this, and all the uncertainty caused by yet another lockdown (if at first you don’t succeed, defy logic and try again) something is definitely turning my way...

Vast Resources – the bank says Not on your Nelly! The shame of Prelea and Fatty continues. Read HERE

For anyone despairing at the position of the country, I suggest a trip to Twitter to catch up with the academic thoughts of a few people, particularly including THIS account. To be clear, I am not a Covid denier, and have heartfelt sympathy for those who have tragically lost their lives – and those who are carrying scars from infection. It is serious, but censoring people and rubbishing experts who might just have an alternative strategy is absolutely not the way forward. Neither is telling porkies. As for the nonsense, Tom Winnifrith commented yesterday that even the most ridiculous junk is rising: the world really has gone mad. But something else is rising too, and that is Gold.

Mitchells & Butlers – “prudent to explore an equity capital raise”… or a ‘keep-the-lights-on’ necessity? Read HERE

Now I have believed Gold is heading higher for a long time – and certainly well before Covid-19 came along. And I would happily swap my gains for getting rid of the disease – there are more important things than profit. But Gold is rising. Now it may turn tail in the short term, but my strong view is that certainly over the next year or two it will head sharply higher. The question now is whether the gold bull has indeed resumed, or whether we will have to wait a little longer.

Read HERE: Ironveld – research report & 'no one watching o’clock' day results...

Two of my gold stock picks have headed sharply higher on the back of this. Centamin (CEY) is now up to 134p – and (phew!) above my second call to buy on the overreaction to the ground movement issues at 130p. There remains a way to go to get back to the price it was at when I first told you that the market had overreacted (168p) but it seems the turnaround is underway, which will surely be helped if Centamin can reassure in its FY trading statement. But Golden Prospect Precious Metals (GPM) has really taken off. It was my first buy tip for this year, at 53p and the shares have motored on up to above 60p. But that is not all, for Golden Prospect’s NAV has been on the rise too – the latest NAV per share figure released (as of yesterday) 71.01p. Thus the shares are still offering a tasty discount. If gold continues to rise then so will the NAV of Golden Prospect – and I suggest that the NAV will move faster. But also, as gold rises, market sentiment will see the discount to NAV close (as it always does): last August as gold reached a new all-time high the discount closed completely. My first-stop target price of £1 remains firmly in place. But with the NAV having moved sharply I am increasing my limit buy price to 65p from 60p – which would still offer you a tasty 50% at £1 per share. And that £1 could come pretty quickly.

My apology to the entire population of Wrexham, I am deeply sorry that I voted for our deceitful MP Sarah Atherton. From TomWinnifrith.com HERE

Filed under: Centamin, Golden Prospect, Lekoil, Vast Resources, Mitchells & Butlers, Ironveld

2021-01-07 15:25:42

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