Positioned for Discovery Just As Gold is Positioned to Perform

Published: Mon, 12/12/16

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Dear Morgan Report Readers:

As many of you are surely aware of by now, we are in a new gold bull market. This is good news for many resource investors that hung in there during some pretty trying years. But finally, resource stocks are back in favor and gold especially is hot.

I am bringing to your attention a new report that I think you need to read, featuring one specific gold stock in particular, which is poised to leverage off of gold's rise. The report is written by an up and coming newsletter writer, Gwen Preston, editor of Resource Maven.

After years with The Northern Miner and alongside Marin Katusa at Casey Research, in 2014 Gwen saw the mining markets bottoming and knew she wanted to participate in the pending rally independently and proactively. Gwen knows mining's people and projects; she understands how to turn big picture trends into specific investment opportunities.

In the first eight months of 2016 the Maven portfolio as a whole gained 94%. The top performer catapulted up 433% while the five top stocks produced an average gain of 267%. That's pretty impressive.

You need to read this report from Gwen while it's online. Read on for more or click here to get the full report now which features a company that Gwen believes is positioned for discovery just as gold is set to go.

Sincerely,
David Morgan

*****

Gold is set to go. A rate hike is imminent, but it is already priced in. And the last rate hike sparked a golden rally: the yellow metal gained 20% in two months.

The big picture is gold bullish. Trump will be hard pressed to create any economic benefits in the near term - politics are simply slow - yet he will start spending immediately, growing an already massive debt.

Spending is inflationary (heck, growth is inflationary) but America already spends $400 billion a year servicing its debt, so it just cannot afford to raise interest rates beyond tomorrow's move, especially as the debt gets even bigger.

The result: negative real rates, which is THE fundamental force that drives gold rallies. Negative real rates means you lose to inflation if you hold cash or bonds. Gold, the only currency immune to inflation, always rises to the top as the safe haven amidst negative real rates.

The only competition is from stocks, which have become a safe haven of sorts for US investors given their 6-year bull run. But six years is a long time, US stocks are overvalued on most metrics, and the strength of the dollar is making it hard for multinationals to turn a profit.

It's all lined up to fuel gold, and at the perfect time: January kicks off gold's strong season. The yellow metal reliably outperforms in the first few months of the year. So gold looks golden in the coming months, and beyond as well, amidst huge debt loads, an overdone market run, and negative real rates.

How to play this opportunity?

Depends how much money you want to make.

The safest options - paper or physical gold or ETFs of major gold miners - offer the lowest returns. Real leverage comes from discovery: when a company can announce exploration success within a rising gold market.

The company I want to introduce today offers exactly that opportunity. This is an exceptional team advancing three strong assets located in prolific and desirable gold jurisdictions. Exploration speculators are interested and once gold gets going this stock will be inexpensive no more.

Ashanti Gold (TSX-V: AGZ) Positioned for Discovery Just As Gold is Positioned to Perform

The best people in the mining industry spent the down years preparing for the next bull. They scrutinized projects, developed new geologic theories, negotiated deals for fire-sale assets, and established healthy new companies.

When the market turned, they were ready to make a new discovery. And new discoveries are behind every storied mining stock.

It's discoveries that drive the 10- or 20-bagger revaluations, discoveries that prompt premium takeover bids or acquisition battles, discoveries that create enough excitement to lift all the stocks within a hundred miles.

Discoveries might seem like they happen overnight, like suddenly a drill hole hits and it's game on. And yes, that is what happens…but to hit a successful hole takes immense prospecting and analysis and preparation.

To ride a discovery from pre-hit to multi-bagger profit, you have to identify people who are doing that background work right. If the bet works out, one discovery can turn a portfolio very, very positive.

Ashanti Gold (TSX-V: AGZ) is one such group.

This is a team whose deep connections across the mining industry enabled them to acquire projects - for next to nothing - that were simply not available to anyone else. The projects are underexplored land packages in areas that are highly prospective and of great interest to mining majors. The odds of discovery success are high and, if it happens, the mining world will be very interested in what they find.

The area is the Ashanti Gold Belt in Ghana. Half a dozen miners operate on the Ashanti Belt alone, including Newmont, Gold Fields, AngloGold, Endeavour, Golden Star, and Perseus. It is inarguably one of the most prolific gold-bearing belts anywhere in the world. There are lots of majors operating along the Ashanti, but there is not actually much exploration happening. Lots of the ground is unavailable, sitting ignored in major mining company portfolios while they focus on brownfields exploration right around their operations.

More generally, mining companies don't like exploring. Exploration is expensive and risky. Producing gold is what they like to do, and the more a mine produces and the less it costs the better.

That's why Newmont's Akyem mine is such a star for the company: it churns out 473,000 oz. gold annually at an all-in sustaining cost of just US$572 per oz.

What Newmont would love is for someone else to find another Akyem. Then they could just buy it and voila - another key asset.

Ashanti is working to do just that. To read more, click HERE now.

 


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