NYSE: NGD (New Gold Inc) | NYSE:ABX (Barrick Gold)
NYSE:NGD New Gold Inc & NYSE:ABX Barricks Gold
As those that read our print material will know, we are perpetually researching precious metals markets and their role in global economics. In fact, we dare say metals research is more enjoyable for us than geopolitical research at times. Additionally those that frequently read our material will know we generally favor a more broad based / sector based approach to trading, than specific equities. We have found this to be far more pragmatic in a market lacking any real fundamentals. Time has proven us correct.
Every so often though in our research we do come across a trend whereupon our broad based sector level research reveals an individual equity that is poised to capitalize on a sector / index level trend. In our research on precious metals miners catching the first "up-draft" effect of higher-trending metals spot prices, we came across NYSE:NGD. This is an equity that we have been researching as far back as 2011/2012 during our pre-release TOC/POC phase. NGD is a Canadian based mining operation that with low per-share price represents a way for almost every investor to capitalize on a forecasted (inevitable) trend of higher metals prices. As we so often say here at Evolution, given the speed of information age that we live in, we are trading the news (and in this instance the viability of the company as well).
In other words, Evolution 4.0 forecasts quite a bit of increasing systemic liquidity flooding into anything "metal related" once the spot prices of metals break through the last bits of repression (with or without a major catalyst such as the announcement of a metals backed Chinese Yuan). Ergo, in preparation for that, those who actually know what is going on are going to be moving into significant long positions in a lot of the mining equities out there. Why? In a word, news. Yes, another of Evolution Consultings' crowd trade / news trade. The idea is to be there before the crowd to catch the upward momentum. In fact, we smile because its one of the few signs of pragmatic fundamental economics actually working. Increased spot price of metals means increased demand for metals, ergo mining companies stand to benefit. Nice when that kind of stuff happens isn't it?
In any case, of the two that we have researched and reco as likely to benefit most we have NYSE:NGD New Gold Inc and NYSE:ABX (Barrick Gold). Both of these equities stand to benefit from tremendous institutional / fund level investing as well as retail investing. Additionally nearly all of the metals based ETF and ETN offerings feature some investment in the mining component of metals, as do a lot of the mining / junior mining ETF/ETN offerings. In other words, there are quite a few different capital channels in which mining equities can expect to see major progress in sooner rather than later.
