Yesterday gold fell below $1900 before the market open to rally back up towards $1940. We have seen a wild correction in gold this week since it approached $2100 last week. The commitment of traders report released last Friday tipped us off that the giant commercial hedgers and producers were looking towards a gold consolidation period for a few weeks. And of course that meant the same thing for silver. I talked a bit about this with David Skarica of addictedtoprofits.net in a video we posted on Youtube Tuesday.
Now Dave Skarica is also in Inca One Gold just like I am. This is a small cap gold stock running a gold milling operation in Peru. I made it my top stock pick for this month last week. The company just provided an update in a press release a few days ago. Among the highlights are:
“Total exports of US$6.7 million, consisting of 3,919 ounces of gold and 3,984 ounces of silver. Announced launch of online Gold and Silver Bullion Store, and secured refiner for minting of Inca One’s first gold bullion coins.”
“Ramped up sales teams with accelerated restart of small-scale mining sector following almost three months of Peruvian government-imposed emergency lockdowns.”
“Secured a significant, long-term supply contract for a minimum 40,000 tonnes of gold bearing material at a minimum grade of 8 grams per tonne, representing approximately 73% of the Company’s 2019 record throughput.”
David Skarica did an interview with the CEO of Inca One Gold this weekend explaining some of these details.
Inca One Gold shares have held up well during the drop in gold in the past few days as you can see from this chart.
Inca One Gold has a dual listing. Its trades as IO on the TSXV and INCAF on the US OTC exchange. I believe the dip in gold makes for a great entry point in the best small cap stocks. Inca One Gold still has a small valuation in terms of market cap and has done well during this week’s gold drop to show us share strength. I own the stock and like the chart setup here.
Disclosure: Mike Swanson owns shares of Inca One Mining. Because it is a small cap stock with a market cap of less than $100 million he has put himself in a trading blackout on the stock and will not buy or sell a share of it for at least 30-days from the date of this post. Wallstreetwindow.com, is owned by Timingwallstreet, Inc., which is being compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for Vendetta Mining. This third party paid Timingwallstreet Inc., $5,000 to produce and disseminate this and other similar articles and send traffic to them through paid advertising campaigns. This compensation should be viewed as a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only. Never invest purely based on our communication. For more on trading risks read our policy statement by clicking here.