We have seen many fad stocks and crypto currencies buckle in the past few weeks, but the price of gold has held firm and is now positioning itself for a big breakout. As you can see from this chart gold has been trending sideways now over about a year and a half, but it is now getting close to breakout resistance.
There is a saying that the longer the base the bigger the next rally will be after the breakout.
Of course, commodities are floating up across the board and the inflation trend creates a fundamental dynamic for gold buyers. It doesn’t matter if rates go up, when rates don’t go up above the inflation rate. That’s what happened in the 1970’s and why gold became the best thing to buy that decade.
The top gold stocks tend to go up on gold rallies. My top stock pick for this month, Inca One Gold, reported record quarterly production on sales of over $10 million USD. It’s gold production increased by 35% quarter over quarter. According to the company’s press release:
“Inca One has recorded its most productive three-month period since achieving commercial production in February 2015.”
“For the Quarter, the Company recorded gold and silver sales of US$10.7 million, an all-time high surpassing the Company’s previous Q3 2021 sales by 10% (US$9.7 million).”
“The increase in sales was driven by the Company’s highest-ever totals for purchasing and milling in any quarter. Inca One’s ore purchasing (24,086 tonnes) and milling (23,470 tonnes) surpassed the previous calendar quarter by 34% and 35%, respectively.”
The stock is cheap because it has a market cap of less than $10 million USD. In gold bull runs almost all small cap gold stocks get to markets cap of around $25 million USD. I like buying stocks when they are this cheap.
You can find my earlier post detailing Inca One Gold by going to this page.
Disclosure: Mike Swanson owns shares of Inca One Gold. Because Inca One Gold 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 (01/04/2021). 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 Inca One Gold. This third party paid Timingwallstreet Inc., $13,500 to produce and disseminate this and other similar articles and send traffic to them through paid advertising campaigns for 30-days. 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.