Like many investors I fancy Gold to have a good 2021 and hit new highs. Although gold didn’t quite break $1,900 on the last trading day of the year, falling short by a whisker it has been edging higher and has been correcting and consolidating nicely since early August. With the economic uncertainty and substantial public funding requirements and fiscal stimulus being needed both in the US and Europe, I see Gold winding up to set new all-time high record prices in 2021. Seeing Warren Buffett supporting gold in the second quarter of 2020 was also quite significant, where Berkshire Hathaway took a stake in Barrick Gold, a leading gold mining company.
There are many gold related stocks or funds which are appealing, however I have picked 3 which I believe will result from their current share price in a good capital gain being made during 2021. These three are my picks and here is the rationale behind my investment decisions. This is my personal opinion and not investment advice.
Empire Metals
Ticker (LON: EEE)
Shares: 315m
Share Price: 3.8p
Market Cap: £12m
Empire Metals is on the verge of a very exciting period having now received approval from the Australian Foreign Investment Review Board to proceed with the acquisition of the ‘Eclipse Gold Project’ located 55km north-east of Kalgoorlie, one of the most famous addresses in gold mining. The final condition precedent is Ministerial Consent which is expected to be received shortly.
The grades reported so far indicate the potential for significant high-grade gold resource development at the Eclipse Gold Project. With the acquisition complete this will be the main focus for the company and “towards developing a standalone gold mine at Eclipse”, the grades so far indicate this could be quite special and the reason I believe there could be a good capital gain on my investment from this level. Also to keep an eye out for here is a potential cash boost which could come from the sale of the Georgian asset.
Mike Struthers, CEO, said, “With Eclipse, we are operating in what is generally considered the highest ranked mining jurisdiction globally and are developing this project in a region which already hosts numerous world-class gold mines and development assets. I am enthusiastic about our opportunity to develop a new standalone gold mine at Eclipse and I look forward to providing further…
