Bullfrog Gold, Owner of The Historically Prolific Barrick Gold Lands, Believes The Price of Gold Will Keep Going Up. And how you can ‘hedge your bets’... just in case.
Goldman Sachs has been predicting the demise of gold for the past few years… and I believe they have it all wrong.
An article I found on CNBC.com earlier this year said that: “Last summer, [Goldman Sachs] predicted gold would fall to $1,000 by the start of 2016. The firm reiterated that call in its latest commodities report (March 7), saying it thought gold would fall to that key level within 12 months.” http://www.cnbc.com/2016/03/22/why-goldman-is-wrong-about-gold-commentary.html
As of this writing, the price of gold was $1,353.10 www.apmex.com/spotprices/gold-price
So clearly… Goldman got it wrong… again!
Goldman said: “The rationale is that gold is primarily a "safe haven" asset in times of economic and market turmoil and that the U.S. faced very little recession risk — so there is no reason for investors to seek the shelter of gold.”
But at the same time, Goldman Sachs was predicting the price of gold would weaken, they hedged their bets, and raised its gold price forecasts, citing stronger net speculative positioning and a recently weaker U.S. dollar. http://www.cnbc.com/2016/05/11/goldman-raises-gold-price-forecasts-on-weaker-greenback.html
The CNBC article which took an opposite position to Goldman, reasoned that:
"...gold bears fail to grasp what really drives the price of gold — and what has caused it to surge more than 15 percent so far in 2016. Gold is not merely a "safe haven" asset. Rather, it is the best form of money known to humankind because of its scarcity and indestructibility."
They forcefully summarized their differences by saying: "Gold is surging in this environment because citizens across the globe are facing a huge loss in the real purchasing power of their savings."
Clearly… smart investors are still investing in and believing that gold will continue to rise...
But is there another way to take advantage of the rise in gold without investing in gold itself?
The answer is yes.
How?
Investing in publically held gold mining companies... As an example... Bullfrog Gold Corp (OTCQB: BFGC) http://www.bullfroggold.com/
Bullfrog Gold Project, Nevada
The Bullfrog Gold Project is located in the prolific Walker Trend about 120 miles NW of Las Vegas, Nevada and has excellent infrastructure. Barrick Gold Corp. (ABX) produced 2.1 million ounces of gold during the 1990’s from the main Bullfrog open pit, the northern one third of which is now controlled by the Bullfrog Gold Corp. The Company's lands also include the entire Montgomery-Shoshone (M-S) deposit, from which Barrick produced an additional 220,000 ounces of gold.
Investing directly into Bullfrog is a smart way for those who already own gold to hedge their bets. Owning stock in a gold mining company gives you a 2nd ‘bite at the apple’. As the price of gold increases, so should the company’s value proposition AND even if gold takes a downturn, the company’s trading value need not necessarily take a step back. The company has a large profit margin on every ounce of gold it produces and should still be a strong performer even in the event that the price of gold itself falls.
The company is at the stage where the ‘green pastures’ are still in front of them… always the best time to invest in a company.
Basically, here is the elevator pitch...
Bottom line is that their cost to produce an ounce of gold is less than $20/oz. as of July 8, 2016… and Bullfrog is looking at mining somewhere in the vicinity of close to a half a million ounces… at a profit of about a thousand dollars and ounce!
Bullfrog has acquired lands that have in the past, produced literally millions of ounces of gold. The first claims were worked back in the early 1900’s with picks and shovels, then again in the 1980’s and 90’s with modern equipment and solutions. Then it laid dormant. Until the team at Bullfrog saw an opportunity.
With the price of gold rising steadily (over $1,300/oz. at this writing) they saw that they could acquire a lot of long inactive but previously productive lands for pennies on the dollar.
The “trick” is that not only did they pick the right lands, and bought them way below market.
Here are 10 Reasons why investors should watch Bullfrog Gold Corp – A company run by long time industry insiders
1. The market for gold has been over performing industry projections. As stated above, “Gold is not merely a "safe haven" asset. Rather, it is the best form of money known to humankind because of its scarcity and indestructibility.”
2. The lands held by the company have historically been very prolific. The Bullfrog Mining District ("District") hosts an enormous epithermal gold system from which Barrick Bullfrog Inc. ("Barrick") produced 2.3 million ounces of relatively high grade gold from open pit and underground ores during the period 1989 into 1998.
3. The Company believes that the lands held by it, still contain significant reserves. Remaining mineralization in and around Barrick's mines was estimated by the Company to contain 470,000 ounces of gold averaging 0.89 ounces per ton. See press release of April 11, 2016. The Company believes this mineral inventory supports an open pit mining and heap-leaching project under current market conditions. Also, the Company's lands have strong potential for expanding known mineralization as well as discovering new zones.
4. The potential profits are still attainable even of the price of gold retreats. With the price of gold rising steadily (over $1,300/oz. at this writing) the Company saw that it could acquire a lot of long inactive but previously productive lands for pennies on the dollar… and make a very significant profit on each ounce of gold that produced. Bottom line is that, in today’s marketplace, their cost to produce an ounce of gold at less than $20/oz. (as of July 8, 2016)… should produce a profit of about a thousand dollars and ounce!
5. The lands are “shovel ready”. The Company is not aware of any environmental, permitting, legal, taxation, socio-economic, marketing or other circumstances that may materially affect or delay the Project development and operations, in any way. Not only did they pick the right lands, and bought them way below market, they also were spared having to spend millions in infrastructure. For example, the Company obtained or has access to all of the previous owners extensive project database, including 157 miles of exploration and development drilling. This amount of drilling alone would currently cost more than $40 million.
6. The Company is financially solid. A debt obligation of more than $2.8 million was recently eliminated, thereby enhancing the Company's balance sheet and its ability to fund and advance the Project. See press release of July 6, 2016. The Company now has less than $500,000 of debt, which is anticipated to be paid off during the next few months.
7. The Company has an excellent relationship with the local government & community. Infrastructure in the Town of Beatty adequately supported Barrick's project and will also serve the Company's proposed activities and operations. Beatty is less than 4 miles from the Project, has a population of 1,000 people and serves a large area with amenities, food, lodging and services. The Bullfrog area near Beatty in Nye County, Nevada provides an excellent venue for resumption of mining.
8. There is existing access to the sites. A paved Nevada State highway crosses the Company's southern claims. Existing access roads to the Montgomery-Shoshone ("M-S") and Bullfrog pits and much of the property only need minor maintenance to facilitate and sustain Project plans.
9. There is existing access to water and electricity. The high voltage electrical transmission line and sub-station site installed by Barrick is readily available for resuming production operations. The Company controls Barrick's current water rights and ample water can be sourced immediately below the Bullfrog pit and several wells in the area.
10. Waste haulage is not needed. Mining the Bullfrog and M-S pits could be sequenced to backfill nearly all waste in the Bullfrog pit, thereby significantly reducing waste haulage costs and avoiding additional large waste dumps having associated environmental impacts.
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