Muzhu Mining Ltd. (CSE: MUZU)
Creating lasting wealth by developing gold and silver properties with near-term mining potential
Earlier this week, Gilbert Chan, host of NAI500’s Metals 100, interviewed several old friends – Rick Rule, Nick Hodge, Lobo Tigger, and Gwen Preston – all of whom are celebrities in the mining industry and successful veteran investors. Although these investors have different views, they have one thing in common: they buy when no one is looking and sell when there are a lot of people around.
The hot noise in the market right now is undoubtedly in the uranium market. Since the second half of 2023, the price of uranium has shown rapid growth. on January 15, 2024, the international spot price of natural uranium had soared to $106 per pound, an all-time high since the 2007 price high. This price spike underscores the continued growth in global demand for uranium in the nuclear energy sector, as well as tensions between supply and demand in the uranium market. While many investors remain bullish on uranium, they recognize that the easiest period of making money is over. Uranium stocks may still have opportunities ahead, as company stock prices are slow to react relative to futures market prices.
And there are a lot of unloved resource species in the market right now, largely due to the fact that interest rates on the dollar are at high levels and the market is expecting the global economy to enter a recession soon. Both high interest rates and recessions are mortal enemies of commodity prices. This depressing factor may ease now that the market is expecting a possible Fed rate cut in the coming months. Once the global economy is not as bad, or there are bright spots, then certain resource commodities will perform.
And the only thing that suppresses gold is a dollar high interest rate. Before the Fed raised interest rates, the price of gold will fall, the two are negatively correlated. However, this time is different, even if the Fed has implemented a rapid interest rate hike, the gold price is still not fall, and even a mild rise. This is due to the central banks in the world continue to increase gold holdings. Data released by the World Gold Council shows that in the first three quarters of 2023, central banks bought a record 800 tons of gold, up 14% year-on-year.
Looking ahead to this year as a whole, geopolitical tensions are still tense, many countries around the world will hold elections, the Federal Reserve and other major economies may begin to cut interest rates this year, the world’s central banks or will continue to buy gold, these factors will support the price of gold to maintain a high level or further rise.
