Golden Tag Resources Ltd. (TSXV:GOG)
A junior exploration company explores for high-grade silver deposits. The Company holds a 100% interest, subject to a 2% NSR, in the San Diego property in Durango State, Mexico.
As the global economy pushes forward full steam, demand for silver is on track to break records this year. However, silver prices have yet to jump, leaving investors with an interesting buy low silver opportunity.
There’s a perfect storm brewing, and silver is at the center of it. A post-pandemic surge in industrial demand combined with inflation-lead investment demand and a renewed interest in silverware and jewelry are driving global silver demand to what is expected to be a new record high.
A “compelling argument can be made that 2022 will be a good year for silver,” former United States Mint director and senior IRA strategist at precious metals dealer US Money Reserve Edmund Moy tells Barron’s in a recent interview. “As the global economy recovers from the pandemic, expect to see silver demand rise from the industrial sector.”
And Moy is not alone in that prediction.
In what was described as an “exceptionally promising” outlook for silver, the Silver Institute forecasts global silver demand will grow 8% in 2022, reaching a high of 1.112 billion ounces.
Drawing on research from precious metals research consultancy Metal Focus, the Silver Institute highlights industrial fabrication, including electric vehicle production, 5 G-related applications, and the worldwide push for green energy projects as driving forces behind surging silver demand.
Industrial silver demand is projected to climb 5% to a new high of 552 million ounces this year.
Some investors may recall experts laminating silver opportunities throughout 2021 as the precious metal experienced a modest demand-driven supply deficit. Ultimately, silver was one of the few commodities that failed to even come close to record highs.
But this year is different; 2021 served as a “basing and consolidating year,” says President and portfolio manager at the Permanent Portfolio Family of Funds Michael Cuggino. He believes long-term gold and silver investors now have “a good entry point,” explaining last year’s price struggles as simply “transitory.”
For those seeking an opportunity in silver, it’s not too late. Silver futures have been trading narrowly since August, but analysts at BofA predict silver prices could climb to over $30 an ounce this year.
According to Cuggino, geopolitical instability, monetary worries, raging inflation, and surging demand are priming silver prices for a breakout move.
Investor demand for silver is steadily rising; the US mint sold over 28 million ounces of silver bullion coins in 2021, up from pre-pandemic sales of 18.5 million in 2019.
If inflation remains “high and persistent, expect more investors to hedge their portfolios with some silver,” predicts Moy. However, it will be up to individual investors to decide whether that hedge includes mining stocks, ETFs, physical bullion, or some combination of the three.
Investors have been taking a shine to junior exploration company Golden Tag Resources (TSX.V: GOG).
Over the past several weeks, the Company has raised over $3.2 million, issuing an aggregate of 13,000,000 units, each comprising one share and one-half common share warrant.
The first tranche, announced January 20, 2022, issued 7,166,670 units at $0.25, grossing $1,791,667.50. However, due to strong than expected investor demand, an additional 5,000,000 units were added to the private placement.
Collectively through the first and final tranche, an aggregate of 13,000,000 units were issued at $0.25 for total gross proceeds of $3,250,000.
Strategic investor Eric Sprott remains the Company’s largest beneficiary, acquiring 4,000,000 units of the private placement through 2176423 Ontario Ltd., a corporation which is beneficially owned by him.
Mr. Sprott is an insider and control person of the Company. As such, his participation in connection with the Private Placement is a related-party transaction under the policies of the TSXV and Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions (“MI 61-101”). On September 17, 2021, disinterested shareholders of the Company approved the potential creation of Eric Sprott as a Control Person (as the term is defined by the TSXV Policy 1.1) of the Company.
Disclaimer: The company described in this article is a customer of NAI Interactive Ltd. This material is for informational purposes only and is not intended as a recommendation or offer or solicitation for the purchase or sale of any securities or financial instruments, or for transactions involving any financial instrument or trading strategy.