Newrange Gold Corp. (TSXV: NRG, OTC: NRGOF)
“Where Exploration INTERSECTS Discovery”
Bloomberg recently published an article titled, “Gold’s Inflation-Haven Appeal Means ‘Violent’ Run-Up May Be Ahead”, that stated that gold, like aluminum, natural gas and other commodities, may surge from inflation pressures. Will Newgrange Gold Corp. (TSXV:NRG), a gold exploration company with assets in Nevada, benefit from the rising gold prices?
Gold is used by investors as a hedge against market risks such as inflation and geopolitical turmoil. Investors looking for exposure to this safe-haven asset have several options, including investing in gold bullion directly or buying gold futures contracts. Another way to gain indirect exposure to gold is by investing in gold mining and exploration companies. Many investors see gold stocks as a liquid and low-cost option for gaining exposure to this part of the gold industry.
Bloomberg quoted David Garofalo, Chairman & CEO at Gold Royalty Corp.(GROY)., and Rob McEwen, chairman and chief owner of McEwen Mining Inc.(MUX), who both predict that when investors catch on soon that global inflationary pressures are less transitory and more intense than central bankers and consumers price indexes suggest, “gold’s inflation-protection appeal probably will send prices to $3,000 an ounce, from about $1,800 now,” according to Garofalo.
In terms of timing, Garafalo stated, “I’m talking about months… The reaction tends to be immediate and violent when it does happen. That’s why I’m quite confident that gold will achieve $3,000 an ounce in months not years.”
While many market commentators have stated in recent months that Bitcoin is the new gold for inflationary hedging, the asset, and cryptocurrency in general, sees a number of risks that are not present in gold.
Investopedia recently published an article that clearly highlights the risks of Bitcoin and cryptocurrency that hut its ability to act as a hedge on inflation. In it, the article highlights that recent high profile losses in value, security breaches, and uncertainty as a long lasting asset make the sector dangerous as a long term value hedge. Also, political risk, taxation uncertainty and the difficulty of transactions make cause greater volatility in the sector.
While gold prices have lagged behind Bitcoin, if Goldcorp’s former executives are correct, the precious metal is currently undervalued and now may be an unprecedented opportunity for an entry point.
Newrange has had a busy 2021, issuing meaningful press releases almost on a monthly basis, including the acquisition of the past-producing, high-grade Argosy Gold Mine in Ontario, senior leadership changes, and a sizable update on its exploration program on its flagship Pamlico Project.
Newrange is focused on district-scale exploration for precious metals in North America. The company’s flagship project, the Pamlico Project in Nevada contains a large-scale multi-phase polymetallic mineralizing system with multiple gold and copper targets spread over more than 5,700 hectares. In the prolific Red Lake District of northwestern Ontario, the past-producing high-grade Argosy Gold Mine is open to depth, while the adjacent North Birch Project offers additional blue-sky potential. Focused on developing shareholder value through exploration and development of key projects, the Company is committed to building sustainable value for all stakeholders.
Newrange provided us with detailed summaries of both the Pamlico Project and the company’s Ontario projects recently.
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.