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As Trump sets out to ‘make America great again’, gold is back on everyone’s radar, gaining on widespread uncertainty and promises of high-level inflationary infrastructure spending. For our favorite precious metal, this is a euphoric time. Gold is great again, and all-American gold—even better.
The world’s hottest mining belt right now is the U.S. state of Montana. With gold futures up 10 percent and spot prices up almost 7.5 percent in the first quarter, history is preparing to repeat itself with another gold rush.
And while the ‘Wild West’ itself has been tamed since the last gold rush, there will be nothing tame about Montana gold. The state is home to one of the world’s biggest metals bonanzas, and its Silver Star Mining District is a gold belt with massive historic Gold Rush infrastructure and what Broadway Gold Mining Ltd. (TSX-V:BRD; OTCQB:BDWYF) is eyeing as some of the most lucratively underexplored and underexploited gold territory in the world.
The Broadway dream team gets it—this is a smart move on pure American gold. But so does China. In this race to stake new claims in Montana, there is growing concern that China may get too much of a foothold here for the national security interest to stomach.
Montana will be thanking Trump for his phenomenal effect on gold. Gold thrives on chaos, and even the slight possibility of impeachment keeps gold prices up. But gold is now good in any scenario. If he remains in office, Trump will pursue highly inflationary policies, and while gold loves chaos first and foremost, inflation is its mistress.
Gold stocks are loving this. By mid-February this year, the market’s largest gold stocks saw double-digit gains. Freeport-McMoRan (NYSE:FCX), up 21 percent in January, sold an impressive 1.1 million ounces of gold in 2016 and produced a whopping 4.65 billion ounces of copper. Kinross Gold (NYSE:KGC) was up more than 18 percent in the first month of 2017, and Sibanye Gold (NYSE:SBGL), also up, reported a fivefold increase in earnings. B2Gold (NYSEMKT:BTG ) was also up 21 percent in January.
