Historic Month For Stocks Also Sees Flight To Gold
April was one of the best months in recent history for stocks. While this may have echoed strength for your traditionally strong sectors, there are other things to factor in. These “other things” could mean that gold prices are just getting warmed up. In turn, we could also see more excitement for gold stocks.
While the price of gold traded in a relatively tight range over the last few weeks, that hasn’t helped negate the fact that the precious metal is having one of its best times in the market. In January, gold prices sat around $1,570 and have finally broken above $1,780 for the first time in years. Over the last few weeks, however, gold prices have pulled back from highs. But what we might be seeing right now is a new base for gold prices and a new base for certain gold stocks as well. One gold stock we’ve watched closely may have followed suit, ready for May.
IMC International Inc. In Focus For May: Is A Potential Gold Rush Ahead?
While some penny stocks in 2020 saw short-lived runs, some of the biggest and most consistent moves came from gold penny stocks. It all began as the economy started shutting down across the globe and recessionary fears started to grow. This year we decided to issue our first “Gold Stock Alert”: IMC International Mining (OTC:IMIMF) (CSE:IMCX).
On April 2, IMC International Mining (OTC:IMIMF) (CSE:IMCX) officially announced the closing of this long-awaited, multi-million-dollar acquisition of Thane Minerals and what IMC believes to be a promising property, Cathedral in northern British Columbia. And while IMC International could have benefited from the rise in the price of gold, it has also attracted the attention of the market for reaching other milestones as well.
- Apr. 6: IMC International Begins Geochemical Program & Engages CME Consultants Inc.
- Apr. 13: IMC International Begins Analytical Geochemical Program & Sends Rock and Soil Samples for Lab Testing
- May 4: IMC International Mining Corp. Announces Flow-Through Share Brokered Private Placement of up to $500,000 Led by Gravitas Securities
Initially, we saw IMIMF with a potential level of resistance around $0.40-$0.41. This eventually was seen as a new support level during the early weeks of April. As many of our long-time members have seen, IMIMF managed to rally as high as $0.73 but like most stocks with big rallies, there are periods of profit-taking. The long and short is that nothing goes up in a straight line and no stock will go up forever. The next thing to look for is where is the “new potential support”?
If you look at the last few weeks of trading, IMIMF has managed to hold the line around $0.45. Considering that gold prices have started to find their own “new potential support” levels, it makes sense that many gold stocks, including IMC International have seen a sideways trend in the market. Keep in mind, though that there’s something going on right now that could see more excitement in the gold market and it has everything to do with central banks and the government.
Are Gold Prices Set To Rise Again?
While the price of gold traded in a relatively tight range over the last few weeks, that hasn’t helped negate the fact that the precious metal is having one of its best times in the market. The SPDR Gold Shares (GLD) gained just under $1.1 billion in the last week. It has been a steady gainer this year in assets, with $5.35 billion inflows over the last month. There were just over $8.7 billion inflows over the last 3 months.
Gold has done well this year and investors continue to look for non-fiat type assets as central banks and governments expand their balance sheets. The long and short of it is governments and central banks are going on a currency-printing spree to battle a recession. Since the start of 2020, we’ve seen gold rocket to new 7-year highs and with new stimulus packages being presented, the argument for a bullish gold market could just be getting started.
IMC International Could Have Timing On Its Side
Unlike many of the “alerts” you’re probably used to, ours are a bit different. We like to alert companies that could have real potential. IMC International Mining (OTC:IMIMF) (CSE:IMCX) is a junior exploration company that has quite literally just completed a multi-million dollar acquisition of a company, Thane Minerals, and its Cathedral Property. When it comes to mining and gold stocks, the real excitement comes as new findings are reported on, during phases of exploration and drilling. What’s more? Even in its early stages, IMC International is positioning itself in 2020:
- The global economic situation is supportive of a bullish gold market & gold prices are soaring
- During times of gold rallies, gold penny stocks tend to outperform the rest of the sector
- IMC International Mining (OTC:IMIMF) (CSE:IMCX) has completed a multi-million dollar Thane Minerals acquisition
- IMC International Mining (OTC:IMIMF) (CSE:IMCX) is now awaiting results from over 460 samples submitted for lab testing
- New Chairman, Greg Hawkins doesn’t put his stamp of approval on just any property. Not only does he have decades of experience, but he has also built companies that were part of at least 4 major mining company acquisitions that were collectively worth more than $2 billion in deal size.
Now the focus is back on gold and, of course, junior gold stocks. With IMC International, right now could be one of the key points in time to be watching the company and it has everything to do with the results that come back from lab testing. For these reasons, we wanted to recap on the 30,000 foot view of what IMC International has accomplished thus far. In preparation for the first full week of May, take a moment and read the full report on IMC International:
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