October 26th, 2023 | 09:20 CEST
Coinbase, Desert Gold Ventures, MicroStrategy - Gold at USD 3,700, Bitcoin Priceless
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"[...] Internally we expect the resource to significantly grow the deeper we mine. [...]" Dennis Karp, Executive Chairman, Manuka Resources
Hard Assets vs. Fake Money
The bestselling author, who has sold a total of 16 million copies with a total of 18 books, has long been considered a Bitcoin bull and sees the digital currency as the future. In contrast, he has a negative view of the world's leading currency, which he refers to as "fake money" on X. Thus, Kiyosaki stated: "Inflation makes the poor and the middle class poorer because they earn and save in US dollars. But inflation makes the rich richer. And why? Because today's rich work for and save gold, silver, and Bitcoin."
He believes Bitcoin will become "priceless" especially when the US Federal Reserve introduces a Central Bank Digital Currency. He expects a price of USD 135,000 for Bitcoin. In the worst-case scenario of a global economic crash, it could even skyrocket to USD 1 million, according to the author and investment advisor's statements from last summer.
He is also optimistic about the precious metals gold and silver. For example, he said he expects the yellow metal to soon break through the USD 2,100 mark and then take off. "You will wish you had bought gold below USD 2,000. Next stop gold USD 3,700." For silver, on the other hand, he predicts increases from the current USD 23 to USD 68.
Desert Gold Ventures - In the concert of the big players
If the forecasts of the famous author are only partially correct, the long-suffering investors of gold and silver companies should breathe a sigh of relief. Although the gold price has only lost about 5% since its highs, large producers such as Barrick Gold and Newmont have lost more than half of their market capitalization, while smaller exploration companies have been hit much harder by the correction. Mining companies from the second and third tier act like a lever on the strike price, so they are expected to outperform significantly in the event of a long-rising gold trend.
Canadian company Desert Gold is exploring the 440 sq km SMSZ project in Mali, one of the largest non-producing land areas in West Africa. There are numerous active mines in the immediate vicinity, including those of Barrick Gold, Allied Gold, Endeavour Mining and B2Gold. SMSZ has total proven mineral resources of nearly 1.1 million ounces. Over 23 gold occurrences have been identified to date throughout the region, which will be explored and evaluated for economic viability.
Future plans call for an extensive drilling program of approximately 30,000 m, followed by an updated resource estimate. Currently, the proven estimate consists of 769,200 ounces of gold inferred and 310,300 ounces proven. At a current share price of CAD 0.035, the market value of Desert Gold is only CAD 6.83 million. Several acquisitions by major gold producers have taken place near this property in the past.
Coinbase, MicroStrategy - Breakout Ahead
Those who would like to participate in the rise of Bitcoin but want to avoid investing directly in the largest virtual currency should have MicroStrategy, the Company with the most crypto stocks worldwide, on their watchlist, in addition to the crypto trading platform Coinbase. While Bitcoin broke through the USD 35,000 mark for the first time this year, both stocks showed a double-digit performance.
Coinbase is not only benefiting from the rising Bitcoin price but also from the positive signals regarding the launch of a Spot Bitcoin ETF by BlackRock. Here, the world's largest asset manager is awaiting approval from the SEC securities regulator. Recently, Blackrock made changes to its application, which was seen in the community as a good sign between the two parties.
MicroStrategy, on the other hand, continued to add to its holdings by another 5,445 Bitcoin at an average price of USD 27,053 as of September 24. As a result, a total of 158,245 units of the virtual currency are now held in the portfolio of the software company founded by Michael Saylor. The equivalent value of the Bitcoin stake is USD 5.53 billion, with a market cap of USD 5.98 billion.
The author of "Rich Dad Poor Dad" sees significant increases in Bitcoin, gold and silver. Coinbase, the world's largest trading platform, and MicroStrategy, the largest Bitcoin hodler, are likely to benefit disproportionately from the steep rise in Bitcoin. In contrast, smaller exploration companies like Desert Gold look like a warrant on a prolonged rising gold trend.
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