04. May 2021 | 06:59 CET
NIO, Goldseek Resources, VISA - Sell in May...and buy Gold and Bitcoin!
Stock markets are up, along with global sovereign debt levels at historic highs. The central banks, which should take preventive action against rampant inflation, currently see no threat and continue printing money. Now comes the historically worst stock market month of the year. What to do? There are two alternatives to protect against inflation and capital loss: Put at least a small portion of your assets in cryptocurrencies like Bitcoin or Etherum. And a more significant portion in the crisis metal gold.
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ISIN: US62914V1061 , CA38150J1066 , US92826C8394
"[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited
Goldseek Resources - At the center of the big ones!
Gold is becoming more and more attractive due to the fundamental conditions. Inflation is rising due to the excessively expanding money supply, driven by increasingly large bailout packages. The shortage of raw materials and thus further increasing consumer prices do the rest. An investment in physical gold or currently "still" very favorably valued gold mining shares is the only alternative in the long term to counteract this devaluation of money.
The still young Canadian gold mining Company Goldseek Resources has put together a more than impressive portfolio. The management is acquiring properties in mining-friendly areas, exclusively in the provinces of Ontario and Quebec, located in the vicinity of larger gold producers. The goal of the experienced management is to search the purchased land for gold, carry out test drilling and thus make the projects even more interesting for a takeover - ideally by the neighboring gold producer. For example, the Hemlo camp in Ontario is a full 4km from the Hemlo mine operated by Barrick Gold. The other 4 projects currently underway are also surrounded by first-class neighbors. The Detour Gold Trend is drilled next to Wallbridge Mining, and Urban Barry is drilled next to Osisko Mining and Bonterra Resources. Osisko Mining also has a mine next to the Quevillon project.
It should be emphasized that drilling programs are currently underway at all 5 sites and are fully funded for the entire year. Goldseek Resources could already report on two positive pieces of news in the past weeks. The Company said that they identified 4 new target zones in its recently acquired Val-d'Or Nord concession area. According to CEO John Deluce, after these first promising results, the Company is anxious to start drilling in the summer. Furthermore, a fifth target zone has been identified within the Horizon project on the southern boundary of the concession area. This zone extends partially to Barrick Gold's Hemlo property.
We expect the positive news flow to continue throughout the year. Currently, Goldseek Resources is valued at only CAD 7.0 million. If a major picks it up, the low prices will be a thing of the past.
VISA - "Bitcoin is digital gold"
The leading cryptocurrency Bitcoin, had to catch its breath briefly in recent weeks to make another attempt at a new all-time high. Currently, money continues to flow into the crypto market, so higher quotes should only be a matter of time. Many, especially the younger set, see cryptos as the "currency of the future." Even veteran investors like Warren Buffett are unlikely to dissuade them from their opinion. Buffett and his congenial partner Charlie Munger recently called bitcoin "rat poison squared" and consider it a speculative bubble that will inevitably lead to a nasty end.
The credit card provider VISA sees it differently than the Berkshire Hathaway makers. Like PayPal recently, VISA wants to give customers and merchants access to cryptocurrencies. The Company's CEO believes cryptocurrencies will become mainstream in the near future. Thus, he wants to enable the purchase and sale of bitcoin with VISA. In addition, the Company is working with partners so that Bitcoin can be converted into a fiat currency. By doing so, the US wants to enable any of the 70 million merchants to accept Bitcoin as a payment method. The news about the installation of the future currency was well received by investors. As a result, the price rose to a new all-time high of USD 233.70. It has now almost tripled since 2017.
NIO - Chip shortage hits hard
The delivery figures for April 2021 are causing disillusionment at the Chinese electric car manufacturer NIO. The Company reported a further drop in sales compared to the previous month, the second one this year. Compared to the same period of last year, however, there was still a plus of a whopping 125.1%. The 2% decline compared to the previous month is the currently prevailing chip shortage and the supply of batteries, which in some cases has led to delays or even production stops.
The Company also expects difficult conditions for the remaining months due to the shortage. Therefore, NIO plans to reduce production capacity from 10,000 units previously to 7,500 vehicles per month in the second quarter of 2021. Chart-wise, the stock is currently forming a bottom in the USD 40 area. Breaking above the resistance at USD 43.13 would significantly brighten the chart picture.