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August 23rd, 2021 | 10:20 CEST

Palantir, Troilus Gold, Nikola - Protection from black swans

  • Gold
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Discussions to end the ultra-loose monetary policy of both the FED and the ECB and a reduction in monthly bond purchases are currently in full swing. Fears of possible interest rate hikes due to rising inflation recently sent the gold price into flash crash mode. In the process, the precious metal lost more than USD 100 per ounce overnight and stopped short of marking a new low for the year. Since then, the crisis currency has stabilized again and could generate a new buy signal in the short term. In the long-term, gold is likely to shine brightly again due to the current framework data.

time to read: 3 minutes | Author: Stefan Feulner

Table of contents:

    Troilus Gold - Undiscovered pearl

    A purchase of physical gold and/or an investment in promising gold mining stocks for portfolio hedging makes more than sense at current levels, even if the precious metal price from a short-term perspective still has a theoretical setback potential of an estimated 5 to 10%. Due to the Corona pandemic, the multi-billion dollar economic stimulus programs led to a further increase in the already historically high national debt.

    The economy is supposed to grow, and jobs are supposed to be secured. The monetary authorities currently regard the high inflation rates as a temporary effect due to the recovery after the lockdowns and are more or less ignored. Thus, interest rates are expected to remain at zero, and the money printing presses will continue to run. A rapid and significant increase in interest rates would drive both governments and indebted companies to financial ruin.

    In addition, the strong gold price in 2020 led to record earnings at gold mining producers such as Barrick Gold and Newmont and strongly growing bank accounts, which will be invested in attractive takeover candidates in the near future. One undiscovered pearl is the exploration company Troilus Gold. The Canadian mining company plans to become a gold producer by the end of 2023 at the latest. The place of action is the Troilus mine of the same name in the leading mining district of the Canadian province of Quebec, where the Company owns strategic properties covering an area of 1,420 square kilometers. Between 1996 and 2010, 2 million ounces of gold and around 70,000t of copper were produced there before the mine was shut down for cost reasons.

    More than four years ago, the experienced management around the CEO of Troilus Gold, Justin Reid, resumed drilling. Since then, 250,000 meters of drilling have been completed, and the resource estimate has risen to 8.1 million ounces. Currently, the 10,000m per month exploration and infill drilling program is underway. Exceptional results have now come from the Southwest Zone, located approximately 2.5km southwest of the former mine. According to management, these are some of the strongest areas ever drilled at Troilus and illustrate the exciting growth potential at this zone and the extent of the larger Troilus trend.

    Despite the news, the stock remains in correction mode and is currently trading at CAD 0.83. Analyst firm Cormark Securities sees Troilus Gold as one of the "top picks" in the gold market and recently assigned a price target of CAD 4.50.

    Palantir - Protection from black swans

    Black swans are unpredictable events with extreme consequences. The last black swan was certainly the abrupt Coronavirus, which paralyzed both the economy and social life for months. Data analytics specialist Palantir wants to protect itself from such black swans in the future and is hedging its cash of around USD 2 billion with gold and bitcoin. According to the Bloomberg news agency, Palantir spent USD 50.7 million on gold purchases this month. Additionally, the data specialist now accepts gold as payment for its analytics services, in addition to the cryptocurrency Bitcoin. Palantir was able once again to show its impressive growth rate through strong quarterly figures. In the long term, the stock is more than interesting.

    Nikola - Is this the bottom?

    With fraud allegations against the founder and the exit of major shareholders, things have been anything but smooth for Nikola in recent months. Now, at least, there has been a positive announcement, which should calm the heartbeat of the troubled shareholders a little. The US Department of Energy awarded the fuel cell commercial vehicle specialist a USD 2 million grant that will be used to accelerate research into autonomous refueling technologies for future hydrogen fueling stations. The free fall of Nikola's stock initially continued unabated during the past trading week. The share marked a new low for the year but managed to climb back into the green zone with a gain of more than 3% in Friday trading. Speculative investors should watch the title.

    Currently, there is much to be said for an investment in gold. The fears due to the end of the loose monetary policy are anti-cyclical good opportunities to invest in gold mining stocks such as Troilus Gold. The data specialist Palantir, which protects its portfolio with gold and bitcoin, is a role model here.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author

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