27. January 2021 | 08:45 CET
Plug Power, Triumph Gold, Moderna - Take position before it's too late!
The new President of the United States, Joe Biden, and his predecessor, Donald Trump, have one thing in common: building up new mountains of debt. Just in time for his inauguration, the 46th President of the United States announced a new USD 1.9 trillion aid package for the economy and consumers. At some point, the extreme increase in global government and corporate and household debt will result in a major disaster. One way out is to invest in real assets. Position yourself now, before it is too late!
time to read: 2 minutes by Stefan Feulner
"[...] 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
Author
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.
Dramatic development
The Corona Crisis dramatically forced the growth of global debt to nearly USD 275 trillion as of the end of September 2020. What happens to this debt now? With certainty, it will never be repaid with money, which then also has a value. Instead, the debts will be devalued through hyperinflation, currency reforms and debt cuts. From the dilemma, one can escape by the purchase of gold or gold mine shares. Currently, gold is correcting after the highs of last August and prices above USD 2,060. At the current level of USD 1,850, one should build up initial positions. In the long term, we expect significantly higher prices of the precious yellow metal.
Buy the leverage
An alternative to buying gold bars or gold coins is to purchase attractive gold mining stocks - these promises, in part, leverage on the gold price. One example is the share of the mineral exploration Company Triumph Gold, in which, among others, the industry giant Newmont Mining has a 12.8% stake, and the Zijn Mining Fund has a 9.8% stake. The Canadian Company's flagship project is the wholly-owned Freegold Mining Project in Yukon. The area, which has an excellent infrastructure, is home to several deposits with great potential. The "Revenue" mine has copper-gold-moblyden-silver, the "Nucleus" mine has gold, and at "Tinta Hill," many differentiated metals are found.
Program in the bag
At the end of September, Triumph Gold had CAD 5.0 million in cash on hand, which secured the drill program for 2021. Yesterday, drill results for 2020 came in. The 2020 exploration program focused on test drilling near-surface gold targets in the Revenue-Nucleus and Mount Freegold areas. Nine holes were drilled for a total of 2,068.52 meters. All nine holes returned significant gold intercepts in unexplored or poorly explored areas. Currently, Triumph Gold's shares are trading at EUR 0.13. The Company's market capitalization is EUR 17.80 million.
Strong cooperation
Plug Power shines in recent weeks with positive news. After the construction of a Gigafactory in Rochester in New York for USD 125 million was announced last week, Plug Power is now coming around the corner with a partnership with the French carmaker Renault. Together, the two companies aim to achieve a market share of more than 30% in Europe with their hydrogen solutions designed for light commercial vehicles. The joint venture, in which each of the two partners is to hold a 50% stake, plans to start marketing fuel cell LCVs in Europe and deploy them in pilot fleets before the end of 2021. The cooperation aims to offer unique products and solutions in the light commercial vehicle market. The initial focus will be on the van segment, on the vehicle platforms of Renault's well-known and popular Trafic and Master vans. At the same time, the Company plans to develop and manufacture refueling systems, an essential part of the green hydrogen ecosystem.
Protection against variants
Shares in vaccine manufacturer Moderna have shot up significantly. The reason for this was the news that Moderna's vaccine, according to the manufacturer, should also protect against the Corona mutations initially discovered in Great Britain and South Africa. However, the study has not yet been reviewed by independent experts or published in a scientific journal. Following the news, Moderna closed 12% higher at USD 147 on Monday. The US biotech Company was also stable in trading on Tuesday and is currently trading at USD 150. A break through this significant resistance zone would mean a test of the all-time high at USD 172.
