November 24th, 2020 | 10:28 CET
Scottie Resources, Bitcoin, Tesla: rocket propulsion in demand!
Once again gold was voted out of the market by analysts yesterday, hitting a 3-month low of USD 1,831. Deutsche Bank recently released figures on the performance of traditional markets and the crypto market following the optimistic move towards a Covid-19 vaccine. In addition to varying stock market gains with increases between 5 and 15%, Bitcoin came out as one of the biggest winners. The attractiveness of Bitcoin as an alternative hedge continues to increase according to Deutsche Bank analysts. Further gains are likely, but we should not forget the many speculators who are probably unscrupulously chasing the rocket-trend.
There seems to be a substantial increase in demand to use Bitcoin in place of gold, to hedge various dollar or inflation risks. Bitcoin and other TOP10 cryptos have gained between 20-50% in this month alone. The run is similar to the development in the years 2017-2018. Gold and silver, on the other hand, continue to show a need for consolidation, many investors are currently shifting their security investments into other areas. However, this downward movement should not continue for long, unless Bitcoin reaches the price target of USD 100,000 of the well-known Bitcoin bull Max Keiser. If not, there is, of course, a considerable need for technical corrections, which can also happen overnight due to the 24-hour trading.
time to read: 4 minutes
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Author:
André Will-Laudien
ISIN:
CA81012R1064 , US88160R1014
Table of contents:
"[...] We have built one of the largest land packages of any non-producer in the belt at over 440 sq.km and have made more than 25 gold discoveries on the property to date with 5 of these discoveries totaling about 1.1 million ounces of gold resources. [...]" Jared Scharf, CEO, Desert Gold Ventures Inc.
Author
André Will-Laudien
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
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Scottie Resources - Out of the starting blocks
Scottie Resources Corp. has attracted a lot of attention this year, but recently things have calmed down again. As recently as June, they announced a private placement of 4,400,000 units at a price of CAD 0.22 per unit and gross proceeds of CAD 968,000. This time there was significant interest from a Geneva-based family office. Once fully underwritten, the position of the major investor will increase to approximately 9.9% of the shares of Scottie Resources. Some of you can already see the weather gleaming on the horizon because Switzerland is the home of international money for commodity investments.
Scottie Resources' projects are located in a prime location in the so-called "Golden Triangle" - close to the heavyweights Pretium and Ascot Resources. The Golden Triangle is world-famous for its deposits. Historically, over 50 million ounces of gold have been mined here, and it can be assumed that several million ounces are still to be found in current mining areas such as Johnny Mountain, Red Mountain and Valley of the Kings. Scottie Resources Corp. is named following its existing flagship property of the former Scottie Mine, located in the heart of the Golden Triangle near Summit Lake, British Columbia. Drilling here will resume promptly as up to 109g gold per tonne has been discovered this year. The current gold price level promises excellent yields if production is resumed. One may also suspect that the surrounding producers, such as Premier Gold, have kept an eye on little Scottie.
In the case of the Scottie share, management is also heavily involved in addition to the Geneva family office. 25% of the shares are firmly parked with institutional investors. With 144 million shares outstanding, the market capitalization is currently CAD 44.7 million - so if you are looking for a gold turnaround, Scottie is an excellent place to start.
Bitcoin - doubled since summer
What is wrong with Bitcoin? According to data from the on-chain monitoring website ChartsBTC on November 23, Bitcoin is on the way to significant price gains compared to its two previous halves in 2020, as the price has risen 150% since the "halving". Based on figures from Coin Metrics and statistician Clark Moody, the ChartsBTC Halving Index compares Bitcoin's progress since the May halving with the six months after the 2012 and 2016 halving, showing that Bitcoin is on track to outperform its all-time high of USD 20,000 in 2017. Only 2012 brought an even faster upward potential. At that time, the BTC/USD pair was only USD 12 when halved - the price of a salami pizza. Anyone who has been with us since then is more likely to be on the sunny side today.
But what happens next? For about 5 trading days, the other cryptocurrencies have also been rising steeply with the daily turnover multiplying. Within a few days, the total market capitalization has increased from USD 350 billion to currently, USD 547 billion. This increase seems a bit inflationary. Although many charts also correct by 20% intraday, then it turns as if by magic and the next buying wave is processed. The whole situation reminds one of a little bit of the new market in 1999-2000 or also of the Dutch tulip bulb bull market of the years 1634 to 1637. The coming months will show if this time it is also a speculation bubble or a long-term trend movement.
Tesla - Someone must buy
History is indeed repeating itself. When Tesla rose to a staggering USD 2,500 in the summer, many augurs heard that after the split announcement (1:5), 17% of the outstanding shares were still reported as short sold. The result was an unparalleled hunt, which gave the Tesla share a 500% increase in 4 months. After reaching the USD 2,500 mark and the subsequent split, there was a sharp correction in September of USD 220.00. The Tesla share price fell from USD 538.00 to USD 308.00, the strongest 3-week slump ever.
At the time, analysts released price targets of USD 100.00 and below, some even daring to target "zero" in their sensational statements. One notices immediately: exaggerations in any direction are the order of the day here - in Tesla's case, the stock market has arrived at the "Circus Salto Mortale".
But Elon Musk went one better by combining his quarterly presentation with the legendary "Battery Day". The content of the whole thing was just confused visions about future battery concepts, which should reach a range of 1 million kilometers, but the show was accompanied live on the Internet by at least 3 million viewers. The result was to halt the decline in share prices and an explosion in all battery-relevant metals around the globe. Unprecedented performance in resource stocks was the result, and Tesla managed the turnaround in the mindset of the courageous short runners. It had to be stocked up quickly.
Now, 2 months later, the stock is rising again. For a good seven trading days, the value has risen by an incredible 100 USD or 25%. With a price of USD 521.00, the market capitalization is now a handsome USD 486 billion again. Meanwhile, the much-noticed short volume has once again risen to over 30%. Allegedly, Warren Buffet is now also betting against the hedge funds and is buying many Tesla shares. The interesting question remains: Who will win the game this time? But one thing is already sure: Tesla co-founder Elon Musk's assets last jumped to USD 107 billion by exercising call options - welcome to the club of the Forbes 100! And one thing is sure for us viewers: Someone MUST buy...!
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