We have another interesting inflation Report what does it mean is this peak Inflation and if so is that pivot maybe A little bit closer than we thought So we're going to look at a few Possibilities in this one and the big Possibility is about Peak inflation We've been talking about that a lot but For the first time we have supporting Reports that maybe we've actually seen Inflation at its highest reported levels Well first we had CPI numbers coming in Lower than expected and that alone Triggered a rally just on the hope that The FED would loosen up on rate hikes Well today we have PPI numbers and they Came in lower than expected as well they Came in lower than what we saw in September now none of this means that Inflation is back to normal that Everything is good it simply means that It's on its way down the bigger Possibility well that's about the fed's Reaction to a turnaround in those Reported numbers what we've seen so far With the rally is just on the hope that They would bring it down well we've been Talking about a Fed pivot basically Means that they're going to let off in The raid hikes and aggressive monetary Policies Stance goes from Hop to Dove and that's When the change happens and really That's only a matter of time when that
Happens the price of metals go up for a Few reasons but the one that we've been Seeing lately is pretty simple even on The rumor of the FED cooling rate hikes The US dollar drops on the dxy investors Get less excited about U.S treasury Products and the price of gold goes up Now that was the entire basis of last Week's rally and again that was just a Rumor of this happening so that kind of Rumor that's not enough to get me to Grab a bunch of physical yet we still Need to see the FED actually do what the Rumors are suggesting it's only a matter Of time in my opinion but with physical We're seeing crazy premiums on certain Products right now and I can still buy Physical gold without a big concern that Prices are going to run away from me at One single event now we're going to know When it actually starts whether that's December 15th at the next fed meeting or Whether it's some other time and I don't Feel particularly pressured by physical Because I just don't buy it as an Investment I do try to time those Purchases a little bit but I don't see It as something that I only have a very Small window on actual Investments are a Little bit different and if we're about To see a jump in gold price well that Creates a lot more leverage in producer Stocks and this part of the video this Is sponsored I'm going to profile a very
Specific company that I've talked about A few times in the past and I'm going to Tell you how timing actually does matter On something like this now the company Is gold mining Inc it's a company Covered before it's a company that I Like and we have talked to both Amir and Nani the company's founder and Aleister Still the CEO so we aren't going to go Too deep into the technicals here I will Link to a prior video about the Company's plan to spin up sleeper Projects in the portfolio that's Alistair's focus and you'll be seeing Some of this with moves in lamina in Almaden and the coming IPO of U.S gold Mining Inc that's in Whistler Alaska now If you look at the comps for the Whistler project alone the nearest Project Estelle is half the size and Half the grade and its market cap is 200 Million dollars which is already valued Higher than all of gold mining INC now That alone it's a big deal but I think The important point at the moment is Still the idea of how much potential Upside could come from a Fed pivot I'm Going to give a little bit of math here Because the value of the goal that they Have in the ground it's pretty wild Their market cap is 140 million dollars And they hold 20 million shares of G-royce that's a company that they've Already spun off that's worth about 55
Million dollars and then they also have Another 10 million dollars in cash just Leave the cash out of the equation take 140 million dollars of current market Cap subtract out that 55 million dollars In G Roy stock and then divide by the Number of ounces of gold in the ground And we come up with is about 2.65 per ounce of gold it's pretty cheap I just said that I don't think a Physical gold is an investment but I Would love to pick up a truckload of Gold and less than three dollars an Ounce And that math is a big reason that Analysts give the current price target Of six dollars and 25 cents compared to The current share price of 90 cents now One more bit of the story before we get Back to timing a company like gold Mining Inc has a lot of Leverage versus Spot price of gold you can think about It as an off center teeter-totter as we Look at past performance if we look at January of 2016 through September of 2016 the spot price of gold went up About 23 percent and at the same time The share price went up 665 percent That's leverage now this is due in part Simply because as gold gets more Profitable mine all these projects come Online and that brings in profit that Was previously at zero as for timing When we do see the FED pivot in a
Corresponding jump in gold price Analysts will quickly rewrite the stock And you'll likely see the price of gldg Jump very quickly and it could happen in A matter of a few weeks so unlike Physical gold where a spot price might Start a run might jump 10 15 whatever The right gold producer can jump Dramatically now no stock analysts Myself that I've seen suggestions of 6X 7x maybe even higher that's a possible Binary event like overnight change I'm Also I'm not one to go after long shots And gldg well it's trading at a low Right now so there isn't much downside Risk which is a lot different than other Potential Investments with the Possibility to shoot up 665 percent like gldg has in the past Now a Fed pivot it could be that Important it could very well be that Binary event in the next meeting well It's right around the corner so the last Thing I'll say here is be sure to check Them out on your own don't just rush in Because I'm profiling them here you can Very easily hit up goldmining.com to do Your own due diligence and reach out to Them if you have questions so that's it I think it's pretty straightforward I Wish I could predict how it'll go for Them but I can't I do think they're Worth your time though so be sure to Take a look
So thanks again for watching I always Appreciate your time Take care
