During the past 6 month period, the price has been on a tear as at one point it made a near 300 point explosion from mid-May to early September.
That's smoking hot heat right there...
What's even hotter is that some analysts see this recent bullish movement as just the beginning of an even bigger move.
That move would be Au hitting a new all-time high. It was back in 2011 that the precious yellow metal achieved that high when it traded around $1,900 an ounce.
Now, is that going to achieved overnight? Probably not. But, what is certain, is that there are many outside forces currently driving the price of Au up and could continue to do so for a while longer.
What Is Making The Precious Yellow Metal's Price Head North So Dramatically?
#1. China and Russia
Russia gradually built up its it reserves each quarter for over a decade. Perhaps it is not a coincidence that Russia's power and influence have been growing. Many nations, including the United States, started imposing sanctions on Russia after it annexed the Crimean Peninsula.
Russia's Au reserves are up more than 300% since the beginning of 2008, so Putin is prepared for the next crisis.
China followed a different path to growing its reserves. The People's Bank of China made massive purchases in 2009 and 2015. Both of these buys came after relatively weak years for Au prices, and China did well both times.
In total, China's reserves increased over 200% after 2008. Trump's tariffs also seem to be scaring the Chinese. China appears to be moving toward Russia's strategy of gradual purchases.
#2. With inflation growing, this could be a strong factor
The precious yellow metal is known to be an inflation hedge and this reputation is well-earned. Since inflation means the decrease in the value of fiat (paper, unbacked by metals) money, people turn to assets that proved to be money throughout history - Au & silver.
#3. Looking for a potential safe haven, people are fearing geopolitical and economic risks
At this moment, several geopolitical and economic risks are triggering Au's “fear trade.” Economic growth is slowing worldwide as a result of trade tensions.
Recent unrest among Hong Kong citizens as well as the recent Saudi Arabia’s oil facilities attack, are helping to support demand.
#4. FOMO (Fear Of Missing Out)
UBS, the Swiss-based investment banker, says seasonal factors are about to kick in for the precious yellow metal which will lend support to it through the remainder of the year.
“With Au prices holding well, the fear-of-missing-out is likely rising,” says Joni Teves, a strategist at UBS’s global research team.
“This is encouraging and implies that any downward pressure coming from macro factors over the remainder of the year is likely to be absorbed by fundamental demand."
I'm telling you, the list goes on for potential reasons as to why the yellow metal's prices are heading north at a fast pace.
That's why I'm bringing Surge Exploration, Inc. (OTCQB: SURJF) to your immediate attention.
Surge Exploration also trades on the TSX-V under the symbol (SUR), and on the Frankfurt Stock Exchange under the symbol (DJ5C).
*SURJF's 7 Key Catalysts Promoting Potential Growth*
(1.) Surge appears to be extremely undervalued at the moment.
$3.6Mn valuation could potentially be low given that they have 3 quality Au projects (BC Canada) and 2 quality cobalt projects (Ontario, Canada).
(2.) The company's main focus is Au, and boy, Au is doing good.
As I showed in the chart above, Au has been a wrecking ball over the previous 6 months it looks like it could just be heating up for an even bigger move.
Also mentioned above, in August of 2011, prices hit a high near $1,900 an ounce. If this happens again in the short-term, the stock could get an injection of momentum for traders looking for undervalued ideas in the industry.
(3.) A World Class Team is the driving force behind SURJF.
The team behind SURJF's rise has deep geological experience in Au mining.
The company's key geological advisor is Bill Morton, a 40 year veteran geologist and mineral explorer. He is the founder behind the Lorraine Copper (sold to Sun Metals) and Eastfield Resources. He has actively explored in Canada finding many Au deposits.
(4.) An explosive region around the Mineral Mountain project.
Prominent among early discoveries in the Omineca region were the nearby Lustdust/Stardust property (Sun Metals Corp.) covering a large, coherent integrated porphyry-skarn, epithermal system; the Kwanika property (Serengeti Resources Inc./POSCO Daewoo) a promising advanced stage copper-Au project; the Lorraine property (Lorraine Copper Corp.) host to a large copper/Au NI 43-101 compliant resource.
The company has a 197 km squared patch of land there (large land position).