The gold price remains elevated, although it did drop below US$2,000 per ounce mid-week, and was around US$1,980 at the time of this writing on Friday (April 21). For its part, silver spent some time below US$25 per ounce.
Despite these lower levels this week, it’s important to remember that gold in particular remains historically high, and unlike the other times it’s reached US$2,000, this time the yellow metal hasn’t pulled back right away.
Many market watchers believe gold is now poised for a breakout, and Gareth Soloway of InTheMoneyStocks.com and VerifiedInvesting.com is one of them. Here’s what he sees coming for gold:
“I do think that per the charts … we should break the all-time highs at around US$2,075, and I think by year end you’re looking at US$2,300 at minimum. And I think really US$5,000 within a year or two is very, very possible. This should be the new bull market here in asset prices if you will, and I think it’s long overdue” — Gareth Soloway, InTheMoneyStocks.com and VerifiedInvesting.com
Click here to watch the full interview with Gareth, which also includes his price forecasts for silver and Bitcoin.
Teck holds firm against Glencore’s advances
Last week’s update covered diversified miner Glencore’s (LSE:GLEN,OTC Pink:GLCNF) hostile takeover bid for Teck Resources (TSX:TECK.A,TSX:TECK.B,NYSE:TECK), and this story is still making headlines as new developments emerge.
As of Wednesday (April 19), Teck had rejected two acquisition proposals from Glencore, prompting Glencore to write an open letter to Teck’s Class B shareholders — in it, the company emphasizes the benefits of its plan to merge with Teck and create two standalone businesses, and says it is willing to make an offer directly to shareholders.
“Glencore is willing to make an offer directly to Teck shareholders if the Proposed Teck Separation does not proceed and Glencore believes that this is required where there continues to be no engagement from the Teck Board“ — Glencore
Glencore also says it is open to improving its terms, although it doesn’t specify how it might do so.
This situation is changing quickly, but Teck has already responded to Glencore, saying its proposal “is not a realistic or viable option,” and pointing out that it has in fact engaged with Glencore. Teck urged its shareholders to vote on April 26 for its own separation plan, which would split the firm into a metals company and a steelmaking coal business.
“We fully believe that Glencore’s proposals are nothing more than an opportunistic attempt to interfere with the vote at Teck’s annual and special meeting of shareholders on April 26th to their benefit and to the detriment of our shareholders” — Teck Resources
It’s worth noting that Teck Chairman Emeritus Dr. Norman B. Keevil is not in favor of Glencore’s proposal, although he would support a transaction “with the right partner, on the right terms” after Teck’s separation.
Well-known mining industry figure Robert Friedland has also weighed in — while he respects both Teck and Glencore, he said a sale to Glencore would be “short-sighted … without exploring Teck’s valuable opportunities across the industry.”
Elsewhere, market participants have expressed concerns about a Canadian business being acquired by a foreign entity, especially during a time when having secure supply of metals is becoming increasingly essential.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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