Far East Capital Newsletter
Theta Gold, hydrogen, and what is happening with graphite stocks?
14 Feb 2021

In This Issue

Theta Gold, hydrogen, and what is happening with graphite stocks?

All of the thematics that drove the gold price to record highs in 2020 are still relevant, but the punters have decided to chase other stories for the time being. We have all read about how money has been diverted to chasing bitcoin, but that is a wave that has a limited life span. It is merely a distraction from the big picture.

The next $1.9 trillion stimulation package from the US government will exacerbate the $16 trillion worth of negative-yielding debt floating around the world. While the potential to make money trading bitcoin has been demonstrated, so has the ability to lose money when the market goes into reverse. Gold is a time-proven and much more conservative way to hedge against inflation. You want to be able to sleep at nights.
We should be looking at the gold sector again as we try and pick the turning point of this downward leg in a longer term bull market

We last mentioned Theta Gold mines (TGM) in July 2020, it was just before the gold price peaked. Since then we have seen gold and the gold sector giving up ground, but there are not many people out there that think gold is dead and buried. Interestingly, the Theta share price is still higher than it was last July. Perhaps this is because it was never the target of hot traders with the share register being populated by longer term supporters, which is good. However, the flip side is that market liquidity is tight and this has precluded institutional participation. I suppose you can’t have it both ways. 

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