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TOP PERFORMER IN MARCH: Best Asset to Own as Fed Tries to Thread the Needle!

Mar 3, 2022

​Don’t feel sorry for Federal Reserve Chairman Jerome Powell, but don’t envy him, either. He has to perform a nimble balancing act with rising inflation, meaning that he has to raise interest rates with the stock market begging him not to.

Fears over the Russian invasion of Ukraine have coincided with the financial markets quietly dialing down their expectations for hawkish Fed action. The pronouncements of half-percent interest rate hikes have suddenly gone silent since Powell can’t raise bond yields too quickly.

Mark Zandi, the chief economist of Moody’s Analytics, acknowledged that “the balancing act is going to be difficult.” This is the understatement of the year because years of ultra-accommodative policy have contributed to rising inflation, and the Fed now has to act but can’t take away the punch bowl without spooking the financial markets.

It’s no wonder the demand for gold, the ultimate protector against geopolitical strife and misguided central bank policy, is rising so quickly in 2022. Central banks around the world, as well as hedge funds and wealthy investors, are responding to the chaos and uncertainly by shoring up their gold and gold-mining holdings.

They’re looking to gold exploration and development companies like Goldplay Mining (TSX-V: AUC, US-OTCQB: AUCCF), which has interests in multiple mineral assets in Canada and Portugal.

On November 22, 2020, Goldplay entered into a definitive agreement with Roughrider to acquire a 70% interest in the Scottie West property, located in the famous Golden Triangle region in Northwestern British Columbia.

Then, in September 2021, Goldplay completed an initial field program on its two properties there: Big Frank and Goldstorm South. The properties are located in the western Chilcotin District of southwestern British Columbia and it was found that they have the district-scale potential for both high-grade epithermal and orogenic gold and copper-gold porphyry deposits.

Just the Big Frank property alone has immense value since it spans a vast 9,470.8 hectares, which cover a 15-kilometer-long favorable geological trend. We can’t discount the Goldstorm South property, however, as it covers 2,379 hectares, including an 8-kilometer-long alteration trend. Reports attest to the underexplored nature of the project, especially for orogenic gold associated with large-scale regional faults.

The Federal Reserve is definitely in a tough spot, but junior gold miners are in a great position now, and Goldplay Mining’s value should increase dramatically as investors clamor for gold this year not only for protection but also for diversification during these uncertain, volatile times.

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