While gold has pulled back from its all-time high of $2,070 that was seen in August, many top banks and forecasters are calling for much higher prices as we move into 2021.
GraniteShares CEO Will Rhind believes that the catalysts for another massive surge in gold are not only numerous but also ready to rocket the metal higher.
“The stimulus… would be probably the most obvious one, the one that’s certainly driven gold prices for the majority of this year in 2020,” said Rhind.
So with the probabilities increasing for another melt-up in the precious metal – maybe now is the time to purchase your own gold mine?
According to Realtor.com, the Black Butte Mine, located in Tonopah, Nevada, is for sale for $1.95 million.
“We priced it based on comparables that we saw both in raw land and agricultural land,” explained the listing agent, Brian Kreger.
“The mine is certainly something we believe the buyer would take into consideration. We didn’t price it as such to include the gold mine, but it was certainly part of the marketing effort.“
Krueger said whoever purchases the land will have 100% mineral rights.
“The site was obviously mined a long time ago, and there are multiple shafts throughout,” he said. At least two million tons of gold tailings are piled above the surface.
“We’ve allowed people to go out and take 5-gallon buckets [of tailings material]. They’ve taken them to other third-party places to have it tested. There are small amounts of different minerals in there, including gold,” Krueger explained, adding that he can provide prospective buyers with precious-metal resource reports on the mine.
It was noted by Realtor.com that miners from 1901 to 1940 have unearthed about $1.8 billion in gold in the area.
“The property could end up being worth a whole lot more money than the $1.95 million that we estimate the raw land value to be, so there’s definitely a play for the right group,” Krueger said.
“[The price of] gold obviously continued to go up during COVID, and so I think it’s made the land even more attractive as a result of that. There could be a significant upswing in profitability for whoever purchases it based on what their business plan is in terms of what they’re looking to extract.”
A weakening dollar, the prospects of more stimulus, rising inflation expectations, a bond market that doesn’t believe in a robust economic recovery are some of the reasons why gold should steadily move up in the year ahead. Maybe owning a gold mine with hundreds of acres might be the perfect bet as the country is on a path of economic disaster.