What you're looking at above is Gold's price over the previous 6 months. As you can see, it has been steadily rising and could potentially start aiming towards all-time highs (approx. $1,900 an ounce in 2011).
So, What Are Some Of The Gold Prices Driving Forces?
Inflation could be a significant factor.
In the past, faster inflation has been constructive for gold prices. That’s because inflation, by its nature, destroys your purchasing power, and to limit these losses, traders have traditionally turned to the yellow metal as well as gold mining stocks.
Geopolitical and economic risks raise the demand for a safe haven.
There are a number of geopolitical and economic risks right now that have triggered gold’s “fear trade.” Economic growth is slowing worldwide as a result of trade tensions.
Unrest in Hong Kong as well as the recent attack on Saudi Arabia’s oil facilities, have helped support gold demand.
Some countries are really starting to take notice of Gold.
Russia and China seem to have learned something from the 2008 financial crisis. Since then, they dramatically increased their gold reserves.
Reportedly, nobody is buying gold as fast as these two countries...
Russia’s increase is the most dramatic, according to the recent report from the IMF. The Russian central bank has almost doubled its gold holdings within the last 5 years to 1,094.8 tonnes in June of this year. China’s Central Bank followed with an increase of 75% from its holdings in 2009.
Because of the above information, and pretty much the potential for a serious gold breakout, I want you to turn your complete attention to Surge Exploration, Inc. (OTCQB: SURJF).
Surge Exploration also trades on the TSX-V under the symbol (SUR), and on the Frankfurt Stock Exchange under the symbol (DJ5C).
*The 7 Main Reasons SURJF Could Be Ready To Go Viral*
#1. The company is undervalued.
$3.6Mn valuation could potentially be low given that they have 3 quality gold projects (BC Canada) and 2 quality cobalt projects (Ontario, Canada).
#2. Focused on Gold and Gold is doing well.
As I showed in the chart above, gold 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, gold 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 gold industry.
#3. The Surge team is world class.
The team behind SURJF's rise has deep geological experience in Gold 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 gold deposits.
#4. The Mineral Mountain project's surrounding region.
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-gold project; the Lorraine property (Lorraine Copper Corp.) host to a large copper/gold NI 43-101 compliant resource.
The company has a 197 km squared patch of land there (large land position).