NKG - Interest in Gold Peaking as Costco Gold Bars Fly Off the Shelves - Here's How to Leverage This Into Your Portfolio

2023-11-03 09:04:20 ET

Costco Wholesale, known for its bulk-sized products and everyday essentials, has quietly entered the gold market . Upon a perusal of Costco’s website , you may be surprised to find 1-ounce %Gold bars listed for sale right next to the oversized TVs – however the gold bars appear to be selling faster than the TVs.

The options are straightforward: You can purchase a 1-ounce PAMP Suisse Lady Fortuna Veriscan gold bar or a 1-ounce gold bar from Rand Refinery. Both are available exclusively online and come with an imposed limit of two bars per Costco member.

But why would anyone add gold bars to their virtual shopping cart? After all, it’s not your typical grocery list item, however demand has been surprisingly robust. During Costco’s recent earnings call, Chief Financial Officer Richard Galanti revealed that these gold bars vanish from the site within hours of being listed as “in stock”.

Why the Gold Rush?

People have owned gold for centuries. It serves various and indelible purposes. These are a few reasons why:

1) Foundational Value : Unlike fiat money (which central banks can print at will); gold has inherent scarcity. Its limited supply makes it an excellent hedge against inflation.

2) Safe-Haven Asset : Throughout history, gold has been a refuge during times of economic uncertainty and geopolitical turmoil. When political unrest or crises strike, investors seek the stability and global recognition that gold provides.

3) Long-Term Investment : Some view gold as a long-term investment strategy. Its enduring value transcends borders and time.

The market seems to back the apparent trend – with gold spot prices soaring over 6.5% just over the month of October, returning to the key psychological US$2,000 level buoyed by safe-haven demand from an escalating Middle East conflict.

Costco’s gold bar offering, albeit highly coveted, is just one way to get exposure to the precious metal’s positive trend. Even if you don’t manage to score one of the quickly vanishing bars, there are plenty of alternative avenues to join the gold rush – and some stand out for their additional growth potential added to that of the resource itself.

Publicly traded companies such as %NevadaKingGold (TSX: ), %I80Gold (TSX: ), and Getchell Gold Corp. ( CSE:GTCH ) could be excellent readily-acquired opportunities for exposure to the precious metals market – with the latter company seeming to remain under most investors’ radars – for now .

Fondaway Canyon Gold Project – In the Epicenter of US Gold Production

%GetchellGold (CSE: , OTCQB: , FRA: GG1), a Nevada-focused gold exploration company, has stood out due to its consistent exploration success and high discovery rate at its flagship Fondaway Canyon gold project – factors that have yet to be reflected in its market valuation.

Most significantly, %FondawayCanyon boasts immense upside potential, waiting to be tapped. Earlier this year, the company made waves by doubling the project’s resource estimate to over 2 million ounces of gold between Indicated and Inferred resources. More so, mineralization extends beyond the known resource , with outstanding gold grades and widths even in peripheral areas - a sign that the deposit's full extents are yet to be defined.

Getchell recently received permits for 12 additional drill pads to allow aggressive step-out drilling with the goal is to substantially expand resources even further.

Opening the Gates for European Investors

Getchell recently broadened its reach gaining a Frankfurt Stock Exchange listing – which opened the gates to European investors, bolstering liquidity and enabling further international financial backing. As Getchell's Chairman and CEO Bill Wagener stated, this complements existing CSE and OTCQB listings and increases exposure. The Company is now trading in the FSE under symbol GGA1 ( FRA:GGA1 ).

Strengthening the Team

Getchell’s most recent landmark move was to add financial muscle to its corporate deck. John Proust, a well-known individual in the resource sector with extensive business acumen, financial reach, and numerous accomplishments under his belt, has joined the team. He realises that “Getchell Gold Corp. offers a unique opportunity to significantly grow an already sizable gold resource, in a burgeoning area of Nevada. [He] looks forward to assisting the Company in achieving its near-term goals and ultimately realizing the full potential value of the Fondaway Canyon gold project.”

Despite major resource growth and evident upside potential, Getchell currently resides at a considerably modest valuation of $11 million. As gold fundamentals strengthen amid economic uncertainty, Getchell warrants strong consideration by investors seeking overlooked leverage with the distinct capacity to move up the valuation ladder.

About Getchell Gold Corporation

Getchell Gold (CSE: GTCH | OTCQB: GGLDF | FRA:GGA1) is a publicly listed gold exploration and development company delineating a potentially Tier-1 gold resource at its flagship Fondaway Canyon project in Nevada, USA. Following consecutive successful drilling programs from 2020 to 2023, the Company has effectively doubled the size of the historic resource, placing the Fondaway Canyon project firmly into the multi-million-ounce resource category. Getchell Gold is perfectly positioned to continue expanding its resource with plans to rapidly advance towards a Preliminary Economic Assessment.

Getchell’s highly experienced management team is systematically advancing the Company’s flagship Fondaway Canyon gold project, a major asset located in the nation’s premier global mining jurisdiction of Nevada. Led by CEO William Wagener , possessing over 45 years of global mining expertise, and President/Director Mike Sieb , a senior executive with over 30 years’ experience, Getchell’s leadership offers a proven track record in the resource sector. This veteran mining team remains focused on continuing to unlock value at their NV deposit.