Comments on the Osisko Gold Royalties Takeover of Barkerville Gold Mines
Davie Erfle, Founder of the Junior Miner Junky joins me to discuss the Osisko Gold Royalties takeover bid of Barkerville Gold Mines. The Market is already selling down the shares of Osisko after this all share deal was announced. It is usually good to see M&A activity in the sector but unfortunately this is another deal that is not being looked favorably upon. We also look at the gold price and it’s sharp move down today.
David arent we do for an intermediate cycle correction? Gold has moved up last couple months and sits way above 200 day moving average, so we need a good correction to set up next move up in gold above 1600?
Paul, I believe you are correct for some other reasons as well.
Although I feel a correction is overdue technically, continued volatile political conditions around the world are supportive of higher gold prices. Issues related to Brexit, the China and U.S. trade dispute, Iran, North Korea, and U.S. domestic political friction all are proving to be supportive of the market possibly creating a new floor at the $1500 level.
Seems to me that OR should’ve gone up if they bought Barkerville for a song, but it has gone down over $2. I bought more OR today as I think Sean Roosen knows what he is doing.