NVA - Snow Lake Resources, page-52

This companies short-term future will bedecided by Estelle, not snow lake in my humble opinion. Lithium prices andsentiment may not start to turn around until Chinese demand picks up, this maybe 2-3 years away at best. Only saving grace will be the USD will weaken next year,which is good for commodities in general.

 

Reasons to be bullish on gold prices short/mediumterm:

-US: Late cycle. Flat yield curve. USD willweaken in 2019 as fed pauses rates = bullish on gold

-US: Government shutdown and fiscalblow-out will be focus of 2019. Will need to issue a large number of bonds intonext year = oversupply of USD. Currently few central banks buying US bonds = weakerdemand = bullish on gold

 

-China: Released the petro-yuan (Yuan basedoil futures contracts) in March 2018. Coincides with Hong Kong Goldfutures in 2017. Thus, yuan now has a soft peg to gold price. Countries nowtrading oil outside of US sanctions with China need to increase gold holdingsto hedge the yuan. Many central banks have already significantly increasedholdings. This is key for demand. 

-China: Yuan already weak vs USD. Risk islargely to the upside.

-China: Aiming tax cuts and looser monetarypolicy into 2019. Bullish for yuan = bullish for gold.

 

Both dynamics in China and US are positivefor gold next year. My investment philosophy is to build a macro thesis first,then find your leverage though micro. Hoping Estelle will give me that.

 

Best of luck for the new year.