Issue link: http://resourceworld.uberflip.com/i/1239546
A P R I L / M A Y 2 0 2 0 www.resourceworld.com 19 AT THE MARKET the risk, these risk takers built a growing thriving business from the vast natural wealth endowed in that part of Canada. I would go further, and say they helped save a nation. In the early part of the last century, Americans lost the right to hold physical gold, the monetary metal with a history of being money for 5,000 years that was fixed at $35 an ounce. Precious metal shares soared lead by Homestake Mining. Canadian men and women responded by going to the furthest parts of the coun - try in search of gold and silver and an industry flourished, helped by the backing of American and European investors. Towns were built, as well as railroads and highways to places never explored like Val-d'Or, Kirkland Lake, Timmins, Red Lake, and Abitibi that became major gold camps. These early explo - ration successes helped build Canada to what it is today – the world's premier explorer. These exploration successes also helped to build a stable banking industry, tourism, and created capital to diversify the economy with a more industrial manufacturing base. Like Alberta did in the seventies, all of the Canadian provinces endowed with vast and abundant mineral wealth had the oppor- tunity to go back into the old mineral rich areas, shut down when the fixed price of $35 no longer paid the bills to mine profitably, and breathe new life into these areas. Today, given the price of gold, modern mining techniques, new science, newly found skills of the recent geology graduates and the existing skills of the best miners and geologists in the world right here in Canada, we can give new life to the industry. The deposits don't move, the jobs stay here, the country benefits and the world benefits from a stable source of supply of both indus - trial metals and precious metals. With the world's central banks having their printing presses rolling, gold is trading at all-time highs in every currency except the US dollar but within a slingshot range of those former highs. The shortage of physical supply is also apparent at the mints and with dealers. Central Banks around the world are adding to their own reserves and have been for the last 10 years. The large miners need to replenish their ever-depleting gold reserves. In summary, like the oil industry in the 70s, 80s and 90s and the discovery of great mineral deposits, today the petroleum and min - ing industries have a tremendous opportunity to both continue and expand the further development of the resource sector. n John Newell is a portfolio manager at Fieldhouse Capital Management. He has 38 years of experience in the investment industry acting as an officer, director, portfolio manager and investment advisor with some of the largest investment firms in Canada. Newell is a specialist in precious metal equities and related commodities and is a registered portfolio manager in Canada (advising representative). 778-330-3008 John.Newell@fieldhousecap.com