$900 billion stimulus package agreed

In what will be an interesting week for Gold and Silver traders, US congressional leaders have come to an agreement for a $900 billion stimulus package. This is coincidentally not long after the official unemployment claims of 885,000 vs 800,000 expected. With Gold having experienced some support, bouncing up from the 200 period moving average to just above $1,900 again, how Wall Street reacts to the latest stimulus package will unfold shortly.

Senate leadership announced a bipartisan deal on an approximately $900 billion economic relief package late Sunday afternoon that would deliver emergency aid to a faltering economy and a nation besieged by surging coronavirus cases.

After months of contentious negotiations and seemingly intractable partisan gridlock, Senate Majority Leader Mitch McConnell (R-Ky.) and Senate Minority Leader Charles E. Schumer (D-N.Y.) took to the Senate floor to say that a deal had been finalized and could be quickly approved.

The emerging stimulus package was expected to direct hundreds of billions of dollars in aid to jobless Americans, ailing businesses and other critical economic needs that have grown as the pandemic ravages the country and batters the economy.

Source

Canada is also planning to push their own version of a stimulus package. While nowhere near as exorbitant (and irresponsible) as $900 billion, Canada is planning on spending $100 billion over a 3 year period.

Starting in 2021, Canada has committed to spend up to $100 billion over a three-year period to fortify the country’s economic recovery. “Canadians understand that this crisis demands targeted, time-limited support to keep people and businesses afloat and to build our way out of the Covid-19 recession,” said Canadian Deputy Prime Minister and Finance Minister, Chrystia Freeland.

Source

While we’re on the subject of stimulus packages, Gold, and money printing in Canada – here is an interesting video:

Conclusion

With Gold having experienced some support at the 200 period moving average, and further government stimulus packages being apparently inevitable, trading high quality gold and silver exploration stocks is a great way to position yourself. For exposure to Gold and Silver we strongly recommend Tocvan Ventures (CSE:TOC) given their geologically superb asset – Pilar. Pilar is a short drive away from Santana, a geologically similar mine, which has fast tracked to production. Our research shows that this stock is worth at least $1.53. With higher Gold prices, the value of this stock increases substantially. TOC is currently undergoing a drill program, and investors are anxiously awaiting the results. For those who missed the report on TOC, you can find it here.