The Space Race That Could Send Gold Soaring

When Elon Musk tweets, the market listens. [Katusa Research] Katusa's Investment Insights May 31, 2024 The Space Race That Could Send Gold Soaring By Marin Katusa Dear Reader, When Elon Musk tweets, the market listens. For one, he's now the owner of the social media platform X, formerly Twitter. Naturally, that amplifies his voice. As one of the world’s richest person and owner of two of the most influential companies in the world, Tesla and SpaceX, Musk has long been a market mover. - Like in 2021, when he added the hashtag #bitcoin to his profile. Just hours later, bitcoin went up 19%. - Or when he tweeted that “Silver is the new GameStop,” which pushed interest in silver so quickly that the price rose 10% in just a few days. Not to mention the time he infamously announced that he was taking Tesla private, and then he didn’t. Nonetheless, TSLA stock closed 11% higher that day. But when it comes to gold, he's been rather shy. Over the past few years, he’s made vague claims about the value of precious metals compared to other investments. But despite his strong opinions on many other issues, he's never made a direct statement on gold. Until now. And the timing isn't surprising… Gold has been on a tear lately. The bullion price has gone up 15% since the beginning of the year. This has certainly been fueled by the highest inflation rate in four decades, and it's still not gone down to its pre-pandemic levels. But some argue that other trends have helped shake up the gold market, like Costco’s decision to start selling gold bars to its members. - Since it launched its gold business, Costco has sold up to $200 million worth of gold bars every month, despite its 2% markup on the spot price. Without a doubt, gold is back in a bull market. But here’s why Elon Musk should pay close attention to the bullion price… Gold is a Crucial Material for Rockets and Satellites We’re looking at you, SpaceX. Aerospace engineers use gold to protect sensitive electronics from rust, corrosion and damage. Yes, gold’s incredible properties on earth, hold true in space also. Its high conductivity allows information to be transmitted through large distances in space, which is crucial for satellites and space stations. - The Columbia Space Shuttle used about 41kg of gold, or about 1,446 ounces. At today’s gold price, it would cost about $3.4 million just to buy the raw material for a space shuttle. Because gold reflects up to 99.4% of light particles7, it is used to not only harness solar energy on satellites, but also to protect spacecraft from the damaging effects of the sun's heat. That's also why the visors of space helmets are covered with a thin layer of gold. When I say thin, I’m talking about 0.000002 inches. If it was any thicker, an astronaut wouldn’t be able to see through it. It acts like high-powered UV protection for astronauts veering outside of their space stations. - At a price tag of approximately $3 million per helmet, it’s one of the most expensive headgears on the planet. With the $5 billion contract SpaceX received from NASA through 2030, the company should be able to afford it. And with the global space industry set to double by 2030, we can expect demand for gold to rise. But would Elon Musk invest in the precious metal with his own personal funds? Is Elon Musk Playing Four-Dimensional Chess With Gold? Here’s the thing about Elon Musk… He’s not seen as a financial expert, but he is. He’s an entrepreneur, an engineer and a financial genius. As the owner of SpaceX, which uses a lot of gold to get rockets to space, it’s not in his interest to help raise the price of gold. After all, he’s not a gold producer. He’s a gold buyer. The lower the price is, the more money he can keep. And Elon Musk has a history of trying to lower the price of the production of his rockets. In Walter’s Isaacson biography of him, he describes how Musk was able to lower the price of an important valve from $250,000 to just $5,000 by forcing a young engineer to make it himself. If he encouraged investors to buy gold and potentially raise the price of the resource he needs, he would shoot himself in the foot. Now, it would be difficult for one person to change the price of gold. But he’s proven to influence the price of both bitcoin and silver, two assets that are just as well-known. So, it’s entirely possible that Elon is trying to play his own version of four-dimensional chess in the resource markets. I think Gold just may have just entered the biggest bull market in 100 years What I do know for sure is that gold has entered the biggest bull market of the last 100 years. Not even one of the richest men in the world will be able to stop that. That’s why I’m on the hunt for new gold opportunities right now. The gold price is high, but mining stocks are still cheap. It’s the perfect time to get a list of gold stocks on your radar right now. I’m looking at one exploration company in particular. It owns properties with more than 10 million ounces of measured and indicated gold equivalent resources and zero debt.10 I’ll keep you posted as soon as I’m making a move to publish an alert on this opportunity to you here, on the Investment Insights email list. Regards, Marin Katusa and the KR Special Situations Team [Share]( [Share]( [Tweet]( [Tweet]( [Share]( [Share]( Copyright © 2024, Katusa Research, All rights reserved. [PLEASE READ: RETURNS AND TESTIMONIAL DISCLOSURE]( [Contact Us]( | [Privacy]( | [Terms & Conditions]( Details and Disclosures Investing can have large potential rewards, but it can also have large potential risks. You must be aware of the risks and be willing to accept them in order to invest in financial instruments, including stocks, options, and futures. Katusa Research makes every best effort in adhering to publishing exemptions and securities laws. By reading this, you agree to all of the following: You understand this to be an expression of opinions and NOT professional advice. You are solely responsible for the use of any content and hold Katusa Research, and all partners, members, and affiliates harmless in any event or claim. If you purchase anything through a link in this email, you should assume that we have an affiliate relationship with the company providing the product or service that you purchase, and that we will be paid in some way. We recommend that you do your own independent research before purchasing anything. If you wish to stop receiving our emails or change your subscription options, please [Manage Your Subscription]( Katusa Research, Suite 530 - 800 West Pender St, Vancouver, BC V6C2V6, Canada