Late last month, Hong Kong Customs officials busted up a multimillion-dollar smuggling operation.
The Customs people said they made the discovery at Hong Kong International Airport after examining some machine parts that were scheduled to be shipped to Japan.
If you're thinking narcotics, think again. What they found was gold, baby, 146 kilograms of the stuff that had been “molded and camouflaged” as part of two air compressors.
Officials said this was the city's largest gold smuggling seizure, as they seized an estimated $10.7 million worth of the precious metal.
Yeah, we know crime does not pay, and honesty is the best policy, but the story also illustrates just how far some people are willing to go when they're looking for gold.
Related: Analyst who correctly forecast gold's rally unveils new price target
Gold has been part of the human experience since ancient times. It was initially used to make decorative objects and idols and then as a medium for trade exchange.
The European exploration of the Americas was fueled largely by reports of the gold ornaments displayed by Native Americans.
And let's face it, when thousands of people packed up and headed to California in 1849, they weren't going to Disneyland.
From the myth of King Midas to Charley Chaplin in "The Gold Rush," Humphrey Bogart in "Treasure of the Sierra Madre" and Goldfinger, the eponymous villain in the 1964 James Bond movie who tried to knock over Fort Knox, gold has been the driving force behind countless stories, movies, and songs.
All that glitters is not gold? Tell that to Oddjob.
Analysts moved by spike in gold prices
And the price tag for this costly commodity has been climbing.
The price of spot gold reached $2,364 per ounce on April 9 at last check, after hitting record highs for seven straight sessions and trading at $2,336 per ounce April 8. Year on year, gold is up about 16.5%.
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The SPDR Gold Shares exchange-traded fund (GLD) is up 6% in April.
TheStreet Pro columnist Helene Meisler said that metals, mining, and energy have been “absolutely on fire” but noted that this hasn’t done much for the iShares Russell 2000 ETF (IWM) , the Invesco QQQ Trust or the S&P 500, which, she said, “is now working on a month of sideways” trading.
Analysts have been telling their own stories about gold, as several of them have adjusted their price targets for mining companies.
Roth MKM analyst Joe Reagor raised the firm's price target on Hecla Mining (HL) to $6 from $4.60 while keeping a buy rating on the shares.
Reagor said the company's first-quarter production figures were well above expectations driven by a faster-than-anticipated ramp-up at Lucky Friday, Hecla's silver, lead, and zinc mine near Mullan, Idaho.
Lucky Friday, Hecla’s third-largest silver producer, was halted in September to complete repair work on areas damaged by wildfires.
The facility resumed production in January and by March, the mine was operating at full capacity.
Reagor said in a research note that the firm is also updating its gold and silver price forecasts as precious metals have outperformed expectations this year.
The analyst also initiated coverage of Coeur Mining (CDE) with a buy rating and a $5.40 price target.
Related: Analyst who correctly predicted gold's rally updates target
He said he believes Coeur is nearing the end of a higher capital intensity period and is "on the cusp of significant production and cash flow growth."
The company's operational performance and improved financial results should drive a higher valuation in 2024 and beyond, the analyst said.
In addition, Bank of America Securities analyst Harmen Purl upgraded Alamos Gold (AGI) to buy from neutral with a price target of $20, up from $15.75.
Analyst sees company bolstered by acquisition
The upgrade follows Alamos Gold's acquisition of Argonaut Gold in an all-share transaction.
Purl endorsed the move, describing it as a "strong fit" in Alamos' portfolio, and noting the synergies and alignment with Alamos Gold's focus on low-jurisdiction risk.
The firm incorporated the acquisition into its financial model, anticipating positive impacts on Alamos Gold's near-term earnings, cash flow, and operational metrics.
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The Argonaut Gold deal is expected to bolster the company's strengths and contribute to its growth trajectory in the near term.
He also said that the more optimistic outlook on gold prices played a role in the revised rating and price target.
Purl emphasized the potential for Alamos Gold to see a substantial upside from its current position.
Meanwhile, TheStreet Pro’s Ed Ponsi said he’s heading in another direction with a hearty cry of “Hi-Yo, Silver, Away"--and we don’t mean the Lone Ranger’s horse.
Ponsi said that silver has lagged behind gold during its recent rally, which is often the case.
"This could be because retail investors, who are experiencing FOMO (fear of missing out) on gold’s surge, are piling into the lower-priced metal in the hopes that it follows suit," he said. "Regardless of the reasons behind the move, silver has experienced a solid breakout."
The iShares Silver Trust SLV is up 18% year-to-date.
Ponsi said that gold could certainly move higher from here.
"Just because our targets have been hit doesn’t change the fact that gold still has upside potential," he said. "However, the current risk/reward proposition in silver is more attractive in my view."
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