Bullfrog Gold Corp (OTCMKTS:BFGC) is a junior gold miner that typifies the ideal of low-cost production potential, high-capacity capability, and the advantage of broad underexposure by most investors. That’s why this stock may be our overall favorite prospect in the space right now. But all the junior miners deserve your attention for one simple reason: Donald Trump’s twitter feed.

In March, Janet Yellen, Chair of the US Federal Reserve, is almost certainly going to raise interest rates. When she does, it will be a move that basically counters the utility of Trump’s plans for fiscal stimulus. He will not like that. He is going to be able to replace Janet Yellen before too long. We believe that his response to the Fed’s rate hike will likely be to hint at some candidates he is interested in placing in that role. As we discuss below, the nature of that list could turn out to be huge news for gold.

Bullfrog Gold Corp (OTCMKTS:BFGC) bills itself as a company focused on the exploration and development of its Bullfrog gold Project located 120 miles NW of Las Vegas, Nevada, where Barrick Bullfrog Inc. (Barrick) produced 2.3 million ounces of gold averaging 2.8 g/tonne from 1989-1999.

The Company also acquired Barrick’s comprehensive exploration, mining and processing data base, including information on 157 miles of drilling in 1,298 holes. For reference, Barrick ceased operations in 1999 when the price of gold was less than $300/oz. BFGC has identified 470,000 ounces of gold mineralization remaining between Barrick’s Bullfrog underground and open pit mines and in the M-S pit area.

A Store of Value

As discussed above, we see a sequence of events ahead that may pave the way for huge returns for investors in junior gold miners. The secret sauce here is no secret: it’s all about a scramble for gold.

After the Fed raised rates in December of 2015, gold bottomed and took off higher, reaching over $1300/troy ounce by July. During that time, Bullfrog Gold ripped 2300% higher. Why did it outperform gold and the other miners by such a wide margin? Because it’s thin on the tape, badly under-owned, and trades with a much higher beta.

We believe that may happen again if gold gets moving higher. And Trump’s short list of new Fed chair candidates is going to be the biggest catalyst we’ve seen for gold in a long, long time.

The key is this: Trump has promised a lot of things. This guy has already shown us that he’s going to do anything to make good on those promises (at least, in name). He said he’s going to build a wall. Guess what: here comes a darn wall. He said he’s going to get GDP to boom higher? Guess what: he’s going to be in search of a Fed head that isn’t going to hit the brakes every time he steps on the gas pedal.

The upshot is going to be a scramble for gold exposure by high net worth individuals. Traders and investors can get ahead of that dynamic by seeking out under-owned, undervalued junior gold miners with large potential production capacity, such as Bullfrog Gold.

BFGC recently expanded its potential production capacity considerably by acquiring access to Barrick’s entire data base in the Bullfrog mining district of Nevada, including 157 miles of drilling in 1,298 deep drill holes that would cost over $40 million to recreate today. That looks like it will turn into 470,000 ounces of heap leachable gold mineralization without the cost of the drilling.

That’s why we think this little player may steal the show as things start to heat up in the gold space in coming weeks.