Mostly very well financed, especially the juniors among the gold companies that have promising projects should have the best prospects for success. The high gold prices have ensured increased financing activity in the mining sector in 2020. A new bull market could now begin for junior gold and silver companies.
Monetary and fiscal policy remains poorly predictable, low or negative interest rates will remain for a long time and thus support the gold price. How quickly the slump in the jewelry industry will pass and when the central banks will buy more gold again is not known. Therefore, some analysts also expect some volatility in the price of the precious metal. But these possibly negative factors, many think, will certainly be more than offset by investor demand. After all, demand for ETFs is expected to be just as strong in the new year as it was in 2020. Expectations are also mostly positive for demand for physical gold.
For example, because of the current Corona situation, Fed Chairman Jerome Powell has pointed to even more difficult months ahead. Further economic supportive measures are to be expected and thus give the gold price tailwind.
So, what could be more obvious than to look at the gold companies. First, there is OceanaGold - https://www.youtube.com/watch?v=lcxM3ly04xE -, an already medium-sized gold producer. Its projects are located in the Philippines, New Zealand and the USA. At the Haile Gold Mine in the U.S., development of the underground mine, which includes high-grade ore, will start in the second half of 2021.
Trillium Gold Mines - https://www.youtube.com/watch?v=D1s2gzRm4Sc -, active in British Columbia, is also making progress. The main project, the Newman Todd Gold Project, is located in the Red Lake area. Provided with a drilling permit for its southwestern part, exploration continues at full speed.
Current corporate information and press releases from OceanaGold (https://www.resource-capital.ch/en/companies/oceanagold-corp/) and Trillium Gold Mines (https://www.resource-capital.ch/en/companies/trillium-gold-mines-inc/).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
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