Diversification is a must - even for gold stocks
In order to reduce the risk of loss in a portfolio, different asset classes, sectors and regions should be selected. Many portfolios are still lacking in this area. Especially when there are various market uncertainties like now. Anyone looking for gold companies after the upturn in the gold price should also take a look at various countries.
In Africa, for example in Zimbabwe, Caledonia Mining - http://www.commodity-tv.net/c/search_adv/?v=298787 - is a successful gold mining company. With a strong growth profile, Caledonia Mining produced approximately 54,500 ounces of gold at its blanket gold mine in 2018 at a total cost of $802 per ounce. Since local investors are involved, the profitable progress of the company in the not always easy Zimbabwe succeeds without problems.
But there are also gold projects in a completely different region, such as Guatemala. As is Bluestone Resources' Cerro Blanco gold project (up to 19.9 grams of gold and up to 281 grams of silver per tonne of rock). Guatemala has the largest and most powerful economy in Central America. According to the completed feasibility study, the mine will produce an average of 146,000 ounces of gold per year and is solely owned by Bluestone Resources - http://www.commodity-tv.net/c/search_adv/?v=299166.
Diversification is therefore necessary, the purpose is clear. If losses are incurred with one investment, this can be offset by gains with another investment. This leads to a reduction of the investment risk. Harry Markowitz proved that with his work as early as 1952, which earned him the Alfred Nobel Memorial Prize for Economics. And this is still valid today.
Current corporate information and press releases from Caledonia Mining (https://www.resource-capital.ch/en/companies/caledonia-mining-corp/) and Bluestone Resources (https://www.resource-capital.ch/en/companies/bluestone-resources-inc/).
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