The Reserve Bank of India bought almost 15 tonnes of gold between October and November 2019. This was the largest two-month purchase since it began at the end of December 2017, bringing the Indian central bank's total gold holdings to 2.45 million troy ounces in the two years between November 2017 and November 2019.
Many connoisseurs of the gold market see 2020 as an excellent year for the price of the precious metal and expect a gold bull market. Also, no asset class has performed as well as gold in the 21st century. Not only the Indian central bank has understood this, but many other central banks and also investors.
Investors should therefore look into the shares of gold companies. Here, for example, Caledonia Mining could be mentioned: https://www.commodity-tv.com/play/newsflash-99-with-millennial-lithium-aurania-resources-osisko-gold-royalties-auryn-resources-und-caledonia-mining/. Caledonia Mining's blanket gold project in Zimbabwe was able to report record production, almost 17,000 ounces of gold, in the last quarter of 2019. In the past year a total of more than 55,000 ounces of gold could be extracted from the ground. Caledonia Mining currently owns 49 percent of the mine. However, this is expected to rise to 64 percent soon.
But other raw materials could also see their prices rise. Because the world wants a functioning infrastructure, similar to the industrial revolution. This will increase the demand for raw materials such as copper. The main producer of copper is Chile. The largest copper consumer is China. The trade dispute between China and the USA, which is not too beneficial for the copper price, could soon be over, at least that is the hope of many. If there is a trade agreement between the two parties, exports to the USA will increase. This will strengthen the Chinese currency and Chinese market participants can expect higher purchasing power and buy more foreign goods.
Companies with gold and copper, such as Aurania Resources, should therefore face good times. Its Lost Cities Cutucu project, located in the Andes of Ecuador, owns both.
Current company information and press releases from Caledonia Mining (https://www.resource-capital.ch/en/companies/caledonia-mining-corp/) and Aurania Resources (https://www.resource-capital.ch/en/companies/aurania-resources-ltd/).
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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