Central banks play with the value of our assets. When the gold price last rose sharply years ago, there was a lot of discussion about whether gold is money. People invest in gold because it offers protection, counteracts the decline of currencies. This makes gold more than just a precious metal. Gold is a financial asset, including gold that is still in the ground of a gold project. Gold is therefore money.
Politicians and banks can print money, but not gold. Debt crises have been around for a long time. The money is "printed" down in value. In 1995, when Alan Greenspan ruled as head of the US Federal Reserve, the US had around 3.5 trillion US dollars in debt. Today, it has around 18 trillion in debt, an increase of 414 percent.
Gold is endowed with monetary properties. It is divisible, portable, recognisable and scarce, i.e. a stable store of value. There are currently also many experts who still consider the gold price to be undervalued, even though it has just reached a historic high.
Especially for gold companies that own the precious metal, the high gold price is of enormous advantage. The mining costs remain the same, but they can sell their gold at a higher price. And the market value of the gold companies increases, which means that investors in gold stocks can also invest.
OceanaGold as a mid-sized gold producer should be among the winners as well as Bluestone Resources.
OceanaGold's projects are located in the USA, the Philippines and New Zealand. 360,000 ounces of gold are estimated to be produced in 2020.
Bluestone Resources is not yet among the producers, but with an estimated 146,000 ounces of gold expected to be produced annually from the Cerro Blanco gold mine in Guatemala (total cost is only $579 per ounce of gold), this company should also be pleased with the price of gold.
Recent corporate news and press releases from OceanaGold (https://www.resource-capital.ch/en/companies/oceanagold-corp/) and Bluestone Resources (https://www.resource-capital.ch/en/companies/bluestone-resources-inc/).
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