Gold - from the doldrums to the comeback
There are still trouble spots, problems could worsen, just think of the trade dispute between the USA and China, and the central banks are placing great emphasis on the yellow precious metal. A weakening of the US economy is also expected, which in turn would lead to higher demand for gold.
Although China and the USA have come a little closer in their trade conflict, the grace period expires in spring 2019, when the cards will be shuffled again and further trouble in the form of penalty duties could threaten. Trade disputes usually entail a decline in risk appetite and an increase in the attractiveness of gold. In addition, there is the budget dispute between the EU and Italy, as well as Brexit.
The central banks' propensity to buy should continue in the current year. By the end of December 2018, China's central bank had increased its gold reserves to almost 60 million ounces, or about 1,853 tons of gold. This means that China's gold reserves have risen for the first time since October 2016, at least according to official figures.
At the end of 2018, it was already evident that the price of gold was moving upwards again. Recently, a six-and-a-half month high of almost US$1,300 per troy ounce was reached. Exchange-traded precious metal funds are at a seven-month high. This can be seen as a bullish sign, according to expert Matthew Turner from the Macquarie Group.
So it might be particularly worthwhile now to bet on gold and on the values of gold companies. Possible investments include Bluestone Resources and Steppe Gold.
Bluestone Resources - https://www.commodity-tv.net/c/search_adv/?v=298745 - has currently drilled up to 16.3 grams of gold per tonne of rock and identified new veins on its Cerro Blanco gold and silver project. The project is located in Guatemala and is wholly owned by Bluestone Resources.
Steppe Gold - https://www.commodity-tv.net/c/search_adv/?v=298802 - with its ATO gold project in Mongolia is on the verge of first gold production. In addition, the company also owns 80 percent of the Khundii Gold Project in Mongolia. The partner is the provincial government of Bayankhongor. There are no political risks in democratically-run Mongolia, says Matthew Wood, president and CEO of Steppe Gold.
Current corporate information and news releases from Bluestone Resources (https://www.resource-capital.ch/en/companies/bluestone-resources-inc.html) and Steppe Gold (https://www.resource-capital.ch/en/companies/steppe-gold-ltd.html).
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