Gold mining shares bring profit.
Looking at the last 20 years, gold mining stocks have beaten the gold bullion price with higher returns. The shares now offer leverage on the gold price. If, on the one hand, the upside potential of gold mining stocks is higher, on the other hand, in the event of a price collapse, there is also higher volatility and greater downside potential associated with the stocks.
But gold mining stocks are not about short-term investments, but medium- to long-term investments. Research by Sprott has shown the superiority of gold mining stocks. For example, during the 2000 to 2011 bull market, the price of physical gold rose 550 percent. But at the same time, gold mining stocks went up more than 690 percent.
Now we are back in a bull market since 2015. Gold bullion has gained around 78 percent from 2015 to today. Gold mining shares, however, have gained more than 182 percent in the same period, which is a significant difference. The main reason for this is the fact that gold mining companies use their operating leverage, for example selling produced gold quickly. This increases the value of share prices.
Therefore, let’s have a quick look at successful gold companies like Skeena Resources or Fiore Gold.
Skeena Resources - https://www.youtube.com/watch?v=QuxZIOYR5TA - is working in the Golden Triangle in British Columbia at the historic Eskay Creek gold-silver mine (recently up to 7.17 grams of gold and up to 146 grams of silver per ton of rock) and Snip.
Fiore Gold - https://www.youtube.com/watch?v=QFmOJyVxYSw - is producing at its Pan Mine in Nevada, the first quarter of 2021 yielded just over 9,200 ounces of gold. Fiore Gold's second project, the Gold Rock project, is located nearby.
Current corporate information and press releases from Skeena Resources (https://www.resource-capital.ch/en/companies/skeena-resources-ltd/) and Fiore Gold (https://www.resource-capital.ch/en/companies/fiore-gold-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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