Gold price: reset or soon over 2,000 US dollars
The Corona pandemic continues to fuel the price of gold. It will be interesting to see how much air the price still has to rise. At least as long as there is no reliable vaccine and the global pandemic has the economy under control, the rally should continue. For six months Corona has been the topic of discussion and has also caused gold production to fall.
According to the World Gold Council, gold production in the first quarter in the most important producing countries fell by about three per cent. The last time such a small amount was produced was in 2015. And only a slight change is expected for the second quarter of 2020. The buying frenzy for gold is unbroken, interest rates will probably remain low for a long time to come and a currency devaluation wants to be hedged with gold.
Whether the rapid rise in the price of gold will lead to a crash is disputed. But it doesn't seem like it. The economy is only very slowly getting back on track and the printing of money is continuing. Thus, private investors as well as professional investors are buying heavily, because one wants to be part of the gold price increase. In order to earn with leverage, an investment in gold or silver stocks is the right thing to do. Especially if they can score with quality, both in management and in projects, such as Auryn Resources or Aurania Resources.
Auryn Resources has six projects, including high grade gold and copper projects in Peru and Nunavut. Analyst firm H.C. Wainwright & Co. recently reiterated its Buy recommendation for Auryn Resources and raised its target price from US$2.00 to US$2.60 per share. The reason for this is the company's resource valuation. The Sombrero Project now values the analyst firm at $75 million. The total valuation is US$302.4 million.
Aurania Resources' The Lost Cities Cutucu Project in the Andes of Ecuador is a unique property where historical data research is complemented by state-of-the-art exploration techniques. This area is believed to have been home to former producing gold mines. Current drilling has yielded up to ten percent copper and 131 grams of silver per ton of rock.
Latest company information and press releases from Auryn Resources (https://www.resource-capital.ch/en/companies/auryn-resources-inc/) and Aurania Resources (https://www.resource-capital.ch/en/companies/aurania-resources-ltd/).
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