Good gold companies also defy Corona
If share prices rush down, as they did during the financial crisis and even now in the environment of the all-dominant corona crisis, then gold shares also suffer. Nevertheless, the safe haven of gold is intact. Stamina is needed. If the gold price is weakening at the moment, this is certainly also due to the large financial investors seeking liquidity. For they have been betting heavily on gold in recent months and are now selling some gold stocks. This is because losses in other asset classes need to be made good.
Investments in gold stocks should always be seen in the medium to long term, regardless of the current state of the financial world. Even if the safe haven gold sometimes suffers from the uncertainties, investing in shares of well-positioned gold companies remains a lucrative business. Corrections must always be planned for. The fear of the economic consequences of the virus crisis is justified, but times will change again. Gold shares could emerge as a particularly strong asset class, because gold is virtually a permanent fixture. Thus, central banks and investors will continue to bet on the precious metal in the future.
Quality counts all the more now. Gold companies such as GoldMining or Caledonia Mining are enjoying this. GoldMining, with its large portfolio of gold projects, has impressive gold resources of around 10.5 million ounces of gold, measured and indicated. The projects in Canada, Peru, Brazil, Colombia and in the USA were recently extended by a historic gold project in Idaho: https://www.commodity-tv.com/play/goldmining-acquisition-of-almaden-gold-stocks-still-undervalued/.
One of the successful producers is Caledonia Mining with its blanket gold project in Zimbabwe: https://www.commodity-tv.com/play/newsflash-with-skeena-resources-caledonia-mining-copper-mountain-and-millennial-lithium/. Thanks to the participation of local investors, gold production has been running smoothly for years.
Current company information and press releases from GoldMining (https://www.resource-capital.ch/en/companies/goldmining-inc/) and Caledonia Mining (https://www.resource-capital.ch/en/companies/caledonia-mining-corp/).
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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