High demand for gold
Thus, 1,053.3 tonnes of gold were in demand in the first three months of 2019. This was due to the strong buying activities of central banks, which continue to regard gold as insurance. This means that as much gold as had been stored since 2013 (in relation to the first quarter) no longer went into the central banks' gold deposits. Gold supported ETFs have also grown in the first three months of 2019, according to World Gold Council research.
Russia in particular increased its gold reserves and now owns around 19 percent (2,168 tons of gold) of the world's reserves. On the one hand gold is a crisis metal and on the other hand it is an insurance in the form of a currency. Political uncertainties and trouble spots are also driving gold into the safe haven.
Investment in bars and coins fell by one per cent in the first quarter of the current year. By contrast, demand for gold jewellery has risen by around five percent, mainly thanks to Indian buyers. They had not bought as much as they had since 2015. In China, the purchase of gold jewellery was somewhat restrained (a decline of two percent compared to the same quarter of the previous year), probably also due to the uncertainties of the international trade conflict.
The technology sector, on the other hand, needed less gold. Trade conflicts and somewhat weaker sales of consumer electronics were as much to blame as weaker economic growth. If central banks continue to bet on gold and even more investors jump on the bandwagon, gold companies like US Gold or TerraX Minerals should make good progress.
US Gold - http://www.commodity-tv.net/c/search_adv/?v=298868 - has a portfolio of prospective projects and concessions (gold and copper). In particular, the Keystone gold project in Nevada is located on gold rich soil.
TerraX Minerals' Yellowknife City gold project - http://www.commodity-tv.net/c/search_adv/?v=299034 - is located in a proven gold area where gold has previously been produced. 783 square kilometers of best gold country in Canada. The water licence, which is important for such projects, is already available.
Current corporate information and news releases from US Gold (https://www.resource-capital.ch/en/companies/us-gold-corp/) and TerraX Minerals (https://www.resource-capital.ch/en/companies/terrax-minerals-inc/).
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