Metal markets are changing
The topic was to grasp the fundamentals of the market and transform them into successful investments. In the 1990s, investments in raw materials were still relatively scarce. That changed in the 2000s. Because China became an important consumer of metals and also a major producer. Today, gold and industrial metals have moved into the spotlight of many investors.
Fundamental data looks good for various metals, such as copper or gold. The modernisation of the transport system will lead to more demand for copper and also for palladium. Emissions regulations have become stricter and the automotive industry is concentrating more on petrol-oriented offers. Palladium purifies the exhaust gases. Hybrid vehicles are also usually powered by a petrol engine and therefore need palladium. Electric vehicles are being developed more and more and are advancing in technology.
Palladium has risen in price by around 60 percent in one year. This should be particularly pleasing for companies that own this raw material. For example, Sibanye-Stillwater, a major platinum and palladium producer with projects in South Africa and North America. Sibanye-Stillwater - https://www.commodity-tv.com/play/sibanye-stillwater-diversifying-globally-in-metals-and-jurisdictions/ - also owns gold projects in the Witwatersrand Basin in South Africa.
The increased gold price also naturally benefits gold mine operators. Caledonia Mining - https://www.commodity-tv.com/play/newsflash-99-with-millennial-lithium-aurania-resources-osisko-gold-royalties-auryn-resources-und-caledonia-mining/ - has been a successful production company in Zimbabwe for many years. In the third quarter of 2019, 13,646 ounces of gold were produced, 7.3 percent more than in the second quarter. The gold grade increased in the third quarter and again in October (3.55 grams of gold per ton of rock), from an operational and financial point of view the performance is excellent, according to the management of Caledonia Mining.
Current company information and press releases from Sibanye-Stillwater (https://www.resource-capital.ch/en/companies/sibanye-stillwater-ltd/) and Caledonia Mining (https://www.resource-capital.ch/en/companies/caledonia-mining-corp/).
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