Mining benefits from gold price rise
One of the main reasons for the gratifying rise in gold prices may be that the US Federal Reserve has mentioned the possibility of future interest rate cuts. Capital market interest rates are falling, which should weaken the US dollar. This in turn benefits the gold price. Because the fact that gold does not yield interest then fades into the background. This development is particularly advantageous for gold companies.
As political tensions also tend to rise, many experts expect a sustained recovery and see gold as an interesting investment for the remainder of the year. The shares of gold mines can also play a good role as an admixture to a portfolio.
In the case of the junior gold companies, it is above all these that should benefit, as they are adequately financed in addition to good projects in solid mining areas. Despite the current gold price situation, it is still not easy for young mining companies to pull capital ashore. Revenues are not yet generated and a lot of money is needed for exploration and development. If the price of gold continues to rise, however, the situation for these mining companies should improve.
Companies that are financially well positioned include Auryn Resources and US Gold. Auryn Resources - http://www.commodity-tv.net/c/search_adv/?v=299172 - is a well-funded junior company with seven projects. The Committee Bay Gold Project in Nunavut and the Sombrero Copper Gold Project in Peru are the Company's flagship projects.
US Gold - http://www.commodity-tv.net/c/search_adv/?v=298868, with a promising series of gold concession areas, is also a possible investment option. The Keystone project in Nevada's Cortez trend deserves special mention. The recent completion of a direct offer will flush US Gold $2.5 million into the till for further development of the modern drill program.
Current corporate information and news releases from Auryn Resources (https://www.resource-capital.ch/en/companies/auryn-resources-inc/) and US Gold (https://www.resource-capital.ch/en/companies/us-gold-corp/).
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