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October 2nd, 2020 | 12:49 CEST

Barrick, Desert Gold, Gazprom: Using volatility wisely

  • Investments
Photo credits: pixabay.com

The stock exchange is not a one-way street, and for this reason, there are also fluctuations in price formation. There is no such thing as a fair valuation that statically determines the value of a share. Every investor has different motives in investment decisions and about the timing of the sale. The only common denominator of investors and speculators is the goal to make money. Shares with high volatility are predestined for speculative traders, while investors usually prefer that a company's share price continuously increases in value.

time to read: 2 minutes | Author: Mario Hose
ISIN: CA25039N4084 , US3682872078 , CA0679011084

Table of contents:


    Opportunity to enter the market through a price slide

    The Canadian exploration and development company Desert Gold holds approximately 410 km2 of concessions in West Africa. The projects focus on gold deposits in the so-called "Senegal Mali Shear Zone" (SMSZ). A total of 38 km of Desert Gold's properties are in this shear zone, where five mines of companies like B2Gold, Barrick Gold and Iamgold are already in production.

    Desert Gold claims to have the largest contiguous area on the SMSZ and has identified a 5 km area as a top priority exploration target during past work. Management intends to discover up to 6 million ounces of gold in these areas. Previous exploration work has already identified suitable quantities of gold at several locations. The next steps will be to continue drilling to determine the size and grades of the gold deposits.

    The company raised a total of CAD 6.8 million in fresh capital for the upcoming drilling season from investors in August 2020 through a financing round, at a share price of CAD 0.28. Yesterday, the stock closed at CAD 0.155. Investors now have the opportunity to buy the shares at a significant discount to the valuation of the financing round two months ago. The company expects to resume drilling programs in the SMSZ area in November 2020. Given that management has never had so much budget available, the drill program will be considerable.

    GAZPROM: Separation of politics and business

    The mixing of politics and business can have serious consequences. Former Chancellor Gerhard Schröder recently highlighted in the case of Nord Stream 2 and the poisoning attack on Russian opposition leader Alexei Nawalny: "One has nothing to do with the other." Numerous politicians had reacted to the news by calling for a halt to the construction of the pipeline.

    With her momentous political decision to phase out nuclear power in 2013, Chancellor Angela Merkel has significantly increased Germany's energy dependence on foreign countries. Her predecessor also made it unmistakably clear: "We have to secure our energy supply. And I don't see how we can do that at a reasonable price without Russia."

    Energy costs in Germany are now among the highest in the world. With this in mind, the German government is subsidizing electromobility while burdening the cost to electricity consumers and at the same time has initiated the phase-out of coal and nuclear energy. Educated citizens are rightly asking themselves how this is to be made affordable?

    Gold price on the road to recovery

    Barrick is one of the world's largest gold producers and can profit accordingly at the current gold price of over USD 1,900.00 per troy ounce. In summer 2020, the price of the precious metal was briefly quoted at over USD 2,070.00 per troy ounce. Against the background that central banks around the world have significantly increased the money supply in recent months, many believe the current price level of gold is likely to be no more than a breather.

    Investors who would like to place themselves in the precious metals sector, but shy away from the purchase of physical bars and coins, are increasingly turning to Barrick Gold shares. The most prominent newcomer to the gold scene is US investor Warren Buffett, who recently announced the purchase of Barrick shares with his investment company, Berkshire Hathaway.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    Mario Hose

    Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

    About the author



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