Close menu




July 2nd, 2021 | 13:04 CEST

Barrick Gold, Desert Gold, Steinhoff: Knowledge instead of hope and fear

  • Gold
Photo credits: pixabay.com

Gold has recently gone under the wheels, but that does not necessarily mean anything. The experts at Commerzbank are still sticking to their gold price forecast of USD 2,000 by the end of the year. Given the recent correction, the potential for price gains is therefore even greater. We outline how investors can invest based on two companies from the gold sector. We then distinguish speculative gold investments from gambler stocks.

time to read: 3 minutes | Author: Nico Popp
ISIN: BARRICK GOLD CORP. | CA0679011084 , DESERT GOLD VENTURES | CA25039N4084 , STEINHOFF INT.HLDG.EO-_50 | NL0011375019

Table of contents:


    Barrick Gold: Where is the liberation blow?

    Barrick Gold's stock is considered the gold standard by many retail investors. If you ask people about typical gold stocks, they usually always mention Barrick, even though the Company is "only" number 2 worldwide behind Newmont. Barrick Gold operates numerous mines in all the major mining regions of the world. It means that Barrick is well-positioned to compensate for regional problems, such as natural disasters or even strikes. The downside of this solid positioning is that Barrick's stock has little imagination. The share generally moves in lockstep with the price of gold. Last year, Barrick was flush with cash and had strong free cash flow. However, because of the pandemic, it was challenging to identify takeover targets and make moves. Investors resented Barrick's efforts and only sullenly accepted the special dividend paid out in the fall. Investors would have preferred a takeover.

    Barrick Gold is still looking for potential takeover targets. The copper sector also remains interesting for the Company, but at the moment, almost everything revolves around gold. With the industrial metal copper, the Company would be more broadly positioned and benefit from future trends, such as e-cars. However, the extent to which Barrick Gold is serious about copper remains to be seen. Other acquisitions would also have to be of a specific size to impact the share price positively. With rising gold prices, Barrick will also gain again, but the potential of the share is somewhat limited.

    Desert Gold: Making progress

    Desert Gold, on the other hand, is of a completely different caliber. Unlike the world's second-largest gold producer, Desert Gold's resources are valued much lower. The reason: Desert Gold is not yet in production and is developing its SMSZ project in Mali step by step. The project is located in the same geological regions as neighboring producing mines of Barrick Gold and B2Gold. Recently, auger drill results north of Gourbassi West showed promising indications of gold deposits. The results are expected to be confirmed by further drilling. In the event, the results of the exploration work could more than double the strike length of the existing deposit. In total, Desert Gold is drilling more than 20,000 meters in 2021 to advance the project.

    Last year, the Company made a name for itself thanks to outstanding gold grades and caused a steep rise in share prices. In the meantime, the share has remained at its current level for several months. Last summer, the share price was more than twice as high. Given further promising drill results, as well as illustrious anchor shareholders, such as Merck, Leede Jones or Ross Beaty, gold investors should keep the shares of Desert Gold on their radar. Smaller stocks that have yet to develop projects offer leverage to the gold price, especially during rising gold prices.

    Steinhoff: A never-ending story?

    Shareholders of Steinhoff are also hoping for exorbitant profits. The furniture group was rocked by an accounting scandal years ago. Since then, the Company has been facing lawsuits. The claims, amounting to billions, could endanger the existence of the entire Company. There have been repeated references to possible settlements and a resolution of the legal disputes. That would also help the stock, which has been a penny stock for a long time, get back on its feet. But the mills of justice grind one thing above all - slowly. And that is why the speculation surrounding the Steinhoff share is also characterized by many delays and disappointed hopes. Instead of betting on the outcome of complex legal proceedings, investors who are convinced of rising prices for gold can also invest speculatively with Desert Gold, but in a much more predictable way. Given the circumstances, Steinhoff's stock is nothing more than a gamble. Even if the legal disputes end positively, Steinhoff remains a highly indebted furniture group. The potential for the share is limited in any case.


    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by Fabian Lorenz on October 23rd, 2025 | 07:00 CEST

    Will GOLD explode to USD 10,000? Opportunities in defense? Barrick Mining, RENK, and Kobo Resources!

    • Mining
    • Gold
    • Commodities
    • Defense

    Get out of gold - or buy more? According to the world's most famous banker, the rally in precious metals is far from over. Jamie Dimon believes USD 10,000 per troy ounce is possible. In line with this, there are interesting rumors coming out of Africa regarding heavyweight Barrick Mining. Explorers such as Kobo Resources offer leveraged exposure to the gold price. The Company is active in one of Africa's most stable and promising regions, and the gold gem's stock has recently been listed on a German stock exchange. Defense stocks have also corrected recently. Here, too, analysts see buying opportunities. RENK has potential for a 30% gain. The transmission specialist has announced a million-dollar order.

    Read

    Commented by André Will-Laudien on October 22nd, 2025 | 07:35 CEST

    Gold and silver – New record highs! Keep an eye on Barrick, Agnico Eagle, Desert Gold, and First Majestic!

    • Mining
    • Gold
    • Silver
    • Commodities

    Silver prices broke through the USD 53 mark for the first time at the beginning of the week, and gold is attempting to reach the USD 4,300 mark. Precious metal enthusiasts have been anticipating these moves for a long time, but traders on the futures exchanges clearly have not. In addition to extreme physical scarcity, the exploding prices are also attributed to heavy short squeezes. The physical silver market is under tremendous pressure as the availability of real metal to hedge the numerous futures transactions is severely limited. This imbalance is causing erratic market reactions and driving the spot price into an almost exponential sell-off. The current rally in precious metals is driven by geopolitical uncertainty, industrial demand factors, and the search for safe investments. In times of excessive government debt, the weakness of the US dollar is now also weighing on the market. Which companies should investors keep a close eye on now?

    Read

    Commented by Carsten Mainitz on October 21st, 2025 | 07:40 CEST

    Power Metallic Mines, RENK, BYD – An explosive combination! And the winners are?

    • Mining
    • Copper
    • Nickel
    • Gold
    • CriticalMetals
    • Electromobility
    • Defense

    Many topics are dominating the headlines. Peace in Gaza – and soon in Ukraine? This prospect initially put a significant damper on defense stocks – but only temporarily. After just a few days of correction, prices are already rising again. Gold at an all-time high is another major topic being covered in the media. Meanwhile, the geopolitical shifts we were reluctant to acknowledge for far too long are now catching up with many companies: China is cutting the world off from critical raw materials and rare earths. Read here to find out how investors can identify promising high-potential opportunities in this constellation.

    Read