Close menu




July 20th, 2020 | 08:22 CEST

Barrick Gold, Desert Gold, Yamana Gold - the Gold Rush has begun

  • Gold
Photo credits: pixabay.com

Gold is money. Geologists of explorers, engineers of developers and the miners of producers - all are involved in bringing the world's oldest currency to us. The precious metal is also in demand in the modern society of the 21st century, and for a significant reason: gold cannot be printed and is therefore essentially different from the so-called fiat currency of central banks. Central banks around the world are currently printing money on a large scale to provide the general public with capital to prevent unrest and the collapse of the rest of the economy.

time to read: 2 minutes | Author: Mario Hose
ISIN: CA0679011084 , CA98462Y1007 , CA25039N4084

Table of contents:


    Restrictions bring economy to a standstill

    During the financial crisis in 2008, the central banks for the first time concertedly provided the market with larger amounts of money with special programs. At that time, the aim was to prevent the economy from coming to a standstill. In 2020 everything will be different. Politicians have even ordered the economy to come to a standstill by imposing restrictions to stop the corona pandemic. To alleviate the side effects the money printing machines of the central banks are now running and an end is not yet in sight.

    Measures without comparison

    With the increase in ongoing government and central bank support packages, the level of measures is likely to soon reach ten times the levels of 2008 and 2009. Considering the alternatives, this political process is the better way forward. Those who have assets now have to protect themselves against the threat of devaluation and this is where gold comes in again. Gold is rare, difficult to find and costly to refine.

    Gold at an all-time high

    In many currencies the gold price is already at an all-time high. In the lead currency, the US dollar, there is not even a 10% gap until a new high is reached. The price of gold futures with a physical delivery obligation already gives an indication of what the pricing may be like over the next 18 months. The August 2020 future is currently quoted at USD 1,809.40, while the December future is already quoted at USD 1,833.20, June 2021 at USD 1,851.70 and December 2021 at USD 1,859.40. One thing is for sure, as long as the central banks increase the money supply, the demand for gold will also increase.

    Gold supply will decline

    Low interest rates help the states to get further into debt, virtually free of charge. In the past, interest rates were bad for the price of gold. Another reason why the demand for gold will not fall. In addition, there will still be supply bottlenecks in the gold supply, as the world's largest producers have recorded a 34% decline in reserves since 2012. Gold production is expected to peak this year and Barrick Gold expects the production volume to fall from around 118 million ounces in 2020 to less than 65 million ounces in 2029.

    Takeover target with potential

    Producers such as Barrick Gold and Yamana Gold are thus dependent on exploration companies such as Desert Gold Ventures, which are looking for further gold deposits in their area. Desert Gold owns more than 400 km2 of properties in West Africa in the vicinity of B2Gold, Barrick Gold and Iamgold. The current drilling program of the exploration company is expected to bring further discoveries to light. The team has been successful on several occasions in the past and is targeting the discovery of up to 6 million ounces.

    In Africa, acquisitions in 2018 have already paid more than USD 200.00 per ounce in ground. At that time, however, the price of gold was significantly lower. Desert Gold's share price has been rising for several weeks now - slowly but steadily. Investors are positioning themselves with the major landowners, a takeover target par excellence.


    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

    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



    Related comments:

    Commented by André Will-Laudien on September 30th, 2022 | 12:36 CEST

    Higher, faster, further: BYD, Infinity Stone, Porsche, Varta - The energy transition stock portfolio is wanted!

    • Mining
    • Gold
    • Electromobility
    • GreenTech

    The words "energy turnaround" are used a lot in public. The majority understand it to mean the use of GreenTech to generate energy while avoiding dangerous climate gases. Unfortunately, the leaks from the Nord Stream 2 pipeline, which is not in operation, are leaking the amount of gas into the atmosphere every day that the state of Denmark consumes in an entire week. This makes us painfully aware of how strongly warlike actions counteract efforts to save the climate. On the stock market, it is important to turn our gaze away from current events and toward a more peaceful future, where good ideas for sustainable change will also be rewarded. Which stocks belong in the portfolio?

    Read

    Commented by Juliane Zielonka on September 29th, 2022 | 10:57 CEST

    Barsele Minerals, K+S, BYD - Sweden as a crisis winner?

    • Mining
    • Gold
    • fertilizer
    • Electromobility

    Due to the explosions in the Baltic Sea pipelines Nord Stream 1 and 2, a switch to other energy sources is inevitable, especially for German industry. Fertilizer producer K+S, based in Kassel, is affected by this. The situation is different with Barsele Minerals. The Canadian company is exploring large gold areas in sunny Sweden and plans to mine up to 3.5 million ounces of the precious metal in the future. Electric car and battery manufacturer BYD, on the other hand, has sufficient resources in its home country of China and is preparing to make the leap into the European market. Find out here which shares are now defying the crisis.

    Read

    Commented by Stefan Feulner on September 27th, 2022 | 13:47 CEST

    Barrick Gold, Tocvan Ventures, Newmont, Glencore - Long-term positioning in gold makes sense

    • Mining
    • Gold
    • Commodities
    • Investments

    The FED's recent interest rate hikes and Chairman Jerome Powell's statement sent both equity and precious metals markets into the valley of tears. By all means, the monetary guardians want to curb rampant inflation. Whether this will succeed seems at least questionable. After all, it should not be forgotten that this would put an end to the already sputtering engine of the global economy. In addition, many already highly indebted countries are falling into ever greater problems due to higher interest payments. Thus, it is time to take a long-term, anticyclical position in the precious metals sector.

    Read