Close menu




March 24th, 2021 | 09:06 CET

CureVac, Scottie Resources, Newmont - Is the monetary system at its end?

  • Gold
Photo credits: pixabay.com

There is a dangerous mix brewing in the international financial markets. With the passage of the new USD 1.9 trillion US stimulus package, whose money will be used primarily to boost consumption, inflation expectations rise. The Fed expects inflation to average 2.4% in 2021. Nevertheless, the Fed intends to continue its path of loose monetary policy, which was accelerated during the Corona Crisis, until at least 2023. In doing so, Fed Chairman Powell violates the basic principle of central banks to take preventive action against inflation. There is a threat of monetary devaluation of historic proportions.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: NL0015436031 , CA81012R1064 , US6516391066

Table of contents:


    Gold as a profiteer

    Rising inflation with interest rates remaining stable at zero percent. Has the Federal Reserve gambled itself away? If so, there is a long-term winner: gold. Until August 2020, when the precious metal price rose above USD 2,060 per troy ounce, it was the safe haven and fear of a prolonged economic downturn due to the Corona pandemic. Then came the correction, driven by hopes of an imminent end due to successes in vaccine development. When Donald Trump was succeeded by savior Joe Biden, who incidentally called Russian President Putin a "killer" last week, everything seemed to be back on track.

    The gold price fell to its eight-month low at USD 1,676.00 by March 2021, before currently trading somewhat recovered above the prominent support zone at USD 1,700. In recent months, both private and institutional investors threw out their ETF holdings from their portfolios. Thus, these are already back before the pre-Corona level. Another striking development is that the gold purchases of the central banks have been reduced by 60% compared to the previous year.

    Situation tense in the short term

    In the short term, caution is still advised when buying the precious yellow metal, although the rule of always having some gold lying around as collateral still applies. Therefore, a short-term dip below the March low and a possible shake-out is entirely possible. In the long term, however, gold is a safe haven that offers security in the event of crises and capital and inflation protection. In addition to investing in the gold price, shares of gold mine producers and mine explorers are particularly attractive. Both the industry giants Barrick Gold and Newmont were able to deliver excellent figures in recent weeks and are fundamentally better off than they have been for a long time due to the past year's strong performance.

    Newmont increased the quarterly dividend for the fourth quarter of 2020 alone by 38% to now USD 0.55 after outstanding figures. The full-year 2020, which suffered from the Corona Crisis, was an absolute record result despite reduced production of 6%. Here, the total net profit was USD 2.14 billion or USD 2.66 per share. With USD 5.5 billion in cash and USD 8.5 billion in free cash, the Company is sitting on a mountain of money. It has the flexibility now to expand its portfolio through acquisitions during weaker market periods.

    Second-tier winners

    If there is a prolonged upswing in the gold market, companies from the second tier usually perform much better. Therefore, as a speculative portfolio addition, an investment in a gold mining explorer is quite promising. Scottie Resources' share has more than met the ongoing correction and is trading just above its pre-crisis level at CAD 0.20.

    This level is also a strong support area. From a fundamental perspective, the mining explorer offers interesting entry opportunities. Scottie's projects are excellently located in the well-known "golden triangle" near Summit Lake in British Columbia. The Golden Triangle is one of the most productive mineralization areas globally and is world-renowned for its abundant deposits. In total, the Canadians own more than 25,000 hectares there. Claims include a 100% interest in the high-grade, past-producing Scottie gold mine and the Bow property located just 2 kilometers northeast of the Scottie mine.

    Good development

    At Bow, the Company obtained excellent assay results for the Blueberry zone late last year. As a result, drilling will continue aggressively in this area, ideally located directly on a road, to determine the full extent of this vast and high-grade system. Encouraging results also came to light from the Scottie Mine last month. Among other things, drill core returned 12.6 grams of gold and 4.4 grams of silver over approximately five meters. With a cash cushion of approximately CAD 3.5 million, Scottie also plans to undertake further drilling here starting in the third quarter. It is a promising Company with an imminent upward movement in the gold price in the long term.

    From the background

    While you can read about AstraZeneca or BioNTech in the media almost daily, the next vaccine candidate, CureVac, is working more from the background. Now we hear that the Tübingen-based Company is expanding its pivotal clinical trial because of the rapid spread of new coronavirus variants. CureVac confirmed its plans to file for marketing approval in the second quarter of 2021. The Company expects approval by the end of June. The share is currently trading at around EUR 80, where it hangs at the central resistance zone. If the resistance is overcome, the next target price would be the annual high of EUR 109.50.


    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

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by Fabian Lorenz on December 1st, 2022 | 11:55 CET

    Comeback stocks: Nel, Aurora Cannabis, Barrick Gold, Tocvan Ventures

    • Mining
    • Gold
    • Hydrogen
    • Cannabis

    Gold, cannabis and hydrogen could be among the top trends of the coming year - also on the stock market. Due to full order books, Nel could be poised for a comeback in 2023. At least sales are already secured until mid-2024. Now, all that is left is to cut the loss to reach analysts' price targets. Aurora Cannabis has largely completed its turnaround and is also hoping for legalization in Europe and the US. Driven by a strong gold price, mining stocks have already jumped. Now exploration companies should follow. Tocvan Ventures is one of them. And with the gold explorer, investors can look forward to a regular news flow in the coming year. Are the three candidates comeback stocks in 2023?

    Read

    Commented by Stefan Feulner on December 1st, 2022 | 09:46 CET

    BYD, Auxico Resources, Hensoldt, Rheinmetall - Prepared for the future

    • Mining
    • Gold
    • RareEarths
    • Defense

    Russia's invasion of Ukraine at the end of February this year changed everything. While global stock markets fell into a state of shock, shares in defense companies boomed. With the arms buildup in the Western world, the future looks bright for companies that were still viewed critically before the war of aggression. However, in order to produce enough tanks, aircraft and other war equipment, the industry needs a variety of critical metals for which demand already exceeds supply.

    Read

    Commented by Stefan Feulner on November 22nd, 2022 | 13:42 CET

    Favorable starting positions for Commerzbank, Desert Gold and BioNTech

    • Mining
    • Gold
    • Investments
    • Biotechnology

    The suspected downward pressure due to uncertainties in the economy and geopolitics has so far failed to materialize. Instead, the most important stock indices, such as DAX or Dow Jones, were able to leave their short-term downward trends and are sending signals for a further upward push. In addition to the stock market, the precious metals sector was also able to turn around. Here, in particular, entry opportunities beckon at a significantly reduced level with the chance of long-term, disproportionate price gains.

    Read