Experts Recommend Buying Gold and Silver! Barrick Mining, Newmont, First Majestic Silver, and Desert Gold in Focus

Gold Expert Sees Above-Average Opportunities in Gold and Silver Mines

Is Now the Right Time to Enter the Precious Metals Market? The USD 4,000 per troy ounce mark appears to be holding as an important support level for the gold price. For silver, however, the technical picture is not yet as convincing. JPMorgan's bullish assessment recently provided a boost. The US bank considers a rise in the gold price toward USD 6,000 per ounce by the end of 2026 to be possible and sees further potential for 2027. The key drivers are seen as sustained demand from central banks, particularly in China, strategic diversification away from the US dollar, and potential additional purchases by Chinese insurers. Risks remain in the form of the Federal Reserve's monetary policy and geopolitical developments, but from JPMorgan's perspective, structural factors continue to point toward higher gold prices.

According to Markus Bußler, gold and silver have largely reached their previously expected correction targets and may now be on the verge of bottoming out. According to the gold expert at the investor magazine "Der Aktionär," while it cannot be ruled out that the precious metals will see even lower prices, the risk-reward ratio has improved significantly at current levels. Especially following the sharp declines of recent months, staggered purchases could pay off, provided the expected trend reversal is confirmed.

Bußler sees above-average opportunities once again, particularly in gold and silver mining stocks. Many stocks have fallen sharply and offer considerable upside potential should precious metal prices recover. Initial signs of firming in gold, silver, and mining stocks could indicate the start of stabilization, even if the bottoming-out process cannot yet be considered complete.

First Majestic Silver Viewed Positively

Regarding First Majestic Silver, Bußler views the latest second-quarter production figures and the upwardly revised forecast positively. At the same time, he remains skeptical about the planned restart of the Jerritt Canyon mine: While higher gold prices generally improve profitability, increased costs, necessary initial investments, and risks associated with ramping up production could weigh on free cash flow. In his view, a successful restart of Jerritt Canyon would be crucial for the stock to outperform significantly.

Barrick Mining and Newmont

For investors, Barrick Mining and Newmont remain core holdings in the gold sector despite their recent weakness. Things had quieted down around both companies recently, and Bußler did not explicitly recommend either stock as a "Buy" in his latest broadcast. In the past, he had criticized Barrick because, in his view, its strategic direction was not clear enough. Among other things, he was referring to plans for a potential initial public offering (IPO) of the company's North American or US operations, which could boost shareholder value but also raises questions about the group's long-term strategy. Perhaps Barrick will provide an update on August 10, when the company reports on its second-quarter performance.

Desert Gold: A Hot Contender for a Summer Rally

Desert Gold is a hot contender from the precious metals sector for a summer rally. And the gold price does not even necessarily have to rise for this to happen. The driver for the stock is the start of gold production at Barani-East, a smaller section of the massive SMSZ project in Mali. SMSZ covers an area of 440 km² in the "Kaba" region of western Mali, one of West Africa's most important gold-producing regions. The resource is already estimated at over 1 million ounces. The start of production this summer would be a major milestone for the company, marking a cost-effective entry into production. The cash flows will allow the company to ramp up production gradually while simultaneously expanding the resource.

In GBC Research's latest report, the intrinsic value is estimated to be significantly higher than the current market price. Analysts expect Desert Gold's stock to rise to CAD 0.93. The stock is currently trading at around CAD 0.11. In Germany, it is traded on Tradegate, among other platforms.

GBC analysts expect Desert Gold to ramp up production to a throughput of approximately 1,200 metric tons per day by the fourth quarter. They are projecting a conservative selling price of USD 2,850 per ounce. This would be sufficient for Desert to achieve revenue of USD 33.06 million as early as 2027. Operating costs per ounce are projected to be around USD 1,110. This would result in a robust EBITDA of USD 20.19 million. Cumulatively over the modeled life of the project, analysts estimate Barani-East's free cash flow at over USD 155.9 million. And this represents only a small portion of the entire SMSZ project. On the stock market, the entire company is currently valued at only about CAD 50 million. Incidentally, Desert Gold owns not only the massive SMSZ project but also the Tiegba Gold project in Côte d'Ivoire.

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The opportunities once again outweigh the risks for gold and silver. An additional exceptional buying opportunity could arise with Desert Gold. The start of production should be the starting signal for a rally in the stock. Things could get exciting for Barrick Mining on August 10. Newmont and First Majestic remain core investments.