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May 8th, 2023 | 07:40 CEST

Impending financial crisis 3.0 boosts gold: Desert Gold Ventures, Deutsche Bank, Allianz - This is where the music plays!

  • Mining
  • Gold
  • Banking
  • Investments
  • Inflation
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And another double interest rate hike. First the FED, now the ECB followed suit last week, as expected. Monetary policy is trying a dangerous balancing act, as the US banking sector is tottering, and at the same time, inflation rates remain high. Now lavish wage settlements are added to the mix, and the second-round effects are on. The aggressive interest rate hikes and the collapsing real estate market have been among the factors causing stress in the banking sector. Profiteers are few and far between at the moment, but precious metals are back on the buy list. What about the prominence of the German financial industry?

time to read: 4 minutes | Author: André Will-Laudien

Table of contents:

    Central banks - Turbulence in the banking sector

    There is also unrest in the markets because of the dispute over the debt ceiling. US Treasury Secretary Janet Yellen warned that a default of the world's largest economy could be imminent as early as June 1 if the debt ceiling is not raised. Western banks still have trillions of euros in low-yield bonds on their books, which now require significant write-downs. After the collapse of Silicon Valley Bank and Signature Bank in March, it initially looked like the turmoil had been overcome. However, First Republic Bank, another US money house, is threatening to collapse, but it has now become known that the industry leader JPMorgan Chase is taking over (must take over) the ailing bank in a state-coordinated rescue operation. This presents a good opportunity for gold, which climbed to a new all-time high of USD 2,083 on the day of the "forced takeover".

    Desert Gold Ventures - Is a golden decade ahead?

    There are currently many reasons for precious metals, especially gold. Purchasing power is falling, geopolitical uncertainties abound, and a bleak outlook in the real estate market is weighing on investors' minds. If we add concerns about the financial system and the looming abolition of cash, we could indeed expect a golden decade. Has the starting signal been given?

    Canadian explorer Desert Gold Ventures (DAU) has its sights set on the Senegal-Mali Shear Zone (SMSZ). In February 2023, it completed 445 drill holes totalling 2,067 metres over the Mogoyafara South deposit and the Kousilli West concession area in the northwesternmost part of the property. SMSZ is associated with 7 gold deposits located both north and south along the Desert Project. Well-known competitors in the region are B2 Gold, Barrick and Allied Gold, and the current signs are for expansion.

    The former management of the acquired Yamana Gold has moved to the emerging Allied Gold. Over the past 10 years, the Canadians have amassed a portfolio of gold projects in Africa with current mineral reserves of about 10 million ounces of gold. Since 2019, Allied Gold has already tripled its gold production, producing over 370,000 ounces of gold in 2022. Endeavour Mining is expanding its Sabodala-Massawa mine in neighbouring Senegal and bringing the highly prospective Lafigué project on stream by the end of 2024.

    Activity in the region is currently very high, so Desert Gold Ventures' SMSZ project should also soon come into the focus of the major mine operators. The Company is currently valued at only CAD 12 million and is liquidly tradable in Canada and Frankfurt.

    Acting CEO Jared Scharf will report on progress in 2023 at the 7th International Investment Forum next Wednesday, May 10, at 7:30 pm. Click here to register.

    Deutsche Bank - No signs of weakness so far

    Shareholders of Deutsche Bank might have stopped laughing in the last weeks. Despite new highs on the DAX & Co., the share price is 23% below its January high. Meanwhile, the bank keeps repeating that it has not suffered any damage from the US banking crisis and the liquidation of Crédit Suisse. The market, however, does not believe these statements, as the private bank has been shaken by too many scandals in the recent past.

    In the field of investment banking, the bank has experienced true highs and lows over the past 20 years. Now, the signs are pointing towards expansion as the Frankfurt-based financial institution offers GBP 410 million to acquire the London-based broker, Numis. This is the largest acquisition in more than a decade. "The merger will allow us to take advantage of greater revenue opportunities within our combined client base and deepen our exposure to UK companies," said Fabrizio Campelli, Head of Corporate and Investment Banking. London-based investment house Numis has a strong network among UK clients, covering almost 20% of companies in the FTSE 350 index. The investment banking market in the UK is by far the largest in Europe. With a share price of EUR 9.66 and a dividend yield of over 4%, Deutsche Bank is not too expensive at the moment, if indeed it does not have any skeletons in its cupboard in the current banking crisis.

    Allianz - Short of annual high despite ex-dividend

    It is a celebration for shareholders when the Munich-based insurance giant opens its treasury and pays out dividends of over EUR 11. With 122 million customers worldwide, Allianz is one of the largest insurers in the world. The scandal around the "Structured Alpha" hedge funds in the US, where fund managers had not kept to their own regulations at the beginning of the Corona Crisis, had cost Allianz more than EUR 5 billion. The incident is now history. However, the Allianz subsidiary Pimco had to write off USD 340 million because of the Crédit Suisse restructuring. Investors will find out how the figures for the first quarter will look at the end of this week on May 12. On the Refinitv Eikon platform, 16 out of 22 analysts currently recommend buying, with an average 12-month price target of EUR 249.80. With a 2023 P/E ratio of 8.9, the DAX-listed company's stock, valued at EUR 215.80, is not too expensive, and, as is well known, most new insurance contracts are concluded in the first quarter.

    The stock market is currently jumping from high to high. Apparently, there are no burdens, and the threat of recession is not keeping investors from stocking up. Financial stocks like Deutsche Bank and Allianz are not expensive at the moment. Desert Gold Ventures remains a good option on rising gold prices and offers takeover fantasy.

    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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
    For this reason, there is also a concrete conflict of interest.
    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

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    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author

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