22. April 2020 | 08:48 CET
Lufthansa, Osino Resources, Wirecard - exciting opportunities for investors
Social life has changed by 180 degrees since February 2020 with the spread of the Corona Virus Covid-19. Business people spend more time in video conferences than on planes, trains or cars. The time spent in the office is often minimized and work is done from home instead. Family time was also called 'quality time' before the pandemic, but when it becomes a duty it can also become a test of patience, especially when economic uncertainty increases around you. A rapid economic recovery is no longer an option. With each day of social and economic restrictions, the effects are also increasing. But the changes also produce winners.
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ISIN: CA68828L1004 , DE0008232125 , DE0007472060
Crisis currency gold
Central banks and governments around the world have taken measures to mitigate the economic consequences of the Corona Pandemic. Popular options are intervention through rate cuts and increases in the money supply. The value of money decreases accordingly and inflation increases.
Those who want to avoid this devaluation do not have much choice. Gold has historically established itself as a crisis currency, because nobody can print the precious metal. Against this background, the demand for physical gold in the form of bars and coins is growing. However, popular products are becoming increasingly rare, even with traders like Degussa.
Gold investment for a limited time
Anyone interested in the origins and value creation of gold should consider the shares of companies that focus on precious metals as an alternative. Of interest in this context is the Canadian company Osino Resources, which is managed by the experienced CEO Heye Daun. The company is focused on the discovery of gold deposits in its own areas in Namibia.
Heye Daun is not new in the business and has already successfully built up a gold company in Namibia in the past and sold to the major player B2Gold. For investors it is important that the management knows how the market works. Osino Resources will continue to collect additional data from the areas with further drilling programs, thereby increasing its own attractiveness for potential buyers.
Price potential up to USD 3,000.00
Meanwhile Bank of America is now predicting that the price of the troy ounce of gold could rise to USD 3,000.00 in the next 18 months. In 2021 an average price of USD 2,063.00 is expected. An optimal scenario for the gold sector. If it does happen, this development fits perfectly with Osino Resources' strategy, because the bride will be pretty by then if successful.
DAX companies in focus
The airline Lufthansa is one of the world's most famous travel companions. However, the current restrictions have ensured that Lufthansa's load factor is now only 5%. The flight schedule has been reduced accordingly. However, the time after the pandemic will not mean that the usual load factor will be restored overnight. Old habits will give way to new habits. Investors need patience.
KPMG's special report on Wirecard is eagerly awaited today. This follows accusations by the Financial Times about dubious contracts and partners. The payment service provider can navigate its way through the Corona Crisis relatively unscathed due to online business.