October 30th, 2025 | 07:00 CET
Real purchasing power nightmare: How to hedge with gold investments like AJN Resources, Barrick, and Newmont!
Rising national debt, ballooning budget deficits, and central banks oscillating for years between fighting inflation and supporting economic growth have shaken confidence in the stability of global fiat currencies. The debt burden is growing faster than it can be offset by growth. For investors, this means a massive decline in real purchasing power - an irreversible process that could even accelerate in the future. The solution: investments in gold and gold stocks. The gold price rally is far from over. Who is ahead of the curve?
time to read: 3 minutes
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Author:
Carsten Mainitz
ISIN:
AJN RESOURCES INC. O.N. | CA00149L1058 , BARRICK MINING CORPORATION | CA06849F1080 , NEWMONT CORP. DL 1_60 | US6516391066
Table of contents:
"[...] We have a clear strategy for neutralizing sovereign risk in Papua New Guinea. [...]" Matthew Salthouse, CEO, Kainantu Resources
Author
Carsten Mainitz
The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
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AJN Resources – Huge potential in Africa
The gold exploration company AJN Resources is focused on developing promising gold deposits in Ethiopia and the Democratic Republic of Congo. The Canadians recently completed a financing round of CAD 470,000 with a significant price premium. The fresh capital will be used to advance the Okote Gold Project in Ethiopia. Once in-depth analyses and tests have been completed, a drill program will follow, which is expected to comprise at least 1,500 m of diamond core drilling.
AJN Resources holds a 70% interest in the Okote Project, which covers an area of 672 sq km in the heart of the Adola Gold Belt, a gold-rich area. Just 100 km away lies the Lega Dembi mine, which is one of the largest gold mines in the country with reserves of 4.5 million ounces of gold. Historical drilling by the previous operator confirmed gold mineralization grades of up to 8.7 g/t over several meters at Okote, underscoring the project's strong exploration potential.
The strategic logic is that the extent of the mineralization and the continuation of the trends and formations of the Lega Dembi mine can be demonstrated on the largely unexplored Okote site. This could lead to a revaluation of the Company, which is currently valued at just CAD 6 million. With experienced CEO Klaus Eckhof, who has been active in the African commodities sector for decades and whose track record includes the development and sale of exploration companies, AJN Resources is ideally positioned to turn the opportunities available to investors into rising share prices.
Barrick - Blue chip to present figures on November 10
The shares of the Canadian company have doubled in value since the beginning of the year. The current market capitalization stands at around CAD 75 billion, with a P/E ratio for 2026 and the following year at a moderate level of 10. Analysts still believe the stock has upside potential of around 15%. The world's second-largest gold producer is performing well operationally, and its financial figures are solid. Barrick also pursues a shareholder-friendly distribution policy, including dividends and share buybacks. The Canadian company will present its key figures for the third quarter on November 10.
For the year as a whole, Barrick plans to produce between 3.15 and 3.5 million ounces of gold at all-in sustaining costs (AISC) of USD 1,460 to 1,560 per ounce, which provides a solid margin given the high gold price. Just over half of production is expected to come from North America, with around a quarter coming from Africa and the Middle East. However, Barrick is not only known for large-scale gold production, but is also one of the world's largest copper producers. Here, the geographical focus is on Africa and the Middle East.
Newmont – Rumors: Looking to acquire Barrick's assets in North America
Analysts see upside potential of around 30% for the shares of Barrick's US competitor. The key figures are similarly strong to those of the Canadian company. However, with a market capitalization of USD 87 billion, Newmont carries more weight on the stock market. There is currently speculation that Newmont intends to acquire a majority stake in a joint venture operated together with Barrick in Nevada. On the one hand, it is a matter of price, but on the other hand, Barrick's production focus for gold would then shift significantly away from North America. In times of geopolitical tension, that would likely not be in the best interest of Barrick's shareholders. For Newmont investors, however, it would be a smart move. The situation remains exciting.
Investing in gold is a must in view of the increasing loss of purchasing power. Whether as a physical investment or via gold stocks is a matter of taste. A rally of blue chips in the gold sector is typically followed by a catch-up rally of second- and third-tier stocks. Investors should keep the shares of AJN Resources on their watch list. Successful drill programs and the further development of the Okote Gold Project are likely to provide positive momentum for the stock. The Company is valued at only CAD 6 million.
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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
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