Close menu




March 29th, 2021 | 14:48 CEST

Varta, Triumph Gold, Newmont - Rise is only a matter of time!

  • Gold
Photo credits: pixabay.com

Gold has fallen out of the focus of investors in recent months. Too tempting were the stock market returns after the steep rise, especially as the technology stocks such as Tesla, Amazon and Co. multiplied within a year. At the same time, people forget that the precious yellow metal is still in a long-term uptrend. Overflowing national debt and low interest rates are signs that the old highs are only a matter of time. Position yourself.

time to read: 4 minutes | Author: Stefan Feulner
ISIN: DE000A0TGJ55 , CA8968121043 , US6516391066

Table of contents:


    Protect your capital

    Historic highs in national debt, ever new economic stimulus programs worth trillions, and justified fears of rapidly rising inflation are the arguments for investments in tangible assets, primarily in precious metals such as gold and silver. Historically, these have always been considered safe capital and inflation protection. According to his statements last week, Fed Chairman Jerome Powell has inflation under control and intends to continue the loose monetary policy and the zero interest rate policy until at least 2023. The Fed expects inflation to average 2.4% in 2021.

    Thus, the lively money printing continues in the United States of America and in parallel in the eurozone. After the USD 1.9 trillion bailout package launched by the new US President Joe Biden passed the Senate, the US economy is still in the midst of a recession. A new, even higher USD 3 trillion program is now in the pipeline. This time, the freshly printed Fiat money is to go to infrastructure projects, climate change, and the education system's modernization.

    Geopolitical crises as a risk

    In addition to protecting against inflation, gold has always had the reputation of being a safe haven. When tensions between countries were on the rise, investors fled to the safe haven. After the ousting of controversial President Donald Trump and bringing in the "new peacemaker" Joe Biden, gold corrected, with the hope that tensions would normalize, especially between the two world powers, the US and China. However, after a few months in office of the former vice president of Barrack Obama, one finds that the economic war has instead hardened with mutual sanctions, blacklists and threats.

    Obama and Deputy Biden, by the way, were record-holders of all US presidents with over 2700 days of war in various countries. At the very least, one should pay close attention to the news of the past week. Europe imposed sanctions on China at the beginning of the week for the first time in more than 3 decades. These are directed against Chinese officials who are held responsible for the persecution of the Uyghurs. Now the government in Beijing is warning foreign companies to tarnish China's name.

    Anticyclical entry opportunity

    Despite the warning signs, gold prices continued to correct. According to industry reports, gold ETF holdings fell to the lowest level since May of last year. Central bank gold purchases fell 60% year-on-year in 2020. The result was a low of USD 1,676 per troy ounce in March. Since then, the price has stabilized somewhat and is above the support zone of USD 1,700 at currently USD 1,731.49. Although we assume that the precious metal will fall below the March low once again in the short term, investors should establish initial positions for the reasons mentioned above. In addition to an investment in physical gold, gold mining stocks are a good entry point. Due to the correction since August, these have lost a lot of value compared to the gold price and currently offer favorable entry opportunities again.

    Currently, mine operators benefit from the fact that they are fundamentally better positioned than they have been for a long time due to the past year's high gold price. The two industry giants Barrick Gold and Newmont, for example, were able to achieve record results despite the Corona Crisis and the production stop at several mines due to the lockdowns and are sitting on historically high cash reserves. Due to the significant correction, the shares from the second gold series now also offer exciting entry opportunities again.

    Heavyweights on board

    Newmont, the world's largest gold producer, is also a major shareholder in the promising gold mining explorer Triumph Gold and currently owns 12.8% of the Company. In addition, Zijin Mining Fund owns just under 9.8%. Since mid-February, another heavyweight, Teck Resources, has also been on board and joined the illustrious group of shareholders. Triumph Gold has transferred 1.25 million common shares to Teck Resources in exchange for expanding its Freegold Mountain project to include Teck Resources' Big Creek gold-copper property in the Canadian Yukon. In addition, Triumph Gold is securing a 1.5% net smelter return royalty to the Canadian resource giant from potential future production from the acquired 258 contiguous quartz mines.

    Strongly positioned

    With approximately CAD 5 million in cash, Triumph Gold is able to fund its entire drill program for the current year. The Canadians' focus is on exploring properties in the Yukon Territory. Earlier this month, a full-time team was assembled to focus on advancing the Freegold Mountain project within the prolific Dawson Range copper-gold belt. Triumph shares have a current capitalization of CAD 23.3 million at a price of CAD 0.16. Last week saw a significant slide in the share price as the support zone at CAD 0.17 was ruptured. The value fell to a low of CAD 0.13 but stabilized again at CAD 0.16 through countercyclical buying. In the long term, attractive entry opportunities are offered at this level.

    Uncertain market

    The Varta share price is also going back and forth. After the Company announced its entry into the battery business for electric cars, the share price initially rose sharply but then corrected again by half. Now Varta also wants to tackle the electric two-wheeler market with KTM. Varta and KTM wish to create a battery platform for the electric two-wheeler sector jointly. From a chart perspective, overcoming the resistance at around EUR 136 would brighten the chart picture.


    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