Close menu




December 5th, 2022 | 10:36 CET

Where gold shines brightest: Barrick Gold, Desert Gold, Uniper

  • Mining
  • Gold
  • Energy
Photo credits: pixabay.com

Secretly and quietly, gold has stalked towards the USD 1,800 mark. The reasons are the weaker dollar in combination with a possible end of the interest rate turnaround and the growing uncertainty: Even if current economic data, such as the recently published US labor market report, give hope, the risks are growing in the long term. We look at two exciting gold stocks and use the example of Uniper to explain why gold could soon be booming.

time to read: 3 minutes | Author: Nico Popp
ISIN: BARRICK GOLD CORP. | CA0679011084 , DESERT GOLD VENTURES | CA25039N4084 , UNIPER SE NA O.N. | DE000UNSE018

Table of contents:


    Is 2020 repeating itself?

    Traditionally, when the dollar brings interest rates back, it depresses the price of gold. But this market correlation becomes obsolete as soon as the focus turns to distortions in the financial system. Even after the great inflation of the 1970s, gold started its triumphal march with a delay. Even during the great financial crisis, the gold market was initially as if it had dried up, only to virtually boom from 2011 onwards. Although gold's current all-time high dates from August 2020, it is only marginally higher than the 2011 mark. 2020 was mainly characterised by the multi-billion dollar aid programs for the economy in the wake of the pandemic. At that time, the price of gold anticipated the inflation we see today - at least in part.

    Stocks like those of Barrick Gold and Desert Gold also experienced 2020 highs. However, the more the pandemic was contained, and economic development stagnated, the more disillusionment set in around gold. But despite stagnating inflation rates, the time of inflation is not over. On the contrary, interventionist governments and central banks could make mistakes in the coming weeks and months that would encourage a new wave of inflation.

    Barrick Gold is already trending friendly - a sign?

    Although the US labor market is robust and wages are rising, the Biden administration plans to invest billions in future technologies. These measures are prompting imitators - after all, Europe, Japan and China do not want to be left out in the cold compared with the USA. In addition, calls for government support are traditionally louder in the EU than in the US. Instead of handing out checks to those in need, the German government, for example, has been acting on the "watering can" principle. High-wage settlements are also already on the horizon in Germany. The mixture of a subsidy race around future technology and aid for employees in the form of generous wage settlements could once again fuel inflation. Barrick Gold's share price, like the gold price, has already made substantial gains in recent weeks.

    Desert Gold offers leverage on the gold price

    While gold producers, like Barrick Gold, generally run largely in lockstep with the gold price, companies like Desert Gold offer disproportionate potential. Desert Gold operates one of the world's most promising prospective mining projects. With deposits in the ground trading at a discount to the market, great leverage is created from the moment the gold market picks up steam. In 2020, Desert Gold's stock price surged from CAD 0.09 to CAD 0.33 between March and July. Since then, the Company has continued to explore its SMSZ project, reporting a resource estimate of about 1 million ounces of gold. Experts believe the potential is far greater due to many promising drill holes.

    If governments worldwide launch new spending programs and the interest rate turnaround stalls in the coming months, the markets could price in runaway inflation. Even today, renowned economists, such as the former ECB chief economist Otmar Issing, assume that the monetary guardians may have failed. Moreover, problems that continue to exist, such as at the energy utility Uniper, could soon leave the ECB with no choice: Highly indebted companies and states are dependent on a moderate interest rate level. The situation, therefore, remains highly complex - an escalation cannot be ruled out.


    While investors should steer clear of stocks like Uniper, which has degenerated into a kind of "litigation gamble" following the lawsuit against Gazprom, gold stocks are more suitable than ever as an admixture. On the one hand, stocks like Barrick Gold are solid and offer cash flows. On the other hand, other stocks, such as Desert Gold, tend to represent significant leverage. The Company will be presenting live at the International Investment Forum on December 7. It should be particularly exciting to see what potential the Company's leaders still see in their flagship SMSZ project. If gold takes off and finally switches to crisis mode, any investor who knows the potential of Desert Gold should be at an advantage.


    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.

    For this reason, there is 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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by Juliane Zielonka on February 6th, 2025 | 08:30 CET

    Palantir, First Phosphate, BYD – AI, battery raw materials, and e-mobility are driving growth

    • Mining
    • phosphate
    • Software
    • AI
    • Electromobility

    Fresh quarterly figures and new projects for the electrified world shape this week's stock market. Palantir is posting impressive quarterly figures and achieving new price jumps on the stock market. Investors can expect further growth from the US company with the DOGE project from Trump and Musk. DOGE is streamlining bureaucratic structures, a huge opportunity for Palantir. Raw material producer First Phosphate is positioning itself in the booming market for LFP batteries and is planning sustainable large-scale production of battery raw materials in Canada. Meanwhile, Chinese electric automaker BYD is strengthening its presence in Germany with the appointment of an experienced domestic sales director and setting ambitious sales targets of 50,000 vehicles per year. The details.

    Read

    Commented by Fabian Lorenz on February 6th, 2025 | 07:40 CET

    GOLD and ARMAMENTS unstoppable: Renk outperforms Hensoldt – Barrick Gold and First Nordic Metals with MOMENTUM

    • Mining
    • Gold
    • Commodities
    • Defense

    Gold and defense stocks are currently unstoppable. The gold price is now well above the USD 2,800 mark. Just in time for the record price, insider tip First Nordic Metals is starting its drilling program in Sweden. The stock has taken off, and investors can look forward to a lively news flow. Even gold giant Barrick is sending positive signals, and the stock is picking up momentum. "Gold has truly arrived as the ultimate store of value," the Barrick CEO said in an interview with Bloomberg. Defense stocks are also completely unfazed by Donald Trump's tariff threats. While Rheinmetall is trading at an all-time high, Renk seems to be leaving the downward trend behind and finally catching up. Hensoldt's performance is clearly being surpassed. Will the momentum continue?

    Read

    Commented by Fabian Lorenz on February 6th, 2025 | 07:20 CET

    Puma, Nordex, and Power Nickel - Potential for a price jump? Analysts see opportunities in these stocks

    • Mining
    • Nickel
    • Gold
    • Commodities
    • renewableenergies
    • Sportswear

    Power Nickel's shares were among the commodity high flyers of 2024. The upward trend appears to be continuing in the new year. Power Nickel's high-grade Nisk project is increasingly turning into a gold mine with numerous valuable metals. To increase its value further, it will continue to drill and spin off non-core activities. Will analysts soon be raising their price targets? Puma shareholders have been waiting in vain for a price jump for quite some time. The sporting goods company is caught in a margin trap. The target prices are widely divergent. After difficult years, Nordex is actually doing well. But the US is becoming more and more of a concern. And now there is also a headwind in Germany.

    Read