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Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Dr. Thomas Gutschlag
CEO | Deutsche Rohstoff AG
Q7, 24, 68161 Mannheim (D)

info@rohstoff.de

+49 621 490 817 0

Interview Deutsche Rohstoff AG: "We can imagine additional investments in the field of electromobility."


Steve Cope, President, CEO and Director, Silver Viper

Steve Cope
President, CEO and Director | Silver Viper
1055 W Hastings St Suite 1130, V6E 2E9 Vancouver (CAN)

info@silverviperminerals.com

+1-604-687-8566

Interview with Silver Viper: Future price drivers and takeover fantasy


Karim Nanji, CEO, Marble Financial

Karim Nanji
CEO | Marble Financial
1200-1166 Alberni Street, V6E 3Z3 Vancouver (CAN)

info@marblefinancial.ca

+1-604-336-0185

Interview with Marble Financial: Fintech innovator plans expansion into the US


23. March 2021 | 13:30 CET

Xiaomi, Osino Resources, Barrick Gold - Here come new highs!

  • Gold
Photo credits: pixabay.com

The DAX and Dow Jones are still in rally mood and climb one high after the other. After technology stocks switched to correction mode, now is the time for value stocks and the re-opening winner of the Corona pandemic. A sharper decline in the stock markets or even cash seems out of the question at the moment. The forecasts for economic recovery in both the US and Europe are too good. Gold as an investment alternative? Not at the moment; that is what cryptocurrencies are for. But beware, there is a development that could soon push gold into significantly higher territory. You still have time to position yourself!

time to read: 3 minutes by Stefan Feulner


Nick Mather, CEO, SolGold PLC
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC

Full interview

 

Author

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


Party mood prevails

Since the price of gold reached its high of USD 2,069 per troy ounce at the beginning of August last year, a correction set in that temporarily pushed the value below the USD 1,700 mark. Currently, the price is trading just above it again. Since the fall, hopes of an end to the pandemic and a rapid global economic recovery have been dominated by vaccine manufacturers' positive developments. Gold as a "safe haven" does not count at the moment. An investment in Bitcoin & Co is currently considered more lucrative and also more timely. According to industry reports, gold ETF holdings are at their lowest level since May last year. In addition, central bank gold purchases in 2020 were down 60% year-over-year.

Dangerous mix

Another low below the mark and, at best, a short-term sell-off would present itself as a more than interesting entry opportunity, in our opinion. The reasons for the long-term optimistic scenario are easily explained. On the one hand, the central banks are flooding the markets with more and more fresh money. Government debt has already exploded to historic highs. The new US President Joe Biden came to the rescue last week with the approval of the new USD 1.9 trillion stimulus package through the Senate. The goal of the program is to boost consumption. While this will drive the economy, it will also increase inflation. The Fed expects inflation to average 2.4% in 2021, officially. The current price increase is likely to be many times higher. Nevertheless, the Fed is sticking to its loose monetary policy and wants to continue pumping money into the markets. The same scenario applies to the ECB's policy. Interest rates remain low, and inflation is rising dramatically - a more than clear warning signal for gold and gold mining stocks.

Fundamentally strong as never before

Gold mining stocks are fundamentally stronger than they have been for a long time. Due to the high gold price, not only the largest gold producers Barrick Gold and Newmont Mining, achieved record results. Barrick Gold CEO Mark Bristow, among others, is optimistic and expects a further increase in the price of the shiny precious metal. Besides the big players on the gold market, smaller producers and mining explorers corrected disproportionately. Should there be an increase in the precious yellow metal, they should outperform both the gold price and the more prominent players. Fundamentally, Canadian junior explorer Osino Resources continues to perform according to plan. Osino holds 17 exclusive drilling licenses in Namibia, one of the world's leading mining nations for diamonds, uranium, zinc, and gold.

In Historic Territories

All of these licenses are located near and along strike of the producing Navachab and Otjikoto gold mines. The Canadians' flagship project is Twin Hills Central, which lies southwest of the high-grade Otjikoto Mine and has been defined to date as 1.3 km in length. The gold grade per tonne at the Otjikoto mine is currently still twice that of Osino Resources' Twin Hills project, but the area Osino is exploring is twice as large. Earlier this year, results were released suggesting that the area is similar in grade to that of the neighboring area. Individual drill intercepts over 50m and 81m returned above-average results of 1.75 g/t and 1.74 g/t gold, respectively. According to analysts at Echelon, the price targets for Osino Resources are between CAD 2.30 and CAD 2.45. This would offer a price opportunity of almost 100%; the share price is currently at CAD 1.20.

Rumors intensify

The share of the Chinese technology group Xiaomi also had to correct. On the one hand, the Company, which has risen to become the third-largest smartphone manufacturer, was hit by the current market correction. On the other hand, the sanctions imposed by the US government, which had placed Xiaomi on a blacklist, had a negative impact. According to the court, a judge suspended the punitive measures because the reasons were inadequate justification by the US Department of Defense. As a result, US investors are once again allowed to invest in the Chinese Company.

For a long time, one rumor circulating but has been denied by Xiaomi is the Company's entry into the lucrative electric car market. Now the Chinese media Company 36Kr reports, citing company circles, that preparations are already underway for the production of the Company's own electric cars. The project could be launched as early as April and is expected to have a similar brand positioning to Guangzhou-based Xpeng, which targets younger Chinese buyers in the mid to high-end market segment. After the drop back to the significant support line at EUR 14, this offers an attractive long-term entry opportunity.


Author

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



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


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Coinbase, Plug Power, NSJ Gold Corp. - Bitcoin, inflation, gold - triple whammy!

  • Gold

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  • Gold

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  • Gold

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