Gold rises to a record high and drives gold mining stocks up sharply. Of the BANG index has now reached a new all-time high. The index consists of the four precious metal producers Barrick gold, AngloGold Ashanti, Newcrest and Gold road resources.
Gold is generally considered a safe haven. As the number of infections increases, the hope of a rapid economic recovery decreases. Developments in the USA in particular are causing worries on some investors. Added to this are the tensions between the United States and China. The increasing uncertainty is driving investors into safe investments. In many places, however, bonds offer hardly any returns. Precious metals benefit from this. At $ 1,940, the yellow precious metal rose to a new all-time high today.
However, the mining companies also provide impetus. AngloGold Ashanti today raised earnings forecasts for the first half of the year. Gold Road Resources posted a new record for Q2 last week. In the past quarter, 71,000 ounces of gold were produced – with a profit margin of around 50 percent. The Australians are targeting 285,000 ounces for the full year. Newcrest also released good numbers, dropping an average price of $ 1,646 per troy ounce last quarter. Barrick Gold will provide insight into the numbers on August 10th. Given the price of gold, earnings should also have increased.
However, the mine operators are not free from risks. In the recent course development there is hope that the delivery volume and profit will continue to grow at an above-average rate. If the price of the precious metal falls, however, the mining stocks could come under pressure.
Index certificate on the BANG Net Return Index
|HVB Open End Index certificate|
|Underlying||BANG Net Return Index|
|ISIN / WKN||HX80WV / DE000HX80WV4|
|running time||Open end *|
|Administrative fee p. a.||0.50% p. a.|
|Asking price (selling price)||EUR 20.91|
|* The issuer, UniCredit Bank AG, is entitled to properly cancel the certificate and repay it at the respective repayment amount. As of July 27, 2020, 1:09 p.m.|
Please note the important information and the disclaimer.
This information does not constitute investment advice, but an advertisement. The public offer is made exclusively on the basis of a securities prospectus that has been approved by the Federal Financial Supervisory Authority (“BaFin”). The approval of the prospectus is not to be understood as a recommendation to purchase these UniCredit Bank AG securities. The prospectus including any supplements are decisive and the Final Terms. It is recommended that you read these documents carefully before making any investment decision in order to fully understand the potential risks and opportunities when deciding to invest. You are about to purchase a product that is not easy and can be difficult to understand.
How the HVB products work
The contribution gold – record level in precious metals and gold mining index! first appeared on onemarket’s blog (HypoVereinsbank – UniCredit Bank AG).
Author: Richard Pfadenhauer