The real value of gold – columns

The price of the precious metal has just reached its highest level in almost five months.

By the end of the year, the experts at Commerzbank expect a gold price of 2,000 US dollars per troy ounce. Gold investors should be happy. In the pandemic as well as in the current phase of gradual normalization, gold has proven to be one of the most stable assets. This should provide additional confidence in the precious metal as a diversifier for the portfolio. From a technical perspective, gold recently made a major technical breakout and appears poised to test all-time highs.

In the past year, the volatility of many assets was also higher than that of gold. At the beginning of the pandemic, the liquidity qualities of the precious metal were estimated, then the price recovered very quickly. Volatility is important as it affects how investors perceive it, and therefore also the risks in the portfolio. An asset that – like gold – proves its protective effect with understandable historical behavior across various market conditions is likely to be seen as the darling of investors. Even if there is a consolidation and gold seems overbought, in the longer term, the World Gold Council sees it, the recent gold rally seems convincing in the long term.

The gold price will pick up in June where it left off in May, further price increases are expected and an investment in the values ​​of the gold companies is a good opportunity to be part of it. This is where Kore Mining or Caledonia mining – – into consideration. Kore mining– -, supported by strategic investor Eric Sprott, has the Lang and Imperial projects in California. They are said to be able to produce up to 350,000 ounces of gold annually. Caledonia Mining has been producing successfully in the Blanket mine in Zimbabwe for years. From 2022, 80,000 ounces of gold per year are to be extracted from the ground.

Current company information and press releases from Kore Mining (- -) and Caledonia Mining (- -).

In accordance with Section 34 of the WpHG, I would like to point out that partners, authors and employees can hold shares in the companies addressed and that there is therefore a possible conflict of interest. No guarantee for the translation into German. Only the English version of these news items applies.

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