The price of gold is rising, but many investors are not - yet - on board. But they want to. Companies are also looking around. Time to act!
The price of gold at 2200 US dollars or above the until recently unimaginable 2000-euro mark? It could soon be a reality. The mixed situation continues to speak in favor of gold. The problem for the average consumer: if the price rises, many small investors will hold back because "gold is so expensive now". This can even be observed in the gold-loving countries in the Persian Gulf. "Purchases in the gold souk are collapsing", was a recent report by BNN Bloomberg on the traditional gold market in Dubai. Business there is said to have slumped by as much as 40 percent in the week of the new all-time highs for gold.
What can be seen in Dubai, however, is likely to be seen worldwide, especially in the jewelry sector. In the case of investment gold, on the other hand, rising prices can cause demand to rise. After all, nobody wants to be too late and jump on the bandwagon. And in the case of gold in particular, there are at least some inconsistencies in the global economic environment and geopolitical developments. Apart from that, every investor wants to earn something. Gold is currently the place to do so.
Companies in the gold sector are also realizing that a new gold wave has arrived. Soon there will probably be more reports of acquisitions, takeovers and mergers. This is because gold producers are now earning enough money, even if costs have risen significantly. There are already initial examples of a new wave of acquisitions. Ramelius, for example, could join forces with the very promising Karora Resources. The Karora share could still offer potential for investors.
It is currently impossible to predict who will be hit by the next offer. But if you have shares in companies with good gold projects in your portfolio, the chances are good. After all, it should also be borne in mind that takeovers are usually made at a substantial premium to the current share price. As gold shares are still lagging behind the development of the gold price, the chances are good for the long term even without takeover goodies. Companies with promising projects include the aforementioned Karora Resources and, among many others, Osisko Development.
Karora Resources - https://www.commodity-tv.com/ondemand/companies/profil/karora-resources-inc/ - has achieved record production of more than 160,000 ounces of gold at its mines in Western Australia for the full year 2023. This is set to increase further.
Osisko Development - https://www.commodity-tv.com/ondemand/companies/profil/osisko-development-corp/ - is already producing. The projects are located in Mexico, Canada and the USA. At the project in Utah, USA, recent drilling has yielded up to 610 grams of gold per tonne of rock.
Current company information and press releases from Osisko Development (- https://www.resource-capital.ch/en/companies/osisko-development-corp/ -) and Karora Resources (- https://www.resource-capital.ch/en/companies/karora-resources-inc/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
The price of gold at 2200 US dollars or above the until recently unimaginable 2000-euro mark? It could soon be a reality. The mixed situation continues to speak in favor of gold. The problem for the average consumer: if the price rises, many small investors will hold back because "gold is so expensive now". This can even be observed in the gold-loving countries in the Persian Gulf. "Purchases in the gold souk are collapsing", was a recent report by BNN Bloomberg on the traditional gold market in Dubai. Business there is said to have slumped by as much as 40 percent in the week of the new all-time highs for gold.
What can be seen in Dubai, however, is likely to be seen worldwide, especially in the jewelry sector. In the case of investment gold, on the other hand, rising prices can cause demand to rise. After all, nobody wants to be too late and jump on the bandwagon. And in the case of gold in particular, there are at least some inconsistencies in the global economic environment and geopolitical developments. Apart from that, every investor wants to earn something. Gold is currently the place to do so.
Companies in the gold sector are also realizing that a new gold wave has arrived. Soon there will probably be more reports of acquisitions, takeovers and mergers. This is because gold producers are now earning enough money, even if costs have risen significantly. There are already initial examples of a new wave of acquisitions. Ramelius, for example, could join forces with the very promising Karora Resources. The Karora share could still offer potential for investors.
It is currently impossible to predict who will be hit by the next offer. But if you have shares in companies with good gold projects in your portfolio, the chances are good. After all, it should also be borne in mind that takeovers are usually made at a substantial premium to the current share price. As gold shares are still lagging behind the development of the gold price, the chances are good for the long term even without takeover goodies. Companies with promising projects include the aforementioned Karora Resources and, among many others, Osisko Development.
Karora Resources - https://www.commodity-tv.com/ondemand/companies/profil/karora-resources-inc/ - has achieved record production of more than 160,000 ounces of gold at its mines in Western Australia for the full year 2023. This is set to increase further.
Osisko Development - https://www.commodity-tv.com/ondemand/companies/profil/osisko-development-corp/ - is already producing. The projects are located in Mexico, Canada and the USA. At the project in Utah, USA, recent drilling has yielded up to 610 grams of gold per tonne of rock.
Current company information and press releases from Osisko Development (- https://www.resource-capital.ch/en/companies/osisko-development-corp/ -) and Karora Resources (- https://www.resource-capital.ch/en/companies/karora-resources-inc/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
