On average, a troy ounce of gold cost around USD 1,943 in 2023.
This USD 1,943 is slightly more than in 2022. Gold was significantly cheaper in 2019, with an average price of USD 1,393 per ounce. In 2009, the price was still below 1,000 US dollars, at just under 973 US dollars. Later came the pandemic and the war in Ukraine, which led to economic uncertainty. And inflation struck. As a result, investors increasingly turned to the precious metal.
The price of gold is set on the London Bullion Market twice a day. Although gold does not pay interest or dividends, its value-preserving function and crisis protection are convincing. Central banks also rely heavily on the solid precious metal. Even if ETFs or shares in gold mining companies involve a greater risk, they still benefit from leverage on the gold price.
Conflicts and disputes in the world usually only have a short-term impact on the gold price, but the strong performance of the gold price in 2023 and 2024, as well as over the years, should be convincing. As Metals Focus points out, there is potential for the conflict in the Middle East to escalate. This in turn could impact oil supply and trade routes and therefore investor sentiment.
On the supply side, a small gold surplus (more supply than demand) is expected this year. Last year, the gold surplus amounted to 212 tons. This year it could be slightly higher, which should not harm the globally sought-after precious metal. India, for example, is one of the eager buyers. The economy there is strong and despite high prices, the willingness to buy is also high. Among the gold mining companies, U.S. Goldmining and Chesapeake are likely to be particularly popular.
U.S. GoldMining - https://www.commodity-tv.com/ondemand/companies/profil/us-goldmining-inc/ - owns the Whistler project in Alaska. This covers a good 217 square kilometers and contains gold and copper. The exploration program is running at full speed.
With its Metates project in Mexico, Chesapeake Gold - https://www.commodity-tv.com/ondemand/companies/profil/chesapeake-gold-corp/ - has one of the largest undeveloped gold and silver deposits in the world.
Current company information and press releases from U.S. GoldMining (- https://www.resource-capital.ch/en/companies/us-goldmining-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.
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