Gold mining stocks benefit particularly when the price of gold rises. Many companies also pay dividends.
Another advantage of gold mining shares is that they can be bought and sold easily. The problem of storage, as with physical gold, is eliminated. On the risk side, gold mining stocks have factors such as political risks or mining disasters, so candidates must be carefully selected. Even if there is a lull in the gold market right now, gold mining stocks tend to be a longer-term investment. Decisive for the gold price is on the one hand the strength or weakness of the US dollar and on the other hand it is the decisions of the Fed that influence the gold price.
So far, one can not take anything precise from the statements of Fed Chairman Powell, how it will continue with the interest rate decisions. Inflation and the economy are also influencing variables. Presumably, the Fed will not comment until shortly before the next interest rate decision. The FedWatch tool calculates a probability of 93 percent that there will be no interest rate move on September 20. Other economic data in the USA will also be decisive. If one looks at the enormous national debts, then a recession is quite still within the range of the possibility. This would be good for the gold price. For chart technicians, it is important that the price of the precious metal does not fall below the 1,920 U.S. dollar mark.
For a possible trend reversal, i.e. higher gold prices, the interest of speculative financial investors in particular speaks, because they have expanded the net long positions. The outflows in gold ETFs have become less. To be in on the next gold price rise, one can think about investing in gold companies like Caledonia Mining or Skeena Resources.
Caledonia Mining - https://www.commodity-tv.com/ondemand/companies/profil/caledonia-mining-corporation-plc/ - has been producing successfully at the Blanket gold mine in Zimbabwe for years and pays dividends. In the first half of 2023, the mine produced just under 35,000 ounces of gold.
Skeena Resources - https://www.commodity-tv.com/ondemand/companies/profil/skeena-resources-ltd/ - is working to revitalize two prospective gold projects in British Columbia's Golden Triangle. The Snip project has reported 237 percent growth in the indicated gold resource since the 2020 mineral resource estimate.
Current corporate information and press releases from Skeena Resources (- https://www.resource-capital.ch/en/companies/skeena-resources-ltd/ -) and Caledonia Mining (- https://www.resource-capital.ch/en/companies/caledonia-mining-corp/ -).
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/
Another advantage of gold mining shares is that they can be bought and sold easily. The problem of storage, as with physical gold, is eliminated. On the risk side, gold mining stocks have factors such as political risks or mining disasters, so candidates must be carefully selected. Even if there is a lull in the gold market right now, gold mining stocks tend to be a longer-term investment. Decisive for the gold price is on the one hand the strength or weakness of the US dollar and on the other hand it is the decisions of the Fed that influence the gold price.
So far, one can not take anything precise from the statements of Fed Chairman Powell, how it will continue with the interest rate decisions. Inflation and the economy are also influencing variables. Presumably, the Fed will not comment until shortly before the next interest rate decision. The FedWatch tool calculates a probability of 93 percent that there will be no interest rate move on September 20. Other economic data in the USA will also be decisive. If one looks at the enormous national debts, then a recession is quite still within the range of the possibility. This would be good for the gold price. For chart technicians, it is important that the price of the precious metal does not fall below the 1,920 U.S. dollar mark.
For a possible trend reversal, i.e. higher gold prices, the interest of speculative financial investors in particular speaks, because they have expanded the net long positions. The outflows in gold ETFs have become less. To be in on the next gold price rise, one can think about investing in gold companies like Caledonia Mining or Skeena Resources.
Caledonia Mining - https://www.commodity-tv.com/ondemand/companies/profil/caledonia-mining-corporation-plc/ - has been producing successfully at the Blanket gold mine in Zimbabwe for years and pays dividends. In the first half of 2023, the mine produced just under 35,000 ounces of gold.
Skeena Resources - https://www.commodity-tv.com/ondemand/companies/profil/skeena-resources-ltd/ - is working to revitalize two prospective gold projects in British Columbia's Golden Triangle. The Snip project has reported 237 percent growth in the indicated gold resource since the 2020 mineral resource estimate.
Current corporate information and press releases from Skeena Resources (- https://www.resource-capital.ch/en/companies/skeena-resources-ltd/ -) and Caledonia Mining (- https://www.resource-capital.ch/en/companies/caledonia-mining-corp/ -).
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/
