The gold price had a mixed week with a small flash at the end of the week. Mid-week, the gold price even fell back to just under $1720.00 before bouncing back to $1761.20.
Inflation worries have probably finally hit home among the population now that the Federal Reserve has had to admit that inflation is likely to remain higher and longer than expected. Investors who have been looking at the monetary policy of the U.S. central bank for a long time already saw that coming for months. Also in Europe, inflation fear goes through the population. In Germany, inflation figures have now risen to 4.1%. This also fits the data that the Germans, who are already known to invest in physical gold, put even more gold under the pillow this year.
Another way to invest in gold with leverage is shares of gold producers. After the small rally last year, the shares of gold producers have more or less fallen into oblivion. Investors who have been dealing with the topic of gold for a long time see the current price development in the gold mining sector as an absolute opportunity to put big names into the portfolio cheaply. A gold price of over $1700 is a very good basis for the gold producers to generate a large amount of cash flow.
There was also important news to report from the gold mining sector. Agnico Eagle Mines Limited and Kirkland Lake Gold Ltd. merge to create a new gold-producing giant.
So how did gold producer stocks perform this week?
Gold Mining Stock Performance
Top 3 Performer:
AngloGold Ashanti Limited (NYSE: AU): AngloGold Ashanti is the 3rd largest gold producer globally with headquarters in Johannesburg, South Africa. The company produced 3.047 million ounces of gold in 2020.1
Agnico Eagle Mines Limited (TSX: AEM): Agnico Eagle Mines is a Canadian gold producer that has been in business for over 60 years. Agnico Eagle will merge with Kirkland Lake Gold Ltd. to create a new gold giant.2
Hecla Mining Company (NYSE: HL): Hecla Mining Company is a precious metals producer headquartered in Coeur d’Alene, Idaho, United States. Hecla Mining Company’s stock has been traded on the NYSE for 50 years and is also the largest U.S. silver producer.3
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