The Magazine for Asian Investors
Gold was able to close this week again in the plus after the week still started sluggishly. Towards the end of the week, the gold price could jump above $1800 mark and reach a high of $1815. After that, the gold price had to give up again but was able to recover quickly and closed the week at $1793.10 which corresponds to a plus of 1.55%. The short-lived slump came after the news of Fed Chairman Jerome Powell who once again stressed that the Fed is ready in November to start tapering quantitative easing. Whether it will really come in the end, however, remains to be seen.
What is certain, however, is that inflation figures around the world will remain high. The population is more than feeling the rising prices at the moment. Whether at the gas pump or in the supermarket, price increases and shortage of goods is present everywhere.
All the more reason to hedge against inflation. Commodities have always offered good protection against inflation. Whenever people get worried about their purchasing power, they turn away from fiat and towards gold and silver. Gold has been a store of value for thousands of years and still is.
Those who want to participate in the gold market with leverage see gold producers as a good choice. After last year’s good performance, the shares of gold producers have been really pushed down and had to accept a price drop of 40% in some cases. That might be exactly the time investors are waiting for, to get solid companies for small money. But the shares of gold producers are again on the rise. How could the shares close the last week?
Gold Mining Stock Performance
Top 3 Performer:
B2Gold Corp. (NYSE: BTG): B2Gold is a Canadian gold producer headquartered in Vancouver. The company was founded in 2007 and currently operates 3 gold mines. The expected production volume is 970,000 – 1,030,000 gold ounces.
First Majestic Silver Corp. (NYSE: AG): First Majestic Silver is a precious metals producer based in Vancouver Canada. The company operates mines in the U.S. and Mexico. 57% of revenue is generated from silver and 43% from gold.
Polymetal International plc. (LSE: POLY): Polymetal International is a Russian precious metal producer and operates mines in Russia and Kazakhstan. The company is among the top 10 gold producers and top 5 silver producers.
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