The Magazine for Asian Investors
The gold price was able to gain again shortly before Christmas and jump above the $1,800 mark. Now the yellow metal seems to be able to establish itself there for the time being and went into the Christmas holidays with a price of $1,810.20 per ounce.
Throughout the year, the macro factors that speak for a rising gold price have not changed, on the contrary, they have rather solidified. Investors who have bet on a rising gold price must be clear that real interest rates are probably the most important support. With further rising inflation and a low-interest rate policy, real interest rates will remain in the negative.
What does it mean?
It means that the purchasing power of the population continues to shrink and it becomes more and more important to hedge against the declining purchasing power. Anyone who has studied the price of gold since the start of the pure fiat system in 1971 can see that the price of gold has gone from $35 to over $1,800 per ounce. This is largely due to the fact that the U.S. dollar, as a fiat currency, has steadily lost value, causing the price of goods and services to rise over the years.
Those who want to participate in the gold market and do so with leverage can do so with shares of gold producers. These give thanks to their sale this year a relatively favorable entry opportunity. At the moment, the shares are still volatile, driven by speculative buying and news about the U.S. economy. Investors with a long view are not deterred by this, but still, keep an eye on the performance of the shares. There could be an opportunity that one has been waiting for. How did the shares of gold producers perform this week?
Gold Mining Stock Performance
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 gold1
Royal Gold Inc. (NASDAQ: RGLD): Royal Gold is a leading royalty and streaming company with interests in the world’s most attractive gold mines. The company is headquartered in Denver Colorado, United States.2
K92 Mining Inc. (TSX: KNT): K92 Mining Inc. is a gold producer headquartered in Vancouver Canada. The company operates a gold mine in Papua New Guinea.3
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