Investing in gold and why its still worth doing in 2019 – 2020 – Gold forecast 2019 2020

June 29, 2019 6 By swedendivin
4 min read

gold 163519 1280 - Investing in gold and why its still worth doing in 2019 - 2020 - Gold forecast 2019 2020


In the begining of 2019.01 and until now 2019.06, the gold price has risen more than 10 percent but the world’s 10 leading gold producers’ shares have risen by an average of 31 percent!

Here is my previous post about my thoughts about gold that I wrote before. Clickable link: gold forecast 2019-2020
As you can my prediction was correct.

goldprice2019 - Investing in gold and why its still worth doing in 2019 - 2020 - Gold forecast 2019 2020

 

Last month 2019.05, the gold price has gone from $ 1280 per ounce to $ 1405 per ounce. It is the highest level measured in dollars since 2013.

What is mainly behind the upturn is the supposed interest rate cuts from the US central bank. Other underlying causes are the increasingly strong geopolitical tensions and weaker economic data, we could be going into an small recesion so they say.

This year, the world’s largest gold producers are up just over 30 percent.

The biggest result of shares increase in valuve is the South African producer Sibanye Gold, whose share is up 66 percent.

About half of the company’s turnover comes from gold production.

The company operates eight mines in South Africa. The company also has operations in Montana, USA. Overall, Sibanye Gold has just over 63,000 employees. The market value is $ 3.1 billion.

The largest owner is the Chinese Baiyin Nonferrous Metal Group, which is listed on the Shanghai stock exchange. Baiyin Nonferrous controls just over 19 percent of the shares.

From the current rate, analysts see an upside of around 10 percent, according to Marketscreener.

South Africa’s Gold Fields have been the strongest among the major gold producers, whose share has risen 57 percent this year.

Gold production takes place in Australia, Ghana, Peru and South Africa.

 

The largest owner with just over 7 per cent of the shares is Public Investment Corporation, which is a South African government fund.

Both Sibanye Gold and Gold Fields are secondary listed in the United States.

 

Third best in is Australian Newcrest Mining which is up close to 50 percent this year.

The two largest Swedish gold producers Lundin Gold and Semafo have risen by 45 and 97 per cent this year.

How the gold price will continue to go is impossible to predict, but clearly the factors that pushed up the price to this level will not disappear quickly.

 

Share Value million USD % 2019
Sibanye Gold 3,1 66
Gold Fields 4,6 57
Newcrest Mining 17,2 49
AngloGold Ashanti 7,2 38
Agnico Eagle 12,1 27
Kinross Gold 4,9 21
Barrick Gold 28 18
Polyus 12,6 12
Newmont 31 10
Freeport McMoran 16,5 10

 

 

What do you think about gold prices do we have a bigger upside in the near future?



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Disclosure:

I wrote this article myself, and it expresses my own opinions and iam not receiving compensation for it.

I have no business relationship with any company whose stock is mentioned in this article.

Also:

Historical returns are no guarantee of future returns.

An investment in securities / funds can both increase and decrease in value and

it is not certain that you will return the invested capital.

The return may also increase or decrease due to changes in the exchange rate.

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Yours Swedendivin

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