Is $2,000 Gold on the Horizon
FN Media Group Presents Oilprice.com Market Commentary
LONDON, Aug. 19, 2019 /PRNewswire/ -- The trade war between the United States and China has taken a turn for the worst. Energy stocks are down, manufacturing is taking a beating, even the almighty FAANG stocks are reeling. And it's going to get much worse before it gets better. Mentioned in today's commentary includes: Eldorado Gold Corp. (NYSE: EGO) (TSX: ELD), Yamana Gold (NYSE: AUY) (TSX: YRI), Agnico Eagle Mines (NYSE: AEM) (TSX: AEM), Wheaton Precious Metals (NYSE: WPM) (TSX: WPM), Kinross Gold Corporation (NYSE: KGC) (TSX: K).
That's why investors are scrambling back into safe haven assets. And why gold has barreled past the $1,500 mark for the first time in nearly 7 years.
This summer's gold rush has made the now extra-precious metal's gains for this year more than 18 percent. That's better than the S&P 500! It would be difficult to find a market more bullish than gold right now. Some are even saying that $2,000/oz gold may be on the horizon.
The market for gold has never been hotter, and there has rarely been such good reason to begin buying in. But catching the trends is no easy feat. From under-the-radar mines to old school producers stepping up their game, knowing where to look is the surest way to see big returns.
The Next Mining Hotspot
Toronto-based African Gold Group (AGG.V, AGGFF) is sitting on an estimated 2.2 million ounces of mineral resources in Mali, a country that is currently experiencing its own veritable gold rush.
The company burst onto the scene when they uncovered a massive gold nugget weighing 1 kilogram--a single discovery worth $45,400. While this seems like a one-off stroke of luck, for African Gold Group it was just the beginning. Soon after, they found a second, even larger nugget, this one weighing 2.7 kilograms, and valued at a whopping $122,500.
It must be said that African Gold Group is a junior miner, and while investing in startups comes with its fair share of risks, African Gold Group offers potentially outsized rewards. What's more, while the company is new, it certainly isn't green. Newly appointed CEO Stan Bharti is a veteran of the gold game, with 30 years of success at the head of different mining ventures. And as a newcomer to the scene, the company appears significantly undervalued, meaning that they have the one thing that every investor is after: discount gold.
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