The Gold-Silver Price Ratio is Starting to Drop and Investors are Turning Towards Precious Metal Stocks
FN Media Group Presents Microsmallcap.com Market Commentary
NEW YORK, June 24, 2020 /PRNewswire/ -- Gold and silver prices continue to climb as investors turn to safe-haven assets amid global economic uncertainty, creating an exciting opportunity for gold and silver stocks. After experiencing years of funding declines, investment dollars are pouring into the precious metals market via exchange-traded funds (ETFs), physical gold and silver purchases, and mining stocks. At the top of the list of promising gold and silver stocks are Barrick Gold (NYSE: GOLD) (TSX: ABX), Coeur Mining, Inc. (NYSE: CDE), Wheaton Precious Metals (NYSE: WPM) (TSX: WPM), First Majestic Silver Corp. (NYSE: AG) (TSX: FR), and Genesis Metals Corp. (TSXV: GIS) (OTCQB: GGISF).
Canadian gold ETFs brought in C$382 million in April, the biggest monthly gain in four years, and are now worth nearly C$3 billion. Meanwhile, gold ETFs across the globe have attracted $14.5 billion in investments in less than five months, surpassing the $11.7 billion that flowed into the funds in 2009.
The increase in gold investments also allowed junior gold exploration company Genesis Metals Corp. (TSXV: GIS) (OTCQB: GGISF) to raise C$1 million in financing in March to fund ongoing drilling at its 290-square kilometers Chevrier Gold Project in the Abitibi Greenstone Belt, one of the most gold-endowed regions in the world.
Gold Prices Expected to Reach New Highs This Year
Although gold prices have already made a significant comeback in 2020, analysts see the prices continuing to rise. In April, Bank of America raised its 18-month gold price target, which is higher than the existing price record.
The bank increased its price target from $2,000, as governments around the world unleashed large amounts of monetary stimulus to prevent economies from collapsing during pandemic-related shutdowns.
The price target offers junior gold exploration companies like Genesis Metals Corp. (GIS.V) (GGISF.QB) a chance to gain additional funding and advance their gold projects, although the company is already fully funded for its planned work in 2020.
The company recently completed the Phase I drilling program at its Chevrier Gold Project, with a total of 2,502 meters in nine holes drilled, and plans to launch a second-phase drilling program once all assays from the current program are received and evaluated.