Panellists highlight potential gold investment opportunities

2nd September 2020

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

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Gold was performing well before the Covid-19 pandemic and has since been buoyed by the uncertain global climate.

A panel of speakers participating in a webinar session on gold during the Mines and Money online conference on September 1 pointed out that many people were also now returning to gold or increasing their holdings, while newcomer interest is growing in response to the pandemic.

The speakers noted that there were various opportunities for investors to invest in gold, with each holding the potential for returns, but each having its drawbacks.

For example, there is the option to invest in physical gold holdings, where the value does not change over long periods of time.

Investors can also consider investing in gold mining companies. Different types of mining companies offer different opportunities for investors.

Large producers offer investors the opportunity to leverage growth around margin expansion and a healthy gold price, whereas those that invest in junior explorers are investing in geology and management, the speakers pointed out.   

Global Mining Capital president Keith Spence said major miners would continue to be a good investment opportunity, as they were likely to provide investors with an established basis.

He added that midtier and junior miners would do well in terms of more investment at the end of the gold price boom cycle.

Therefore, in the near future, he expects the biggest movement to be in terms of senior miners, as these have limited risk from a generalist investor perspective and are more predictable.

Adrian Day Asset Management CEO Adrian Day reiterated this, noting that in a bullish gold market, major miners tended to move first, and once they became too expensive, investors would turn their focus toward junior or midtier miners.

At present, he noted, the major miners were still not that expensive.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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