Sep 24th, 2020
With government spending skyrocketing and the value of the U.S. dollar sinking, savvy investors are turning to gold, which surpassed $2,000 an ounce in August. Experts predict that the precious metal could go much higher in light of depressed bond yields, inflation fears, and the reverberations of COVID-19 on the global economy. Gold’s 32% rally this year has made it “one of the world’s best-performing mainstream assets,” as reported in a Financial Times article. Given global economic conditions and surging demand, savvy mining resource companies are making strategic moves to leverage their expertise and position themselves to reap long-term benefits from the trend. In just the past six months, GoldHaven Resources Corp. (CSE: GOH) (OTCQB: ATUMF) has entered into agreements to acquire seven impressive gold projects in the highly productive Maricunga Gold Belt of Chile. Gold Fields Limited (NYSE: GFI) (JSE: GFI) has announced an investment of $860 million to process its recently discovered 5 millon ounce discovery at Salares Norte. Kinross Gold Corporation (NYSE: KGC) (TSX: K) released the promising results of a prefeasibility study for its Lobo-Marte project in Chile. Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX) has strengthened its exploration team with the addition of eminent geologists. And Newmont Corporation (NYSE: NEM) (TSX: NGT) is ramping up operations in its Peñasquito, Mexico, property following the government’s designation of mining as an essential activity.