Gold as a climate risk asset

Gold, said Terry Heymann, CFO of the World Gold Council, is a risk-reducing asset, and climate change is simply another lens through which to look at that. There are uncertainties that climate change brings, and gold offers some protection against that in one’s portfolio. Also, investing in gold offers great opportunities to decarbonize the gold supply chain. After all, once gold is mined, there are hardly any emissions from processing it into jewelry, coins or bars. The situation is different for most other raw materials that are mined, where there are usually still some emissions.

If gold mines now use less fossil fuel, then the entire supply chain can score with fewer emissions. This opportunity is unique to the gold mining sector and several technologies exist to drive decarbonization. Last fall, the World Gold Council already calculated that a 10 percent share of gold in the portfolio reduces emissions intensity by seven percent. At a share of 20 percent, it would be 17 percent, and a portfolio mix of 50 percent gold could reduce emissions by around 40 percent. With gold, investors are not only reducing risk, but they are also helping to improve the climate. In order to achieve these climate goals in gold mining, electromobility is a tried and tested means. This requires raw materials such as copper, platinum, nickel and lithium. In renewable energies, zinc is also needed in solar panels.

For example, Griffin Mining – https://www.youtube.com/watch?v=p8HSFGdXx0g – owns zinc at the Caijiaying mine, in which Griffin Mining owns 88.8 percent. 2021 was a particularly successful year. Zinc, gold, silver and lead metals were produced.

Nickel and also cobalt are contained in Canada Nickel Company’s – https://www.youtube.com/watch?v=yfZ3XroenBs – Crawford nickel-cobalt-sulfide project.

Current corporate information and press releases from Griffin Mining (– https://www.resource-capital.ch/en/companies/griffin-mining-ltd/ -) and Canada Nickel Company (– https://www.resource-capital.ch/en/companies/canada-nickel-company-inc/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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