Gold continues to shine

The current US trade policy is likely to encourage many banks in emerging markets to buy more gold. Central banks in India, China, Poland and Turkey have been major buyers of gold recently. The World Gold Council has once again published the latest data on the official gold holdings of central banks. This is mostly based on data from the end of December. In December, Iraq (ten tons of gold) and Kyrgyzstan (10.6 tons of gold) – and China, which accounted for almost all gold purchases – bought a lot of gold. The People’s Bank of China increased its gold reserves by around ten tons. In January, China bought a further five tons of gold and is now likely to own 2,284.55 tons of gold. The second largest buyer in December was the central bank of Ghana (1.2 tons of gold) and in third place was the central bank of the Czech Republic (0.8 tons of gold).

For almost two years, the central banks were net buyers, but in December there were also sales of 16 tons of gold in total. Kazakhstan, Jordan and Singapore were mainly responsible for this. According to the World Gold Council, total global gold holdings are now said to be 36,213.4 tons, 48.1 tons more than reported in the previous month. It should also be noted that some countries provide no or only irregular data.

It is generally assumed that emerging markets in particular will continue to be keen to increase their gold holdings in the future. Gold provides security and diversification. Further rises in the price of gold, including silver, could be the result if price-increasing factors persist. It is clear that this will also benefit gold companies, as the gold in their projects will become more valuable, for example at Fury Gold Mines or Osisko Development.

Fury Gold Mines – https://www.commodity-tv.com/ondemand/companies/profil/fury-gold-mines-ltd/ – owns projects in Quebec and Nunavut, as well as a 51 million common share position in Dolly Varden Silver Corp.

Osisko Development – https://www.commodity-tv.com/ondemand/companies/profil/osisko-development-corp/ – is focusing on the Cariboo gold project in Canada, the San Antonio gold project in Mexico and the Tintic project in the USA. The company aims to develop into a medium-sized gold producer.

Current company information and press releases from Osisko Development (- https://www.resource-capital.ch/en/companies/osisko-development-corp/ -) and Fury Gold Mines (- https://www.resource-capital.ch/en/companies/fury-gold-mines-ltd/ -).

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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