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Gold Prices (and Stocks) Are Climbing During Coronavirus

Omri Wallach Omri Wallach, Stockhouse
3 Comments| April 15, 2020

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With everything going on in the markets (and the world), it’s easy to overlook gold’s resurgence.

In fact, if you closed your eyes to the ongoing COVID-19 pandemic, the markets might trick you into thinking everything’s okay. Halfway into April, North American indexes have climbed significantly on a combination of economic stimulus and optimism.

But in the face of rising coronavirus cases and deaths in the US, analysts and economists alike are expecting more hardships to come. This week’s major bank earnings are a great example, as they signal the first time the impact from the pandemic can be seen, though they only include the first month of the coronavirus significantly affecting the US.

And in March, gold prices were impacted significantly as well. After initially climbing, gold prices fell hard from near US $1,675/oz to below US $1,500/oz, causing many investors to panic and lose interest.

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What they might have missed is the immediate bounce back a week later. Gold quickly spiked above US $1,650/oz, receded into the end of March, and then began a renewed climb. As of this writing on Apr. 14, prices reached as high as US $1,745/oz.

That’s why gold stocks have begun to climb as well. Take your pick of major, from smaller producers like Wallbridge Mining Co Ltd. (TSX:WM) to larger producers Kirkland Lake Gold Ltd. (TSX:KL) to B2Gold Corp. (TSX:BTO), shares are up over the last week despite productions being halted as a result of the ongoing pandemic.

For small-cap investors interested in exploration plays that take advantage of the resurgent metal, the key has been to look for companies raring to go. Executives and analysts are aware that the pandemic is halting exploration and development plans, and that the timeline for the delay is far from certain.

But just because you can’t act right now, doesn’t mean you can’t prepare and be ready when the time is right. Companies that are setting up for success with prolific resources include Great Bear Resources Ltd. (TSX-V:GBR), Vanstar Mining Resources Inc. (TSX-V:VSR), and the mining Bullboards have also highlighted Mineral Mountain Resources Ltd. (TSX-V:MMV)


FULL DISCLOSURE: Vanstar Mining Resources Inc. is a client of Stockhouse Publishing


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Comments

Se da la dinámica de los precios <a href="https://www.compararcredit.com/prestamos-sin-buro/">creditos sin buro en linea</a> de los metales preciosos a largo y mediano plazo. Se muestra la baja elasticidad de los precios del oro, la plata, el platino y el paladio a mediano y largo plazo. Al comparar el valor de los metales preciosos en varias monedas nacionales, se reveló la ausencia de un aumento relativo en sus precios.
(0)
April 17, 2020

Vanstar will zoom when drill results are announced shortly. Thank goodness opened the labs. Iamgold needs to buy them right after this or pay much more as the resource will expand greatly. I am betting on a triple or more
(82)
April 15, 2020

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