The Latest Banking Crisis Sparks a Surge in Gold Prices: Is it Time to Buy Gold Miners? October 13, 2023 - Baystreet.ca Are you missing out on the next big gold rush? Gold prices are predicted to triple, leading to an 85% gain for gold miners, according to a prominent mining analyst. The recent SVB banking fiasco has also led to investors seeking the safety of gold, causing the price to surge. It’s also looking like SVB isn’t the only bank in dangerous waters, as investors are embracing the gold market as suspicions over a banking blood bath ensue. The latest bank to spark fears is Swiss bank with extensive US and global operations, Credit Suisse, as the gold price jumped to 1.5-month highs. "The events surrounding Silicon Valley Bank demand a thorough, transparent, and swift review by the Federal Reserve," Fed Chair Jerome Powell said in a statement. The Fed will be launching its own internal review, set to be led by Vice Chair for Supervision Michael Barr and released to the public by May 1. Marking the largest increase since June 2022, demand for gold is growing, as more than 300,000 ounces were added to the physically-backed gold ETFs in the last trading session, according to Bloomberg data. During 2022, strong demand for gold in the United States and Western Europe, as well as significant purchases by central banks, bolstered the price of the precious metal. According to one forecast, this year could see a repeat of this enthusiastic buying. Goldman Sachs analysts anticipate that central banks worldwide will buy an unprecedented quantity of gold by the end of 2023 as they attempt to reduce their dependence on the US dollar, particularly following US-led sanctions against Russia for its invasion of Ukraine. In 2022, central banks purchased a total of 1,136 tonnes of gold, or the equivalent of 40 million ounces, as reported by the World Gold Council (WGC), marking the most gold purchased by this group in any year since 1967. Turkey was the largest official buyer, acquiring roughly 147 tonnes, followed by China at 62 tonnes and Egypt at over 44 tonnes. Goldman Sachs suggests that banks could surpass this quantity in the current year, with imports potentially surpassing 1,200 tonnes. Together with improving economic circumstances in China and India, the world's two largest gold buyers, this could result in an average gold price of $1,950 per ounce in 2023, a record average amount, although not a total record. As the global market braced for the potential of another banking crisis, investors flocked to the safety of precious metals. In particular, gold mining stocks have been a popular choice as investors look for a hedge against possible inflation or a downturn in the equities market. But why are analysts predicting such a bullish outlook for gold miners in 2023? At the recent PDAC mining conference in Toronto, one analyst predicted "at least a triple in gold prices" along with an 85% gain for miners in the space. VanEck research echoed this sentiment, highlighting how gold miners are currently trading below 5x price to cash flow, historically an attractive level for investment. On top of that, there are already examples of established miners increasing their profits by ten-fold in 2022, and others in the juniors category preparing for production cash flow in 2023. In addition to the predictions of analysts, gold mining has a storied history of being a safe haven investment. During times of uncertainty, investors have turned to gold as a way to hedge against potential market risks. Recent banking crises have only solidified this idea, with investors seeking to shelter their investments from potential losses. When investing in gold mining, it's important to focus on institutional-quality large caps with solid fundamentals or invest in an ETF. Australian shares sank to a 10-week low on Tuesday as investors bought government bonds, gold, and bitcoin to shelter from worries a banking crisis in the US could balloon into a broad risk asset crash. With predictions of triple-digit returns and a long history of being a safe investment, gold mining stocks are worth considering. Whether you choose to invest in individual miners or an ETF, gold mining could be a wise choice in today's uncertain market. With gold prices predicted to triple, now is the time to consider investing in this lucrative market.
The Latest Banking Crisis Sparks a Surge in Gold Prices: Is it Time to Buy Gold Miners? October 13, 2023 - Baystreet.ca Are you missing out on the next big gold rush? Gold prices are predicted to triple, leading to an 85% gain for gold miners, according to a prominent mining analyst. The recent SVB banking fiasco has also led to investors seeking the safety of gold, causing the price to surge. It’s also looking like SVB isn’t the only bank in dangerous waters, as investors are embracing the gold market as suspicions over a banking blood bath ensue. The latest bank to spark fears is Swiss bank with extensive US and global operations, Credit Suisse, as the gold price jumped to 1.5-month highs. "The events surrounding Silicon Valley Bank demand a thorough, transparent, and swift review by the Federal Reserve," Fed Chair Jerome Powell said in a statement. The Fed will be launching its own internal review, set to be led by Vice Chair for Supervision Michael Barr and released to the public by May 1. Marking the largest increase since June 2022, demand for gold is growing, as more than 300,000 ounces were added to the physically-backed gold ETFs in the last trading session, according to Bloomberg data. During 2022, strong demand for gold in the United States and Western Europe, as well as significant purchases by central banks, bolstered the price of the precious metal. According to one forecast, this year could see a repeat of this enthusiastic buying. Goldman Sachs analysts anticipate that central banks worldwide will buy an unprecedented quantity of gold by the end of 2023 as they attempt to reduce their dependence on the US dollar, particularly following US-led sanctions against Russia for its invasion of Ukraine. In 2022, central banks purchased a total of 1,136 tonnes of gold, or the equivalent of 40 million ounces, as reported by the World Gold Council (WGC), marking the most gold purchased by this group in any year since 1967. Turkey was the largest official buyer, acquiring roughly 147 tonnes, followed by China at 62 tonnes and Egypt at over 44 tonnes. Goldman Sachs suggests that banks could surpass this quantity in the current year, with imports potentially surpassing 1,200 tonnes. Together with improving economic circumstances in China and India, the world's two largest gold buyers, this could result in an average gold price of $1,950 per ounce in 2023, a record average amount, although not a total record. As the global market braced for the potential of another banking crisis, investors flocked to the safety of precious metals. In particular, gold mining stocks have been a popular choice as investors look for a hedge against possible inflation or a downturn in the equities market. But why are analysts predicting such a bullish outlook for gold miners in 2023? At the recent PDAC mining conference in Toronto, one analyst predicted "at least a triple in gold prices" along with an 85% gain for miners in the space. VanEck research echoed this sentiment, highlighting how gold miners are currently trading below 5x price to cash flow, historically an attractive level for investment. On top of that, there are already examples of established miners increasing their profits by ten-fold in 2022, and others in the juniors category preparing for production cash flow in 2023. In addition to the predictions of analysts, gold mining has a storied history of being a safe haven investment. During times of uncertainty, investors have turned to gold as a way to hedge against potential market risks. Recent banking crises have only solidified this idea, with investors seeking to shelter their investments from potential losses. When investing in gold mining, it's important to focus on institutional-quality large caps with solid fundamentals or invest in an ETF. Australian shares sank to a 10-week low on Tuesday as investors bought government bonds, gold, and bitcoin to shelter from worries a banking crisis in the US could balloon into a broad risk asset crash. With predictions of triple-digit returns and a long history of being a safe investment, gold mining stocks are worth considering. Whether you choose to invest in individual miners or an ETF, gold mining could be a wise choice in today's uncertain market. With gold prices predicted to triple, now is the time to consider investing in this lucrative market.