Confronting high volatility and uncertainty, global gold reserves increased by 145t in Q1.
Pro Asian Gold (ISIN: CN3475392059), a leading, growth-focussed gold mining company that is consistently generating superior returns, demonstrating its values, and leading in environmental, social and governance performance, today announced that it has made available its findings about Gold market trends in Q1 2020.
Gold demand went up marginally to 1,083t in Q1, 26t higher than the same period last year and Gold-backed ETFs (gold ETFs) attracted massive inflows (+298t), which pushed global holdings in these products to a new record high of 3,185t.
The commodity, traditionally considered a reliable store of value by investors, has benefited from the uncertainty Covid-19 has spread globally and from the outlook for global trade, also rock-bottom yields available on other safe-haven assets have played a very important role.
Gold stocks have seen an even better performance, up 21 per cent this year. “Macroeconomic factor is also playing a part: gold has reasserted its status as a safe asset,” said Yang Baohua, Pro Asian Gold Executive Vice President.
In today’s gold market situation, safe instruments such as government bonds are efficiently paying investors a negative return — analysts and sector specialists consider that gold and gold-related equities have further to run. These investment inflows helped to bring the US dollar gold price to an eight-year high. Consequently, global gold demand in value terms has reached US$55bn – the highest level since Q2 2013.
Despite the high volatility and uncertainty, global gold reserves increased by 145t in Q1.
Gold miners’ share prices are soaring with the value of the precious metal, while increased dividends are helping push these stocks higher still.
“In 2019, “all-in” margins — which include exploration costs and other general and administrative spending — for the majority of gold producers exceeded 10 per cent for the first time since 2012. We do believe the miners can achieve 20 per cent this year on this metric,” added Mr. Baohua.
The spot price of gold has risen 16 per cent so far this year and is moving towards $1,800 an ounce for the first time in nine years.
About Pro Asian Gold (ISIN: CN3475392059)
Pro Asian Gold is a leading, growth-focussed gold mining company that has a reputation for consistency and reliability. The company’s operations deliver superior operational execution by managing safety risks to reach zero harm, continually improving operational performance and meeting commitments without fail. Pro Asian Gold is sustaining a global portfolio of long-life assets by executing profitable expansions and investing in early stage prospects with a goal to grow margins, reserves and resources. The company’s business model is a leading one in the industry, delivering profitability and responsibility through consistently generating superior returns, demonstrating its values, and leading in environmental, social and governance performance.
http://proasiangold.com/