Gold prices have reached record highs in 2024, driven by increased demand from central banks, expectations of interest rate cuts, and geopolitical tensions. Investors are also turning to gold mining stocks as their profits are expected to rise with the price of gold.
Gold prices continue to climb, driven by heightened demand for safe-haven assets due to ongoing geopolitical tensions and expectations of interest rate cuts from the Federal Reserve. This week, investors will be closely watching for clues about the Fed’s monetary policy stance in the minutes from its latest meeting and a speech by Fed Chairman Jerome Powell.
Gold prices surged to record highs, fueled by a weakening U.S. dollar, declining Treasury yields, and anticipation of potential Federal Reserve rate cuts. Inflation data reinforced the disinflationary trend, further boosting gold’s appeal as a safe haven asset.
Gold and silver prices witnessed a dip on the Multi Commodity Exchange (MCX) on Thursday, April 25, 2024. Gold futures maturing on June 5, 2024, declined by Rs 251 or 0.35% to Rs 70,757 per 10 grams. Silver futures maturing on May 3, 2024, also saw a downfall of Rs 293 or 0.36%, retailing at Rs 81,941 per kg on the MCX. Factors influencing gold and silver prices in India include the value of the rupee against the dollar and global demand.
The convergence of the worlds of luxury jewellery and perfumery has resulted in a captivating array of collections that pay homage to iconic fragrances. From Chanel’s N°5 Collection to Jacquie Aiche’s bottle-inspired pendants, these pieces encapsulate the scents’ essence in precious materials.
Escalating precious metals prices and prudent fiscal and monetary policies in emerging market bonds provide opportunities for investors. The VanEck Emerging Markets Bond Fund (EMBAX) outperformed its benchmark, showcasing the potential of EM bonds over developed markets. Ecuador and Chile experienced notable performance swings within the fund’s portfolio. The fund exhibits a strong carry position, with exposure to various countries and currencies. Commodities, particularly precious metals, are rallying, signaling a favorable environment for EM bonds. Central banks’ accumulation of gold and EM local currency bonds, especially Asian bonds, as reserve assets is a growing trend. This trend bodes well for EM bonds as it provides a solid buyer base with substantial balance sheets.
The global demand for silver continues to rise, driven by increased use in renewable energy, electronics, and medical applications. Pan American Silver Corp. (PAAS), one of the world’s largest silver producers, has been benefiting from this trend. In the past month, PAAS’s stock has jumped 36.31%, outperforming the broader market. With strong fundamentals, including a large reserve base and a favorable cost structure, Pan American Silver is well-positioned to continue delivering value to investors as the silver market strengthens.
Platinum, a precious metal significantly rarer than gold, is currently undervalued compared to its historical value. Despite reaching a peak of over $2,200 in 2008, platinum now trades below $1,000, indicating a substantial decline in real terms. A giant Head-and-Shoulders bottom pattern has been forming since 2015, suggesting a potential breakout and rally. The 6-month chart shows an upward trend and a bullish cross of moving averages. Platinum’s price relative to gold implies a long period of outperformance for platinum. This analysis highlights the potential for significant gains in platinum investments, making it an opportune time for investors to consider purchasing platinum stocks.
Silver faces a severe supply deficit as solar panel demand skyrockets. Investors should consider investing in SLV, SIVR, PSLV, and physical silver due to its potential for significant gains. Analysts forecast a price target of $40 by year-end, with the possibility of reaching $50 or even higher if demand remains strong.
Calibre Mining has emerged as a strong contender in the precious metals sector, thanks to its successful acquisition of Marathon Gold and its ongoing operational success. The company is now in a prime position to capitalize on higher gold prices and continue delivering value to its shareholders.
In 2023, Calibre achieved record gold production and outperformed its guidance, demonstrating its ability to consistently deliver results. The company’s Libertad and Limon Complex assets have been major contributors to this growth, and the addition of the Valentine Gold Project promises to further boost production in the coming years.
Calibre’s cost management has also been impressive, with all-in sustaining costs (AISC) remaining below industry averages despite inflationary pressures. The company is on track to bring AISC below $1,250/oz once the Valentine Project comes online, which will significantly improve its margins and cash flow generation.
With construction at Valentine well underway, Calibre is expected to face higher capital expenditures in the near term. However, the company is well-positioned to manage this with its strong financial performance and recent equity financing. The expected free cash flow generation from Valentine’s commercial production will further strengthen Calibre’s financial position, enabling it to pay down debt and enhance its overall balance sheet.
While Calibre’s valuation has increased due to its recent share dilution, the company still trades at a reasonable multiple of 0.75x P/NAV. Its growth prospects and improved jurisdictional profile warrant a premium valuation, and at current levels, Calibre offers potential for strong returns if it continues to execute on its plans and capitalize on favorable market conditions.
