Gold mining companies, targets of specialised funds, soar on the stock exchange this year

Gold is one of investors' favourite safe havens to keep their money in uncertain times. Now, when there are more ways to opt for this precious mineral than a few decades ago, too. From the physical and direct purchase of bullion from funds, including ETFs, to mining companies that have concessions for its exploitation in various countries around the world. And the price of these companies reflects that the coronavirus pandemic, which is sweeping the economic outlook and the stock markets, has made it a target for managers and investors.

The world leader, the Canadian Barrick Gold, which has 23 operating mines, has revalued on the stock market by 48% for the year, although it has been affected by a not insignificant volatility, more so in March when it marked the minimum of 2020.

The second largest gold mining company in the world, Newmont Mining, aims to increase its stock market value by 47% in 2020, from $ 43.75 per share to $ 64.55, reaching a market capitalization of $ 51,800 million. It has mines in the United States, Australia, Indonesia, New Zealand and Peru. The behaviour is repeated in AngloGold (more than 55%), GoldFields (24%) or the Canadian Kinross Gold.

Meanwhile, gold demand grew 1% in the first quarter worldwide, reaching a total of 1,083.8 tons, driven by its attractiveness as a refuge value for investors.

The evolution is almost flat, but the pull comes from the demand for this metal as an investment, which has compensated for the cutback in consumer-focused areas of the market such as jewellery, whose demand fell by 39% in the first quarter, to a historic low of 325.8 tonnes. Demand for gold-backed ETFs recorded inflows of 298 tonnes of the metal in the first three months of the year, to a record 3,185 tonnes.