- Citi experts predict gold could reach $2,100 an ounce this quarter, $2,300 in the next 6 to 12 months
- Precious metal’s consistent performance has resulted in investors looking to reduce risks, maintain purchasing power by buying more gold
- GOH recently entered into agreements to acquire seven advanced gold projects in the Maricunga Gold Belt of Chile
In a detailed explanation of why gold will likely continue its upward trend for at least the foreseeable future, Citi economists conclude that “you would expect gold to perform extremely well” (https://ibn.fm/ZY4Q2). That upward trajectory stands to benefit a wide variety of companies operating in the gold industry, including GoldHaven Resources (CSE: GOH) (OTCQB: ATUMF), a Canada-based company engaged in the business of acquiring and exploring mineral resource properties.
A recent CNBC article, titled “Citi Economists Explain Why Gold Surged Above $2,000, and What It Could Tell Us,” stated that the “spot gold price, which currently stands around $2,058 an ounce, has risen over 4% this week and is set for its ninth week of gains in a row, it’s longest consecutive weekly increase since 2006.” The article goes on to quote Citi experts who said they believed the metal could reach $2,100 an ounce this quarter, and $2,300 in the next 6 to 12 months, with “risks skewed to the upside.”
A core reason behind the precious metal’s steady rise upward, the economists explained, was the “central banks’ monetary easing, which had resulted in negative real yields. This is when the return investors get on bonds is equal to or below the rate of inflation. This has reduced the ‘opportunity cost of holding a zero-coupon asset such as gold.’”
The consistent performance of gold has resulted in investors looking to reduce their risks and maintain the purchasing power of their assets by buying more gold, reported “Forbes” in an article titled “Gold Prices To Surge As Investors To Spend Another $2-3 Trillion, Report Says” (https://ibn.fm/dReCH). Quoting a report by Sprott, a Toronto-based precious metals asset manager, the article noted that “most investors know that gold is a good diversifier of overall risk when held in a portfolio of other assets. Also, over long periods, bullion is said to keep its value in inflation-adjusted terms. Investors are poised to pump an additional $2-3 trillion into the gold market in the wake of the Covid-19 crisis, experts say.”
That is good news for GoldHaven Resources, which recently entered into agreements to acquire seven advanced gold projects in the Maricunga Gold Belt of Chile that hosts over 100 million ounces of gold within the last 10 years. These projects total more than 25,000 hectares (approximately 100 square miles) and include four projects that have been categorized as high priority: the Rio Loa project, the Coya project, the Alicia project and the Roma project. The company has plans to phase in a drilling program commencing in early 2021.
GoldHaven is a Canadian junior exploration company active in the Maricunga Gold Belt of Northern Chile. The Maricunga measures 150 km north-south and 30 km. east-west and is host to discoveries in the last 10 years of 100M oz. gold; 450M oz. silver and 13 billion lbs. copper.
For more information, visit the company’s website at www.GoldHavenResources.com.
NOTE TO INVESTORS: The latest news and updates relating to ATUMF are available in the company’s newsroom at http://ibn.fm/ATUMF
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