Your guide to Investing in Gold Stocks in a Market Crash – WAF, ALK – Kalkine Media


Summary

  • Gold prices soar amid rising geopolitical tensions
  • Gold stocks offer strong return even during a market crash, look for trends to watch
  • West African offers ~128% return in the past 6 months, proceeding with the 5 year growth plan, Alkane offers a return on ~54% in the past 6 months, Bets big on Boda discovery

Gold knocks the door of the all-time record prices. Gold prices have continued to surge in the first half and are likely to continue the trend over the remaining half of the year as the picture on the raised geopolitical tensions and the virus infected confirmed cases grows to 17.3 million globally on 31 July 2020.

With China choosing the path of aggression against its neighbours including Taiwan, Japan and India and on the global front against Australia and most recently, New Zealand and the United States, the global relations have been impacted with no signs of recovery in the near future. Gold prices traded at US$1976.55 an ounce on 31 July 2020.

While the raised geopolitical tension in the midst of a pandemic and weak economic condition may lead to a major correction in the equity markets, the same driving factor could be beneficial for gold prices during a market crash. The strength in gold prices also increases the margin potential of a gold mining company.

Gold mining stocks fare pretty well during a gold bull run even during the equities crash, but their mileage may vary. So, intense research is required to identify the outperformers among the crowns.

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