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Gold is one of the few commodities, that is generally not impacted much by any cyclical movement of the financial market or any other specific disasters.
In the year 2019, there was an increase in the demand for gold, which continued its momentum in 2020 as well. This has also come out to be true during the current Covid-19 Pandemic phase, as Gold prices have continued to rise in the last 3 months.
Source: Thomson Reuters, on 14-04-2020 before the closing of the London Stock Exchange Market
At the time of writing on 14th April 2020, at 01:30 P.M, GMT, the spot price of gold was reported to be at US $1728.99 per Ounce, which was an increase of approximately 12.05 per cent in the price of gold in the last three months from the price of US $1543.00 per ounce on 14th January 2020, and also an increase of approximately 13.06 per cent in the last one month from the price of US $1529.25 per ounce on 14th March 2020. As people consider gold to be an extremely safe asset, especially during periods of crisis, it has been observed that it wasn’t just the price of gold that increased, but there was also a significant jump in per day global trading volume of Gold in the last three months. This means that people are generally moving their investments from equities, which are considered to be risky, or other highly volatile assets, towards gold, which is the safe haven.
Will the Gold prices continue to increase?
Even though there has been a continued increase in demand over the last few months for gold, the supply has also increased. Now, during this phase of increased uncertainty globally, experts have suggested that the demand for all commodities, including gold, might go down. In such a case where, ample supply has been maintained, and when demand is expected to go down, prices generally go down. There is also historical evidence for the fact that people are generally ready to pay extra for gold, even during times of uncertainty. Hence, currently, it is extremely difficult to predict how the price of gold will react to the aftereffects of Covid-19 in the times to come.
Price of gold in the commodity market also has a huge impact on the companies that engage in the explore and extraction of gold. Hence, we have curated a list of companies, that should be under the investors’ watch in the times to come, as and when there is a significant change in the price of gold. The following is a brief stock price performance analysis of four such FTSE listed companies, that have done well in the last three months, as the price of gold has steadily increased.
SolGold Plc (LON:SOLG) Stock price performance
As at 2:30 P.M. Greenwich Mean Time on 14th April 2020, at the time of writing of this report, SolGold Plc's share on the London Stock Exchange stood at a price of GBX 19.40, an increase of approximately 2.10 per cent or GBX 0.40, compared to the share price reported on the previous trading day. At the time of reporting, SolGold Plc's market capitalisation was reported to be GBP 365.43 million in relation to the current trading price of the share of the company.
In the previous one year, since April 15, 2019, when the share was trading at a price of GBX 37.25 at the time of market closure, the SolGold Plc share had yielded a negative return of around 47.92 per cent in value. The share of the company also yielded a positive return of approximately 54.95 per cent in value in the previous month since market closure on March 13, 2020, when the share price was reported to be GBX 12.52 per share. The firm's stock beta stood at a value of 1.81 when this report was being written.
Centamin Plc (LON:CEY) Stock price performance
As at 2:35 P.M. Greenwich Mean Time on 14th April 2020, at the time of writing of this report, Centamin Plc's share on the London Stock Exchange stood at a price of GBX 145.60, an increase of approximately 5.81 per cent or GBX 8.00, compared to the share price reported on the previous trading day. At the time of reporting, Centamin Plc's market capitalisation was reported to be GBP 1.590 billion in relation to the current trading price of the share of the company.
In the previous one year, since April 15, 2019, when the share was trading at a price of GBX 85.56 at the time of market closure, the Centamin Plc share had yielded a positive return of around 70.17 per cent in value. The share of the company also yielded a positive return of approximately 48.33 per cent in value in the previous month since market closure on March 13, 2020, when the share price was reported to be GBX 98.16 per share. The firm's stock beta stood at a value of 0.83 when this report was being written.
Petropavlovsk Plc (LON:POG) Stock price performance
As at 2:40 P.M. Greenwich Mean Time on 14th April 2020, at the time of writing of this report, Petropavlovsk Plc's share on the London Stock Exchange stood at a price of GBX 24.15, an increase of approximately 5.23 per cent or GBX 1.20, compared to the share price reported at GBX 22.95 on the previous trading day. At the time of reporting, Petropavlovsk Plc's market capitalisation was reported to be GBP 759.69 million in relation to the current trading price of the share of the company.
In the previous one year, since April 15, 2019, when the share was trading at a price of GBX 8.31 at the time of market closure, the Petropavlovsk Plc share had yielded a positive return of around 190.61 per cent in value. The share of the company also yielded a positive return of approximately 44.09 per cent in value in the previous month since market closure on March 13, 2020, when the share price was reported to be GBX 16.76 per share. The firm's stock beta stood at a value of -0.22 when this report was being written.
Highland Gold Mining Limited (LON:HGM) Stock price performance
As at 2:45 P.M. Greenwich Mean Time on 14th April 2020, at the time of writing of this report, Highland Gold Mining Limited's share on the London Stock Exchange stood at a price of GBX 249.00, an increase of approximately 9.02 per cent or GBX 20.60, compared to the share price reported at GBX 228.40 on the previous trading day. At the time of reporting, Highland Gold Mining Limited's market capitalisation was reported to be GBP 831.14 million in relation to the current trading price of the share of the company.
In the previous one year, since April 15, 2019, when the share was trading at a price of GBX 171.50 at the time of market closure, the Highland Gold Mining Limited share had yielded a positive return of around 45.19 per cent in value. The share of the company also yielded a positive return of approximately 38.18 per cent in value in the previous month since market closure on March 13, 2020, when the share price was reported to be GBX 180.20 per share. The firm's stock beta stood at a value of 0.92 when this report was being written.
Comparative Share Price Chart of SOLG, CEY, POG and HGM
(Source: Thomson Reuters, on 14-04-2020 before the closing of the London Stock Exchange Market)
Disclaimer
The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. Kalkine does not in any way endorse or recommend individuals, products or services that may be discussed on this site.
