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Mining industry

Gold Price Rally Continues as Miners Overcome Production Challenges

Strategic Insights

— 1 min read

As the euphoria over the US-China trade agreement fades, the gold price has recovered, and experts believe it's not over yet. According to DoubleLine Capital CEO Jeff Gundlach, the precious metal could climb as high as $4,000 per ounce. Meanwhile, gold miners are finding ways to bridge the discount gap to bullion and overcome rising production costs. Several miners and developers, including Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF) and K92 Mining Inc. (TSX: KNT) (OTCQX: KNTNF), are providing updates that warrant market attention. JPMorgan analysts have even suggested that if just 0.5% of U.S.-held foreign assets shifted into gold, prices could climb as high as $6,000 per ounce by 2029.

Key Takeaways:

  • Ongoing gold price rally isn't over, according to DoubleLine Capital CEO Jeff Gundlach, who predicts the precious metal could reach $4,000 per ounce.
  • Several gold miners, including Lake Victoria Gold and K92 Mining Inc., are finding ways to bridge the discount gap to bullion and overcome rising production costs.
  • JPMorgan analysts estimate that if 0.5% of U.S.-held foreign assets shifted into gold, prices could reach $6,000 per ounce by 2029.
  • Gold miners are utilizing existing processing infrastructure and local ore sources to create a scalable gold production platform in Tanzania, such as Lake Victoria Gold's proposed joint venture with Nyati Resources.
  • Retail demand for gold is starting to catch up with Wall Street sentiment, with jewelry retailers across the U.S. reporting a sharp rise in gold buying.

Statistics:

  • The current gold price has created a new normal, with no end to the rally in sight.
  • JPMorgan analysts estimate that 0.5% of U.S.-held foreign assets shifting into gold could lead to prices reaching $6,000 per ounce by 2029.
  • Lake Victoria Gold is targeting the commissioning of Nyati Resources' gold processing plant in June, with a capacity of 120 tons per day.
  • The proposed joint venture between Lake Victoria Gold and Nyati Resources aims to establish a centralized gold processing hub in Tanzania, with a second processing circuit planned.

Sources:

  • https://www.equityinsider.ca/ne
  • https://www.doubleline.com/newsroom/press-releases/item/1472-doubleline-capital-ceo-jeff-gundlach-s-presentation-of-at-lz-2019.
  • https://www.otcmarkets.com/stock/LVGLF/profile.

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