Stabilitas GmbH: Manager Commentary - 07.03.2022 The gold price can gain in February. Gold and silver mining shares also rise in February. The rise takes place before the military escalation in Ukraine. After 24 February, the gold price moves sideways with strong fluctuations. Once again it becomes clear that gold cannot profit from political crises. 07.03.2022 | 10:20 a.m.
On the contrary, the fleeing Ukrainians are on the sell side and demand from Russian buyers will drop significantly with the massive loss of wealth in Russia.
Basically, the situation remains unchanged. Governments worldwide have lost control of budgets and are financing their obligations only with newly printed money from central banks. This newly printed money is increasingly making itself felt in rising prices, which can no longer be controlled by the central banks.which can no longer be controlled by the central banks. The long-term picture of a stable and broad-based upward movement for the precious metals markets remains. Our gold price target remains at $2,300 to $2,500/oz (see daily report). The Stabilitas funds developed parallel to the precious metal shares in February and were able to make significant gains. Outlook In the long term the inflationary pressure in the world currency system will increase due to the expansive monetary policy of the central banks, so that gold could continue to gain in importance in the coming months as a hedge against the decline in the purchasing power of the currencies.could continue to gain in importance in the coming months. In this context, the stock markets, the real estate markets and the precious metal markets should rise simultaneously, driven by liquidity. Basically, increased interest in precious metals is triggered by dwindling confidence in the paper credit money system. Whenever investor confidence in paper "currencies" dwindles because of the disastrous policies of central banks, investors move into real assets such as real estate, equities,precious metals and commodities.
A rotation in the popularity of sectors can be observed since 2001. Sometimes base metals, sometimes oil prices, sometimes precious metals and sometimes equities are the focus of investor interest. In the case of real estate, on the other hand, there is more of a long-term upward trend with smaller fluctuations.observed. The market for mining stocks will again be neglected in 2021 and thus has significant profit potential for 2022, as the valuation of mining stocks in the current environment of low interest rates, the high profitabilityof gold production as well as the lack of investment alternatives still appear favourable.
Monthly reports of the Stabilitas funds The STABILITAS - PACIFIC GOLD+METALS fund made significant gains in February. Among the top 5 positions, Kingsgate was replaced by Perseus. In the country weighting, the share of Australian stocks fell from 61 to 60 %. The share ofThe share of Canadian stocks increases from 33 % to 35 %. The cash position is reduced from 3 to 1 %. Gold stocks dominate the fund with a share of 89 % (86 %). The weighting of silver stocks remains at 7 %. The allocation of base metal stocks is reduced from 4 to 3 %. The investment strategy of STABILITAS - PACIFIC GOLD+METALS is designed in such a way that it can benefit from rising precious metal priceslong-only strategy in mining stocks.
The STABILITAS - SILVER + WHITE METALS fund rises significantly in February. The top 5 positions remain unchanged. In the country weighting, Canadian stocks dominate with a share of 57%. The weightingof Australian stocks is reduced from 17 to 16 %. The proportion of platinum stocks remains at 5 %. The allocation of gold stocks decreases from 29 % to 27 %. The cash position increases from 3 to 4 %. The silver stocks have the largest share of the(63 %), silver stocks account for the largest share of the fund volume.
The STABILITAS - SILVER+WHITE METALS covers the entire market of silver stocks and could profit disproportionately if the gold bull market continues due to the tight market for silver and silver stocks.
The STABILITAS - GOLD + RESOURCES SPECIAL SITUATIONS rises in February. The top 5 positions remain unchanged. In the country weighting, Australian stocks dominate with an unchanged share of 85%. The share of Canadian stocks increases from 10 % to 11 %. The cash position decreases from 5 to 4 %. The proportion of gold stocks increases from 51 % to 53 %. The weighting of base metal stocks reaches 30 % (31 %). The share of platinum values remains at 2 %. The share of rare earths remains unchanged at 11 %.
At the current price level, STABILITAS - GOLD + RESOURCES SPECIAL SITUATIONS considers itself well equipped to profit from an upswing in the exploration and junior mining segment.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ so thats the bet:
"upswing in the exploration and junior mining segment"
looks like its happening
KCN Price at posting:
$1.36 Sentiment: Buy Disclosure: Held
(20min delay)