To achieve higher inflation, further fiscal stimulus could be introduced. If the Corona vaccinations proceed quickly, confidence will grow again, and consumer prices could rise. In any case, negative real interest rates will support gold prices. The precious metals sector, many industry insiders think, has entered a multi-year period of higher prices. This will provide for consolidation in the sector.
Many mergers and acquisitions in the gold sector have already taken place during the gold price rally from 2008 to 2012. And many gold producers are paying dividends today and can score with good quarterly results.
For example, Caledonia Mining or OceanaGold.
Caledonia Mining Corporation plc (LON:CMCL) is a profitable cash generative gold producer with a strong growth profile, Caledonia’s primary asset is the Blanket Mine in Zimbabwe.