Gold’s surge to an all-time high is being fueled by an unlikely group of buyers in the form of pension funds, insurance companies and private wealth specialists.
Spot prices have risen 29% so far this year and climbed to a record high of $1,980.55 an ounce earlier this week. Since then it has retreated slightly, trading at $1,960.18 an ounce as of 1:15 p.m. EDT on Wednesday.
In the past, when bonds offered heftier yields, many professional investors had little use for gold. A broad portfolio of stocks and bonds could generate a reliable yield, and the two assets would balance each other out during market downdrafts.
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 which produced 54,512 ounces of gold in 2018 at an All in Sustaining Cost of $802/oz.