DJE - Gold & Ressourcen PA (EUR)

DJE - Gold & Ressourcen PA (EUR) Header Image
As at:
151.71 EUR
159.30 EUR

Monthly Commentary

In April, the price of the DJE - Gold & Resources rose 31.81%. Its benchmark index (60% Philadelphia Stock Exchange Gold and Silver Index, 20% Reuters/Jeffries CRB Index, 20% MSCI World Materials Sector Index (EUR)) increased 27.70%. Gold mining stocks performed positively in April. The XAU Gold Mining Index rose 44.01% in US dollar terms and 44.45% in euro terms due to the appreciation of the US dollar against the euro in April. As a result gold mine stocks outperformed the gold price itself. The gold price rose 6.93% in US dollar terms and was quoted at USD 1,686.50 per ounce. Calculated in euros the profit of the gold price was higher at 7.68% and EUR 1,539.58 per ounce due to the appreciation of the US dollar. Gold continued its positive trend in April. Gold investments benefited from the increased uncertainty caused by the Corona crisis. According to data from the World Gold Council (WGC), demand for coins, bars and jewelry fell sharply in the first quarter due to the Corona restrictions, especially in Asia. In contrast, gold index funds (ETFs) demanded significantly more gold than in the last 4 years. With 3,185 tons at the end of the first quarter of 2020 the total holdings of gold ETFs reached a historic high. Overall, global demand for gold has therefore risen slightly, while mine operators have experienced production losses as a result of the pandemic and supply has declined. The recent price decline of up to USD 50 at the end of April is likely to be due to expectations of an early return to normal economic activity as more and more countries around the world relax restrictions. In addition, there are hopes of progress in the development of a vaccine or drug against Covid-19, but rapid economic normalization seems illusory as the catastrophic economic figures of recent weeks have shown. The lockdown in many countries around the world brought their economies to their knees and caused lasting damage. The arguments in favor of gold as an alternative currency continue to be the further drop in global interest rates, the sharp rise in public debt, investor uncertainty, the investment crisis and a fall in the value of the most important currencies supported by the central banks. The highest value contributions in April came from positions in the mining companies Newmont Mining (USA), B2Gold (Canada), Agnico Eagle Mines (Canada) and Gold Fields (South Africa) as well as the precious metals trading company Wheaton Precious Metals (Canada). On the other hand, the position of the French producer of industrial gases, Air Liquide, had a negative impact. At the end of April the weighting of gold mining stocks was approximately 74%, compared to 62% previous month. The focus remains on solidly financed producers that generate positive free cash flows even at lower gold prices and also have some growth prospects. Broader commodity/chemical stocks generally underperformed gold mining stocks in April: MSCI World Materials +14.10% and CRB Commodity Index -3.47% - both in euro terms. The fund is currently not invested in bonds. At the end of the month, Australian, Canadian and US dollar denominated stocks were partially hedged.

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