The end of 2018 saw many predicting a price surge for gold this year and a subsequent share price surge for gold stocks.
As a safe-haven, investors often turn to the precious metal in times of political uncertainty, volatility, high inflation and currency instability.
The anticipated increase in the demand for gold can be attributed to the concerns over US growth, a weakening US dollar, Brexit, the US’ widening budget deficit, the looming China-trade war – to name a few.
There is also a growing demand from China – with the World Gold Council stating that China is the fastest growing market for gold.
Gold is often gifted for to younger family members for special occasions and it also has a role in the Chinese New Year.
Steady but rising shine
Over the past ten years demand for gold has risen only steadily, by 15 percent – from 3,778.3 metric tons in 2008 to 4,355.1 tons in 2018.
But when there is a finite amount of gold to go around, this is a healthy increase.
The World Gold Council estimates that the total amount of gold ever mined was 187,200 metric tons – although reports on this figure vary widely.
Over the past five years the price of gold has barely budged – recording a mere 3.9 percent difference. However, it has made a rebound, increasing by 21 percent since January 2016 when it hit a five-year low.
It’s a different story over ten years – with the price increasing by 36.75 percent.
Where does the demand come from?
Gold is used in a whole manner of things. It’s a conductor and is used in technologies such as circuits for the transmission of data.
According to the World Gold Council, a single mobile device contains up to 50 milligrams of gold.
It’s also resistant to corrosion and a highly effective reflector of infrared radiation– it’s this quality that sees it fitted to space ships to hep stabalise temperatures onboard.
It has a low toxicity and is even used in the medical industry – sometimes in anti-arthritis drugs and treatments.
Then there’s the use in the dental industry – due to its bio-compatibility.
And finally, its shiny – making a nice decorative.
Jewlry is by far still the largest industry for gold and gold sheets are used in artwork and buildings.
Gold demand by sector 2017
The World Gold Council said that in Q3 of 2018 there was a rise in consumer demand of 13 percent.
The largest rise in demand for gold came in the form of bar and coin – in Q3 2018 this rose by 28 percent year-on-year.
Do these gold stocks have the Midas Touch?
It was reported that Australia achieved a record gold production in 2018 of 317 tons – indicating its gold reserves are far from depleted.
The largest producers of the gold were Newcrest Mining (ASX:NCM), Newmont Mining (NYSE:NEM), AngloGold (ASX:AGG) and Independence Group (ASX:IGO).
But it’s not just the large caps that are in line to reap the rewards.
Here is a list of the small cap gold related stocks on the ASX that could stand benefit.
|AVW AU Equity||AVIRA RESOURCES LTD||0.003||3,000,000.00|
|TMX AU Equity||TERRAIN MINERALS LTD||0.005||3,218,660.00|
|CY5 AU Equity||CYGNUS GOLD LTD||0.056||3,398,267.00|
|VKA AU Equity||VIKING MINES LTD||0.012||3,450,896.50|
|MDX AU Equity||MINDAX LTD||0.004||3,479,696.00|
|CVS AU Equity||CERVANTES CORP LTD||0.007||3,489,558.25|
|KGM AU Equity||KALNORTH GOLD MINES LTD||0.003||3,576,960.25|
|ARX AU Equity||ARC EXPLORATION LTD||0.16||4,040,117.00|
|GUL AU Equity||GULLEWA LTD||0.029||4,053,323.75|
|AAJ AU Equity||ARUMA RESOURCES LTD||0.007||4,085,809.00|
|AQI AU Equity||ALICANTO MINERALS LTD||0.03||4,183,050.00|
|DMG AU Equity||DRAGON MOUNTAIN GOLD LTD||0.016||4,216,488.00|
|4CE AU Equity||FORCE COMMODITIES LTD||0.009||4,239,158.50|
|BNR AU Equity||BULLETIN RESOURCES LTD||0.025||4,482,327.00|
|DTM AU Equity||DART MINING NL||0.005||4,640,214.00|
|OVL AU Equity||ORO VERDE LTD||0.003||4,667,035.50|
|AYR AU Equity||ALLOY RESOURCES LTD||0.003||4,731,233.00|
|PGI AU Equity||PANTERRA GOLD LTD||0.02||5,061,632.00|
|RGL AU Equity||RIVERSGOLD LTD||0.055||5,110,089.50|
|AUT AU Equity||AUTECO MINERALS LTD||0.006||5,414,788.00|
|CM1 AU Equity||COOLGARDIE MINERALS LTD||0.052||5,441,351.00|
|TNR AU Equity||TORIAN RESOURCES LTD||0.02||5,597,546.50|
|AWV AU Equity||ANOVA METALS LTD||0.009||5,752,190.50|
|SFM AU Equity||SANTA FE MINERALS LTD||0.08||5,825,503.00|
|DHR AU Equity||DARK HORSE RESOURCES LTD||0.003||5,928,260.00|
|GCR AU Equity||GOLDEN CROSS RESOURCES LTD||0.06||6,097,333.50|
|GED AU Equity||GOLDEN DEEPS LTD||0.036||6,169,708.50|
|ANL AU Equity||AMANI GOLD LTD||0.0025||6,449,760.00|
|NES AU Equity||NELSON RESOURCES LTD||0.135||6,610,962.50|
|NXM AU Equity||NEXUS MINERALS LTD||0.06||6,634,414.50|
|PUA AU Equity||PURE ALUMINA LTD||0.037||6,672,546.50|
|DAU AU Equity||DAMPIER GOLD LTD||0.038||6,674,325.50|
|OKR AU Equity||OKAPI RESOURCES LTD||0.195||6,696,859.00|
|FEL AU Equity||FE LTD||0.018||6,725,303.50|
|ARS AU Equity||ALT RESOURCES LTD||0.024||6,764,768.50|
|ADN AU Equity||ANDROMEDA METALS LTD||0.006||6,777,496.00|
|MOH AU Equity||MOHO RESOURCES NL||0.16||6,797,534.50|
|AME AU Equity||ALTO METALS LTD||0.033||6,837,569.50|
|MLS AU Equity||METALS AUSTRALIA LTD||0.003||7,025,393.50|
|OGX AU Equity||ORINOCO GOLD LTD||0.005||7,110,018.00|
|KWR AU Equity||KINGWEST RESOURCES LTD||0.17||7,367,450.00|
|HHM AU Equity||HAMPTON HILL MINING NL||0.025||7,370,134.50|
|GMR AU Equity||GOLDEN RIM RESOURCES LTD||0.016||7,525,005.00|
|GBZ AU Equity||GBM RESOURCES LTD||0.007||7,634,179.00|
|WWI AU Equity||WEST WITS MINING LTD||0.01||7,732,810.00|
|HMX AU Equity||HAMMER METALS LTD||0.023||7,857,427.00|
|ALY AU Equity||ALCHEMY RESOURCES LTD||0.017||8,367,970.00|
|MKG AU Equity||MAKO GOLD LTD||0.12||8,855,014.00|
|TAR AU Equity||TARUGA MINERALS LTD||0.064||9,034,703.00|
|AGS AU Equity||ALLIANCE RESOURCES LTD||0.1||10,429,392.00|
|MSR AU Equity||MANAS RESOUCES LTD||0.004||10,572,650.00|
|SAU AU Equity||SOUTHERN GOLD LTD||0.18||10,636,623.00|
|STN AU Equity||SATURN METALS LTD||0.19||10,735,000.00|
|BSX AU Equity||BLACKSTONE MINERALS LTD||0.098||10,996,067.00|
|PEC AU Equity||PERPETUAL RESOURCES LTD||0.045||11,156,418.00|
|BC8 AU Equity||BLACK CAT SYNDICATE LTD||0.21||11,452,000.00|
|MDI AU Equity||MIDDLE ISLAND RESOURCES LTD||0.01||11,515,374.00|
|E2M AU Equity||E2 METALS LTD||0.16||12,870,349.00|
|CTO AU Equity||CITIGOLD CORP LTD||0.006||12,957,814.00|
|GML AU Equity||GATEWAY MINING LTD||0.014||13,115,843.00|
|DTR AU Equity||DATELINE RESOURCES LTD||0.003||13,134,885.00|
|A1G AU Equity||AFRICAN GOLD LTD||0.24||13,224,000.00|
|HRN AU Equity||HORIZON GOLD LIMITED||0.175||13,392,858.00|
|AUC AU Equity||AUSGOLD LTD||0.022||13,800,140.00|
|GBR AU Equity||GREAT BOULDER RESOURCES LTD||0.18||14,019,270.00|
|TLM AU Equity||TALISMAN MINING LTD||0.086||15,970,190.00|
|DGO AU Equity||DGO GOLD LTD||0.68||17,517,028.00|
|BAR AU Equity||BARRA RESOURCES LTD||0.034||17,783,394.00|
|BGH AU Equity||BLIGH RESOURCES LTD||0.068||19,442,022.00|
|AZM AU Equity||AZUMAH RESOURCES LTD||0.025||20,335,980.00|
|HAW AU Equity||HAWTHORN RESOURCES LTD||0.065||21,230,014.00|
|AAR AU Equity||ANGLO AUSTRALIAN RESOURCES||0.058||21,363,798.00|
|PM8 AU Equity||PENSANA METALS LTD||0.018||21,818,702.00|
|LNY AU Equity||LANEWAY RESOURCES LTD||0.006||22,080,396.00|
|ODM AU Equity||ODIN METALS LTD||0.145||22,289,304.00|
|LTR AU Equity||LIONTOWN RESOURCES LTD||0.0205||22,679,750.00|
|TIE AU Equity||TIETTO MINERALS LTD||0.1||24,070,300.00|
|MRP AU Equity||MACPHERSONS RESOURCES LTD||0.071||24,922,882.00|
|GWR AU Equity||GWR GROUP LTD||0.1||25,351,744.00|
|SMC AU Equity||STRATEGIC MINERALS CORP NL||0.36||28,155,314.00|
|MAT AU Equity||MATSA RESOURCES LTD||0.155||28,306,778.00|
|SIH AU Equity||SIHAYO GOLD LTD||0.016||29,668,200.00|
|ARE AU Equity||ARGONAUT RESOURCES NL||0.022||32,641,992.00|
|VEC AU Equity||VECTOR RESOURCES LTD||0.02||33,787,728.00|
|ERM AU Equity||EMMERSON RESOURCES LTD||0.084||34,876,132.00|
|NAG AU Equity||NAGAMBIE RESOURCES LTD||0.074||34,992,624.00|
|KCN AU Equity||KINGSGATE CONSOLIDATED LTD||0.16||35,065,020.00|
|EGA AU Equity||EGAN STREET RESOURCES LTD||0.27||35,222,504.00|
|IRC AU Equity||INTERMIN RESOURCES LTD||0.16||35,308,268.00|
|GMN AU Equity||GOLD MOUNTAIN LTD||0.071||35,339,012.00|
|CAI AU Equity||CALIDUS RESOURCES LTD||0.024||35,516,876.00|
|NUS AU Equity||NUSANTARA RESOURCES LTD||0.215||36,071,836.00|
|AOP AU Equity||APOLLO CONSOLIDATED LTD||0.205||37,610,308.00|
|KRM AU Equity||KINGSROSE MINING LTD||0.052||37,960,384.00|
|CGN AU Equity||CRATER GOLD MINING LTD||0.014||38,213,728.00|
|PRX AU Equity||PRODIGY GOLD NL||0.082||38,930,836.00|
|GME AU Equity||GME RESOURCES LTD||0.081||39,053,360.00|
|BLK AU Equity||BLACKHAM RESOURCES LTD||0.028||39,925,276.00|
|BDC AU Equity||BARDOC GOLD LTD||0.044||40,290,612.00|
|BSR AU Equity||BASSARI RESOURCES LTD||0.017||41,171,276.00|
|BCN AU Equity||BEACON MINERALS LTD||0.019||41,879,224.00|
|CHN AU Equity||CHALICE GOLD MINES LTD||0.16||43,983,744.00|
|FML AU Equity||FOCUS MINERALS LTD||0.24||45,687,140.00|
|DEG AU Equity||DE GREY MINING LTD||0.1||46,547,136.00|
|TAM AU Equity||TANAMI GOLD NL||0.041||47,003,880.00|
|TRY AU Equity||TROY RESOURCES LTD||0.105||48,771,152.00|
|GCY AU Equity||GASCOYNE RESOURCES LTD||0.098||49,477,476.00|
|BGS AU Equity||BIRIMIAN LTD||0.18||51,579,472.00|
|ARL AU Equity||ARDEA RESOURCES LTD||0.53||55,856,920.00|
|ORN AU Equity||ORION MINERALS LTD||0.031||58,085,740.00|
|TTM AU Equity||TITAN MINERALS LTD||0.024||61,528,944.00|
|BBX AU Equity||BBX MINERALS LTD||0.155||66,705,736.00|
|PLL AU Equity||PIEDMONT LITHIUM LTD||0.1||67,038,036.00|
|DGR AU Equity||DGR GLOBAL LTD||0.125||76,647,736.00|
|MML AU Equity||MEDUSA MINING LTD||0.38||77,922,864.00|
|BRB AU Equity||BREAKER RESOURCES NL||0.425||80,383,376.00|
|EXU AU Equity||EXPLAURUM LTD||0.16||84,264,088.00|
|VAN AU Equity||VANGO MINING LTD||0.15||86,557,672.00|
|OKU AU Equity||OKLO RESOURCES LTD||0.25||88,713,728.00|
|CAY AU Equity||CANYON RESOURCES LTD||0.215||89,929,440.00|
|NWF AU Equity||NEWFIELD RESOURCES LTD||0.16||93,007,928.00|
|ONX AU Equity||ORMINEX LTD||0.19||99,632,528.00|
|RND AU Equity||RAND MINING LTD||1.695||101,951,664.00|
|ALK AU Equity||ALKANE RESOURCES LTD||0.205||106,280,208.00|
|BDR AU Equity||BEADELL RESOURCES LTD||0.065||108,782,976.00|
|EAR AU Equity||ECHO RESOURCES LTD||0.195||112,943,184.00|
|TLG AU Equity||TALGA RESOURCES LTD||0.53||115,642,104.00|
|EMR AU Equity||EMERALD RESOURCES NL||0.043||130,816,856.00|
|CDV AU Equity||CARDINAL RESOURCES LTD||0.38||143,332,800.00|
|CYL AU Equity||CATALYST METALS LTD||2.09||143,935,504.00|
|MOY AU Equity||MILLENNIUM MINERALS LTD||0.175||144,743,088.00|
|RED AU Equity||RED 5 LTD||0.115||155,395,872.00|
|DRM AU Equity||DORAY MINERALS LTD||0.44||201,008,448.00|
|TBR AU Equity||TRIBUNE RESOURCES LTD||4.1||227,562,400.00|
|WAF AU Equity||WEST AFRICAN RESOURCES LTD||0.27||237,710,192.00|
|BGL AU Equity||BELLEVUE GOLD LTD||0.595||307,239,456.00|
|SLR AU Equity||SILVER LAKE RESOURCES LTD||0.6825||350,493,920.00|
|RMS AU Equity||RAMELIUS RESOURCES LTD||0.585||390,209,504.00|
|WGX AU Equity||WESTGOLD RESOURCES LTD||1.08||459,149,280.00|
|PRU AU Equity||PERSEUS MINING LTD||0.41||461,676,064.00|
This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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