Gold has struggled to bounce back after plunging below the $2,000 an ounce level. The selloff has gathered pace in recent weeks with the precious metal dipping below the $1900 mark on the dollar strengthening across the board. Amid the selloff, a number of experts believe the precious metal has what it takes to bounce back and go higher past its record high.
According to the experts, skyrocketing government spending needed to calm the markets and revitalize slowing economy growth are some of the policies supporting higher gold prices. Depressed bond yields, inflation fears, and the growing risk of the COVID-19 pandemic are other factors likely to drive gold prices higher.
Despite the recent pullback, gold is still one of the best performing mainstream assets after rallying by more than 30%. Companies are rushing against speed to take advantage of the high gold prices. GoldHaven Resources Corp. (CSE: GOH) (OTCQB: ATUMF) (PROFILE) has already entered into agreements to acquire seven high prospective gold projects. Gold FIelds Limited (NYSE:GFI), on its part, has inked an $860 million agreement that paves the way for it to process its recently discovered 5 million ounces at the Salares Norte.
Even as companies continue to bet big on highly prospective gold projects, investors are also looking for the right places to invest. Billionaire investor Warren Buffett has already taken a stake in Barrick Gold via Berkshire Hathaway, affirming bullish sentiments around the precious metal.
U.S Global Investors Affirms Dividends
Separately, U.S. Global Investors, Inc. (NASDAQ:GROW) has confirmed it will continue its monthly dividend program for the second quarter. The company has forked out dividend payments since June 2007. The investment firm has since approved a $0.0025 per share per month dividend beginning October, representing a 1.1% annualized dividend yield.
In addition to dividends, the company has achieved significant milestones key among them being the company’s airlines ETF and JETs breaking above $1 billion. It’s U.S Global Go Gold and Precious Metal Miner has also surpassed the $100 million milestones in net assets.