Caledonia Mining Corporation Plc: High Grade Drill Results at Blanket Mine
ST HELIER, Jersey, June 23, 2025 (GLOBE NEWSWIRE) -- Caledonia Mining Corporation Plc ("Caledonia" or 'the Company") is pleased to report further encouraging high grade results from the ongoing resource expansion drill programme at Caledonia's 64% owned Blanket Mine. The programme is aimed at evaluating the continuity of the mineralised zones on the Blanket, Eroica and Lima orebodies (which comprise three of the main orebodies at Blanket Mine). The objectives of the programme are to increase the confidence levels of the existing mineral resource and to grow the mineral resource estimate below the 34 level of the mine (1,110 metres). These results follow the previously announced results on January 30, 2024.
Results from 6,976 metres of underground drilling from January 2024 to the end of April 2025 indicate that the existing Blanket and Eroica orebodies have grades and widths which are generally better than expected, while the Lima orebody is shown to continue below 22 level (750 metres). A new potential orebody has been intersected in the Blanket orebody area of the mine, with impressive grades and widths.
Table 1. Drilling Highlights**
Holes Identifier
Orebody Name
Orebody Intersection
Core Length (m)
True width (m)
Grade (g/t)
Orebody Intersection depth from surface (m)
*E.O.H (m)
From (m)
To (m)
BLK870EX2312
NEW
120.30
152.10
31.80
24 .73
6.71
895
251.1
BLK870EX2308
NEW
21.1
31.9
10.8
5.93
17.73
817.1
262.4
BLK4_5
45.1
71.4
26.3
14.71
4.71
840.4
ARS1110EX2308
BLK1FW
66.2
79.4
13.2
8.98
25.06
1 096.4
190.4
BLK1FW
82.4
85.4
3.0
2.05
21.39
1 111.2
BLK1110EX2412
BQR
56.9
64.7
7.8
5.27
13.02
1 087.7
242.8
BLK1110EX2414
BQR
84.0
91.2
7.2
4.32
8.95
1 116.0
96.0
ERC750EX2402
ERCN
366.0
375.0
9.0
6.70
7.26
998.9
425.4
ERC750EX2403
ERCN
413.4
420.6
7.2
4.75
6.15
1 039.2
454.4
*End of hole depth**The complete long hole drilling results for January 2024 to April 2025 are provided in Appendix 1
Mark Learmonth, Caledonia's Chief Executive Officer, commented:
'Our ongoing drilling campaign continues to demonstrate encouraging results, further improving our confidence in the Blanket Mine mineral resource and pointing to additional future mineral resource growth. The grades and widths we are seeing from this drilling campaign are as good as and, in some cases, considerably better than results from previous drilling campaigns, which is highly encouraging.
'We anticipate that the positive grades and widths will result in an increased overall mineral resource estimate, which in due course should result in the extension of the existing life of mine. We have invested heavily in Blanket Mine over the last seven years to increase production capacity, resulting in a mine infrastructure that can sustain production beyond the current production horizon.
"Drilling is currently focussed on the Blanket and Eroica orebodies, where crosscuts have been developed to allow optimal access to drill the deeper zones of the steeply-dipping orebodies. These results are extremely promising, and we look forward to the next phase of drilling and updating the market accordingly.'
Commentary
The drilling at Blanket Mine continues to confirm the continuation of several of the main orebodies (the Blanket, Eroica and Lima orebodies) at depth at the lowest levels of the mine and beyond. The increased density of drilling intersections from the programme is aimed at upgrading the inferred mineral resource estimate to the indicated mineral resource category or better, providing a solid resource base for life of mine planning. Grades and widths in the results from the Blanket and Eroica orebodies have been generally better than previously expected and modelled.
Further data on each drill hole is set out at Appendix 2 and pictorial representations of the holes are included below.
Figure 1. Blanket Mine Drilling – Long Section (North – South) of Blanket Mine Showing Locality of Drilling
Blanket Orebody – Strong Grades and Widths in Infill Drilling and New Orebody Discovered
In holes BLK870EX2312 and BLK870EX2308 (holes 16 and 13 on the section below, respectively), drilling intersected a new orebody which is believed to be another subparallel orebody which would be in addition to the 6 subparallel orebodies which currently comprise the Blanket series of orebodies (together referred to as the Blanket orebody). The initial intersections into this previously unknown orebody are highly encouraging, with highlights of 31.8 metres (estimated true width of 24.73 metres) at 6.71 grammes per tonne ('g/t') gold and 10.8 metres (estimated true width of 5.93 metres) at 17.73 g/t gold.
Infill drill results into the Blanket orebody have returned, in general, better widths and grades than expected when compared to the current mineral resource estimate contained within the report entitled 'NI 43-101 Technical Report on the Blanket Gold Mine, Zimbabwe' with an effective date of 31 December 2023.
A comparison of drillhole ARS1110EX2308 with the 2023 resource model shows a similar width for Blanket 1 Footwall (BLK1FW) orebody of approximately 13 metres while the drillhole grades return a composite grade inclusive of internal dilution from 66.21 to 85.41 metres downhole of 20.64 g/t compared to a mineral resource model grade of approximately 4.64 g/t.
The Blanket 1 Hangingwall (BLK1HW), in the same drillhole ARS1110EX2308, returned a similar value of 6.28 g/t when compared to the mineral resource model grade of between 4.0 and 6.0 g/t while the true width in the drillhole of 7.14 metres is thicker than the mineral resource model width of approximately 3.30 metres.
Drill results reported in this announcement concern intersections between 26 and 34 level on the south end of the mine (Figure 2), plus intersections below 34 level in the middle portion of the Blanket orebody (Figure 3). This information will form part of the planned mineral resource update anticipated to be published by year end.
Figure 2. Blanket Orebody – Drilling from 26 Level (870 metres below surface)
Figure 3. Blanket Orebody – Drilling from 34 Level (1,110 metres below surface)
Eroica and Lima Orebodies – Solid Intersections at Eroica at 34 Level and Extension Demonstrated at Lima
Drilling commenced at Lima and initial intersections are encouraging. The likelihood of the Lima orebody (Lima main, footwall, hangingwall and intermediates) extending from 22 level to 34 level is considered to be high. The potential down dip continuation of the Lima orebody will be accessible from Eroica orebody development on 30 and 34 level with relatively minor extensions to current development.
Figure 4. Eroica and Lima Orebodies – Drilling from 750 metres (22 Level) below surface
This information will form part of the planned mineral resource update anticipated to be published by year end.
Future Exploration Plans and other Programs Ongoing
Drilling will continue to evaluate the Blanket, ARM and ARS orebodies to the 38 level (1,230 metres) and beyond.
In addition to underground exploration drilling, Blanket Mine has commenced a surface exploration project within the area held under the Blanket Mine mining lease. The program is targeting the Banded Iron Formation ('BIF') which strikes in a north-westerly direction and has been exploited at the nearby Vubachikwe and Sabiwa gold mines. The BIF extends from the southern boundary of the Blanket Mine lease area through to the northern boundary and beyond.
Initial work comprised Induced Polarisation ('IP') and Ground Magnetic ('GM') surveys over a selected area. These surveys delineated anomalous zones over a 600-metre strike length which subsequent surface reconnaissance mapping and pitting has shown to be quartz filled shear zones hosted within the BIF. Grab samples from shallow surface pits returned assay values ranging between 0.59 and 32.12 g/t from analysis at the Blanket Mine assay laboratory.
Planned activities for 2025 include:
Surface trenching at 50 metres spacing over the strike length of 600 metres.
Reverse Circulation ('RC') drilling focusing on defining the potential of shallow oxide mineral resources.
Appendix 1
Map Ref No.
Hole Identifier
Orebody Name
Orebody Intersection
Core Length (m)
True width (m)
Grade (g/t)
Orebody Intersection depth from surface (m)
End of Hole Depth (m)
From (m)
To (m)
1
ARS1110EX2305
BQR
4.80
14.40
9.60
5.10
2.48
1038
182.10
BLK1HW
94.50
105.90
11.40
5.68
4.11
1104
BLK1FW
116.10
120.90
4.80
2.35
7.21
1120
2
ARS1110EX2306
BQR
4.20
19.30
15.10
6.10
4.18
1038
174.10
BLK1HW
69.50
98.80
29.30
10.67
3.33
1083
3
ARS1110EX2307
BQR
4.55
6.85
2.30
1.44
11.93
1039
164.40
BLK1HW
24.78
32.41
7.63
4.89
4.59
1058
BLK1FW
131.30
133.10
1.80
1.26
11.85
1156
4
ARS1110EX2308
BQR
6.10
12.18
6.08
3.97
9.08
1041
190.40
BLK1HW
43.96
54.61
10.65
7.14
6.28
1076
BLK1FW
66.21
79.41
13.20
8.98
25.06
1096
BLK1FW
82.41
85.41
3.00
2.05
21.39
1111
5
ARS1110EX2501
ARSEWL
85.50
92.10
6.60
2.35
0.38
1110
260.30
6
BLK1110EX2410
BQR
67.50
73.90
6.40
4.19
3.61
1098
233.30
BQR
78.10
81.70
3.60
2.37
3.59
1108
7
BLK1110EX2411
BQR
60.50
61.70
1.20
0.81
5.80
1090
194.30
8
BLK1110EX2412
BQR
56.90
64.70
7.80
5.27
13.02
1088
242.80
9
BLK1110EX2414
BQR
84.00
91.20
7.20
4.32
8.95
1116
96.00
10
BLK870EX2305
BLK4_5
26.10
39.30
13.20
7.06
2.66
818
281.10
11
BLK870EX2306
BLK4_5
36.70
46.30
9.60
5.11
2.89
832
278.40
12
BLK870EX2307
BLK4_5
43.60
54.40
10.80
5.84
1.51
839
278.40
13
BLK870EX2308
NEW
21.14
31.94
10.80
5.93
17.73
817
262.40
BLK4_5
45.09
71.40
26.31
14.71
4.71
840
BLK2FW
239.50
244.80
5.30
3.57
3.78
1024
14
BLK870EX2310
BLK4_5
36.40
46.80
10.40
7.43
3.65
829
275.30
15
BLK870EX2311
BLK4_5
29.30
38.90
9.60
6.25
2.74
823
215.30
16
BLK870EX2312
BLK4_5
56.10
62.10
6.00
7.36
3.21
843
251.10
NEW
113.10
116.10
3.00
2.33
4.13
889
NEW
120.30
152.10
31.80
24.73
6.71
895
NEW
164.70
168.90
4.20
3.28
2.59
930
NEW
181.50
183.90
2.40
1.88
3.24
942
17
ERC750EX2311
ERCS
235.80
238.80
3.00
1.26
1.61
861
269.20
18
ERC750EX2314
ERC
138.30
143.10
4.80
2.20
0.71
790
ERCS
177.80
178.80
1.00
0.44
4.43
821
267.10
19
ERC750EX2315
ERCS
143.10
144.90
1.80
0.74
6.27
796
275.10
20
ERC750EX2316
No significant intersection
203.60
21
ERC750EX2317
ERCS
202.40
206.60
4.20
0.69
0.70
820
288.00
22
ERC750EX2318
ERCS
256.10
265.90
9.80
0.96
0.72
842
265.90
23
ERC750EX2401
No significant intersection
356.20
24
ERC750EX2402
ERCN
366.00
375.00
9.00
6.70
7.26
999
425.40
25
ERC750EX2403
ERCN
413.40
420.60
7.20
4.75
6.15
1039
454.40
26
LIM750EX2501
LIM
66.40
69.70
3.30
1.14
1.22
730
592.20
LIMINT
76.30
79.90
3.60
1.25
5.76
742
* ERCN – Eroica North, ERCS – Eroica South, BQR – Blanket Quartz Reef, BLK1HW – Blanket 1 Hanging wall, BLK1FW – Blanket 1 Footwall, BLK2FW – Blanket 2 Footwall, BLK4_5 – Blanket 4 and 5, ARSEWL – AR South East – West Limb, LIM – Lima Main, LIMI – Lima Intermediate, NEW – Mineralisation not correlated to known orebodies.
Appendix 2
Underground exploration drill hole; azimuth, dip, drilled length, and collar location (UTM NAD83)
Hole Identifier
Azimuth (°)
Dip (°)
Drilled Length (m)
UTM Easting (m)
UTM Northing (m)
UTM Elevation (m)
ARS1110EX2305
128.3
49.4
182.1
697 766.1
7 693 019.4
25.6
ARS1110EX2306
140.3
44.7
174.1
697 765.7
7 693 017.8
25.0
ARS1110EX2307
44.7
69.9
164.4
697 761.5
7 693 022.1
25.0
ARS1110EX2308
77.7
68.9
190.4
697 766.2
7 693 020.0
25.1
ARS1110EX2501
339.6
62.5
260.3
697 674.6
7 693 026.5
25.1
BLK1110EX2410
50.2
70.8
233.3
697 681.7
7 693 030.0
25.5
BLK1110EX2411
35.6
66.2
194.3
697 681.7
7 693 030.2
25.3
BLK1110EX2412
56.0
69.1
242.8
697 682.3
7 693 030.1
25.3
BLK1110EX2414
69.5
75.8
96.0
697 682.2
7 693 029.6
25.3
BLK870EX2305
2.9
57.1
281.1
698 042.1
7 692 510.2
263.7
BLK870EX2306
19.0
72.5
278.4
698 043.2
7 692 509.8
263.6
BLK870EX2307
49.4
77.2
278.4
698 043.3
7 692 509.5
263.7
BLK870EX2308
76.6
76.4
262.4
698 043.3
7 692 509.3
263.7
BLK870EX2310
84.7
63.1
275.3
698 043.0
7 692 509.6
263.8
BLK870EX2311
28.4
63.9
215.3
698 043.5
7 692 509.6
263.7
BLK870EX2312
88.7
57.0
251.1
698 043.3
7 692 509.1
263.8
ERC750EX2311
145.5
57.0
269.2
697 312.5
7 694 285.9
387.0
ERC750EX2314
130.8
59.5
267.1
697 313.3
7 694 286.4
387.0
ERC750EX2315
135.5
61.0
275.1
697 313.8
7 694 287.3
387.0
ERC750EX2316
112.7
65.4
203.6
697 313.4
7 694 288.3
387.1
ERC750EX2317
153.0
50.2
288.0
697 313.1
7 694 286.8
387.1
ERC750EX2318
154.1
45.9
265.9
697 313.2
7 694 286.6
387.0
ERC750EX2401
53.5
72.5
356.2
697 090.9
7 694 511.7
389.3
ERC750EX2402
78.6
70.7
425.4
697 090.8
7 694 511.1
389.5
ERC750EX2403
94.1
71.1
454.4
697 090.9
7 694 510.6
389.4
LIM750EX2501
337.4
69.6
592.2
697 324.3
7 694 849.4
389.4Enquiries:
Caledonia Mining Corporation PlcMark LearmonthCamilla Horsfall
Tel: +44 1534 679 800Tel: +44 7817 841 793
Cavendish Capital Markets Limited (Nomad and Joint Broker)Adrian Hadden Pearl Kellie
Tel: +44 207 397 1965Tel: +44 131 220 9775
Panmure Liberum (Joint Broker)Scott Mathieson
Tel: +44 20 3100 2000
Camarco, Financial PR (UK)Gordon PooleElfie Kent
Tel: +44 20 3757 4980
3PPB (Financial PR, North America)Patrick ChidleyPaul Durham
Tel: +1 917 991 7701Tel: +1 203 940 2538
Curate Public Relations (Zimbabwe)Debra Tatenda
Tel: +263 77802131
IH Securities (Private) Limited (VFEX Sponsor - Zimbabwe)Lloyd Mlotshwa
Tel: +263 (242) 745 119/33/39
Qualified Person
Craig James Harvey, MGSSA, MAIG, Caledonia Vice President, Technical Services, has reviewed and approved the scientific and technical information contained in this news release. Craig James Harvey is a 'Qualified Person' as defined by each of (i) the Canadian Securities Administrators' National Instrument 43-101 - Standards of Disclosure for Mineral Projects and (ii) sub-part 1300 of Regulation S-K of the U.S. Securities Act of 1933.
Quality Assurance and Quality Control
Access to Blanket Mine premises is controlled by security personnel on the first gate. On the second gate, in addition to security, entry is gained by biometric entry system. Diamond drilling is performed by qualified diamond drillers under the supervision of a diamond drill foreperson. Drilled core is routinely brought to surface to the core shed where it is received and laid down. A qualified geological technician performs geotechnical logging while a qualified geologist logs the core and marks the portions for splitting. The core is split in half along the core axis using an electric core cutter equipped with a diamond saw cutter. The geologist marks the sample intervals, put tickets, insert standards and blanks. One half of the sample is put into a plastic sample bag and sealed with cable ties. The sampling information is entered into the database. The other half of the core is marked with sample intervals and sample numbers and returned to the core box and retained for future reference. The samples are put in marked grain bags and tied with cable ties.
Transportation is by road using a mine vehicle to a SADCAS accredited testing laboratory (accreditation number TEST-05 0030) in Kwekwe, some 330km from Blanket Mine. A delivery note is signed as proof of dispatch.
Gold is analysed by a 50 grams fire assay with an Atomic Absorption (AA) finish. The laboratory also has internal quality control ('QC') programs that include insertion of reagent blanks, reference materials, and pulp duplicates.
Blanket Mine inserts QC samples (blanks and reference materials) at regular intervals to monitor laboratory performance.
When results are received, the assay results are painted against the sample numbers on the core retained.
Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation (EU) No. 596/2014 ('MAR') as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
Cautionary Note Concerning Forward-Looking Information
Information and statements contained in this news release that are not historical facts are 'forward-looking information' within the meaning of applicable securities legislation that involve risks and uncertainties relating, but not limited, to Caledonia's current expectations, intentions, plans, and beliefs. Forward-looking information can often be identified by forward-looking words such as 'anticipate', 'believe', 'expect', 'goal', 'plan', 'target', 'intend', 'estimate', 'could', 'should', 'may' and 'will' or the negative of these terms or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Examples of forward-looking information in this news release include: planned exploration programs, focuses, strategies, drilling targets and work, potential for further exploration of certain areas, potential drilling results and related expectations, costs and expenditures, including with respect to the cost of development and production, project economics, gold price assumptions, potential mineralization, projected ore grades, opportunities to add near mine and further high-grade mineral reserves and resources, expectations regarding the mine plan and extensions to it, sustaining capital and value of operations and other statements and information that is based on forecasts and projections of future operational, geological or financial results, estimates of amounts not yet determinable and assumptions of management. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information. Such factors and assumptions include, but are not limited to: failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, success of future exploration and drilling programs, reliability of drilling, sampling and assay data, assumptions regarding the representativeness of mineralization being inaccurate, success of planned metallurgical test-work, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors.
Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of mineral resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable mineral reserves.
Security holders, potential security holders and other prospective investors should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Such factors include, but are not limited to: risks relating to estimates of mineral reserves and mineral resources proving to be inaccurate, fluctuations in gold price, risks and hazards associated with the business of mineral exploration, development and mining, risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards, employee relations; relationships with and claims by local communities and indigenous populations; political risk; risks related to natural disasters, terrorism, civil unrest, public health concerns (including health epidemics or outbreaks of communicable diseases); availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining or maintaining necessary licenses and permits, diminishing quantities or grades of mineral reserves as mining occurs; global financial condition, the actual results of current exploration activities, changes to conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors, risks of increased capital and operating costs, environmental, safety or regulatory risks, expropriation, the Company's title to properties including ownership thereof, increased competition in the mining industry for properties, equipment, qualified personnel and their costs, risks relating to the uncertainty of timing of events including targeted production rate increase and currency fluctuations. Security holders, potential security holders and other prospective investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Caledonia undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
For a more detailed discussion of such risks and other factors that may affect the Company's ability to achieve the expectations set forth in the forward-looking statements contained in this news release, see the Company's latest 20-F and Management's Discussion and Analysis, each under the heading 'Risk Factors', available on the SEDAR+ website at www.sedarplus.ca or on EDGAR at www.sec.gov. The foregoing should be reviewed in conjunction with the information and risk factors and assumptions found in this news release.
This news release is not an offer of the shares of Caledonia for sale in the United States or elsewhere. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the shares of Caledonia, in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such province, state or jurisdiction.
Photos accompanying this announcement are available athttps://www.globenewswire.com/NewsRoom/AttachmentNg/ed054d35-89fc-499a-b9e5-cf7e5ac272b8
https://www.globenewswire.com/NewsRoom/AttachmentNg/5492e23f-ceb9-4bfb-9fbc-818db654fa97
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What's it worth: From Costco gold bars to pots of gold That's enough for more than 1 billion Olympic gold medals, which are actually primarily made of silver, and about 750,000 pots of gold waiting at the end of every rainbow. Or you'd have to spend $694 billion at Costco on its 1-ounce gold bars, although the $3,410 bar is out of stock. Value of reserves rises and falls with price of gold The price of gold fluctuates, but as of July 2025, the market value of all the gold stored in the New York Federal Reserve vault could be estimated somewhere between $470 billion and $680 billion, depending on the market price of gold, which hit a record high this year. Who owns all the gold in the Fed's stockpile? But none of that gold belongs to the Fed, and most of it isn't American. In 2021, the U.S. Treasury Department reported it only stores about 13.4 million fine troy ounces – about 416 metric tons – there. The rest belongs to foreign governments, other central banks, and official international organizations, who trust the Fed to keep it locked away 80 feet below street level. Golden opportunity for a heist movie? Where is the world's gold stored? The United States stores gold in other places, too. The largest American-owned gold stockpile is at Fort Knox in Kentucky, which houses about 147.3 million fine troy ounces of gold – about 4,583 metric tons. Other countries, including Germany, Italy, and France, also have large gold reserves. More: Trump wants lower interest rates. Will the Fed make cuts? Live updates Why people still like gold Beyond its shine, some investors, central banks, and governments view gold as an attractive asset that inspires confidence, even in uncertain times. 'It's historical money. It goes back several millennia as original money,' said Aakash Doshi, the global head of gold strategy at State Street Investment Management. 'It goes back to biblical times. It was one of the gifts from the three wise men.' While today gold isn't used as a large-scale payment method, it's a highly liquid asset with no particular credit risk and is not directly controlled by any central bank, according to Joe Cavatoni, the senior market strategist for the Americas for the World Gold Council. Some investors still view it as 'real' money – something that can't be printed – and a hedge against market and economic volatility. 'Gold performs in good times as well as in the bad times,' Cavatoni said. Why gold demand surged While the dollar or the euro isn't going away anytime soon, Doshi said the demand for real hard assets that complement fiat currency rose over the last few decades as global debt and governments' share of that debt has increased. In 2024, gold overtook the euro as the second-largest global reserve asset after the U.S. dollar, according to a June European Central Bank report. Doshi listed the 2008 financial crisis, the U.S.-China trade war, shifting trade alliances like the rearrangement of the North American Free Trade Agreement, and expanded sanctions as forces driving some central banks' increased interest in gold, as they seek stability amid economic shocks and geopolitical tension. Cavatoni said that rating agencies' recent downgrades to the U.S. government's creditworthiness and the risks that come with holding treasuries are also likely on people's minds, adding that a lot of the increased demand is coming from emerging market central banks. Gold price jumped since the start of 2024 He said gold is valued higher when market risk is unclear and uncertainty is high, adding, 'that's kind of the world we're living in now.' 'When you think about their absolute level of holdings, they are still very low relative to the percentage of total reserves. And I think that there's still an opportunity for them to continue to grow,' Cavatoni said. 'But I think we're seeing in our second quarter data and other sound bites that they're definitely paying close attention to what the performance is going to look like.' Reach out to Rachel Barber at rbarber@ and follow her on X @rachelbarber_ Illustrations by Veronica Bravo This article originally appeared on USA TODAY: In uncertain economic times, that means it's gold's time to shine Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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3 hours ago
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Consider these 3 top funds to buy this August
Funds provide a way for investors to buy high-performing assets while achieving effective diversification for risk management purposes. My own preference is to buy exchange-traded funds (ETFs) — I prefer the better price transparency, the trading flexibility, and the lower costs that these passive investment vehicles offer compared with actively managed ones. With this in mind, here are three such funds that stand out for serious consideration. Top gold ETF Demand for gold ETFs like iShares Physical Gold (LSE:SGLN) has exploded in 2025. According to the World Gold Council (WGC), these funds experienced inflows of 397 tonnes over the first half — to put that into context, that was the best semi-annual performance since the depths of the pandemic in 2020. According to the Council: 'fluctuating US trade policy; a weaker US dollar; heightened geopolitical tensions punctuated by regional flare-ups; close attention to the respective paths of inflation and economic growth; and fresh record highs in the gold price' attracted fresh investment inflows. There's no guarantee that gold ETFs will keep growing in value. A recovering US dollar alone may put gold prices under strain. But with all these factors still in play, I'm confident of further gains. The iShares Physical Gold product has risen 20.2% since the start of 2025. New defence fund Defence stocks are also in high demand as those geopolitical tensions grow. The WisdomTree Europe Defence ETF (LSE:WDEP) has effectively harnessed this trend, rising 21.8% in value since its launch in mid-March. The fund invests in Europe's largest defence companies, and includes UK shares BAE Systems and Rolls-Royce from the UK. In total, it holds shares in 24 different contractors, giving it exposure to sub-sectors including aerospace, cyber security, shipbuilding, and munitions. BAE Systems — currently the ETF's second-largest holding — underlined the defence sector's bright outlook this week when it upgraded its own full-year sales and profits forecasts. It now expects revenues to rise 8%-10%, and underlying earnings before interest and tax to rise by 9%-11%. There's a risk that supply chain and cost issues may impact the fund's performance. But on balance, I'm confident it'll keep rising strongly. Euro star Demand for European shares has also detonated this year. Fears over economic and political conditions in the US — and concerns over the valuation of Wall Street equities — has supercharged interest in listed companies closer to home. It's a trend I think could continue, making funds like the HSBC EURO STOXX 50 ETF (LSE:H50E) worth a close look. This particular one's risen 10.2% in the year to date, outperforming trackers that focus on US and global equities. It comprises 50 of the European Union's largest stocks, including the likes of SAP, UniCredit, LVMH, and Airbus. As you can see from this list, it offers wide exposure by both country and industry. So investors can effectively spread risk and target a broad range of investment opportunities. I'm confident in the ETF's long-term prospects, even amid lingering uncertainty around regional interest rates. The post Consider these 3 top funds to buy this August appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended BAE Systems and Rolls-Royce Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Here's one of the best shares to consider buying as Trump's trade war escalates!
Gold shares like Serabi Gold (LSE:SRB) have been among the most popular stocks to buy as President Trump's trade policy shakes market confidence. Bullion's all-time highs above $3,500 per ounce in April was struck against the backcloth of rising trade tensions. It's a trend I expect to continue. Uncertainty over US trade policy — and the impact of thumping tariffs on economic growth — are natural drivers of safe-haven assets. Gold's receiving extra support, too, from concerns that escalating tariffs will bolster inflation and reduce central banks' appetite to cut interest rates. Gold remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements and fears about a global recession. Given this situation, Serabi's share price has rocketed 152% over the past year. It's also been propelled higher by the falling US dollar and rising geopolitical tensions. But the Brazilian miner still looks cheap, leading to speculation of further price gains. Its forward price-to-earnings (P/E) ratio is just 3.5 times for 2025. It drops to 3.3 times for next year. Going for gold (stocks) Buying gold shares exposes investors to the risks and unpredictability of the mining industry. This makes it a more dangerous option than buying physical metal, or a fund that simply tracks the gold price. Serabi, which operates in Brazil but reports in US dollars, is also vulnerable to currency volatility. However, this strategy also offers exceptional opportunities to create wealth when the yellow metal surges. Serabi's all-in sustaining costs (AISC) are $1,636 per ounce. If gold prices rise further from current levels of $3,300, every extra dollar will flow straight into the bottom line. This 'leverage effect' means the miner's profits can grow much faster than the bullion price itself (though they can also fall faster when gold drops). The leverage factor partly explains why Serabi's 152% share price gain since last August has outpaced the 36% rise in metal prices. However, it's not the only reason for the company's outperformance. Serabi has also: Reported its highest quarterly production for eight years Raised its mineral resource estimate Made good progress towards more than doubling annual output by 2028 The company's earnings are tipped to rise 87% year on year in 2025. A further 5% rise is tipped for next year. A cheap share I'm considering I hold an exchange-traded fund (the L&G Gold Mining ETF) in my portfolio to capitalise on the leverage effect as gold prices rise. And given its excellent value, I'm also considering buying Serabi shares when I next have cash spare to invest. As well as that having that low P/E ratio, the miner's price-to-earnings growth (PEG) ratio of below 0.1 underlines its cheapness in relation to predicted profits. This is well under the widely accepted value water mark of one. And things remain that way for 2026, with Serabi's PEG coming in at 0.6. While it's not without risk, I think Serabi Gold could be one of the best shares to consider buying in the current climate. The post Here's one of the best shares to consider buying as Trump's trade war escalates! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has positions in Legal & General Ucits ETF Plc - L&g Gold Mining Ucits ETF. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data