Investors Are Reportedly Looking To Gold And Mining Companies As Recession Potential Looms

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As the U.S. continues to fight off inflation threats, rising prices and recession fears,  people might be again looking at gold to hedge against what the economy might soon look like. 

Historically, gold has been seen as an essential and valuable commodity and a means of diversifying an investment portfolio, especially during uncertain economic times.  

Gold continues to be one of the first places investors turn when it appears economic peril is on the horizon. According to the World Gold Council, gold demand increased 34% year-to-year to 1,324 tons in the first quarter of 2022. That increase contributed to the highest demand since the fourth quarter of 2014. The growth countered weaker jewelry and retail investment. 

The Gold Council also pointed to gold-backed exchange-traded funds (ETFs) and similar products accounting for a significant piece of the gold market, with institutional and individual investors implementing many of their investment strategies.

The demand for gold is also drawing interest to the companies that mine it.  Nasdaq Inc. NDAQ recently recommended investors look at companies such as Barrick Gold Corp. GOLD, Franco Nevada Corp. FNV and Royal Gold Inc. RGLD for future growth.

One gold mining company with what seems to be an innovative twist is Asia Broadband Inc. AABB. The company mines precious and base metals in Mexico that are sold primarily in Asian markets. The company views its vertical integration approach to sales transactions as its unique strength.

Asia Broadband reports that its mining property acquisition strategy was employed to optimize the use of development capital by focusing operations in regions of Mexico where the company has the advantage of having development resources and expertise readily available. This has been attributed to its rapid expansion and duplication of the company’s previous gold production success. 

In 2021, Asia Broadband purchased two high-potential gold property interests in Mexico: the Bonanza Gold Mine Project and the Tequila Gold Mine Joint Venture. Both properties have received geological reports, and gold production was scheduled to begin in early 2022. 

Asia Broadband has also linked its mining expertise to the launch of its gold-backed cryptocurrency AABB Gold Token (AABBG) and associated AABB Exchange. Using mine-to-token vertical integration, the goal is to have AABBG independent from FIAT or government-issued currency not tied to commodities like gold or silver. The company is also in the process of using new logistics to transfer its gold bullion to a new location in Mexico.  

For more information on Asia Broadband, Inc., visit www.asiabroadbandinc.com. 

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.