DJE - Gold & Ressourcen PA (EUR)
- As at:
- 145.07 EUR
- 152.32 EUR
In December the DJE - Gold & Ressourcen rose 5.39%. Its benchmark index (60% Philadelphia Stock Exchange Gold and Silver Index, 20% Reuters/Jeffries CRB Index, 20% MSCI World Materials Sector Index (EUR)) increased 7.33%. Gold mining stocks performed well in December. The XAU Gold Mine Index rose 12.28% in US dollar terms and 10.33% in euro terms due to the depreciation of the US dollar against the euro in December. This means that gold mine stocks outperformed the gold price itself. The price rose 3.64% in US dollar terms to USD 1,517.27 per ounce. Calculated in Euro the profit was lower at 2.54% and EUR 1,353.22 per ounce due to the depreciation of the US dollar. In December the gold price developed positively after a previously weak November. Gold was once again in demand as a "safe haven" and benefited in its capacity as a stable investment primarily from the ultra-loose monetary policy of many central banks and the associated low or negative interest rate environment. Most recently the revival of bond purchases by the European Central Bank last September suddenly dashed the hopes of many investors for a foreseeable turnaround in interest rates which had a positive effect on the price of gold. Even though the "Phase One" agreement between the USA and China has been concluded, fears of trade conflicts, uncertainty about the further global economic development and concerns about the consequences of the breakout remain. Gold ETFs saw renewed inflows at the end of the month. Risks have eased somewhat of late but both the trading dispute and the Brexit are still a long way from a final solution. Negative surprises are always possible, which in turn would support gold prices. As long as real interest rates are falling or remain at current levels the gold price should be able to continue its upward trend. Investor uncertainty the investment crisis and a decline in the value of the major currencies supported by the central banks continue support gold as an alternative currency. The highest performance contributions in December came from positions in the mining companies Newmont Goldcorp (USA), Gold Fields (South Africa) and Northern Star Resources (Australia) as well as the German copper producer Aurubis. Negative performed the positions of the mining companies Endeavour Mining (West Africa), Cia de Minas Buenaventura (Peru) and Regis Resources (Australia) as well as the German chemical company BASF. The weighting of gold mining shares was approx. 59% at the end of December compared to 57% previous month. The focus remains on solidly financed producers that generate positive free cash flows even at lower gold prices that have some growth prospects. Broader commodities/chemicals stocks generally underperformed gold mining stocks in December: MSCI World Materials (1.97%) and CRB Commodities Index (+3.93%) - both in euro terms. The fund is currently not invested in bonds. At the end of the month stocks denominated in US dollars were partly currency-hedged.