This article only represents the author's own views.
Stocks may be fine in normal times, but in turbulent times like now – plagued by geopolitical tensions, inflationary pressure and falling interest rates – gold is glowing more by the day as an investor safe haven. That’s lit a fire under the precious metal, whose price surged to a record high of $3,500 per ounce in April, up more than 30% year-to-date, becoming an investor favorite lately.
As that happens, leading Chinese gold producer Zijin Mining Group Co. Ltd. (2899.HK; 601899.SH) has announced plans to milk its offshore gold assets by separately listing them in a Hong Kong company. Such a plan would see it reorganize its assets by moving several major gold mines in South America, Central Asia and Oceania into its Zijin Gold International Inc. subsidiary, which would get listed through an IPO. It’s a classic case of “striking while the iron is hot,” by taking advantage of the recent upswing in gold prices.