In turbulent economic times, the quest for stability becomes paramount. In the ever-shifting landscape of global finances, gold stands out as a beacon of reliability. It has, throughout history, maintained its status as a highly liquid asset, free from credit risk, and a preserver of value over time. Gold’s versatility extends beyond its value as an investment; it finds demand in various sectors, including as a reserve asset, for crafting exquisite gold jewelry, and as an essential component in cutting-edge technology. It’s these unique attributes that place gold at the heart of any well-rounded portfolio, offering three distinct advantages: long-term returns, enhanced diversification, and liquidity.
Several gold mining companies, notably GEMXX Corp. (OTCPK: GEMZ), are thriving in the midst of economic volatility. GEMXX, which has quickly graduated from the startup phase to global prominence, is now poised to embrace vertical integration, marking a significant differentiator in the gold industry. Notably, alongside its gold operations, GEMXX mines ammolite, a captivating gemstone akin to black opal. With colored gems becoming the talk of the jewelry industry, GEMXX’s diversification into ammolite places it in a unique position within the gold sector. Other mining companies finding success in the gold sector include Wheaton Precious Metals Corp. (NYSE: WPM), McEwen Mining Inc. (NYSE: MUX), Fortitude Gold Corp. (OTC: FTCO), and Gold Fields (NYSE: GFI).
Gold: A Time-Tested Reputation as a “Store of Value”
As “U.S. News & World Report” rightly observes, “gold has proved, over hundreds and even thousands of years, to be a reliable store of value.” The precious metal’s inherent stability allows it to maintain its purchasing power, even as world events unfold. While it can rival other safe investments like the U.S. dollar and treasuries, gold is gaining increased allure in light of the Federal Reserve‘s actions to counter inflation. As those efforts bear fruit, gold becomes increasingly attractive when compared to assets like treasuries.
GEMXX Corp.’s remarkable progress over the past year takes on even greater significance in this context. With zero long-term debt, the company reported a 170% year-over-year increase in revenues in 2022, with total assets exceeding $19 million. It started 2023 with a substantial gemstone and gold resource portfolio, including the Snow Creek and Rosella Creek gold mine sites, offering significant mineable acreage. Notably, the company recently signed a binding letter of intent to acquire a 50% stake in the Yukon Gold Project, further expanding its gold assets. Jay Maull, CEO of GEMXX, explains that this acquisition enhances their gold asset portfolio while working towards the goal of vertical integration.
GEMXX’s Ammolite Distinction: Gold in the Modern Era
GEMXX’s focus on vertical integration extends to ammolite, a precious gemstone. With over $600 million in ammolite reserves alongside its gold reserves, GEMXX is the only publicly traded ammolite company globally. Ammolite, an exceptionally rare gemstone, is sourced exclusively from the eastern slopes of the Rocky Mountains in Alberta, Canada, an area where GEMXX’s ammolite reserves are situated.
Colored gems are making a resurgence in the jewelry industry, and ammolite, with its brilliant colors and unique patterns, is gaining prominence. With a global market for luxury products, including gems and jewelry, estimated to exceed $90 billion annually, the growth of ammolite sales worldwide shows great promise, topping $100 million, and is likely to rise with the increasing demand for colored gemstones. Ammolite, with its dazzling array of colors, is poised to become a key player in this growing market.
As a recent Fashionisto article highlights, the popularity of colored gemstones is on the rise. While diamonds have been the long-standing favorite, gemstones are once again stealing the spotlight. Colored gemstones have held a place of significance throughout history, associated with talismanic properties, divine attributes, and healing qualities. Their popularity seems poised to endure, driven by a preference for colored jewels, particularly for their protection, fortune, and symbolism.
The Strength of GEMXX’s Management
A company’s strength often hinges on its leadership team, and GEMXX boasts a team with a wealth of expertise, amassing over 160 years in gold, gemstone, and jewelry production, coupled with extensive global operational and sales experience. This capable team displayed its mettle during the challenges of the COVID-19 pandemic, doubling production to meet demand while remaining cash flow positive. GEMXX’s leadership brings innovation, quality control, and profitability to the forefront, laying the foundation for both short-term and long-term success.
Currently, GEMXX is working to raise $6 million in investment funding through a fully qualified Reg-A offering. This funding will support the development of a new large-scale ammolite mine, alongside expansion in the current gold mining operations, aligning with the growing global demand for their products. Additionally, the company is gearing up for financial audits, paving the way for potential trading on the OTCQX and, ultimately, an uplisting to the New York Stock Exchange or NASDAQ.
In the long run, GEMXX is committed to the sustainable and environmentally responsible development of its resources. Canada, with its stringent environmental regulations, strong governance, and a dedication to safety and community, provides an excellent backdrop for GEMXX’s operations. The company maintains control over every facet of its production, from gold mining and gemstone production to jewelry manufacturing and global distribution.
A Quest for Mining Success
In the quest for mining success, GEMXX is joined by other notable mining companies:
- Wheaton Precious Metals Corp. (NYSE: WPM): This premier precious metals streaming company boasts a portfolio of long-life, low-cost assets. Operational successes are being driven by major improvements at its largest asset, Salobo. Wheaton Precious Metals is expanding its presence through strategic corporate development initiatives, further fueling its growth.
- McEwen Mining Inc. (NYSE: MUX): A gold and silver producer with operations in various countries, McEwen Mining is reporting promising assay results, potentially pointing to new growth directions for its Stock property.
- Fortitude Gold Corp. (OTC: FTCO): This U.S.-based gold producer is targeting low operating costs, high margins, and strong capital returns. The company is actively exploring additional oxide gold mineralization at its Isabella Pearl trend, seeking to capitalize on operational longevity.
- Gold Fields (NYSE: GFI): Focused on becoming the preferred gold mining company delivering sustainable, superior value, Gold Fields is committed to driving positive social and environmental change. The company is setting ambitious targets in sustainability-linked loans, aligned with its ESG targets, which prioritize gender diversity, decarbonization, and water stewardship.
With the global economy in a state of constant flux, investing in mining, whether it’s gold or gemstones, offers a haven of stability in uncertain times. As volatility becomes a consistent companion in the financial world, the enduring appeal of gold remains a beacon of hope and reliability.