A Merseyside property investor’s decision to buy a gold mine has been boosted with a second round of Covid-19 lockdowns across Europe.
Following the UK announcement over the weekend, the gold price jumped back above £1, 450 per troy ounce – more than 25% higher than it was a year ago.
David Webster, Chairman of Southport headquartered 79th Group, last month invested some of the profits accrued by 25 years of property investments to set up the $10 million purchase of an African gold mine.
His reasoning was that the threat to worldwide markets and currencies caused by the Covid-19 pandemic, would make gold one of the few safe investments over the coming years.
Reflecting on the decision after the latest round of lockdowns were announced, he said: “Unfortunately I firmly believe that Covid-19 is going to be causing disruption for many years and when there is uncertainty surrounding traditional investments, gold is the go to commodity.
“After the last major recession of 2007, I decided to investigate the gold mining market to see if there was an opportunity to protect our businesses from future crashes. Together with my sons, Jake and Curtis, I have spent seven years gaining extensive experience in mining, buying, selling and exporting gold for third parties.
“In addition, we have the right permits, commercial and political backing to become uniquely placed to take advantage of this opportunity at a time of increasing demand for gold while supplies are becoming more limited.”
With the support of leading mineral, exploration and mining consultants, SRK, the Webster’s Lusso Tesoro business will soon complete the purchase of a 100 sq. km. working mine in the Siguiri region of Guinea in West Africa. Conservative estimates of reserves within a 2 sq. km. ‘hot spot’ of the site are $80-140 million.
David Webster added: “The recent news reinforces our decision and I have every confidence that our business and our investors will enjoy great rewards from gold mining activity.”