Greatland Gold (LSE: GGP) shares are shining proper now. They’re up 40% within the final 12 months, and 99% over 5 years. Inevitably, they’re attracting loads of consideration.

Clearly, they’ve been given an amazing massive shove by the gold price. It’s up 33% within the final 12 months to $2,914 an oz, and 77% over 5 years. It’s been boosted by financial and geopolitical uncertainty, together with avid shopping for by the most important central banks, notably China.

Established in 2005, Greatland Gold’s a London-listed mining firm with gold and copper initiatives in Australia. In November, it scooped up Newmont’s ageing Telfer gold mine and remaining curiosity within the Havieron discovery for £380m. Greatland managing director Shaun Day hailed Havieron a “world class… generational” undertaking.

Buyers ought to method the inventory with excessive warning. Smaller mining corporations might be extremely risky. Their shares can glister for some time, however don’t all the time flip into long-term gold.

But Greatland continues to energy alongside. An investor who took the plunge at the beginning of the yr might be up a outstanding 48%. That might have turned £10,000 into £14,800.

The sceptic in me says they received fortunate. The Greatland Gold price chart’s very uneven, with important peaks and troughs. Its shares surged 10% within the final week alone.

The 4 analysts providing one-year share price forecasts are optimistic although. They’ve produced a median goal of 15.26p. If right, that’s a rise of just about 65% from at present’s 9.2p. Inside these numbers there’s a broad vary of views, from 7p to 19p. We’ll see how this pans out.

Whereas gold’s historically seen as a safe-haven asset, it’s not so simple as that. The price might be extremely risky. Plus there’s no yield. Its fundamental function is to offer steadiness to a portfolio, offering a consolation blanket when inventory markets plunge.

A unusually risky protected haven

Immediately, buyers are nervous, as President Trump embarks on the most important reset of geopolitical relations I can bear in mind, whereas threatened commerce tariffs spook markets.

Most anticipate the Trumpian chaos to proceed. However what if he does delivers some form of peace in Ukraine? Or squeezes concessions out of key buying and selling companions, drops tariff threats and declares victory?

The gold price spike may reverse. If it did, the Greatland Gold share price would inexorably observe. Buyers might drift away. The shares could idle for years. I’m not saying that’s going to occur. I merely don’t know. Nevertheless it’s a threat.

However, if rates of interest lastly present significant falls, that might enhance gold, as the chance price of holding this non-yielding asset shrinks.

Mainly, it’s binary. I’d say Greatland Gold is value contemplating, however just for buyers who know precisely what they’re shopping for and might stand the chance. And just for a small a part of their portfolio.