The British central bank will buy government bonds. This is unlikely to please savers and consumers.
So, the first central bank is opening the money floodgates again. In the UK, yields on government bonds have risen sharply to more than five percent, the first time this has happened since 2002. The pound has depreciated by almost 19 percent against the US dollar. The inflation rate in August was 9.9 percent. This intervention in the capital market is now intended to counteract the turbulence in the financial system. The cause is said to be the sharp tax cuts announced by the new government. As a result of this intervention by the central bank, there are now fears of rising government debt and a further increase in inflation. This shows that public finances take precedence over the interests of savers and consumers.
Looking across the European Union, we see that the European Central Bank is buying bonds from financially troubled countries like Italy. Inflation in Italy hit a new ten-year high of 8.87 percent at the end of September 2022. Italy is the most indebted euro country after Greece. So with that, such countries can get more indebted, then the ECB prints new money, which in turn will further fuel inflation. It is therefore advisable for investors to invest part of their savings in precious metals and also in the stocks of gold and silver companies. This provides a certain degree of protection against inflation. There is Caledonia Mining or Victoria Gold, for example.
Caledonia Mining - https://www.youtube.com/watch?v=CiPJndZP3q4 - has been successfully producing for years in Zimbabwe at its Blanket gold mine. Nearly 39,000 ounces of gold were produced in the first half of 2022, 29 percent more than the comparable period in 2021.
Victoria Gold - https://www.youtube.com/watch?v=lW9_kDLo0mQ - is the leading gold producer in Yukon, Canada and produced more than 32,000 ounces of gold at its Eagle gold mine in the second quarter. Eagle is located on the Dublin Gulch property, which is 100 percent owned by the Company.
Current corporate information and press releases from Caledonia Mining (- https://www.resource-capital.ch/en/companies/caledonia-mining-corp/ -) and Victoria Gold (- https://www.resource-capital.ch/en/companies/victoria-gold-corp/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
So, the first central bank is opening the money floodgates again. In the UK, yields on government bonds have risen sharply to more than five percent, the first time this has happened since 2002. The pound has depreciated by almost 19 percent against the US dollar. The inflation rate in August was 9.9 percent. This intervention in the capital market is now intended to counteract the turbulence in the financial system. The cause is said to be the sharp tax cuts announced by the new government. As a result of this intervention by the central bank, there are now fears of rising government debt and a further increase in inflation. This shows that public finances take precedence over the interests of savers and consumers.
Looking across the European Union, we see that the European Central Bank is buying bonds from financially troubled countries like Italy. Inflation in Italy hit a new ten-year high of 8.87 percent at the end of September 2022. Italy is the most indebted euro country after Greece. So with that, such countries can get more indebted, then the ECB prints new money, which in turn will further fuel inflation. It is therefore advisable for investors to invest part of their savings in precious metals and also in the stocks of gold and silver companies. This provides a certain degree of protection against inflation. There is Caledonia Mining or Victoria Gold, for example.
Caledonia Mining - https://www.youtube.com/watch?v=CiPJndZP3q4 - has been successfully producing for years in Zimbabwe at its Blanket gold mine. Nearly 39,000 ounces of gold were produced in the first half of 2022, 29 percent more than the comparable period in 2021.
Victoria Gold - https://www.youtube.com/watch?v=lW9_kDLo0mQ - is the leading gold producer in Yukon, Canada and produced more than 32,000 ounces of gold at its Eagle gold mine in the second quarter. Eagle is located on the Dublin Gulch property, which is 100 percent owned by the Company.
Current corporate information and press releases from Caledonia Mining (- https://www.resource-capital.ch/en/companies/caledonia-mining-corp/ -) and Victoria Gold (- https://www.resource-capital.ch/en/companies/victoria-gold-corp/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
