The gold price is currently fluctuating around 2,000 dollars. So, it doesn't hurt to take a look at the past development.
The history of the gold price shows that there are cycles of many years, and strong and weak phases exist. In order to get a better picture of how the price of the precious metal will develop, it is necessary on the one hand to consider interest rate and inflation expectations, and on the other hand to take a closer look at past cycles - and how was the environment in strong or weak gold price periods, what was the impact. The gold price reached one high after another in the 1970s. This trend came to an end in 1980. For about twenty years, the gold market then experienced a bear market. The reason was high inflation. In response, the head of the U.S. Federal Reserve raised interest rates to over 20 percent. This led to positive real interest rates (today we are in negative territory) and gold was thus no longer in demand, the price fell. High interest rates are now usually negative for the price of gold.
In March 2000 the speculation bubble (dotcom bubble) burst, a worldwide phenomenon. Small investors, especially in industrialized countries, lost fortunes. Then the gold market was under bullish signs and the price of the precious metal went up sharply. The result was finally the achievement of a new all-time high of around 1,800 U.S. dollars per ounce in 2011. Gold then fell in price again to around 1,000 U.S. dollars by 2015. The price then continued to move sideways until August 2020, when it reached a new all-time high of US$2,058 per ounce. The price of the precious metal then bobbed along for around two years. Recently, there was a new course all-time high, before now a consolidation set in. The real interest rates are negative, inflation is high and this permanently and the US dollar rather weak.
Even if gold does not generate any returns, the precious metal is now attractive as seldom. Gold is a good investment and a good admixture for a portfolio. Who wants to bet on a further rising gold price, can do this with shares in gold companies. Well positioned are for example Gold Terra Resource or Chesapeake Gold.
Gold Terra Resource - https://www.commodity-tv.com/ondemand/companies/profil/gold-terra-resource-corp/ - owns the Yellowknife City Gold Project in the Northwest Territories. This was formerly the site of the high-grade Con and Giant gold mines.
Chesapeake Gold - https://www.commodity-tv.com/ondemand/companies/profil/chesapeake-gold-corp/ - is active in North and South America. The flagship Metates project contains gold, silver and zinc and is located in Durango. It is one of the largest undeveloped gold and silver deposits in the world.
Latest corporate information and press releases from Gold Terra Resource (- https://www.resource-capital.ch/de/unternehmen/gold-terra-resource-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/
The history of the gold price shows that there are cycles of many years, and strong and weak phases exist. In order to get a better picture of how the price of the precious metal will develop, it is necessary on the one hand to consider interest rate and inflation expectations, and on the other hand to take a closer look at past cycles - and how was the environment in strong or weak gold price periods, what was the impact. The gold price reached one high after another in the 1970s. This trend came to an end in 1980. For about twenty years, the gold market then experienced a bear market. The reason was high inflation. In response, the head of the U.S. Federal Reserve raised interest rates to over 20 percent. This led to positive real interest rates (today we are in negative territory) and gold was thus no longer in demand, the price fell. High interest rates are now usually negative for the price of gold.
In March 2000 the speculation bubble (dotcom bubble) burst, a worldwide phenomenon. Small investors, especially in industrialized countries, lost fortunes. Then the gold market was under bullish signs and the price of the precious metal went up sharply. The result was finally the achievement of a new all-time high of around 1,800 U.S. dollars per ounce in 2011. Gold then fell in price again to around 1,000 U.S. dollars by 2015. The price then continued to move sideways until August 2020, when it reached a new all-time high of US$2,058 per ounce. The price of the precious metal then bobbed along for around two years. Recently, there was a new course all-time high, before now a consolidation set in. The real interest rates are negative, inflation is high and this permanently and the US dollar rather weak.
Even if gold does not generate any returns, the precious metal is now attractive as seldom. Gold is a good investment and a good admixture for a portfolio. Who wants to bet on a further rising gold price, can do this with shares in gold companies. Well positioned are for example Gold Terra Resource or Chesapeake Gold.
Gold Terra Resource - https://www.commodity-tv.com/ondemand/companies/profil/gold-terra-resource-corp/ - owns the Yellowknife City Gold Project in the Northwest Territories. This was formerly the site of the high-grade Con and Giant gold mines.
Chesapeake Gold - https://www.commodity-tv.com/ondemand/companies/profil/chesapeake-gold-corp/ - is active in North and South America. The flagship Metates project contains gold, silver and zinc and is located in Durango. It is one of the largest undeveloped gold and silver deposits in the world.
Latest corporate information and press releases from Gold Terra Resource (- https://www.resource-capital.ch/de/unternehmen/gold-terra-resource-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/
