With gold mining shares, an investor can participate in the gold price development.
The risk with gold mining shares is of course greater than with gold coins or gold bars, which have no risk of default. In return, an investor is rewarded with leverage on the gold price. As it seems, the gold market is no longer afraid of the Fed's aggressive interest rate policy. The last time the Fed raised interest rates so enormously upward in the 1980s, the yield on two-year notes rose more than 50 basis points above 10-year yields, as it is doing today. So, there is a significant inversion of the yield curve. And a recession has always been preceded by an inversion of the yield curve. That is why, for example, Ole Hansen, commodity strategist at Saxo Bank, believes that the risk of a recession is at its highest level in 40 years. This will support the gold price.
Bringing inflation back to the target of two percent is something the Fed is unlikely to achieve. Economic growth is slowing, and economists expect inflation to reach four or five percent. For the gold price, bullish sentiment, hence optimism, is coming. If investor fear sentiment rises, this should boost demand for gold as a safe haven. If gold becomes more attractive, so will the stock values of gold companies. If gold forms a bottom in terms of price, we will have to see how high the gold price rises. Support at US$1,675 per ounce is in place right now. Timely entry into gold mining stocks such as CanaGold Resources or Chesapeake Gold could therefore be attractive.
CanaGold Resources - https://www.youtube.com/watch?v=TbIYs0Iuh4A - is developing the very high-grade New Polaris gold project in British Columbia. Recent drill results produced up to a good 20 grams of gold per ton of rock.
Chesapeake Gold's - https://www.youtube.com/watch?v=dinUyzlk36E - main project is the Metates property in Durango, Mexico containing gold, silver and zinc. This contains immensely large undeveloped gold-silver deposits.
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 risk with gold mining shares is of course greater than with gold coins or gold bars, which have no risk of default. In return, an investor is rewarded with leverage on the gold price. As it seems, the gold market is no longer afraid of the Fed's aggressive interest rate policy. The last time the Fed raised interest rates so enormously upward in the 1980s, the yield on two-year notes rose more than 50 basis points above 10-year yields, as it is doing today. So, there is a significant inversion of the yield curve. And a recession has always been preceded by an inversion of the yield curve. That is why, for example, Ole Hansen, commodity strategist at Saxo Bank, believes that the risk of a recession is at its highest level in 40 years. This will support the gold price.
Bringing inflation back to the target of two percent is something the Fed is unlikely to achieve. Economic growth is slowing, and economists expect inflation to reach four or five percent. For the gold price, bullish sentiment, hence optimism, is coming. If investor fear sentiment rises, this should boost demand for gold as a safe haven. If gold becomes more attractive, so will the stock values of gold companies. If gold forms a bottom in terms of price, we will have to see how high the gold price rises. Support at US$1,675 per ounce is in place right now. Timely entry into gold mining stocks such as CanaGold Resources or Chesapeake Gold could therefore be attractive.
CanaGold Resources - https://www.youtube.com/watch?v=TbIYs0Iuh4A - is developing the very high-grade New Polaris gold project in British Columbia. Recent drill results produced up to a good 20 grams of gold per ton of rock.
Chesapeake Gold's - https://www.youtube.com/watch?v=dinUyzlk36E - main project is the Metates property in Durango, Mexico containing gold, silver and zinc. This contains immensely large undeveloped gold-silver deposits.
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/
