Gold has proven to be a worthwhile investment over time and copper is a commodity with a future.
The US Federal Reserve's future interest rate policy and further developments in the Middle East should have the greatest influence on the price of the precious metal. The price of gold has risen significantly since the attack on Israel. As a result, the precious metal has once again shown itself to be a means of hedging and also an opportunity for diversification. The Fed has now left interest rates at the current level for the second time. If there are no further interest rate hikes, as many expect, this should mean a further upward push for the gold price.
Even better for the price of the precious metal would probably be falling interest rates. In any case, the end of an interest rate hike cycle has had a positive effect on the gold price in the past. How much further the price can go up, however, is extremely controversial among industry experts.
When looking at industrial metals, copper is particularly in the spotlight. This is because the metal is needed in the electromobility and infrastructure sectors. A look at China, a major copper consumer, shows that GDP growth in the third quarter of 2023 was 1.3% higher than in the previous quarter. Overall, the economy grew by 5.2% in the three quarters of 2023. This speaks for economic stabilization. The fact that the mood is nevertheless not so good is certainly also due to the uncertainties in the Middle East.
In addition, copper production in China set a new record in September. But as a rule, price weaknesses for a raw material lead to tighter supply. And in view of the growing areas of application, the reddish metal should be in high demand in the coming years. Companies that own gold and copper, such as GoldMining or Torq Resources, offer investors the opportunity to position themselves in both commodities.
Torq Resources - https://www.commodity-tv.com/ondemand/companies/profil/torq-resources-inc/ - has promising investments in Chile (Santa Cecilia, Margarita, Andrea).
GoldMining - https://www.commodity-tv.com/ondemand/companies/profil/goldmining-inc/ - owns gold and gold-copper projects in North and South America. The portfolio includes blocks of shares in Gold Royalty, NevGold and U.S. GoldMining.
Current company information and press releases from Torq Resources (-https://www.resource-capital.ch/en/companies/torq-resources-inc/ -) and GoldMining (- https://www.resource-capital.ch/en/companies/goldmining-inc/ -).
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/
