The attitude of many central banks toward gold has changed significantly over the past decade.
Central banks now like to buy gold, this supports the gold price. From the late 1960s until about 2009, central banks were net sellers of gold. When they did buy, it was usually in small quantities. But times have changed. First there was the global financial crisis, then came quantitative easing by the Fed. That's when central banks came back to the fact that gold is the means of diversification.
Next came the Russia-Ukraine war. In 2022, central banks bought a record amount of gold, and this year could be estimated to be the second largest amount of gold bought since the 1960s. Many industry experts believe that this trend will continue and that it will be a multi-year trend. By the way, gold also provides a diversification benefit in the portfolio of private investors, history also shows this.
Even if a stronger U.S. dollar or higher U.S. yields cause headwinds for the gold price in the short term, in the longer-term gold investments are under a good star. And then the easing of Fed policy is imminent, although it is still uncertain when this will be. It may be as early as this month that the end of the rate hike cycle will be announced. Geopolitical uncertainties and the de-dollarization sought by many countries should ensure high gold prices in the longer term. Those who choose physical gold or investments in gold companies should be on the right track. Among gold companies, Osisko Development and U.S. GoldMining are recommended.
At U.S. GoldMining's - https://www.commodity-tv.com/ondemand/companies/profil/us-goldmining-inc/ - Whistler project (gold and copper) in Alaska, the 10,000-meter drilling program has commenced.
Osisko Development - https://www.commodity-tv.com/ondemand/companies/profil/osisko-development-corp/ -, operating in Mexico, Canada and the U.S. was able to sell 3,830 ounces of gold in the second quarter of 2023.
Latest corporate information and press releases from U.S. GoldMining (- https://www.resource-capital.ch/en/companies/us-goldmining-inc/ -) and Osisko Development (- https://www.resource-capital.ch/en/companies/osisko-development-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/
Central banks now like to buy gold, this supports the gold price. From the late 1960s until about 2009, central banks were net sellers of gold. When they did buy, it was usually in small quantities. But times have changed. First there was the global financial crisis, then came quantitative easing by the Fed. That's when central banks came back to the fact that gold is the means of diversification.
Next came the Russia-Ukraine war. In 2022, central banks bought a record amount of gold, and this year could be estimated to be the second largest amount of gold bought since the 1960s. Many industry experts believe that this trend will continue and that it will be a multi-year trend. By the way, gold also provides a diversification benefit in the portfolio of private investors, history also shows this.
Even if a stronger U.S. dollar or higher U.S. yields cause headwinds for the gold price in the short term, in the longer-term gold investments are under a good star. And then the easing of Fed policy is imminent, although it is still uncertain when this will be. It may be as early as this month that the end of the rate hike cycle will be announced. Geopolitical uncertainties and the de-dollarization sought by many countries should ensure high gold prices in the longer term. Those who choose physical gold or investments in gold companies should be on the right track. Among gold companies, Osisko Development and U.S. GoldMining are recommended.
At U.S. GoldMining's - https://www.commodity-tv.com/ondemand/companies/profil/us-goldmining-inc/ - Whistler project (gold and copper) in Alaska, the 10,000-meter drilling program has commenced.
Osisko Development - https://www.commodity-tv.com/ondemand/companies/profil/osisko-development-corp/ -, operating in Mexico, Canada and the U.S. was able to sell 3,830 ounces of gold in the second quarter of 2023.
Latest corporate information and press releases from U.S. GoldMining (- https://www.resource-capital.ch/en/companies/us-goldmining-inc/ -) and Osisko Development (- https://www.resource-capital.ch/en/companies/osisko-development-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/
