A weaker US dollar and bond yields that have slid downwards are currently strengthening the gold price.
In view of the high inflation rate of well over seven percent (December 2021), the U.S. Federal Reserve will probably have to take countermeasures. Typically, commodities, especially gold, benefit from high inflation. Gold provides stability in the portfolio and offers a certain degree of inflation protection. This also applies to gold mining stocks, which gain disproportionately from a strong or rising gold price. Interest rates, if they rise, will lack attractiveness, because real interest rates will still be in negative territory, and so rising interest rates cannot do much to the attractive investment area of gold.
If you look at what happened in the late 1960s, the Fed and the Federal Reserve probably didn't do things right then. Inflation expectations spiraled out of control and a massive wage-price spiral set in. Inflation then hit a whopping 11.5 percent in 1975, a recession ensued, and the Fed raised interest rates to 20 percent. It remains to be seen what will happen today with negative real interest rates and the enormous debt levels of many economies. In any case, investors should position themselves in good time to be able to counter potential adversity. Investments in the gold sector, not only physical investments but also investments in gold companies, play a role in this.
Of course, gold mining shares are also subject to the risks typical of shares, so it is advisable to examine potential candidates closely. For example, whether the projects are located in politically stable regions or at what cost gold can be mined. On closer inspection, Revival Gold or Victoria Gold appeal here.
Victoria Gold - https://www.youtube.com/watch?v=iAFsCRWMf3w - produced its first gold in 2019, with production expected to increase to around 200,000 ounces annually. The first nine months of 2021 brought almost 115,000 ounces of gold production.
Revival Gold - https://www.youtube.com/watch?v=IRhTepSaUVg - has a prospective project with the previously producing Beartrack-Arnett gold property in Idaho. Drilling results support this.
Latest corporate information and press releases from 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/
In view of the high inflation rate of well over seven percent (December 2021), the U.S. Federal Reserve will probably have to take countermeasures. Typically, commodities, especially gold, benefit from high inflation. Gold provides stability in the portfolio and offers a certain degree of inflation protection. This also applies to gold mining stocks, which gain disproportionately from a strong or rising gold price. Interest rates, if they rise, will lack attractiveness, because real interest rates will still be in negative territory, and so rising interest rates cannot do much to the attractive investment area of gold.
If you look at what happened in the late 1960s, the Fed and the Federal Reserve probably didn't do things right then. Inflation expectations spiraled out of control and a massive wage-price spiral set in. Inflation then hit a whopping 11.5 percent in 1975, a recession ensued, and the Fed raised interest rates to 20 percent. It remains to be seen what will happen today with negative real interest rates and the enormous debt levels of many economies. In any case, investors should position themselves in good time to be able to counter potential adversity. Investments in the gold sector, not only physical investments but also investments in gold companies, play a role in this.
Of course, gold mining shares are also subject to the risks typical of shares, so it is advisable to examine potential candidates closely. For example, whether the projects are located in politically stable regions or at what cost gold can be mined. On closer inspection, Revival Gold or Victoria Gold appeal here.
Victoria Gold - https://www.youtube.com/watch?v=iAFsCRWMf3w - produced its first gold in 2019, with production expected to increase to around 200,000 ounces annually. The first nine months of 2021 brought almost 115,000 ounces of gold production.
Revival Gold - https://www.youtube.com/watch?v=IRhTepSaUVg - has a prospective project with the previously producing Beartrack-Arnett gold property in Idaho. Drilling results support this.
Latest corporate information and press releases from 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/
