Many experts see upside potential, for example the analysts at Commerzbank.
Even if the US Federal Reserve will raise interest rates, the environment for the precious metal remains extremely favourable, because the negative real interest rates speak for it, at least according to Commerzbank. This should also increase investor interest again. Analysts, insiders and market observers spoken to by the Investing News Network (INN) also saw the increasing effects of inflation in particular as determining the price of gold. While the precious metal did not benefit as much from record low real interest rates and inflation in 2021, as expectations for inflation, growth and equities were still mostly rosy.
But economic growth is slowing worldwide, and stagflation appears increasingly possible, no doubt partly caused by fears of new virus variants. Inflationary pressures, higher commodity prices, faltering distribution channels can drive inflation rates to high levels for decades. And this has now entered the minds of investors. Gold, says Adam Perlaky, senior analyst at the World Gold Council, is poised to benefit from these conditions. That's because gold serves as an inflation hedge, he said, and sustained inflation will impact gold's opportunity cost. Also, the long-held belief by major central banks that inflation is only temporary will cause them to lag inflation, as they have in the past. This in turn will have a positive impact on the gold price.
The investor can participate in a positive gold price development with an investment in gold shares. As an example, Karora Resources or Ximen Mining can be mentioned.
Karora Resources - https://www.youtube.com/watch?v=RSNKRxkqsXk - produces at its Beta Hunt and Higginsville mines in Australia. Cost reduction and an expansion of gold production are the goals.
Ximen Mining - https://www.youtube.com/watch?v=zVqFPB0RALI&list=PLBpDlKjdv3ypMydyDoGC67vIT7wBSxCxZ - owns gold projects and a silver project respectively participations. The main project is the Brett Gold Project in British Columbia.
Latest corporate information and press releases from Karora Gold (- https://www.resource-capital.ch/en/companies/karora-resources-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/
Even if the US Federal Reserve will raise interest rates, the environment for the precious metal remains extremely favourable, because the negative real interest rates speak for it, at least according to Commerzbank. This should also increase investor interest again. Analysts, insiders and market observers spoken to by the Investing News Network (INN) also saw the increasing effects of inflation in particular as determining the price of gold. While the precious metal did not benefit as much from record low real interest rates and inflation in 2021, as expectations for inflation, growth and equities were still mostly rosy.
But economic growth is slowing worldwide, and stagflation appears increasingly possible, no doubt partly caused by fears of new virus variants. Inflationary pressures, higher commodity prices, faltering distribution channels can drive inflation rates to high levels for decades. And this has now entered the minds of investors. Gold, says Adam Perlaky, senior analyst at the World Gold Council, is poised to benefit from these conditions. That's because gold serves as an inflation hedge, he said, and sustained inflation will impact gold's opportunity cost. Also, the long-held belief by major central banks that inflation is only temporary will cause them to lag inflation, as they have in the past. This in turn will have a positive impact on the gold price.
The investor can participate in a positive gold price development with an investment in gold shares. As an example, Karora Resources or Ximen Mining can be mentioned.
Karora Resources - https://www.youtube.com/watch?v=RSNKRxkqsXk - produces at its Beta Hunt and Higginsville mines in Australia. Cost reduction and an expansion of gold production are the goals.
Ximen Mining - https://www.youtube.com/watch?v=zVqFPB0RALI&list=PLBpDlKjdv3ypMydyDoGC67vIT7wBSxCxZ - owns gold projects and a silver project respectively participations. The main project is the Brett Gold Project in British Columbia.
Latest corporate information and press releases from Karora Gold (- https://www.resource-capital.ch/en/companies/karora-resources-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/
