Gold sellers seem to have taken over at the moment.
It is probably the fear that the Fed will continue to raise interest rates for longer and that the hoped-for interest rate cuts will be a long time coming, which is currently driving investors more to sell gold. But even if the sell-off in the precious metal continues for a bit longer, this will not change the good long-term performance. Everyone should have gold, because it serves as a hedge. Times that are not so good for precious metals in the short term will also pass again. Lowering inflation on a sustained basis is an almost impossible undertaking. And a recession that severely affects the economy is also not wanted by the Fed. The question remains how far the Fed will go. One significant aspect is the enormous national debt in the USA. In addition, many pension plans are heavily invested in bonds. In the long term, the Fed is expected to raise the key interest rate to five percent. But at the same time, demand for energy and food will remain high, and so will demand for commodities. This in turn is good for the gold price.
And gold scores with special properties compared to paper currencies. Gold is a tangible asset without the risk of a bank, insurance company or country behind it; it is independent of third parties. There is no risk of default. Bonds do yield interest, but there is someone behind them who must be trusted. Also, gold cannot be multiplied the way paper money can. The extent to which the zero-interest rate policy has peeled away savings is well known. And because of high inflation, real wealth continues to decline. Gold also acts as a liquidity reserve. Gold is traded worldwide and known coins or LGMA certified bars are accepted worldwide. One way to bet on gold is through the stocks of gold companies, which absolutely belong in a well-diversified portfolio. There would be, for example, Tarachi Gold or GoldMining.
Tarachi Gold manages gold properties in North America (Mexico). The sale of the Magistral project puts the company in a strong cash position for further development and exploration activities.
GoldMining is targeting gold and copper in North and South America. Gold resources amount to around 26 million ounces.
Latest corporate information and press releases from 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/
It is probably the fear that the Fed will continue to raise interest rates for longer and that the hoped-for interest rate cuts will be a long time coming, which is currently driving investors more to sell gold. But even if the sell-off in the precious metal continues for a bit longer, this will not change the good long-term performance. Everyone should have gold, because it serves as a hedge. Times that are not so good for precious metals in the short term will also pass again. Lowering inflation on a sustained basis is an almost impossible undertaking. And a recession that severely affects the economy is also not wanted by the Fed. The question remains how far the Fed will go. One significant aspect is the enormous national debt in the USA. In addition, many pension plans are heavily invested in bonds. In the long term, the Fed is expected to raise the key interest rate to five percent. But at the same time, demand for energy and food will remain high, and so will demand for commodities. This in turn is good for the gold price.
And gold scores with special properties compared to paper currencies. Gold is a tangible asset without the risk of a bank, insurance company or country behind it; it is independent of third parties. There is no risk of default. Bonds do yield interest, but there is someone behind them who must be trusted. Also, gold cannot be multiplied the way paper money can. The extent to which the zero-interest rate policy has peeled away savings is well known. And because of high inflation, real wealth continues to decline. Gold also acts as a liquidity reserve. Gold is traded worldwide and known coins or LGMA certified bars are accepted worldwide. One way to bet on gold is through the stocks of gold companies, which absolutely belong in a well-diversified portfolio. There would be, for example, Tarachi Gold or GoldMining.
Tarachi Gold manages gold properties in North America (Mexico). The sale of the Magistral project puts the company in a strong cash position for further development and exploration activities.
GoldMining is targeting gold and copper in North and South America. Gold resources amount to around 26 million ounces.
Latest corporate information and press releases from 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/
