Key interest rates are at a peak and interest rate cuts are coming. This means that higher gold prices are inevitable. If interest rates fall, the attractiveness of gold increases. Other investments, such as bonds, then yield lower returns. Low interest rates also usually lead to a weaker US dollar, which is also good for the price of the precious metal. And with the strength that the gold price has shown recently, a price increase should not be small. More or less sudden record prices are usually short-lived and result from conflicts such as the Ukraine war or the Middle East conflict.
Longer-term factors include, for example, the central banks’ hunger for gold, which should keep gold investors happy last year and probably this year too. In terms of jewelry demand, the demand for gold is recovering after the pandemic in India and China. That leaves investor demand. If they buy up a lot, the way is paved for higher gold prices, especially as supply is likely to remain stable. Gold bars and coins were extremely popular in this country during the pandemic. The current situation is very different. Perhaps this is due to inflation and the high cost of living. But inflation is on the retreat and interest among gold coin and gold bar buyers could rise again.
Among those who expect the price of gold to continue to rise is the major Swiss bank UBS. The impending interest rate cuts and the ongoing crises are seen as reasons for this.
So, if you want to bet on gold quickly, you can familiarize yourself with solid gold companies, such as U.S. GoldMining – https://www.commodity-tv.com/ondemand/companies/profil/us-goldmining-inc/ . The company has the highly promising Whistler gold-copper project in Alaska.
Sibanye-Stillwater – https://www.commodity-tv.com/ondemand/companies/profil/sibanye-stillwater-ltd/ – is one of the major gold producers. Its projects are located in South Africa, Argentina and the USA. Sibanye-Stillwater also produces platinum metals and focuses on battery metals.
Current company information and press releases from Sibanye-Stillwater (- https://www.resource-capital.ch/en/companies/sibanye-stillwater-ltd/ -) and U.S. GoldMining (- https://www.resource-capital.ch/en/companies/us-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/
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