Cash in the safe
If interest rates continue to fall, this idea will become increasingly attractive, the chief economist of the Gesamtverband der Deutschen Versicherungswirtschaft (Association of the German Insurance Industry) said. Because the insurers do not want to pay penalty interest either. Even federal bonds are no longer in demand after the yields for 30-year federal bonds fell below zero for the first time at the beginning of August.
The President of the European Central Bank, Christine Lagarde, also expects interest rates to be zero for decades to come. Savers must be prepared for this: The savings book will not yield any interest for a very long time or must be paid for deposits.
The ultra-loose monetary policy is a blessing for most governments. For despite high government debt, the interest burden is still bearable. The middle class must watch the devaluation of the savings books. And already some point to the example of Japan: Due to the loose monetary policy, companies have no pressure to increase productivity and wages have been falling in Japan since 1998.
In order to counteract this, a rethink is necessary. Asset preservation and accumulation is achieved with a well diversified portfolio, which also includes shares of gold companies. For example, Osisko Gold Royalties or Auryn Resources.
Osisko Gold Royalties - https://www.commodity-tv.net/c/search_adv/?v=299178 - as a precious metal licensing company (more than 135 royalties, precious metal purchases and streams) already offers risk diversification. With the dividend that the Company will pay for the third quarter of 2019, shareholders have received over $100 million in total since 2014.
Auryn Resources - https://www.commodity-tv.net/c/search_adv/?v=299172 - has seven projects. A high grade gold project in Nunavut and a gold-copper project in Peru. Two concessions to the Curibaya project in Peru have just been acquired (up to 23.6 grams of gold and up to 13.50 percent copper per ton of rock).
Current company information and press releases from Osisko Gold Royalties (https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/) and Auryn Resources (https://www.resource-capital.ch/en/companies/auryn-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 and that there is therefore a potential conflict of interest. No guarantee for the translation into German. Only the English version of these messages is valid.
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