Covid-19 vaccination and gold price
The issue of how a successful Covid 19 vaccine could affect the price of gold is controversial among experts. Some see the price of gold falling, while others predict the opposite. For example, Ronald Stoeferle, well-known author ("In Gold We trust"), analyst and gold expert, believes that a vaccine could trigger a wave of inflation. This would be extremely good for the gold price.
In the spring, the price of gold benefited from the Corona crisis, gold was in demand as a safe haven and rose in price to a new seven-year high - and gold is still extremely sought after as an investment. Uncertainties are driving demand for the yellow precious metal. Because uncertainty is hated by investors, who then flee into safe investments. If a Covid 19 vaccine were now available on the market for broad sections of the population, one would think that a great deal of uncertainty would be eliminated.
Uncertainty about new lockdowns and economic slumps would probably be much less. But consumers would probably react with relief. Consumption is being fueled and is meeting demand from huge government support spending. This will drive up prices, not least raw material prices. This will create further uncertainties. After all, how will the central banks react? Historically, a rising inflation rate will be good for the price of gold. This all the more so as the central banks still have to exercise restraint with regard to interest rates due to the ailing economy and horrendous national debt. Negative real interest rates - and they are attracting them - will drive investors even more strongly into the golden safety haven, as has already happened.
Investors can bet on this scenario, especially with the shares of companies with promising gold projects. Examples include Skeena Resources and Corvus Gold.
Skeena Resources is developing the formerly producing Eskay Creek and Snip gold-silver mines in the Golden Triangle in British Columbia.
Corvus Gold is also focusing on gold-silver projects in Nevada. The projects are called North Bullfrog and Mother Lode.
Latest corporate information and press releases from Skeena Resources ( https://www.resource-capital.ch/en/companies/skeena-resources-ltd/).
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.
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