Fluctuations in the price of gold will increase
Whether at OFI Asset Management or at Degussa, there is agreement on a greater fluctuation range for precious metals, especially gold. In August, the gold price clearly showed that greater fluctuations of a price nature now exist. Thus, August saw a new record high, but at the same time the price was below USD 2,000. As investors should focus on medium to long-term investments in precious metals, the price fluctuations should not be taken too seriously.
It means keeping your nerves. Because in the opinion of Degussa's experts, the fundamental drivers remain intact in the future and a further increase in precious metal prices is expected there. They forecast a gold price of around 2,550 US dollars per ounce for mid 2021. In the case of silver, the price could rise up to US$48 per troy ounce, according to Degussa. This assumes that monetary policy will remain loose and that the global Fiat money system will continue to exist.
Loose monetary policy will further reduce real yields. And the new debts in the USA will weaken the US dollar, while at the same time strengthening gold and silver. Gold bars and coins are being ordered in the US and Europe at the highest level since 2016. And more and more investors are getting involved in gold and silver ETFs. The value of gold and silver remains and an investment in precious metal companies should be a good way to profit from the value retention. For example through an engagement in Caledonia Mining or Revival Gold.
Caledonia Mining is on course for success with its Blanket gold mine in Zimbabwe: https://www.commodity-tv.com/play/special-news-with-chart-analysis-on-gold-and-silver-and-mining-news/. Production is increasing, as are profits, costs have been reduced and acceptance is high thanks to local investors.
In Idaho, Revival Gold has the right to acquire a 100% interest in the Beartrack and Arnett Gold Projects, both located in Idaho: https://www.commodity-tv.com/play/revival-gold-drill-program-starting-in-august-pea-coming-by-end-of-2020/. The properties host the second largest known gold deposit in Idaho.
Current company information and press releases from Caledonia Mining (https://www.resource-capital.ch/en/companies/caledonia-mining-corp/).
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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