Geopolitical risks speak for precious metals
"Azerbaijan advances into Nagorno-Karabakh", "Turkey wants to send drilling ship on its way again", "EU sanctions Russians" - these are only three headlines from a daily newspaper in mid-October. If one looks further around, fire sources in the Middle East, quarrels in the South China Sea, border disputes between India and China and always Pakistan come to mind. Geopolitical risks exist around the globe. This can quickly lead to armed conflicts like the one in Nagorno-Karabakh.
We are not directly affected by this in the heart of Europe. But the feeling that there is a constant threat can already affect investors. If one does not live then anyway by the Corona mess as freely, as one would like, and mad news about US presidential elections on television run, then the urge for security grows. This is especially true for the savings at the moment. Because every geopolitical dispute, every economic obstacle caused by viruses and every unnecessary expenditure due to election campaigns increases the worldwide debt.
Sooner or later, therefore, state repression will increase sharply. What can then offer security is gold. For investors who do not immediately believe in the collapse of the financial system and the political framework, shares of companies in the precious metals sector can also make sense. Because with fundamentally good companies, the return could be even higher if the price of gold rises. Experience has shown that precious metal stocks rise disproportionately, especially during the peak phases of a precious metal boom.
Two companies with fundamentally good projects include Aurania Resources and OceanaGold. With its The Lost Cities Cutucu project in the Andes in Ecuador, Aurania Resources is focusing on former Spanish gold mines.
OceanaGold owns two gold mines in New Zealand and one gold mine in the USA. A gold-copper project in the Philippines is also being added. Strategic investments are also part of the portfolio of the medium-sized gold company.
Recent corporate news and press releases from Aurania Resources (https://www.resource-capital.ch/en/companies/aurania-resources-ltd/) and OceanaGold (https://www.resource-capital.ch/en/companies/oceanagold-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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