Gold against risks to financial stability in the eurozone

Gold against risks to financial stability in the eurozone

Global trade conflicts loom. Global growth, inflation and asset prices are not looking good.

Central Bank President Christine Lagarde is worried about the future. Sluggish growth, geopolitical uncertainties and the national debt of some countries in the eurozone are the cause. There are excessive valuations on the equity and corporate bond markets. Corrections would be possible. According to forecasts, things look good for the future gold price. The UBS experts see a price of USD 2,900 per troy ounce of gold by the end of next year. For the end of 2026, UBS sees a price of 2,950 US dollars. Global uncertainties will support the gold price, according to the forecasts. It is the Fed's interest rate changes and the high demand from central banks that will make the precious metal more expensive. An increase in ETF holdings backed by physical gold is also expected.

The central banks have been reducing their gold reserves for many years, but today they are increasing their gold treasures again and taking a long-term view. The USA is accumulating endless debts and so they want to protect themselves against the depreciation of the US dollar. And history has shown that currencies have always lost value since Roman times. Gold and silver, on the other hand, act as a currency buffer. US government bonds are exchanged for gold. Private investors should do the same as the central banks. Overall, central banks today own around 17 percent of all the gold that has ever been mined. If you invest in gold shares, a rising gold price can increase profits. Some companies also pay dividends, an additional source of income. Investors who invest in royalty companies such as Gold Royalty or Osisko Gold Royalties receive a kind of risk diversification.

Gold Royalty - https://www.commodity-tv.com/ondemand/companies/profil/gold-royalty-corp/ -, active in South and North America, focuses on precious metals. The company posted record sales in the first nine months of 2024.

Osisko Gold Royalties - https://www.commodity-tv.com/ondemand/companies/profil/osisko-gold-royalties-ltd/ - focuses on gold and copper in North America. It shines with a royalty on the Canadian Malartic Complex, one of Canada's largest gold mines.

Current corporate information and press releases from Osisko Gold Royalties (https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/ ) and Gold Royalty (https://www.resource-capital.ch/en/companies/gold-royalty-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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