Gold and black swans
The term was coined by Nicholas Taleb in his book "The Black Swan". He describes how people hardly include extremely improbable events in their considerations. Black swans were for example the Lehman bankruptcy or Fukushima. As a result, major distortions can arise on the financial markets. A one-sided focus on opportunities is therefore very risky.
Gold and silver as safe havens protect against black swans. If other assets are destroyed, the precious metals retain their value. The outbreak of the corona virus is also a black swan, the economic impact of which is not yet clear. Although many commodities are affected by COVID-19, precious metals traditionally remain the first choice.
The gold price has now reached a 7-year high of USD 1,613 per troy ounce. This despite a firm dollar and despite rising stock markets. Strong investment demand has also led to a new record high for the gold price in euro. And the more the corona virus affects the economy, the more likely it is that interest rate cuts and similar measures to get the economy back on its feet will follow.
An investment in gold stocks should be well considered but is certainly not the worst way to buy some security at the moment. Caledonia Mining or Fiore Gold are certainly among the values that have already proven their ability.
Fiore Gold produced approximately 41,500 ounces of gold at its Pan open pit mine in White Pine County, Nevada in 2019. Fiore also owns gold exploration projects in Washington (Golden Eagle), Nevada (Gold Rock) and Chile (Rio Loa property).
Caledonia Mining has gained great acceptance in the not so easy Zimbabwe through the participation of local investors: https://www.commodity-tv.com/play/newsflash-with-skeena-resources-caledonia-mining-copper-mountain-and-millennial-lithium/. The Blanket gold mine has been producing successfully for years, last year the gold production was more than 55,000 ounces.
Latest company information and press releases from Fiore Gold (https://www.resource-capital.ch/en/companies/fiore-gold-ltd/) and 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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