Gold and royalties - a powerful combination
Further monetary policy measures are expected. Impending job losses and companies that become insolvent could be imminent. Especially the gold companies are convincing with increasing profits and solid cash flows. Headwind could come from a perhaps strong US dollar, but if you look around at renowned gold experts, you can see what an excellent future is generally expected for the gold price.
The low real interest rates will probably remain for a long time to come and bonds have lost their appeal. Thus, investors seem to be increasingly focusing on gold investments. And should the pandemic continue to have a firm grip on us, this would be another factor that would have a positive effect on the price of gold.
If the investor wants to focus on diversification and not just on a company with one or two projects, then an investment in royalty companies should be considered. This is because royalty and streaming companies on the one hand offer profits when precious metal prices rise, and on the other hand the operational risk is lower with them. This is because this risk is borne by the company that operates the mine.
For example, Osisko Gold Royalties has a large portfolio of investments. These include the participation in the Malartic Mine, Falco Resources and diamond mines. The Cariboo gold project in Canada is owned by Osisko Gold Royalties.
With GoldMining, we are adding a company to our portfolio that has a number of solid gold and gold-copper projects. In addition, GoldMining has recently established its own royalty company.
Recent company information and press releases from GoldMining ( https://www.resource-capital.ch/en/companies/goldmining-inc/) and Osisko Gold Royalties ( https://www.resource-capital.ch/en/companies/osisko-gold-royalties-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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