Gold and silver as crisis hedging
Gold has impressively returned as the crisis metal in the Corona crisis. Surprisingly, this is shown by the fall in the price of gold in the course of the sell-off on the stock markets. This is because gold had already been at a higher level before and even in the days of the crisis it lost comparatively little. This meant that investors who needed liquidity could fall back on their gold treasures and obtain liquidity through gold sales. This will stick in the minds of investors worldwide and will revalue gold as a depository building block. In any case, gold has little or even negative correlation with other asset classes. This makes gold the natural hedge for moments of crisis.
The gold price should be supported by this, which should also give positive impulses to gold company stocks. An example of a promising gold company is Treasury Metals: https://www.commodity-tv.com/play/treasury-metals-new-c-zone-will-increase-production-and-resource-profile/. Treasury Metals owns the Goliath gold project in Ontario. It will not be long before production starts. More than 10 grams of gold per ton of rock have been identified.
Also, silver should not be forgotten as a metal of monetary value. For centuries silver has been used as a currency and thus as a means of payment. For centuries the price ratio to gold was 20 rather than more than 100 as today. Thus, silver should have a catch-up effect. Silver companies could therefore attract new groups of investors. From today's perspective, Discovery Metals has a good risk/reward ratio. Discovery is working on its Cordero project in Mexico, which covers around 35,000 hectares of land: https://www.commodity-tv.com/play/newsflash-with-discovery-metals-aurania-resources-and-corvus-gold/.
Current corporate information and press releases from Discovery Metals (https://www.resource-capital.ch/en/companies/discovery-metals-corp/) and Treasury Metals (https://www.resource-capital.ch/en/companies/treasury-metals-inc/).
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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