Gold and silver price rises
U.S. bond yields are falling, and the weakness of the U.S. dollar is also causing precious metal prices to rise, as the price of silver has also increased. With the high inflation rate of 4.2 percent in the U.S., real interest rates have gone down again. So overall inflation is now higher than it has been since 2008. Producer prices in the U.S. have also risen by 6.2 percent over the year, more than ever before. The FED's reluctance to raise interest rates should have a positive impact on the price of gold.
The main question for investors is whether inflation will persist or whether there will still be global supply chain implications from the Covid 19 pandemic. If inflation persists for longer, then the U.S. Federal Reserve faces a decision that is not easy. Namely, whether to fight inflation with higher interest rates. In this context, it is interesting to note that billionaire Sam Zell is now buying gold after years of criticizing gold investors. According to Zell, the current monetary policy could lead to inflation as it did in the 1970s, and gold could be a hedge.
Another good sign for a further rising gold price are the net long positions of investors, which have been rising for days and this had not been the case for months. The importance of gold as an investment is therefore increasing and the chart technicians are also positive. The big correction that started last year is now probably over.
So, the prospects are good for companies like Vizsla Silver - https://www.youtube.com/watch?v=ug3uoh8GQfk - with its promising silver-gold project in the Panuco district in Mexico. The well-known investor Eric Sprott has taken a stake in Vizsla Silver.
Adventus Mining - https://www.youtube.com/watch?v=ug3uoh8GQfk - is also betting on gold, and also owns copper in its three projects in Ecuador. Also owned by the company is an exploration portfolio in Ireland.
Current corporate information and press releases from Vizsla Silver (https://www.resource-capital.ch/en/companies/vizsla-silver-corp/) and Adventus Mining (https://www.resource-capital.ch/en/companies/adventus-mining-corp/).
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