According to the World Gold Council, gold scores in many ways. It serves as an investment, a luxury good, a technological component and a reserve asset. Gold also offers many advantages, it provides liquidity, is a scarce commodity and has lost none of its value over the course of history.
Lucrative investments are not easy to accomplish in the last ten years. Since the global financial crisis and today with the low interest rates, the challenges for investors have grown. Geopolitical uncertainties and trade tensions, such as between China and the USA, are dominating events. Both institutional investors and ordinary citizens are increasingly recognizing the important role of gold. For example, per capita gold consumption in Switzerland and Germany is one of the highest.
Among the gold buyers are also the central banks, especially in 2019 and also in 2020 the Turkish central bank. After the USA and Germany, Italy, France and Russia own the most gold. Most of it is stored underground. Overall, the central banks have secured a fifth of approximately the gold produced to date.
When gold reached its peak price this year, some of the central banks sold gold. The Russian bank, for example, has been a stable gold buyer for many years. Turkey and also India probably have the weakness of their currencies as a reason for their gold purchases. With the current loss in value of our currency, an investment in gold shares should be considered. Here, for example, OceanaGold - https://www.youtube.com/watch?v=pFJ3OgGjwJ0 - would come into question.
With OceanaGold, a medium-sized gold producer is brought into the depot. The company will pull approximately consolidated 345,000 ounces of gold from the ground this year with its gold projects in the U.S. and the Philippines.
Karora Resources - https://www.youtube.com/watch?v=pdyMgbsAR-E&t=257s - is also a very interesting gold company and is also already a gold producer. The Beta Hunt and Higginsville gold mines in Western Australia are expected to yield an estimated 90,000 to 95,000 ounces of gold in 2020.
Recent corporate news and press releases from OceanaGold (https://www.resource-capital.ch/en/companies/oceanagold-corp/ ) and Karora Resources (https://www.resource-capital.ch/en/companies/karora-resources-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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