Gold consolidation brings opportunities
Who would have thought three months ago that a gold price of 1950 US dollars per ounce (31.1 grams) would be seen as an opportunity to buy more? At that time, the precious metal was still trading at around 1750 dollars and had already completed a rally. But then everything went very quickly once again. Corona worries, trump squabbles, other geopolitical tensions and especially the fear of increasingly negative real interest rates drove investors into the safe haven of gold
This phase will be able to continue for years, many experts already say. After all, the highly indebted countries in particular cannot afford high interest rates. Since the USA is also at the forefront of this trend and US interest rates worldwide are strongly influenced by the US dollar, this will remain the case for a long time. On the other hand, inflationary pressure is likely to increase. Because a lot of new money is being created, which will lead to currency devaluation.
In addition to the gold price, gold company shares will benefit from a rise in the gold price. Whether the price of gold will pick up again from 1950 dollars or only from 1850 dollars is irrelevant in the long term, at least if the experts' forecasts prove correct that gold will rise to 3000 or 4000 dollars. Stocks of fundamentally good companies with gold projects such as Sibanye-Stillwater or Trillium Gold Mines could then prove to be a perfect addition to your portfolio.
Sibanye-Stillwater - https://www.commodity-tv.com/play/sibanye-stillwater-company-teaser-2019/ - is not only a major platinum and palladium producer in South Africa and the USA, but also a major gold producer. Also as a result of the higher gold price, revenues in the first half of 2020 were around 134 percent higher than in the same period of the previous year, despite corona.
Trillium Gold Mines - https://www.commodity-tv.com/play/trillium-gold-gold-explorer-with-5-projects-in-red-lake-ontario-canada/ - is focused on the exploration and development of properties in the Red Lake mining district of Ontario. The highly prospective Leo Project is located 35 kilometres away, but only 15 kilometres from the famous Dixie Project
Latest company information and press releases from Sibanye-Stillwater (https://www.resource-capital.ch/de/unternehmen/sibanye-stillwater-ltd/ ) and Trillium Gold Mines https://www.resource-capital.ch/de/unternehmen/trillium-gold-mines-inc/).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the companies addressed in each case and that there is therefore a possible conflict of interest. No guarantee for the translation into German. Only the English version of this news is valid.
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