Inflation was long said to be no threat to the recovery of the U.S. economy. But the Fed does not seem to have inflation entirely under control. Currently, the International Monetary Fund (IMF) is warning that prices in the U.S. will continue to rise. A surge in economic activity is boosting trade, but the risk of rising and prolonged inflation cannot be dismissed. According to IMF chief Kristalina Georgieva, a tightening of U.S. monetary policy may soon be necessary. The situation is similar in some other countries. "Higher interest rates could pose significant challenges" for countries with elevated debt levels or large external financing needs, the IMF chief said.
The Western world is led by the Fed, and as long as the economy is stimulated with artificially low interest rates, one thing is clear: For the economy to function normally again, interest rates must rise. However, a significant increase in interest rates would slow down economic growth, and the U.S., with its immensely high mountain of debt, is unlikely to raise interest rates anytime soon.
This leads to the conclusion that the prospects for the gold price are still excellent, because the world's most durable store of value cannot be replaced by anything else and will continue to serve its purpose. To participate in a strong or rising gold price, an investment in gold companies is to be considered.
In Durango, Mexico Chesapeake Gold - https://www.youtube.com/watch?v=KMo4yB9qHYc - is present with its main project, the Metates project. This is one of the largest undeveloped gold-silver-zinc deposits in North, Central and South America.
Also in Mexico, Tarachi Gold - https://www.youtube.com/watch?v=CmhhvlWgTdw - is operating in the famous Sierra Madre gold belt. Its neighbors are Alamos' Mulatos mine and Agnico Eagle's La India mine.
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