Gold is insurance
Alan Greenspan made his statement about gold in the context of a reintroduction of the gold standard that was worth considering (the gold standard tied currency to the quantity of gold but was abolished in 1973). However, the underlying thoughts about the value of gold always apply. Gold has intrinsic value, thus differs from fiat currencies. Therefore, the precious metal is better suited for financial hedging than paper money. And a rise in inflation is usually associated with rising gold prices.
Therefore, an investment in gold acts like an insurance policy, whereby it is not about short-term profit, but about long-term protection, Greenspan said. Today, money can be printed permanently, since currencies are unbacked, an equivalent value is not necessary and is no longer tied to a gold standard. Sometimes the gold price is also compared to a clinical thermometer. If it rises, i.e. the gold price, then it can be assumed that things are not going well with the financial system at the moment.
Especially against negative real interest rates, gold serves as a hedge. And the state of the financial system can also be seen in the banks' rising penalty interest rates. The number of banks charging customers negative interest rates has increased tenfold in the last two years. Just in the current year, another 150 or so banks have been added to the list. But there is not always an exemption amount. So, it is better to invest part of your assets in gold or gold shares. For example, stocks such as OceanaGold or Kore Mining are recommended.
OceanaGold - https://www.youtube.com/watch?v=ksz9TG59tQk - produces gold successfully and has in its portfolio the Didipio mine in the Philippines, the Macraes and Waihi projects in New Zealand and the Haile gold mine in the USA. The importance of management can also be seen in the two new additions to the board of directors and the resulting increase in the share price.
Kore Mining - https://www.youtube.com/watch?v=SCqXqX-wJ0o - owns the Imperial and Long Valley projects in California. Both have positive economic valuations.
Current corporate information and press releases from OceanaGold (https://www.resource-capital.ch/en/companies/oceanagold-corp/) and Kore Mining (https://www.resource-capital.ch/en/companies/kore-mining-ltd/).
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.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also