Gold price - 2020 and 2021
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Given the severity of the pandemic in the USA, hardly anyone had expected such positive data. The dollar exchange rate rose more strongly than many expected and because gold is traded in US dollars, this pushed the price of gold down. Even a corona vaccine, which is likely to be available soon, does not seem to be so beneficial to gold as a safe haven.
However, the following must be considered: The demand for the precious metal remains strong. Looking at the gold holdings contained in ETFs and ETCs, they have increased since August. Investor demand is therefore unbroken, even though there have recently been outflows from ETFs. And especially institutional investors such as insurance companies and so on can usually only buy gold in the form of ETFs and ETCs. In crisis situations this leads to demand for gold in the form of large amounts.
The money printing machines will continue to run, because according to the central banks there should be no defaults. Public debt is rising, and the purchasing power of the euro or US dollar and the other currencies is falling. Gold can counter this currency devaluation because gold does not lose value.
The major Swiss bank UBS expects higher gold prices for the first half of 2021 and then a consolidation in the second half of the year. According to UBS experts, this is when the growth prospects are expected to broaden, and the central banks are expected to adopt a more neutral stance. If, precisely because of the weakening gold price, values of good gold companies such as Aguila American Gold or Canarc Resource are favorable, an entry should be considered.
Canarc Resource has just received a permit for exploration work on its New Polaris Gold Mine Project in British Columbia. This is Canarc Resource's most advanced project of several gold projects in North America.
Aguila American Gold is focused primarily on the Wusa gold-silver project in Oregon. Four potential areas, with samples yielding up to 5.51 grams of gold per tonne of rock, are ready for drilling and offer great potential.
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