Gold price will continue to explode
Countries incur debts, do not balance their budgets and do not take all this seriously. That debts at some point require repayment is pushed far away. This paves the way for a further rise in the gold price. One representative of this thesis is James Dines. He is legendary because he made predictions that were very contradictory to other predictions, but still hit the mark.
Investments in gold are more important than ever, says Dines. And he refers to the national debt of the USA. On 31.12.2018, this amounted to around 22 trillion US dollars. This sum is composed of amounts directly attributed to government deficits, debt owed to persons outside the government and debt owed to the FED. In addition, there are debts from government agencies, such as the social security system.
The debt of the USA is now estimated at 78 percent of the gross domestic product. By 2030 the debt should amount to almost 100 percent of GDP and by 2048 about 152 percent of GDP. Because social spending and spending on health care are on the rise. In addition, expenditure on defence, education, etc. is causing debt to rise. Not to mention the interest payments on bonds. These are expected to increase by 186 percent to 929 billion US dollars annually by 2029.
Therefore, interest rates are to be pushed, quite clearly. Those who lend money, even in Germany, are punished with negative interest rates. Bond buyers will wake up and rethink. Government debt will continue to drive the flight into gold. It could be particularly worthwhile to invest in gold companies such as Aurania Resources or Bluestone Resources.
Aurania Resources' Lost Cities Cutucu project is located in southeastern Ecuador - https://www.commodity-tv.net/c/search_adv/?v=299249. Epithermals were found in 50 percent of the project area. These are premium gold and silver targets. Historical data speak for gold, silver and copper deposits.
Bluestone Resources - https://www.commodity-tv.net/c/search_adv/?v=299244 - is focused on its Cerro Blanco gold project and its Mita geothermal project in Guatemala. Drill results returned up to 22.4 grams of gold and up to 122 grams of silver per ton of rock.
Current company information and press releases from Aurania Resources (https://www.resource-capital.ch/en/companies/aurania-resources-ltd/) and Bluestone Resources (https://www.resource-capital.ch/en/companies/bluestone-resources-inc/).
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