Gold shares - just before sunrise
Especially the activities of the FED should now prove more favourable than ever for the price of the precious metal. The FED said that it would buy assets in the necessary amounts to support the smooth functioning of the market and an effective monetary policy. The purchase of corporate bonds is new. Never before has the FED been in such a massive buying frenzy. The FED has already bought more in just three weeks than in the worst twelve months after the financial crisis.
A second point that should have a price-increasing effect on gold is the enormous budget expenditure that the USA is facing - a deficit that is getting bigger and bigger. The expenditure is expected to be significantly higher than during the Second World War. So, there are two reasons why gold could soon approach its all-time high.
It is time to think about investments in gold stocks. As recently analysts from BCA Research so aptly said, "the darkest hour is always before sunrise". And that's where we could be right now. The analysts now recommend buying stocks again.
Even if interruptions are currently being experienced in some mines, this does not detract from the inherent quality of a project or company but is a temporary situation due to Covid-19.
For example, Cardinal Resources' - https://www.commodity-tv.com/play/cardinal-resources-road-to-gold-production-in-ghana/ - Namdini project in Ghana, West Africa, is of high quality, even though the work has just been reduced somewhat. A feasibility study has been completed.
Gold production continues at the Blanket Mine of Caledonia Mining in Zimbabwe - https://www.commodity-tv.com/play/newsflash-with-osisko-gold-royalties-gold-terra-resources-and-caledonia-mining/ - as a result of an exemption granted by the government. This is because the company, which has been producing successfully for years, has been able to demonstrate "social distancing".
Current company information and press releases from Caledonia Mining (https://www.resource-capital.ch/en/companies/caledonia-mining-corp/).
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.
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