High inflation and gold
High inflation and gold
Commodities, especially gold, act as a shield against inflation. This is shown by history.
If inflation was high, commodities usually increased in value. Gold became more expensive in times of high inflation. The recovery phase for gold could therefore continue. In the 1970s, for example, inflation was particularly high, and gold became much more expensive then. Therefore, the focus is on the central banks and their decisions. Because rising inflation can influence decisions. In the U.S., core inflation in June is higher than it has been in decades. Consumer prices are currently up 5.4 percent year-on-year. High transportation and oil prices, as well as high prices for used cars and trucks, are also having an impact here. If this remains the case, which must be assumed, then the strong inflation is likely to continue and will not be a temporary phenomenon.
The arguments the Fed will continue to use to insist that inflation will soon subside again will be exciting. Even if the Fed curbs its purchases, this is not yet the end. If costs rise, wages would have to rise as well, in which case inflation would take hold and not disappear so quickly.
The situation in Europe is similar to that in the USA. Inflation figures are mostly higher than expected, for example in the UK. Since gold protects against inflation, gold companies should also take notice. Canagold Resources - https://www.youtube.com/watch?v=BKl6AzgvvLU - is a gold-focused junior development company with two mines under development in Canada and the U.S., as well as exploration properties.
In British Columbia, this includes the high-grade, past-producing New Polaris gold project.
In California, Kore Mining - https://www.youtube.com/watch?v=CmhhvlWgTdw - is underway with its Long Valley and Imperial projects. Positive economic assessments have already been received for both.
Latest corporate information and press releases from Kore Mining (www.resource-capital.ch/en/companies/kore-mining-ltd/).
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