How the World Gold Council sees the future of the gold price
Global economic growth will be slow to recover. The more stable price development since August will drive even more consumers to gold. Jewelry demand, which has fallen sharply in some cases, should recover in China, which is already growing again. The important Indian market also seems to be regaining strength. Even though demand for the precious metal was still below average there in November, initial data from the Dhanteras Festival was positive. Accordingly, demand for gold has recovered from the lows.
Gold will also be ordered by central banks, in larger quantities according to the World Gold Council. That's because central banks continue to prefer gold as part of their reserves. And gold is particularly attractive because of the low interest rate environment. As the world gradually recovers from the pandemic, it supports the jewelry sector, the technology sector and also long-term savings. Weak economic growth, on the other hand, usually leads to increased investment demand for gold as a safe haven.
Not to be forgotten is the great investor interest. Last year, the amount of gold held by index fund providers rose by 860 tons to 3,600 tons. And according to the World Gold Council, investor interest in this area is expected to remain high in 2021.
Rising gold demand naturally also benefits the gold companies. Those who want to invest here and are looking for diversification should look at Osisko Gold Royalties or GoldMining.
Osisko Gold Royalties - https://www.youtube.com/watch?v=B3xNEYLZvMA, as a royalty company, provides royalty and precious metal off-take interests in approximately 140 projects.
GoldMining owns a large number of gold projects and has established its own royalty company, Gold Royalty Corp.
Current corporate information and press releases from Osisko Gold Royalties (https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/) and GoldMining (https://www.resource-capital.ch/en/companies/goldmining-inc/).
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