IMF sees growing level of risk
The IMF points to the importance of short-term and long-term gold investments. As stocks fell recently, the price of gold rose. In particular, as the sell-off in equities widened, investments were made in gold, meaning that rising market risk goes hand in hand with a higher gold price.
A stronger headwind for the price of the precious metal means a rising US dollar. However, several risk measures must be taken into account. If these rise, the inclusion of gold in a portfolio is relevant from a tactical and strategic point of view. And the likelihood of global risk could increase as the weakness of some emerging markets - as well as problems in Turkey and Argentina - could widen even further. The recovery of the global economy was not uniform.
Industrialized countries have improved, but the IMF still sees an increased risk in the global economy. Long-term trade wars could also damage the global economy. Although the banks are more under supervision today than they were during the financial crisis, they are unlikely to be completely crisis-proof even now. In addition, the world's debt has exploded.
In any case, an investment in shares of gold companies should not be missing in any portfolio. Here Sibanye-Stillwater or Aurania Resources would be a possibility. Sibanye-Stillwater - https://www.commodity-tv.net/c/search_adv/?v=298572 - is not only a major platinum metal producer, but also one of the largest gold producers. With properties in the USA and South Africa, the Group increased sales by 24 percent year-on-year in the first half of 2018.
Aurania Resources - https://www.commodity-tv.net/c/search_adv/?v=298509 - can score with a particularly interesting project, the Lost Cities project in the Andes in southeastern Ecuador. Here, professional historical research is combined with state-of-the-art exploration work. Good drilling results are already available.
Current corporate information and press releases from Sibanye-Stillwater (https://www.resource-capital.ch/en/companies/sibanye-stillwater-ltd.html) and Aurania Resources (https://www.resource-capital.ch/en/companies/aurania-resources-ltd.html).
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