Low interest rates will remain for a long time - and support the gold price
The decisions of the European Central Bank are always taken into account, as they show where the gold price will go
Receive up-to-date information about the company directly via push notification
The ECB has confirmed further expansionary steps in its recent Council meeting. The PEPP program will be increased by 500 billion euros to 1,850 billion euros. PEPP stands for Pandemic Emergency Purchase Programme, meaning the purchase programme for bonds issued by public and private borrowers. Originally estimated at 750 billion euros, the sum was increased several times.
The program will run until at least the end of June 2021, or should the critical Covid 19 period last longer, even beyond that date. The demand for government bonds is secured by the PEPP program. In particular, the southern countries of the euro zone, which have been hard hit by the pandemic, are to receive help from this program.
For the ECB, the level of inflation has always been important. The inflation target of just under two percent is far from being reached. An inflation rate of 1.0 percent is expected for 2021, 1.1 percent for 2022 and 1.4 percent for 2024. An above-average economic recovery is expected for the coming year. These predicted inflation figures could be somewhat higher as a result of this and the further increase in money supply. In any case, the low interest rates will not change for some time to come, which in turn will strengthen the price of gold.
This in turn strengthens gold companies such as Aztec Minerals or Fiore Gold.
Aztec Minerals - https://www.youtube.com/watch?v=0zdssjRMDoA&t=6s - operates the Cervantes gold-silver project in mining-friendly Sonora, Mexico, as well as the historic Tombstone Gold Project, which also contains silver, zinc, lead and copper.
Fiore Gold - https://www.youtube.com/watch?v=D1s2gzRm4Sc&t=1s - produces more gold each year at its Pan Mine in Nevada. Fiore Gold's nearby second project is the Gold Rock Gold Project. The feasibility study is expected to be completed in mid 2021.
Current company information and press releases from Fiore Gold (
www.resource-capital.ch/en/companies/fiore-gold-ltd/).
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.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also
applies: https://www.resource-capital.ch/en/disclaimer/