New interest in gold
China has also joined the gold rush of various central banks in the last two months. According to the World Gold Council, in 2018 the central banks reached their highest annual volume since 1971 with the quantity of gold bought. In 1971 the then President Richard Nixon had abolished the direct international convertibility of the US dollar into gold.
In 2018, central banks that were not previously buyers, such as Poland, Hungary and India, also arrived. In January 2019, besides China, Russia (six tonnes) and Kazakhstan (around three tonnes) and various other central banks also increased their gold reserves. What's the matter with you? Security and liquidity are the magic words.
An agreement in the trade conflict between the USA and China has not yet really been reached, even though President Trump speaks of great progress and this is not the only crisis that dominates economic events. One factor that is currently driving gold prices higher is ETF investor buying. They bought a massive 70 tons of gold in January alone.
Private investors should also see gold as an insurance against financial and currency crises as well as a means against the inflation of paper money caused by the central banks. The shares of gold companies that convince through good projects, performance and good management should not be missing in any well-mixed investment. One might think of Caledonia Mining or TerraX Minerals.
With its blanket mine in Zimbabwe, Caledonia Mining is one of the largest gold producers in the country - https://www.commodity-tv.net/c/search_adv/?v=298787. With the current participation of 49 percent, perhaps soon 64 percent and with the support of local investors, production is successful.
TerraX Minerals - https://www.commodity-tv.net/c/search_adv/?v=298857 - is located with its Yellowknife City gold project in one of the best gold areas in the Canadian Northwest Territories, which also boasts excellent mining conditions. The company is not yet producing, but drilling has yielded up to 63 grams of gold per ton of rock.
Latest company information and press releases from Caledonia Mining (https://www.resource-capital.ch/en/companies/caledonia-mining-corp.html) and TerraX Minerals (https://www.resource-capital.ch/en/companies/terrax-minerals-inc.html).
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