Performance of gold - "money park fee" threatens
Gold is money. Since 2000, gold has gained an average of around 10 percent in value, since 2019 around 19 percent, and since the beginning of 2020 the gain has been around 29 percent. The old high has been surpassed. Among the declines in value, 2012 stands out with 27 percent or 2016 with 11 percent. If the price of gold drops once, this should not bother gold fans with a long-term orientation or serve as an entry opportunity.
But gold has proven itself over centuries and millennia as a proven means of protecting and building up wealth. Due to Covid-19, the gross domestic product, i.e. the economic output of an economy, will probably continue to decline. In addition to the low or negative interest rates, we may now be faced with the "money park fee". And this just from a bank (with three letters), which always advertised with high interest rates.
So it is not surprising that the demand for physical gold is strong. Global monetary policy is causing concern, because if money supply continues to grow, currencies and confidence in them will weaken. This is because purchasing power is declining. All the more the safe haven gold attracts investors to its shores.
The price boom in gold should therefore not be over for a long time yet. High-quality gold shares such as those of Corvus Gold or Ximen Mining should therefore be worthwhile as an investment opportunity.
Ximen Mining owns three gold and silver precious metals projects in British Columbia (Amelia, Brett, Treasure Mountain): https://www.commodity-tv.com/play/ximen-mining-corporate-update-august-2020/. There is also an option agreement to acquire the Kenvielle Mine in British Columbia.
Corvus Gold has the Mother Lodge and North Bullfrog prospective projects in Nevada in its portfolio: https://www.commodity-tv.com/play/corvus-gold-update-on-drill-results-at-mother-lode-and-new-phase-1-plan/. A major asset is the Company's significant water rights in the area.
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.
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