Rich people will bet on gold
Billions would flow into the gold market if current assets were restructured. But if few sell the precious metal, this additional demand meets little supply - the price rises. And if gold owners expect the price of the precious metal to rise, they will continue to sell less quickly. A self-fulfilling prognosis. The price of gold will rise. But where could new demand for gold always come from?
The major Swiss bank UBS and the management consultancy PwC have recently published their study on billionaires (Billionaires Insights Report). The study revealed that the wealth of billionaires had jumped to a new all-time high by July 2020. This after two years of declining wealth. According to the report, the 2,189 billionaires surveyed own around USD 10.2 trillion worldwide.
There was a clear upward trend, especially in the group of innovators in the fields of technology and health. But slowly, high-tech stocks are beginning to seem expensive, especially on the stock markets. Investors in these sectors and also the well-heeled owners are likely to slowly but surely seek diversification in these uncertain times. There is not much choice if it is to be as safe as possible as an investment and as far away from possible state repression as possible.
Gold and, with some limitations, possibly crypto currencies can help. Because gold is for many centuries a stronghold of security and can preserve quasi acquired purchasing power over longer time. Bitcoin and CO. must prove this only still. Also shares of gold enterprises could come with the diversification into the focus of the super-rich ones. Even if they will not profit directly from their increased demand, they will benefit from the gold price, which will continue to rise. Because they have a lever to the top.
Interesting companies with promising gold projects include Fiore Gold and Aztec Minerals.
Aztec Minerals focuses on properties in North, Central and South America. Its flagship project is the Cervantes gold-copper concession in Sonoro, Mexico. Initial drill results returned 0.94 grams of gold and 42.1 grams of silver per tonne of rock.
Fiore Gold, with its Pan gold mine in Nevada, has recently become a gold producer. However, attention is also focused on other gold projects, such as the Gold Rock project. This is therefore an emerging gold company.
Current company information and press releases from Fiore Gold (https://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.
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