The notification of the corona vaccine and the effects
Stocks rose, especially those of the $200 billion company Pfizer. The price of crude oil also rose significantly. The gold and silver prices, however, went down. No sooner had the gold price reached its highest level since September, at $1,965 per troy ounce, than it went down after the vaccination announcement.
A snapshot. But investors could be wrong. With the victory of Joe Biden the gold price rose. The planned economic stimulus program will further increase the immense debts of the USA. Interest rates will remain at a low level for a long time to come, and the resulting monetary devaluation will continue. To counteract this monetary devaluation, investors will enter the safe haven of gold - even after the vaccine has been announced.
In recent months, the price of gold has been rising because so much money has been spent. Thus, in nine weeks (March 9 to May 11), the FED increased the money supply by $2.3 trillion. This can no longer be reversed. And the more money is created, the less it is worth, according to the quantity theory of money.
It should also not be forgotten that the ECB could already come up with new measures in December, because the consequences of the Corona crisis cost money. And that will ultimately drive the gold price up again and please gold investors. Even those who bet on the values of gold companies such as Bluestone Resources or OceanaGold.
Bluestone Resources has consistently reported excellent drill results from its Cerro Blanco gold project in Guatemala (recently reported 674.8 grams of gold and 2,863 grams of silver per tonne of rock over 1.1 metres). Total production costs are estimated at a low $579 per ounce.
With gold mines in New Zealand, the USA and the Philippines, OceanaGold is one of the medium-sized producers. For the full year 2020, production of at least 345,000 consolidated ounces of gold is expected.
Recent corporate news and press releases from Bluestone Resources (https://www.resource-capital.ch/en/companies/bluestone-resources-inc/) and OceanaGold (https://www.resource-capital.ch/en/companies/oceanagold-corp/).
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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