Two percent is not the end
Inflation looms. This should give investors and savers food for thought
Receive up-to-date information about the company directly via push notification
"With an increase of 0.8 percent on the previous month and 1.0 percent year-on-year, the rise in consumer prices in Germany in January was surprisingly significant," Carsten Mumm, chief economist at the private bank Donner & Reuschel, begins his market commentary for January. According to the economist, foodstuffs in particular have become more expensive, whereas energy has had a dampening effect. However, this dampening element has already disappeared again.
The oil price is rising. Admittedly, this will again only be a base effect. But coupled with other developments in the economy, the outlook should give investors and especially savers food for thought. After all, over the course of the year, an unwinding of the consumption backlog could have an "inflationary effect," as Mumm describes it. Industry and the transport sector are also likely to pass on higher costs due to rising capacity utilization.
The two percent target for monetary depreciation - to call inflation by its proper name - is likely to be exceeded quickly. But this will hardly prompt the central bankers to turn the interest rate screw. The economy is still too fragile, and low interest rates and liquidity need water like flowers in the garden. So, demonetization will be the fate of savers in the next few years.
But there is a way out of this mess that has been tried and tested over thousands of years: gold. Many studies have shown that the precious metal and also its little brother silver have maintained their purchasing power over the long term, unlike the dollar, the deutschmark, the euro, the pound and the yen. In the fiat, i.e. only paper-backed, currencies, the price of the precious metals should therefore go up to compensate for devaluation. Who wants to use even a lever on the rise of the precious metal prices, puts as addition a few fundamentally good shares of enterprises with precious metal projects into the depot. Examples include Kore Mining and Skeena Resources.
Kore Mining - https://www.youtube.com/watch?v=Ib5kfm-19Mk - has spun off its projects in British Columbia (FG Gold and Gold Creek) into the new Karus Gold. Kore Mining itself will take care of projects in California (Imperial and Long Valley).
Skeena Resources - https://www.youtube.com/watch?v=AS9q0qP6jl0 - is working to revitalize the formerly producing Eskay Creek and Snip mines in British Columbia's Golden Triangle.
Latest corporate information and press releases from Kore Mining (https://www.resource-capital.ch/en/companies/kore-mining-ltd/) and Skeena Resources (https://www.resource-capital.ch/de/unternehmen/skeena-resources-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/