What chicken has to do with the price of gold
The Times recently quoted Chicken King. Indeed, it warned that food prices could reach double-digit inflation. That's because margins in many industries have been and continue to be razor thin. It's a similar story in mining, where metal prices are often below the longer-term cost of using them. Britain's biggest chicken producer, Ranjit Boparan, also believes food is too cheap. Now input costs - the price of gas, electricity, transport and labour - are rising, as is chicken feed. That's because after the global financial crisis, many input costs were simply too low because competition was strong, and margins were low.
Then came Corona. With it, workers' expectations shifted. Better conditions and better quality are in demand. Just think of the lack of truck drivers, as many have given up on this profession. The overall conclusion is that prices will rise due to higher input costs. Only time will tell if this means inflation will be sustained or temporary. In any case, consumers should be prepared for higher prices and possible shortages of some goods. Another aspect is the still low wages in China. If workers there demand higher wages and better working conditions, this could lead to a new or additional inflation cycle. To guard against these looming possible scenarios, one can only be advised to hold some investment assets in the form of gold and gold stocks.
There is Karora Resources - https://www.youtube.com/watch?v=AXodgyUEKMc -, a successful gold producing company in Western Australia. The projects are called Beta Hunt and Higginsville. By 2024, gold production is expected to grow to 200,000 ounces.
Victoria Gold - https://www.youtube.com/watch?v=oi0GmtOrxLM - has also been a producer since 2020. This is due to the Eagle gold mine in the Yukon.
Current corporate information and press releases from Karora Resuorces (www.resource-capital.ch/en/companies/karora-resources-inc/) and Victoria Gold (www.resource-capital.ch/en/companies/victoria-gold-corp/).
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