What moves gold and silver prices
What moves gold and silver prices
There are various theories on this subject. One of them relates the consumer price index to precious metal prices.
Changes in the consumer price index are known as inflation. Now consumer prices have gone up sharply. The gold price has not (yet). What is important here is the reason for the price increases. They are currently due to non-monetary factors, especially in response to the closures imposed by Corona. Punctual deliveries of products can no longer be relied upon. And prices are rising to ration the limited supply.
Now, there have been times when the prices of consumer goods and gold have risen at the same time. At other times, only the price of one moves, but not the other. Inflation always has different causes. Gold is not an ordinary consumer good, nor is it an ordinary commodity. Gold is not consumed. Gold, which has been mined by people for at least 5,000 years, is still in the hands of people and makes up a huge stock of gold. And so, gold defies standard methods of analysis such as supply and demand. There is a link between the price of gold and the U.S. dollar. Rising inflation fears are driving gold prices higher. Already, wholesale prices are nearly 17 percent higher than comparable year-ago levels. And in the U.S., not only the consumer price index but also the producer price index has risen upward. Gold should therefore continue to gain in attractiveness, and with it the values of the gold companies.
GCM Mining - https://www.youtube.com/watch?v=Njv4DJ24bHQ -, a mid-sized gold producer in Latin America, is a case in point. In particular, the high-grade Segovia property with several mines in Colombia makes the company the largest underground gold and silver producer there.
Also a solid producer is OceanaGold. Its projects are located in the USA, New Zealand and the Philippines.
Current corporate information and press releases from GCM Mining (www.resource-capital.ch/en/companies/gcm-mining-corp/) and OceanaGold (www.resource-capital.ch/en/companies/oceanagold-corp/).
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